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What is a merchant of record (MoR)?

mer - chant of re - cord
noun

A merchant of record (MoR) is the authorized entity entrusted with the critical responsibility of processing credit and debit card transactions initiated by the end consumer. In this pivotal role, the MoR takes on the intricate task of managing payment processing operations on behalf of the financial institution. This encompasses not only the technical aspects of securely facilitating transactions but also safeguarding the overall customer experience. 

How does a merchant of record Work?

A MoR works like a reseller in the eCommerce process. They handle financial transactions seamlessly: customers pay the MoR, which then promptly reimburses the merchant for the products sold. This entire operation occurs almost instantaneously.

When a customer buys from a merchant utilizing an MoR, two transactions unfold: one between the MoR and the buyer and another between the merchant and the MoR. During the website checkout, as customers provide their payment details, the transaction is processed under the MoR's name, as they manage the merchant account behind the scenes. This arrangement means that the MoR's name appears on the customer's card statement after a purchase.

The Merchant of Record shoulders all the responsibilities associated with payment transactions, such as ensuring PCI compliance and adhering to tax regulations. Additionally, they monitor for fraudulent activities and handle the management of refunds and chargebacks, ensuring a secure and smooth shopping experience for both buyers and merchants.