Merchant of Record vs payment processor
The real difference is contractual responsibility, not just a checkout screen.
Who sells to your customer?
A payment processor moves money under its agreement with the merchant. A merchant of record acts as the contractual seller for the supported transaction. That changes the allocation of transaction-tax, billing, refund and dispute responsibilities. Read the product agreement: a company can offer more than one model.
Compare the complete job
A processor headline may cover only processing. Billing, tax tools, filings, support and your own operational work can be additional. An MoR bundle can cover more of that work while charging more per transaction. Neither model is automatically cheaper for every seller.
Keep the remaining obligations visible
MoR does not mean no product review, reserves, chargebacks or company taxes. Identify who may issue refunds, what can be deducted from proceeds, when funds settle and what happens if the relationship ends.
Useful next steps
Compare MoR providers → · Stripe vs Paddle → · Tax responsibilities →
Read the product-specific evidence
Provider-specific conditions and primary sources: