Glossary
Merchant of record
A company that legally sells your product to the customer on your behalf, handling payments, tax and disputes. Paddle and Lemon Squeezy work this way, for software and digital goods only.
Also called: MoR, reseller of record.
With a merchant of record, the customer's card statement shows the MoR, and the MoR is responsible for sales tax, VAT, refunds and chargebacks. You receive payouts minus its fee. It's the fastest route for a solo seller of software, courses or digital downloads, because you don't need your own merchant account.
It isn't a route for physical products. Lemon Squeezy prohibits "physical goods of any kind," and Paddle says it isn't a fit if your primary offering is "the sale of physical goods." Most MoRs also ban get-rich-quick and similar business-opportunity offers.
For affiliates launching their own info product, check the MoR's prohibited list against your sales page before you build the funnel.
Related terms: Payment facilitator, PSP, Info products, Merchant account.