--- title: "Merchant of Record · Fungies" description: "What a Merchant of Record is, what changes when you use one, and how the money and the tax liability actually move on a sale. Plainly explained." image: "https://fungies.io/og-image.jpg" canonical: "https://fungies.io/merchant-of-record/" --- Merchant of Record # Someone else's name on the receipt, and on the tax return A Merchant of Record is the legal seller of your product. Not a processor that moves the money for you, and not a reseller that takes your customers — the party the buyer's contract is actually with, and therefore the party a tax authority writes to. This page explains what that changes. [Start free](https://app.fungies.io/register) [Book a demo](https://calendly.com/duke-vuh/fungies-io-demo-clone) No upfront costs. No credit card required. Already selling with Fungies [![Leadsin.io](/logos/clients/leadsin.png)](/customer-story/hosted-checkout-solution-for-leadsin-io-a-saas-business "Leadsin.io — read the story")[![RenderAI](/logos/clients/renderai.png) ](/customer-story/helping-renderai-reduce-their-ai-saas-payment-integration-from-days-to-just-a-couple-of-minutes "RenderAI — read the story")[![SuperScale](/logos/clients/superscale.png) ](/customer-story/nimblebits-revenue-boost-with-a-web-store-solution "SuperScale — read the story")[![FreeVocals](/logos/clients/freevocals.png) ](/customer-story/freevocals-com-and-fungies-io-a-seamless-solution-for-digital-e-commerce "FreeVocals — read the story")![STATSCORE](/logos/clients/statscore.png)![SimFabric](/logos/clients/simfabric.png)![BotRix](/logos/clients/botrix.png)![Enhance AI](/logos/clients/enhance-ai.png)![The Humanize AI](/logos/clients/humanize-ai.png)![Kenerate AI](/logos/clients/kenerate.png) ![The Fungies orders table showing each order's value, the tax collected on it, and the fee taken.](/_astro/orders.CpOsqO7l_eLCkj.webp?dpl=dpl_8EZJmbvb3ugYq7WK1KgC21BX19Zp) Every order carries the tax we collected and the fee we took. What is left is yours. ## What moves when the seller changes The contract with the buyer The purchase is made from us. Our terms cover it, the receipt is issued in our name, and the payment appears on the customer's statement under a descriptor you set. Tax registration The registration in each market is held by us. We are registered across the 27 EU member states and file VAT, GST and US sales tax as the seller on the transaction. Calculation, remittance and filing The rate for the buyer's country is applied at checkout, the money is remitted to the authority owed it, and the return is filed under our numbers. The audits come to us too. Refunds, disputes and fraud The bank asks us, because we are the merchant on the statement. Transactions are screened before they settle, and chargebacks are not deducted from an account of yours. The merchant account We hold the master account and you own a connected sub-account beneath it. There is no acquiring application to be underwritten for before you can start selling. What stays yours The product, the price, the branding, the domain and the customer list. You keep full access to customers, orders and analytics, and can export or query all of it through the API. ## How a single sale moves 1. 01 ### The customer pays us The payment lands in the Fungies merchant account, because we are the party selling. Tax for their jurisdiction was already added to the total they agreed to at checkout. 2. 02 ### The money is redirected to your account It moves straight through to the connected payout account you own. There is no house wallet holding your balance until you ask for it. 3. 03 ### The fee comes out A flat 5% + 50¢ is deducted. Processing fees are paid from our side rather than appearing as a second line against your revenue. Negotiable once you are selling at volume. 4. 04 ### You are paid net Payouts run daily by default in supported countries. The tax has already been collected and reported, so what arrives is revenue rather than revenue plus a liability. ## What the model does not do 01 ### It does not take your customers A reseller buys your product and sells it on as its own. A Merchant of Record sells your product, under your brand, on your domain, and hands you the customer record. The legal seller changes; the relationship does not. 02 ### It is not the cheapest way to take a card A processor alone costs less per transaction, and if all your revenue sits in one jurisdiction where you are already registered, it is the better deal. The model earns its spread when you are selling into places you are not registered in and do not want to be. 03 ### It does not cover everything you might sell This applies to digital goods: software, subscriptions, courses, downloads, game keys and in-game items. Physical fulfilment, payments taken in person and marketplaces paying third parties sit outside it, and there is a prohibited business and products policy worth reading before you build a catalogue. 04 ### It asks for billing details at checkout Collecting the buyer's country and billing information is a requirement of being the seller, not an optional field we could remove. Tax cannot be calculated correctly without it, so the checkout is one step longer than a bare card form. ## What sellers say once they have switched [★★★★★ 4.8/5 from 10 reviews on G2 →](https://www.g2.com/products/fungies-io/reviews) [Vadim Finayev Head of Growth, Leadsin.io “We work with quite a few merchants of record, but none comes close to the support and speed of implementation of Fungies. If you want a payment partner that actually gives you the feeling they want to work with you — rather than leaving you on read for three days or randomly restricting your account — you are in the right place.” Read the story →](/customer-story/hosted-checkout-solution-for-leadsin-io-a-saas-business) [David Elliott Creative Director, Freevocals.com “I researched the options and Fungies was the best fit for functionality and customisation within a store builder you can connect to your own domain. Taking a small percentage of sales, instead of charging a subscription for every environment and plugin, is refreshing.” Read the story →](/customer-story/freevocals-com-and-fungies-io-a-seamless-solution-for-digital-e-commerce) [Elnura Abdimanap Kyzy Founder, TextToVideo.bot “The platform is user-friendly, integrates easily with APIs and webhooks, and simplifies managing digital products and subscriptions. We were up and running quickly and support has been responsive throughout. Fungies is clearly tailored to the needs of SaaS businesses.” Read the story →](/customer-story/how-fungies-enabled-texttovideo-bot-to-integrate-payments-in-minutes) [Francisco Magnone Rienzi Founder, Renderai.app “Fungies has been a great partner — fast setup, competitive pricing, and real humans providing quick answers. They are constantly rolling out new features, and I am excited to see what is next.” Read the story →](/customer-story/helping-renderai-reduce-their-ai-saas-payment-integration-from-days-to-just-a-couple-of-minutes) ## What people ask about the model ### What is a Merchant of Record, in one sentence? ### How is it different from a payment processor? ### Do I still have to register for VAT abroad? ### Whose name does the customer see? ### What does it cost? ### Do I need a registered company to sell? ### Who deals with refunds and chargebacks? ### Is there anything I am not allowed to sell? Merchant of Record ## What the model is, who it suits, and how it compares. - [What Is Fungies →](/what-is-fungies) - [MoR vs PSP →](/merchant-of-record-vs-payment-service-provider) - [Best MoR for SaaS →](/best-merchant-of-record-saas) - [MoR for SaaS →](/merchant-of-record-saas-2026) - [Ecommerce MoR →](/ecommerce-merchant-of-record) - [Ecommerce Merchant Account →](/ecommerce-merchant-account) - [Brands →](/brands) ## Read the model, then test it Create a workspace, take a payment through the sandbox, and look at the order, the tax line and the fee for yourself before anything real is charged. [Start free](https://app.fungies.io/register) [Book a demo](https://calendly.com/duke-vuh/fungies-io-demo-clone) No upfront costs. No credit card required. ```json {"@context":"https://schema.org","@graph":[{"@type":"Organization","@id":"https://fungies.io/#organization","name":"Fungies","legalName":"Fungies Inc.","url":"https://fungies.io/","description":"Merchant of Record for SaaS, games, and digital products. Fungies handles global payments, VAT and sales tax, and checkout. 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Fungies handles global payments, VAT and sales tax, and checkout. Free to start, commission only.","inLanguage":"en","publisher":{"@id":"https://fungies.io/#organization"}},{"@type":"BreadcrumbList","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https://fungies.io/"},{"@type":"ListItem","position":2,"name":"Merchant of Record","item":"https://fungies.io/merchant-of-record"}]},{"@type":"FAQPage","mainEntity":[{"@type":"Question","name":"What is a Merchant of Record, in one sentence?","acceptedAnswer":{"@type":"Answer","text":"The legal seller on a transaction. The buyer's contract is with that party, so the tax liability, the refund obligation and the chargeback belong to it rather than to the business that made the product."}},{"@type":"Question","name":"How is it different from a payment processor?","acceptedAnswer":{"@type":"Answer","text":"A processor authorises and settles a card payment on your behalf and you remain the seller. A Merchant of Record is the seller. That is the difference a tax authority cares about. Our merchant of record versus payment service provider page works through the trade-offs and the arithmetic."}},{"@type":"Question","name":"Do I still have to register for VAT abroad?","acceptedAnswer":{"@type":"Answer","text":"Not for the sales we make. You still handle your own domestic income or corporation tax on the revenue we pay you, which is one conversation with your accountant rather than a dozen foreign registrations."}},{"@type":"Question","name":"Whose name does the customer see?","acceptedAnswer":{"@type":"Answer","text":"The store, the checkout and the emails carry your branding, and the sale is made under our name as the seller of record. The statement descriptor is editable, so the line on the bank statement is one your buyer recognises."}},{"@type":"Question","name":"What does it cost?","acceptedAnswer":{"@type":"Answer","text":"5% + 50¢ per successful transaction. No monthly fee, no setup cost, and nothing at all in a month with no sales. Payment processing, tax calculation and filing, fraud screening and chargebacks are all inside that one rate. Negotiable once you are selling at volume."}},{"@type":"Question","name":"Do I need a registered company to sell?","acceptedAnswer":{"@type":"Answer","text":"Not necessarily, because we are the legal seller rather than you. You do still complete our payment provider's onboarding in order to receive payouts, and their identity and verification requirements apply there, including KYC once you pass a certain volume."}},{"@type":"Question","name":"Who deals with refunds and chargebacks?","acceptedAnswer":{"@type":"Answer","text":"We do. Disputes come to us as the seller of record rather than landing on your merchant account, and refund requests go to support@fungies.io where each one is raised as a ticket. One thing to know: if your balance goes negative, for example after a run of refunds, we may debit your bank account for the shortfall."}},{"@type":"Question","name":"Is there anything I am not allowed to sell?","acceptedAnswer":{"@type":"Answer","text":"Yes. There is a prohibited business and products policy, and it is worth reading before you build a catalogue rather than after. If you are not sure whether something falls inside it, ask us before you launch."}}]}]} ```