What are the Benefits and Challenges of Using a Merchant of Record?

  • The Responsibilities and Services of Merchant of Record
  • The Benefit of Using a Merchant of Records
  • The Difficulty of Being a Merchant of Record

What Are the Responsibilities of an MoR

Processing online payments involves a lot of moving parts.

Merchant of Record Benefits

With MOR solutions, merchants can quickly sell online, accept online payments, and transact business globally by outsourcing their payment process.

Guaranteed Compliance

An MOR provides compliance security, so you operate without the extra task of checking all country-specific financial industry or privacy laws. This break can be a significant relief for anyone running a business and doesn’t have the time to check all the latest regulations. Opt for an MoR when you want to outsource the full liability for laws and regulations in the markets where you sell to.

One-Stop Solution to Multiple Problems

An MOR wears several hats for your business. You won’t need to bother with calculating the correct taxes, integrating multiple payment methods, paying different fees and commissions, dealing with consumer or business buyer regulations, chargebacks, handling currency conversion, or settling disputes, refunds, and chargebacks.

Entry Into Global Markets

More and more businesses emphasize customer experience because of the great value it provides to them.

Cost Saving Benefits

Using an MOR saves you the cost of paying an accountant or tax advisor to figure out your customers’ different country-specific tax laws and payment regulations, plus the additional cost incurred by customer support.

The Difficulty of Being a Merchant of Record

There are apparent reasons why small businesses may want to act as their own Merchant of Record.

1. Payment and Data Compliance

Card security compliance in the international game field can be risky unless you know your way around it. Unfortunately, these things are complex and do not get any easier as your business expands.

2. Merchant Account

To process card payments, you need a merchant account. Businesses that operate locally may experience significant success doing so. All that is required from them is simply getting in touch with an acquiring bank.

3. Tax Calculation and Remittances

After signing off contracts for currencies and payment methods for all your global customers, there’s also the issue of transacting taxes and remittances.

4. Local entity creation

Acting as your own MOR would require you to set up local business entities to manage tax registration, merchant accounts, payment relationships, and so on.


Providing a merchant of record services is certainly no easy task. Suppose you aren’t using a Merchant of Record service. In that case, you’re deciding to do the work yourself and, in essence, assuming all the liabilities, risks, and responsibilities that come with doing so.



Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
2Checkout (now Verifone)

2Checkout (now Verifone)

2Checkout (now Verifone) is the leading all-in-one monetization platform for global businesses built to help clients drive sales growth across channels.