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A merchant of record (sometimes shortened to “MoR”) is a legal entity that takes on the responsibility of selling goods and services to end customers, handling everything from payments to compliance.

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What is a Merchant of Record?

A Merchant of Record (MoR) is the legal entity responsible for selling goods or services to end customers. When customers make a purchase through Creem, they are technically buying from us as the Merchant of Record. This means we handle all aspects of the transaction, including payment processing, sales tax collection, refund management, chargeback handling, etc.

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Is Creem a Merchant of Record?

Yes! Creem acts as your Merchant of Record, taking on all the complex financial and legal responsibilities so you can focus on what matters most - building and growing your SaaS business. We handle:
  • Payment processing and tax compliance across different markets
  • Management of refunds and chargebacks
  • Sales tax collection and remittance

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Frequently Asked Questions

A Merchant of Record (MoR) is the legal entity responsible for selling goods or services to end customers. The MoR appears on customer bank statements and invoices, and is responsible for all tax collection, remittance, and regulatory compliance. When you use Creem as your MoR, we handle all of this complexity so you can focus on building your product.
A payment processor (like Stripe) only handles the technical side of moving money. You remain the seller of record and are responsible for tax compliance, refunds, and regulatory issues. A Merchant of Record like Creem takes on the legal responsibility of being the seller, handling VAT/GST collection, tax remittance, compliance, and customer disputes on your behalf.
If you sell to customers globally, you face complex tax requirements in 190+ countries. Each jurisdiction has different VAT/GST rates, registration thresholds, and compliance rules. A MoR handles all of this automatically, letting you sell globally without setting up legal entities or tax registrations in every country.
Yes! Creem automatically calculates and collects the correct VAT, GST, or sales tax based on your customer’s location. We handle tax remittance to authorities in 190+ countries, provide compliant invoices to your customers, and manage all tax reporting requirements.

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Further reading

Want to learn more about how the Merchant of Record model works? Learn more about MoR. Read our detailed guide on Understanding the Merchant of Record Business Model, where we break down the key benefits and explain why it’s crucial for modern and lean SaaS businesses.