Merchant of record Definition.
The entity that is legally the seller to the end customer: it collects payment, collects the VAT, takes on compliance, fraud, and chargebacks, and appears on the customer’s bank statement. Some companies (Paddle, app resellers) offer this model as a turnkey service to software vendors. Not to be confused with a PayFac, which facilitates the payment but is never a party to the sale.
See also
Where this term appears
GuidePayments in BrazilGuideCross-border acquiring around the worldGuideMandatory e-invoicing around the worldGuideMarketplaces and collecting payments on behalf of third partiesCourseAccepting payments in BrazilCourseOpening a new market: the payments playbookCourseAccepting payments in the UKCourseAccepting payments in MexicoCourseMaking subscriptions work internationallyCourseAccepting payments in Southeast AsiaCoursePayments in SaaS: billing, taxes, and retentionCourseAgentic payments: the fundamentals