Merchant of Record
The Merchant of Record (MoR) is the entity that acts as the seller to the payment network and bears the legal and financial responsibility for a transaction.
Merchant of Record (MoR)
The Comerciante of Record (MoR) is the entity that appears on the buyer's credit card statement and acts as the seller to card networks, acquirers, and tax authorities. The MoR is responsible for refunds, chargebacks, VAT accounting, and compliance with card network rules.
On marketplaces, the question arises: Is the platform the MoR or the individual seller? In the classic agency model, the seller is the MoR — the platform only acts as an intermediary. In the MoR model, the platform itself acts as the seller, buying the goods from the Comerciante and selling them on to the end customer.
The choice of model has far-reaching consequences for accounting and VAT: in the agency model, the platform only pays tax on its commission. In the MoR model, it pays tax on the entire turnover and deducts the Comerciante's share as an expense. For most SME marketplaces, the agency model with split payment is the simpler option.
Merchant of Record examples
A marketplace uses the agency model: the seller's name appears on the buyer's credit card statement — the seller is the MoR.
A platform acts as the MoR: it buys goods from comerciantes and sells them to end customers under its own name. The platform name appears on the credit card statement.
In the event of a chargeback, the MoR is liable — if the platform is the MoR, it bears the risk, not the individual seller.
Merchant of Record FAQ
What is a Merchant of Record?
The Comerciante of Record (MoR) is the entity that appears on the credit card statement and bears the legal responsibility for refunds, chargebacks and VAT.
Is the platform or the seller the Merchant of Record?
That depends on the model. In the agency model, the merchant is the MoR. In the reseller/MoR model, the platform acts as the merchant of record and assumes full responsibility.
Which model is better for SME marketplaces?
For most SME marketplaces, the agency model with split payment is easier: the platform only pays tax on its commission, not the total turnover. The MoR model requires complete turnover accounting.
Who is liable for chargebacks in the MoR model?
The Merchant of Record is liable. If the platform is the MoR, it bears the chargeback risk. In the agency model, the Comerciante is liable as MoR, but the platform can have contractual recourse.
