Merchant of Record (MoR)

At Sellfy, we aim to give creators and businesses a simple, flexible way to sell digital and physical products online. One question we sometimes receive is whether Sellfy acts as a Merchant of Record (MoR) for its customers.

The short answer is: No, Sellfy is not a Merchant of Record.

Below, we’ll explain what this means, why it matters, and what benefits it brings to you as a Sellfy user.

What is a Merchant of Record (MoR)?

A Merchant of Record is a legal entity responsible for processing customer payments and handling related tax and compliance obligations on behalf of a seller. If a 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

Popular examples of MoR platforms include marketplaces like Etsy or Gumroad (when using their default MoR setup).

How Sellfy Works Instead

With Sellfy, you remain the Merchant of Record for all your transactions. This means:

• You get paid directly — funds go straight to 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.

Why Doesn’t Sellfy Offer MoR Services?

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 gives you:

• Direct payouts with 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

We want you to grow your brand, not ours.

What About 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

You can use these tools in combination with your preferred accounting software or tax advisor.

Summary: Benefits of Sellfy's Non-MoR Model