What a merchant of record actually does for you

“Merchant of record” gets thrown around a lot in payments, usually without much explanation. Here’s the short version: the merchant of record is the business legally selling the product to the customer. When that’s us, the tax, compliance, and payment liability that comes with every sale is ours — not yours.

Payment processor vs. merchant of record

A payment processor moves money from your customer’s card to your bank account. That’s it. You’re still the seller, so you’re the one who has to register for VAT in the EU, collect sales tax in US states where you have nexus, file returns, and handle chargebacks. A merchant of record takes on that seller role, so those obligations move with it.

What that means day to day

We calculate and collect the right tax on every transaction, in more than 100 countries. We file and remit it. We issue compliant invoices, handle refunds and disputes, and screen for fraud. You get a single payout and a single monthly statement instead of a tax registration in every market you sell to.

When you need one

If you sell software or digital products internationally and don’t have a finance team, a merchant of record is usually the fastest way to sell globally without the paperwork. If you only sell in one country, have a dedicated tax function, or need full control over the payment stack, a processor may be the better fit. We’re happy to talk it through — get in touch and we’ll give you an honest answer.