Selling SaaS Globally paddle.com 3 Merchant of record (MoR) A merchant of record (MoR) sits between you and your customers, essentially acting as a reseller. It is the legal entity responsible for selling goods or services to the end customer. Increasingly, SaaS companies are turning to MoRs to manage the end-to-end payment and billing process. What are the bene昀椀ts? MoRs manage the entire payments process, not just the transaction. They are responsible for everything from the checkout, to the transaction, to returns and chargebacks. They also manage compliance and are the party held liable for sales tax. MoRs already have large payment volumes, relationships with payment processors, international merchant accounts and payment entities, and their own built-in fraud prevention mechanisms. This infrastructure reduces the risk of payment failure and saves you the hassle of setting these tools and processes up yourself. Things to consider The MoR handles certain touchpoints with the customer. This means less work, but also less control over some parts of the customer experience. That said, you will remain in control of how you present, price, and package your product and your ongoing relationship with your customers. Similar to payment processors, using an MoR also means that when your revenue reaches you is dependent on payout schedules. 12