A Merchant of Record (MoR) is more than just a payment handler, it’s the legal entity responsible for processing transactions, managing taxes, handling chargebacks, and ensuring compliance across markets. If your business sells online, understanding the role of an MoR is key to protecting your revenue and reducing risk. Let’s dive into some frequently asked questions.
1. What exactly is a Merchant of Record and how is it different from a payment processor?
A Merchant of Record (MoR) is the legal seller of record in a transaction. They handle payment processing and take responsibility for taxes, compliance, chargebacks and fraud. A payment processor simply moves money between buyer and seller without taking on legal or regulatory responsibility. Trustap is the merchant of record for its partners.
2. Do I need a Merchant of Record if I only sell in one country?
An MoR is vital if you sell across multiple countries, but it can still be hugely valuable if you only operate in one. An MoR handles payment processing and takes responsibility for compliance, chargebacks, and fraud, sheltering you from financial risk.
3. What are the risks of being my own Merchant of Record?
- Managing tax compliance across multiple jurisdictions
- Carrying full financial liability for chargebacks and fraud
- Navigating operational complexity (PCI DSS, multiple payment methods)
- Slower market entry due to regulatory hurdles
- Increased reputational risk if payment issues occur
4. How does a Merchant of Record help with tax compliance?
An MoR registers for and collects the correct taxes in each jurisdiction, applies the right rates at checkout, remits taxes to authorities, and stays on top of changing rules, ensuring you remain compliant without the admin burden.
5. How does a Merchant of Record protect my business from chargebacks and fraud?
Your MoR handles disputes end-to-end, represents your case, absorbs financial losses from fraud, and uses fraud prevention tools to protect you and your customers.
6. What should I look for when choosing a Merchant of Record partner?
- Market coverage in your target regions
- Strong compliance and tax expertise
- Proven dispute resolution processes
- Transparent pricing with no hidden fees
- Responsive support and smooth onboarding
7. How much does it cost to work with a Merchant of Record?
Pricing varies by provider, market, transaction volume and the plan you chose. Look for clear fee structures, upfront disclosure of costs (including dispute or currency conversion fees) and predictable pricing as you scale.
8. Can I switch to a Merchant of Record after starting as my own MoR?
Yes! Many businesses start on their own and later move to an MoR to reduce complexity. The process typically involves onboarding with the MoR, integrating their systems, and transferring compliance responsibilities.
9. How fast can I launch in new markets with a Merchant of Record?
With an MoR, you can often launch in days instead of months. They already have the local licensing and compliance frameworks in place.
10. How does Trustap’s MoR model work in practice?
Trustap manages the entire transaction process end-to-end, from payment collection to seller payout, while ensuring compliance, absorbing financial risks and providing seamless buyer–seller experiences. We make global selling simple, secure, and scalable.
As your Merchant of Record, Trustap manages the entire transaction lifecycle while shielding your business from legal and financial risks. Get in touch today to learn more.
