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.
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
- 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.
- 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.
- 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.
- 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
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.
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.
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.
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 →
Vadim Finayev “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.”
David Elliott “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.”
Elnura Abdimanap Kyzy “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.”
Francisco Magnone Rienzi “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.”
What people ask about the model
What the model is, who it suits, and how it compares.
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.