Merchant of record

Merchant of Record: What Every Business Owner Needs to Know!

If you are the owner of a small business and you intend to use your credit card to process your business payments, you are just on the right page as you will learn everything you need to achieve your aim of credit card payments. Several people agree on the complications of tax payments, billing and handling other business payments. Are you wondering now what the merchant of record is and what relationship it has with the business payments?

You can manage your business problems in a completely different way. Here in this blog, we have covered everything that you must know before taking a start. The discussion includes the introduction of what the merchant of record is how it works and the key differences between Merchant of Records and payment solutions. We will begin with the introduction that is explained below.


What Is Merchant Of Record

MoR is the abbreviation of the merchant of record. It refers to an authorised entity which is known to be liable for the debit and credit card transactions of the customers. The regular users also know that MoR also becomes part of the debit credit statement of the customer as it appears on the statement of the customers.

The merchant account is also maintained and handled under the obligations of the MoR. The major responsibilities include the following:

  • The processing of all the business payments of the customers.
  • The fees management of all the processing charges related to the credit card.
  • The obligations of MoR also focus on the law and stay updated according to the law of transactions.
  • Chargebacks are managed and take place by MoR as well.


Get in touch with one of our experts at Accotax today to get instant help if you want to learn more about merchant of record. 


How Does MoR Work?

Whatever products or services that your business aims to offer to its customers if you are selling it via merchant of record, the customer has to visit your business website to make a purchase. However, if Mor is working as a reseller of your products, you need to know that you are going through two transactions while the product is being sold out.

One transaction is taking place between you and Mor and the other transaction is between the customer and the MoR. Once the process of transaction is complete, the name of MoR becomes part of the credit card statement of the customer. In case of any transaction dispute, the customer will chase the merchant of record. Since the official purchasing and payment are dealt with between the customer and MoR. If we see technically the end sale of the product is also done by them. This fact makes MoR the liable party to deal with the transaction disputes.


Critical Differences Between Merchant of Records and Payment Solutions

Several people confuse MoR with payment solutions. However, there are several key differences between them that are quite prominent. The most talked-about and the famous difference between them are that MoR focuses on and is being liable for the financial responsibility of the customers. The payment solution is just strict about the payment process.

Moreover, the payment-only solution counts itself liable for the payment only and the business has to take the responsibility for the transactions disputes and other administrative tasks that are complicated to deal with.


Do you still seek help to get to know more about MOR? Give us a call on 02034411258 or request a callback. We are available from 9:00 am – 05:30 pm Monday to Friday.


The Complications without Merchant of Record

The major problem to consider is that your business is liable for payment disputes and all other financial liabilities. The time you have to invest in solving the financial disputes of the customers can be saved and used better for business valuation. Some other factors your business will be held liable for without MoR are listed below:

  • Administration and follow-up of the chargebacks and refunds.
  • Tax calculations are to be managed and handled by your business experts.
  • The negotiation of the fees of a credit card with the customers.
  • The handling of the merchant account.

Furthermore, this is important to consider that the more customers you will have, the more you will have to deal with the transaction disputes. Since such issues arise more if there are more customers. Therefore, while you decide to get attracted towards the more affordable option that is the payment-only solution for your business, you must consider the resources you will require to handle the customer’s problems. This is also time-consuming to sort out the payment issues.

On the other hand, MoR is responsible for all the administrative tasks as well as the financial liabilities that a business might face while processing the payments. The MoR model is turned out to be the most beneficial for the businesses that are looking for such task outsourcing in order to focus on their business growth.


The Bottom Line

Now that you have gathered enough and fair information about the merchant of record, we can bring the discussion towards wrapping up. We can sum up by saying that MoR is undoubtedly a more beneficial model when comes to the comparison with the payment-only solution. This is because of the ability to stand liable to handle all the transaction disputes of the customers and the handling of administrative tasks as well.

While the business owner is free from the hassle of payment disputes, they can use that time and energy in a more constructive manner to build the business and make a name in the industry. We hope these few minutes of reading will help to make the right choice. This will let you choose a payment model for your business that will handle all the payment solutions.


Disclaimer: The information about the merchant of record provided in this blog is general in nature. It does not intend to disregard any of the professional advice.

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