Merchant of Record (MoR)
In this article:
What is a Merchant of Record (MoR)?
Why isn't Sellfy the Merchant of Record?
How does this affect taxes and compliance?
What is a Merchant of Record (MoR)?
The Merchant of Record is a legal entity responsible for processing customer payments and handling any related tax and compliance obligations.
If an e-commerce platform acts as your MoR, it typically:
- Receives the funds from customers directly
- Handles payment processing fees
- Manages chargebacks and disputes
- Collects and remits taxes like VAT or sales tax
- Is listed on the customer’s bank statement instead of your business name
With Sellfy, you have direct control over these aspects, which also means you are the Merchant of Record for all your transactions. Sellfy is not considered the Merchant of Record. You can read about the benefits this offers and why Sellfy provides this setup in the following sections.
Merchant of Record benefits
Being your own Merchant of Record comes with benefits!
This means:
- You get paid directly with your PayPal or Stripe account
- You set your prices and control your business
- You handle tax collection and compliance (we provide tools to help with this)
- Your name or business name appears on customer payment statements
- You maintain full ownership of your customer relationship and data
This gives you more control and transparency in running your store. And, we believe you should have this control when it comes to your money, your customers, and your brand. We want you to grow your brand, not ours.
Why isn't Sellfy the Merchant of Record?
We believe creators and entrepreneurs should own their business, not be intermediated by a platform. By not acting as a Merchant of Record, we avoid becoming a gatekeeper between you and your customers. This approach is necessary to give you:
- Direct payouts — no delays or platform commissions
- No revenue holdbacks — you get your earnings instantly through PayPal or Stripe
- More autonomy — you're not tied to platform-specific policies or payout structures
- Global flexibility — you can operate as a business from anywhere in the world
| Feature | With Sellfy | With MoR Platforms |
| You control pricing & refunds | ✅ Yes | ❌ Often limited |
| Payouts go directly to you | ✅ Yes | ❌ Delayed or platform-dependent |
| You appear on payment receipts | ✅ Yes | ❌ No – platform name used |
| Platform collects/remits tax | ❌ No – you do it | ✅ Yes – but at a cost |
| You own the customer data | ✅ Yes | ❌ Often restricted |
| You're listed as the seller | ✅ Yes | ❌ No – platform is seller |
How does this affect taxes and compliance?
While Sellfy is not your MoR, we provide built-in tools to help you stay compliant:
- Automatic VAT calculation for EU digital product sales
- Custom tax settings for physical products and non-EU markets
- Customer location tracking to support tax reporting
- Downloadable sales reports for accounting and tax filing
- Ability to restrict sales from regions like the EU and UK
You can use these tools in combination with your preferred accounting software or tax advisor.