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Try demoA merchant of record (MoR) is the entity legally responsible for a sale: it processes the payment, collects and remits sales tax or VAT, and handles refunds and chargebacks.
When you sell through your own Stripe or PayPal account, you are the merchant of record and must handle tax registration and filing where you have obligations.
MoR services sell on your behalf instead. They take on tax compliance, usually for a higher fee per transaction.
Many SaaS businesses start as their own merchant of record and add a tax engine such as Stripe Tax to calculate tax at checkout.
Aikeedo sends payments to your own gateway accounts, so you are the merchant of record. Tax add-ons add tax lines at checkout and on invoices.
Discover more terms connected to this one
A payment gateway is the service that securely takes a customer’s card or wallet payment online and passes it to the banks for approval, such as Stripe, PayPal or Razorpay.
VAT on digital services is the value-added tax many countries charge on software and online services sold to consumers there, usually at the customer’s local rate, wherever the seller is based.
A chargeback is when a customer disputes a card payment with their bank and the bank reverses it, taking the money back from the seller and usually adding a fee.