What is a Merchant of Record?
The five-minute version of the concept that decides whether global tax law is your problem — or ours.
The definition
The Merchant of Record (MoR) is the legal entity that sells a product to the end customer. Not "the company that made it" — the entity whose name is on the transaction, the tax invoice, the card statement and, crucially, the hook for everything that follows: sales tax, VAT, refunds, chargebacks, consumer-protection law and card-network rules.
Under the intended production model, DorskoPay is that entity. You supply the product and remain the brand your customer loves; DorskoPay becomes the seller in the eyes of banks, tax authorities and regulators. DorskoPay is not processing live production transactions today — this page describes the model the platform is being built on.
lightbulb Rule of thumb: a payment processor moves your money. A Merchant of Record becomes the legal seller on the transaction, and carries the seller-side obligations that come with it.
On the receipt
The tax invoice says DorskoPay, in the customer's language. Tax registrations are established jurisdiction by jurisdiction as part of the production rollout.
On the card statement
The charge descriptor is intended to resolve to DorskoPay, which means the buyer-facing disputes and fraud claims do too.
At the tax office
VAT, GST and sales tax are calculated and collected under DorskoPay's name on every sale — the tax obligation for that transaction is ours, not yours. Filing and remittance capabilities are activated as part of the production rollout.
On your website
Your brand, your product, your customer relationship. The MoR machinery is invisible where it should be.
Side by side
Payment processor vs. Merchant of Record
Who carries each obligation when you sell globally.
| Obligation | With a payment processor | With DorskoPay (MoR) |
|---|---|---|
| Global tax registrations & filings | closeYou, in every country you sell to | check_circleDorskoPay — activated per jurisdiction in the production rollout |
| Tax obligation on the sale | closeYou | check_circleDorskoPay |
| Compliant invoices & credit notes | closeYou (or another tool) | check_circleDorskoPay, automatic |
| Buyer-facing disputes & chargebacks | closeYou | check_circleManaged by DorskoPay as seller of record; supplier allocation per the Supplier Agreement |
| Dispute process | closeYou build it yourself | check_circleStructured workflow, included free |
| Card data handling | closeOften touches your systems | check_circleNever touches yours — handled by the payment partner |
| Consumer-protection compliance | closeYou, per jurisdiction | check_circleDorskoPay |
| Refund operations | closeYou | check_circleDorskoPay, policy-driven |
| Currency & settlement risk | closeYou | check_circleDorskoPay |
| Your engineering scope | closeGateway + billing + tax + fraud + invoicing | check_circleOne integration |
Structure
Intended production funds flow
How money is intended to move once production access is issued.
-
person
Customer
Buys software through a DorskoPay checkout.
-
shopping_cart_checkout
DorskoPay Checkout
Presents price, tax and total; DORSKO LIMITED is shown as seller of record.
-
account_balance
Approved Acquirer / Payment Partner
IntendedAuthorises and settles the card transaction. Not yet in place — subject to acquiring approval.
-
corporate_fare
DORSKO LIMITED
IntendedAcquiring settlement is intended to be made to DORSKO LIMITED as seller of record.
-
calculate
Tax / refunds / fees / reserve adjustments
IntendedApplicable transaction tax, refunds, disputes, platform fees and any reserve are applied.
-
payments
Supplier proceeds
IntendedThe net amount owed to the approved supplier under its Supplier Agreement.
-
account_balance_wallet
Supplier's verified payout bank account
IntendedPaid on the agreed schedule, subject to settlement and reserve terms.
Under DorskoPay's intended Merchant of Record structure, DORSKO LIMITED contracts with the buyer as seller of record. Acquiring settlement is intended to be made to DORSKO LIMITED. Approved suppliers are remunerated separately under their Supplier Agreement after applicable fees, taxes, refunds, disputes and reserves. Final processing structure is subject to acquiring-partner and legal approval.
The intended model does not rely on suppliers receiving direct card-acquirer settlement. Final merchant, MCC and card-scheme classification is determined during acquiring underwriting.
DorskoPay assumes the cardholder-facing Merchant of Record role for approved production transactions, while contractual risk allocation with suppliers is governed by the Supplier Agreement.
Is it for you?
MoR is the right call when…
You sell digital products or SaaS internationally
The moment you have customers in a second country, you have a second tax regime. At ten countries, tax ops becomes a hire. MoR makes it a non-event.
Your team is smaller than the problem
Global compliance is a full department at big companies. MoR gives a three-person startup the same coverage that department provides.
You'd rather buy outcomes than tools
A tax engine gives you rates; you still own registrations and filings. The MoR model moves that obligation to the seller of record. DorskoPay is building toward that: calculation is live in the sandbox, registrations and filing are activated jurisdiction by jurisdiction during the production rollout.
Speed to market matters
Launching with correct tax already calculated across 62 jurisdictions removes the part of a launch that usually stalls it. Which registrations sit with DorskoPay rather than with you is determined jurisdiction by jurisdiction during the production rollout.
Make the world's paperwork
someone else's job.
Specifically: ours. Explore the sandbox and prepare for production with DorskoPay's Merchant of Record model.
Free sandbox account · Cancel anytime · Scheduled payouts subject to settlement and reserve terms