Merchant of Record

The Merchant of Record (MoR) refers to the entity that is authorized to process customer payments for goods and services on behalf of a business. The MoR is responsible for transaction compliance, tax management, and risk mitigation.

They’re also accountable for any legal and financial liability related to the transaction. As such, the MoR takes on the relationship with the acquiring bank and payment processors and is the name that appears on the customer’s billing statement.

Selecting the right MoR is crucial for businesses, as it can impact the customer experience, the cost of payment processing, and the level of risk the business is exposed to.

The MoR typically handles various tasks such as processing payments, managing chargebacks, handling currency conversion, and ensuring compliance with local tax laws and payment regulations.

This can be particularly important for businesses that operate in multiple countries or regions, as it can help to navigate the complexities of different tax and legal environments.