What is a Merchant of Record? A Complete Guide for SaaS Founders
Learn what a Merchant of Record is, how responsibilities differ from a direct payment provider, and what incorporated businesses should confirm during onboarding.
A Merchant of Record (MoR) is the legal entity that sells a product or service to the end customer. The MoR appears on the transaction record and assumes the responsibilities defined by the applicable contract and law.
For an incorporated business, choosing an MoR is not just a checkout decision. It affects tax handling, customer receipts, refunds, disputes, settlement reporting, and payout terms.
Merchant of Record vs Direct Payment Provider
A direct payment provider supplies payment infrastructure while your business remains the legal seller. A merchant of record becomes the legal seller for approved transactions and coordinates the related obligations under the agreed service terms.
The exact division of responsibility varies. Confirm it in writing during onboarding rather than relying on broad marketing claims.
Responsibilities to Confirm
Tax and Compliance
Confirm which party calculates, collects, reports, and remits applicable taxes. Country and product support should be reviewed before activation.
Customer Transactions
Confirm how the MoR appears on receipts, how refunds are handled, and which payment methods are supported for your approved business profile.
Structured Dispute Management
A clear dispute workflow should identify evidence requirements, deadlines, status, outcomes, and liability. Dispute results are never guaranteed.
Settlements and Payouts
Payout schedules, reserve terms, currencies, fees, and withholding conditions should be set during onboarding and documented in the approved account terms.
Pricing
Merchant-of-record pricing depends on the business profile and service scope. EXOS Pay uses custom pricing; request a quote during reviewed onboarding.
Who Can Apply to EXOS Pay?
EXOS Pay accepts applications from incorporated businesses. Every application is reviewed, and availability is limited to supported countries, products, currencies, and operating models.
Submitting an application does not guarantee approval or immediate activation.
Questions to Ask Any Merchant of Record
- Which incorporated businesses, countries, and product categories are eligible?
- What responsibilities does the MoR accept, and what remains with my business?
- Which regulated payment institutions and methods are supported?
- How are disputes managed and documented?
- What custom pricing, payout schedule, reserve terms, and currencies apply?
- What reporting is available for reconciliation and audit?
These answers should be documented before service is activated. Apply for reviewed onboarding →
Ready for reviewed merchant-of-record onboarding?
Submit an application for your incorporated business. Availability, pricing, and payout schedules are confirmed during onboarding.
Every application is reviewed