Merchant of Record

Merchant of Record (MoR) is the entity designated as the legal seller of goods or services in an electronic transaction, taking responsibility for the fulfillment of orders and compliance with relevant regulations. MoR is the party recognized as the seller of record for a specific transaction, even if other entities may be involved in the transaction process, such as payment processors. From the moment a customer inputs their payment details to the point when the funds are deposited into the business’s bank account, the MoR guarantees precise and secure transactions. Additionally, it manages the processes related to refunds and chargebacks.

MoR is crucial for determining tax obligations, regulatory compliance, and liability in the event of disputes or issues related to the sale. Choosing the appropriate MoR model is essential for businesses engaging in cross-border transactions, as it impacts the legal and financial aspects of the transaction and ensures clarity in defining roles and responsibilities within the e-commerce ecosystem.