Payments
Merchant of record
Also known as MoR
A merchant of record is the entity legally selling a product to the customer and responsible for the transaction, including collecting and remitting sales tax and VAT. Using a merchant of record transfers global tax compliance from the seller to the provider.
In plain terms: A company that officially sells your product for you and handles the tax everywhere.
Why it matters
For a small software business selling to consumers across many countries, handing global VAT compliance to somebody else is often worth more than the higher percentage costs. The trade is less control over checkout, pricing presentation and customer data.
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