Best Merchants of Record of 2025

Use the comparison tool below to compare the top Merchants of Record on the market. You can filter results by user reviews, pricing, features, platform, region, support options, integrations, and more.

Merchants of Record Overview

A merchant of record (MoR) is the business that takes responsibility for the entire financial side of a transaction when goods or services are sold. This includes things like processing payments, handling customer billing, and making sure taxes are collected properly. In addition to this, the MoR also takes on the legal side, ensuring that transactions meet the various regulations and requirements that can differ depending on the region or country. This is especially important for online businesses that deal with customers in different places, as the MoR can simplify complicated payment systems and make sure everything runs smoothly.

When a company uses a merchant of record, they essentially shift the burden of payment issues, such as chargebacks or fraud, over to that MoR. This means the MoR deals with customer complaints, refunds, and any problems that come up during the transaction process, protecting the seller from liability. By having an MoR in place, businesses can avoid the headache of managing complex payment systems and regulatory demands, giving them more freedom to focus on what they do best. It’s a practical solution that helps companies—especially smaller ones—stay efficient without getting bogged down by the messier side of online transactions.

Merchants of Record Features

1. Payment Processing: One of the most essential features of a MoR is handling payment transactions for your business. They’re the ones who make sure the money moves from your customers' accounts to yours smoothly. This includes everything from processing card payments to managing alternative methods like digital wallets or bank transfers.
2. Compliance and Regulatory Support: Keeping your business compliant with laws can be a challenge, especially when it comes to payments. MoRs ensure that all transactions follow the legal requirements, including things like the Payment Card Industry Data Security Standard (PCI DSS) and local tax rules. This minimizes the risk of legal troubles down the line.
3. International Payment Management: For businesses that sell internationally, MoRs can handle cross-border payments, manage multiple currencies, and deal with the complexities of global transactions. This feature removes the burden of worrying about how to collect payments from customers in different countries, with different currencies, and different financial systems.
4. Fraud Protection: MoRs implement advanced security measures to prevent fraudulent transactions. They use things like machine learning, transaction monitoring, and encryption to protect both the business and the customer from fraud, chargebacks, and identity theft.
5. Customer Support Handling: Your MoR typically manages customer service related to financial transactions. If a customer has an issue with a charge, refund request, or payment dispute, the MoR steps in to resolve it, saving your team from having to deal with those financial hiccups.
6. Tax Collection and Remittance: The MoR makes sure that taxes are handled properly. Whether it’s sales tax, VAT, or other local taxes, they calculate the right amount, collect it from the customer, and then remit it to the appropriate authorities. This ensures that your business doesn’t run into trouble with tax compliance.
7. Automatic Refunds and Returns: If a customer needs to return a product or get a refund, the MoR handles this process. They can set up automatic refunds, ensuring your business stays in good standing with customers by making returns simple and fast.
8. Chargeback Management: Dealing with chargebacks can be tricky. A MoR helps to minimize chargeback risks by identifying potentially fraudulent transactions early and responding to disputes on your behalf, which is important for maintaining a good relationship with payment processors and banks.
9. Subscription Management: If your business operates on a subscription model, the MoR will handle all the complexities of recurring billing. From managing renewals to offering discounts and changes to subscriptions, they ensure customers are billed correctly and that payment cycles are uninterrupted.
10. Flexible Payment Solutions: Different customers prefer different ways to pay. MoRs provide flexibility by offering a range of payment options, including credit cards, PayPal, digital wallets, and even regional payment methods that might be more popular in specific countries.
11. Financial Reporting: MoRs generate comprehensive reports that give businesses an overview of their financial transactions. These reports often include transaction histories, chargeback rates, and financial statements, making it easier for your finance team to track performance and reconcile accounts.
12. Payment Gateway Integration: A MoR will also integrate with various payment gateways, allowing your business to connect with different payment systems without the hassle. This means you don’t have to worry about setting up or maintaining the technical side of payment processing—your MoR handles that for you.
13. Dispute Resolution: When a customer disputes a charge, MoRs step in to handle the dispute process, providing evidence and explanations to ensure that your business is protected and that legitimate claims are properly resolved. This helps avoid damage to your reputation or financial standing.
14. Settlement and Payouts: MoRs are also responsible for transferring the funds to your account after a transaction is complete. They ensure that payouts are timely, helping you manage cash flow by determining the best schedules for settlements based on your business needs.
15. Invoice and Receipt Generation: MoRs automatically generate invoices and receipts for customers, which is a huge time-saver. This feature not only helps with keeping track of payments but also provides customers with clear, professional documentation for their transactions.
16. Customizable Checkout Experience: Your MoR often offers the option to create branded, seamless checkout pages that fit your website's look and feel. This helps improve the customer experience by keeping the checkout process simple and consistent with your business’s branding.

The Importance of Merchants of Record

The Merchant of Record plays a critical role in ensuring a smooth and secure transaction process for both businesses and customers. When a company partners with the right MoR, it offloads a huge portion of the operational burden, such as managing payments, handling disputes, and navigating tax regulations. Without this responsibility, businesses can focus on what they do best—creating and selling products—while the MoR takes care of the financial side. This is especially important for small businesses or those that operate in multiple regions, where the complexities of international payments and legal requirements can quickly become overwhelming.

On top of that, choosing the right MoR can help businesses maintain trust with customers. By handling payment issues, fraud prevention, and customer support, the MoR ensures a seamless shopping experience. Customers don't have to worry about the security of their information, or if they're being charged correctly, because the MoR takes care of it all behind the scenes. This kind of smooth interaction not only protects businesses from costly mistakes but also boosts customer loyalty, which is vital for growth in today's competitive market.

What Are Some Reasons To Use Merchants of Record?

1. Less Hassle with Payments: Handling payments, including accepting different methods (credit cards, PayPal, digital wallets), can be tricky. The MoR takes care of all this for you, managing the processing side of things, so you don’t have to worry about integrating payment gateways or dealing with any payment issues directly.
2. Take a Load Off Your Shoulders with Taxes: Tax laws vary from state to state and country to country. Trying to keep up with them while handling your regular business can be overwhelming. The MoR knows the ins and outs of tax requirements, so you don’t have to.
3. Better Protection Against Fraud: Online fraud is an ever-present threat, especially for businesses operating at scale. As the MoR handles payment processing, they have systems in place to detect and prevent fraud before it becomes a problem.
4. Easier Cross-Border Transactions: If your business wants to expand globally, you’re likely to run into challenges with currencies, local payment methods, and regional regulations. A MoR is experienced in navigating international markets, making it easier for you to reach customers worldwide.
5. Avoid Costly Mistakes in Payment Disputes: Sometimes, customers challenge a charge, and the dispute resolution process can be complicated. If you handle this yourself, you might miss important details or lose out on a refund. The MoR deals with all these disputes, so you don’t have to worry about losing money or time on chargebacks.
6. Focus on What You Do Best: As a business owner, your focus should be on creating great products, offering excellent customer service, and growing your brand. The last thing you need is to get bogged down in operational details like payment processing, tax filings, and legal compliance.
7. Boost Your Reputation with Professional Management: Customers expect smooth, secure transactions when they shop online. If a payment goes wrong or there’s an issue with tax, it could hurt your brand. A MoR brings professional management to the table, handling everything in a way that reflects positively on your business.
8. Comprehensive Data Insights: Understanding your sales trends and customer behaviors is key to running an efficient business. The MoR collects and analyzes transaction data, providing you with valuable insights about how your business is performing.
9. Avoid the Complexity of Legal Compliance: Compliance with legal standards, especially around payment security and customer data protection, is a major headache. If your business operates in different regions, compliance can get even trickier.
10. Lower Operational Costs: Managing payments, taxes, fraud prevention, and compliance in-house requires infrastructure, staffing, and technology—all of which add up. For many businesses, it makes more sense to outsource these functions.
11. Scalable Solutions as Your Business Grows: As your business expands, so does the complexity of managing transactions and payments. You may not have the infrastructure in place to handle a growing number of orders, international sales, or fluctuating demand.
12. Flexible and Customizable Payment Solutions: Every business is unique, and your payment processing needs might differ from others. Whether you need recurring billing, special payment terms, or specific integration features, a MoR can offer solutions tailored to your requirements.

Types of Users That Can Benefit From Merchants of Record

• Online Stores: Online retailers can save time and reduce complexity by working with a Merchant of Record (MoR). This setup ensures that transactions are handled smoothly, including payment processing, refunds, and any taxes that need to be paid. It allows the business to focus on sales and customer service without worrying about compliance or fraud management. Whether it’s a small boutique or a large online store, an MoR can handle the financial side of things.
• Companies Selling Subscriptions: Businesses with a subscription model, such as streaming platforms or SaaS companies, find MoRs especially useful. The recurring billing system can be tricky to manage—there’s customer information to protect, taxes to calculate, and payments to track. An MoR takes care of all that, handling the technicalities of subscriptions so the business can focus on building their content or improving their software.
• Global Businesses: If a company is selling in multiple countries, the payments and taxes quickly get complicated. This is where MoRs really shine. They can handle the specifics of international sales—different currencies, local tax laws, and region-specific payment methods. This removes the headache of navigating each country’s regulations, allowing businesses to expand without worrying about crossing legal lines.
• Event Organizers: Whether it’s selling tickets for concerts, conferences, or sports events, event organizers can benefit from partnering with a Merchant of Record. It’s not just about collecting payments; there’s also managing refunds, taxes, and chargebacks. Having an MoR handle this ensures that payments are processed securely, giving event organizers peace of mind to focus on creating memorable experiences for attendees.
• Mobile App Developers: Developers selling apps or in-app purchases have a lot to juggle. An MoR makes it easier by taking care of payment processing, subscriptions, and legal requirements. When apps sell across different app stores (like Apple or Google), MoRs streamline the payments and keep everything running smoothly, so developers don’t have to deal with complicated financial systems or store policies.
• Content Creators and Digital Product Sellers: Those selling digital goods like ebooks, music, or online courses can benefit a lot from MoRs. They handle everything from secure payments to ensuring taxes are paid in the right jurisdictions. If you're a content creator trying to sell your work directly to your audience, an MoR can take care of the admin, leaving you more time to create and connect with fans.
• Marketplaces: Online platforms where third-party vendors list their products can be a logistical challenge when it comes to payment processing. A Merchant of Record acts as the middleman, ensuring that funds from customers are collected, distributed to vendors, and taxes are calculated appropriately. This removes the burden from the platform operator, who can then focus on growing the marketplace and enhancing the user experience.
• Nonprofits: Nonprofits looking to process donations online can save time and avoid mistakes by partnering with a Merchant of Record. MoRs make sure that donations are processed securely, and they ensure that any applicable tax receipts or exemptions are properly handled. This lets the nonprofit focus on their mission rather than dealing with complex payment systems.
• B2B Services: Businesses that offer services to other businesses—like consulting or marketing agencies—can benefit from MoRs by streamlining their billing and payment processes. MoRs help ensure that payments come in on time, tax issues are sorted, and contracts are followed through. This means the B2B service provider can focus on delivering quality service instead of keeping track of complicated financial details.
• Freelancers and Creatives: Freelancers in fields like graphic design, writing, or photography often deal with a variety of clients and payment methods. By using a Merchant of Record, they can manage all their incoming payments under one roof, making sure that taxes are properly calculated and payments are securely processed. This makes it easier to maintain a professional appearance and avoid legal issues with payment processing.
• Crowdfunding Platforms: Platforms that help raise money for projects or causes—like Kickstarter or GoFundMe—rely on MoRs to process the payments that come in. Crowdfunding involves handling funds from many different backers, often from various countries. An MoR ensures that the platform complies with local and international laws, handles all payment logistics, and distributes the funds correctly to the project creators.
• Travel and Hospitality Businesses: Travel agencies and hospitality services—like hotels or tour companies—often have complex payment needs, especially when dealing with different currencies or group bookings. MoRs help manage these financial processes, ensuring payments are processed, taxes are handled, and customers get the refunds or adjustments they deserve. It’s especially useful for businesses that offer both physical and online bookings.
• Affiliate Networks: Businesses that manage affiliate marketing tools benefit from working with MoRs because they streamline payments to affiliates. Handling payments to multiple affiliates across regions can be a logistical nightmare, but an MoR simplifies things by processing commissions, managing tax responsibilities, and ensuring that everyone gets paid on time. This reduces the burden on the affiliate network itself.
• Government and Public Sector Services: Government agencies that provide online services—like fee payments for licenses, permits, or fines—can leverage MoRs for secure payment processing and compliance. Handling public funds requires a high level of scrutiny, and MoRs are equipped to ensure all transactions are tracked, taxes are applied correctly, and funds are distributed properly.

How Much Do Merchants of Record Cost?

The cost of using a merchant of record can really depend on the type of business you run and what services you need. Generally, you can expect to pay a percentage of each sale, which is usually between 1% and 5%. But keep in mind, these rates can change based on how complex your transactions are. If you need additional services like handling fraud, taxes, or offering support for international payments, those will usually add extra costs on top of the standard transaction fees. Some providers might also charge an initial setup fee or a monthly fee for ongoing support.

If you process a lot of sales, you might be able to negotiate a better deal with your merchant of record provider. Volume-based pricing is common, where larger businesses can secure lower fees per transaction. That being said, there may be extra charges for things like managing chargebacks or currency conversions if you're selling across borders. So, while the fees can add up, it's worth considering how much time and effort you can save by outsourcing these responsibilities to a merchant of record. It can be a good way to simplify the financial side of running a business while still making sure you're compliant with all the necessary regulations.

What Software Can Integrate with Merchants of Record?

When it comes to integrating with merchants of record, there are several types of software that help streamline the process and make managing payments a lot easier. For example, payment processors like Stripe or PayPal often work directly with MoRs to manage transactions, making sure money moves securely from a customer’s account to the merchant's. These processors can also handle different currencies and payment methods, making them an essential tool for businesses that want to operate globally or with a variety of payment options.

Other types of software like accounting tools and inventory management systems also pair well with MoRs to ensure everything stays in sync. Accounting software like QuickBooks can track sales, payments, and taxes, while inventory systems help merchants keep tabs on stock levels and fulfillment processes. When these systems integrate with MoRs, they help businesses save time and reduce errors, as all payment and inventory data flow together seamlessly. These integrations not only save administrative time but also make sure that business operations run smoothly, especially for larger enterprises handling a lot of transactions and customer data.

Risks To Be Aware of Regarding Merchants of Record

• Compliance Issues: When you rely on a MoR, you’re trusting them to keep up with a range of financial regulations. If they miss the mark, it could lead to penalties or even legal issues for your business. Different regions have different rules, and if the MoR fails to handle tax laws, payment processing requirements, or data privacy regulations properly, you could be left in a sticky situation.
• Payment Failures or Delays: Payment processing isn’t always perfect, and when your MoR is handling payments, there’s a chance that systems could fail or transactions could be delayed. This might impact customer satisfaction, leading to lost sales or chargebacks. In some cases, payment disruptions can even result in the loss of customer trust, which can be hard to rebuild.
• Chargebacks and Fraud Risk: Even though the MoR is in charge of handling payments, you could still bear the brunt of chargebacks, especially if the MoR doesn't have the best fraud prevention systems in place. Fraudulent transactions or customer disputes can lead to costly chargeback fees and lost revenue. If the MoR isn’t diligent, your business might end up in the red.
• Lack of Control Over Customer Data: With MoR services, your customer data is handed over to a third-party company. While they may be great at protecting data, it still leaves your business vulnerable. If there’s a data breach or misuse, you’re ultimately responsible for the fallout. It’s essential to ensure the MoR has strong data security protocols, but you’ll always be at the mercy of their security standards.
• Limited Flexibility: Some MoRs operate on a "one-size-fits-all" model, which might not suit your specific business needs. If the MoR doesn’t allow for customized payment flows, pricing models, or regional considerations, it could stifle your growth or lead to missed opportunities. Flexibility in payment processing can be crucial, especially as your business expands or changes.
• Reputation Risks: If the MoR has a poor reputation or experiences issues like fraud, failed payments, or even customer service complaints, it reflects poorly on you as a merchant. Even though you're outsourcing this function, customers still hold you accountable for the experience. A problem with the MoR could tarnish your brand's image and hurt your relationship with customers.
• Lack of Transparency: Sometimes, the MoR might not be transparent about fees, chargeback procedures, or how they handle disputes. Hidden fees can accumulate, and you may end up paying more than you expected. If you're not fully informed about their processes, it can lead to unpleasant surprises, both financially and operationally.
• Potential for Vendor Lock-In: Once you’ve set up a relationship with a MoR, it can be difficult and expensive to switch providers. Changing MoRs might mean dealing with complex transitions, especially when it comes to integrating with other platforms, moving customer data, or ensuring continuity of services. This risk of being "locked in" can limit your ability to adapt or pivot if your business needs change.
• Risk of Over-reliance on a Single Vendor: Relying on one MoR for all your payment processing needs can be risky if they run into operational problems or financial troubles. If the MoR faces technical difficulties or goes out of business, you could find yourself scrambling to find an alternative, which could disrupt your revenue flow.
• Currency and Tax Complications in Global Markets: When expanding globally, MoRs often take over managing currencies, taxes, and local compliance. However, mistakes in these areas can be costly. If a MoR doesn't properly manage foreign taxes or miscalculates exchange rates, your business might face unexpected costs or even legal trouble in other countries.
• Inconsistent Customer Service: While MoRs handle customer-facing issues, their service can vary. If customers experience payment issues or disputes and the MoR's customer service is slow, unhelpful, or not responsive, it reflects poorly on your business. Bad experiences with the MoR can lead to lost customers, negative reviews, and a hit to your reputation.

What Are Some Questions To Ask When Considering Merchants of Record?

1. What are your fees, and how are they structured? Understanding how a merchant of record charges you is crucial. You’ll want to know if there are flat fees, percentage-based charges, or a mix of both. Some providers also add extra costs for things like chargebacks or currency conversion, so be clear about what you’re signing up for to avoid hidden fees that can impact your bottom line.
2. How do you handle chargebacks and disputes? Every business faces disputes at some point, and chargebacks can be a real headache. Ask how the merchant of record handles these situations. Do they assist in dispute resolution? How long does it take to process? What happens if you lose a dispute? Knowing how they manage this can save you time, money, and frustration in the long run.
3. Are you compliant with security regulations and standards? Security is non-negotiable when it comes to financial transactions. Find out if the merchant follows best practices like PCI-DSS compliance. In addition to protecting customer data, ask if they use fraud prevention tools, tokenization, or encryption to secure payments. You need a partner that takes security seriously to avoid data breaches and ensure customer trust.
4. Can you support multiple payment methods? Not all customers want to pay the same way, so it’s important that your merchant supports a variety of payment options. Ask if they can process credit cards, digital wallets, ACH payments, or even alternative payment methods like buy-now-pay-later services. The more flexible the payment options, the better the experience for your customers.
5. What level of customer support do you provide? When problems arise, you need a merchant of record that offers top-notch customer support. Ask about their availability—do they provide 24/7 support? How can you contact them (phone, email, chat)? What’s the typical response time? Make sure they can address your concerns quickly and effectively, especially in case of urgent payment issues.
6. How will your services scale with my business? If you’re planning on growing your business, you need a merchant who can grow with you. Ask how their platform can scale as you expand. Do they have the infrastructure to handle increased transaction volume? Can they support international markets if you plan to sell globally? This is especially important if you expect your business to move into new regions or introduce new products down the line.
7. What’s your track record in terms of reliability? The last thing you want is for your payment system to go down during peak sales times. Ask about their uptime history and how often they experience downtime. A merchant with a solid track record of reliability and uptime ensures that your transactions go smoothly and without interruption.
8. How do you handle currency conversion and international payments? If your business operates in different countries, it’s essential to know how the merchant of record handles currency conversion and international payments. Are there hidden fees for currency exchanges? Do they offer competitive exchange rates? Are there any limits on international transactions? These are all critical questions for global commerce.
9. What integrations are available with my existing systems? Efficiency is key, and you don’t want to be spending time manually entering data or reconciling payments across different platforms. Ask if their system integrates with your current ecommerce platform, accounting software, or CRM tools. The easier it is to sync up with your existing infrastructure, the smoother your operations will run.
10. Do you offer advanced analytics and reporting? Data is invaluable for running a business, so ask if the merchant provides useful analytics and reporting tools. Will you be able to track sales, monitor payment trends, or analyze customer purchasing behavior? Having access to actionable insights can help you make smarter business decisions and identify areas for growth.
11. Can you help with fraud prevention and risk management? Fraud can be a major concern, and it’s essential to partner with a merchant who offers strong fraud prevention measures. Ask what kind of fraud detection tools they have in place and how they help mitigate risks. Do they offer chargeback protection or real-time monitoring? Understanding how they manage risk is key to keeping your transactions secure.
12. What’s your process for onboarding and getting started? Onboarding should be straightforward and hassle-free. Ask about their process for setting up your account and integrating their system with your existing operations. How long does it typically take? Will there be any training or resources available to help you get the hang of their system? Knowing what to expect at the beginning can help you plan and avoid any unnecessary delays.