Merchant of record FAQs
What’s the difference between a merchant of record and a payment service provider (PSP)
The main difference between an MoR and a PSP is that a merchant of record handles your entire order process, which includes taking on the related liabilities, whereas a payment service provider only handles the transaction process – the part where money leaves your customer’s bank account and arrives in yours.
A PSP, like Stripe, doesn’t take on any of the financial or taxation responsibilities of the transactions you make through their gateway. An MoR takes care of all of them. Payment service providers are also only one part of your wider payments infrastructure; you’ll need to manage and integrate other (often costly) tools to build a sufficient billing stack.
What's the difference between a merchant of record (MoR) and a seller of record (SoR)?
The MoR handles payment processing and the related liabilities, while the SoR takes care of customer service, delivery, fulfillment, and customer support for the product or service being sold. The MoR is usually a third-party provider, and the SoR is usually the business that owns the product or service.
Is Stripe a merchant of record?
Stripe does not provide merchant of record services to users of their payment platforms or billing product. Stripe does operate as the business of record for marketplaces transacting using Stripe Connect.