What Is Fungies? The Complete Guide to Merchant of Record for SaaS & Games 2026

Fungies.io is a Merchant of Record (MoR) platform that handles payments, tax compliance, and global checkout for SaaS companies and game developers. Unlike traditional payment processors that only move money, Fungies takes full legal responsibility for every transaction — including sales tax, VAT, and regulatory compliance across 150+ countries.

If you’re selling digital products, software subscriptions, or games online, you’ve probably faced the headache of tax compliance. Every country has different rules. EU VAT, US sales tax, India’s GST — the complexity grows with every new market. Fungies solves this by becoming the legal seller of record for your transactions, handling all tax obligations automatically while you focus on building your product.

What Is a Merchant of Record (MoR)?

A Merchant of Record is the legal entity responsible for processing payments, collecting sales tax and VAT, and maintaining compliance with local regulations. When you use a traditional payment processor like Stripe or PayPal, you’re the merchant of record — meaning you are responsible for tax compliance, chargeback handling, and regulatory issues.

With a Merchant of Record like Fungies, the MoR becomes the legal seller. They handle:

• Tax calculation and remittance: Automatically calculating, collecting, and remitting VAT, sales tax, and GST in every jurisdiction
• Compliance management: Staying current with changing regulations across 150+ countries
• Fraud prevention: Advanced AI-powered fraud detection to protect your revenue
• Chargeback handling: Managing disputes and chargebacks on your behalf
• Global payment methods: Supporting local payment methods your customers prefer

This is particularly valuable for SaaS companies and game developers selling globally. Instead of registering for VAT in 27 EU countries, obtaining sales tax permits in 50 US states, and navigating India’s complex GST rules, Fungies handles everything as your Merchant of Record.

How Fungies Works: The Complete Process

Fungies integrates seamlessly with your existing workflow. Whether you’re selling through a website, in-game store, or SaaS platform, the process is straightforward:

Step 1: Connect Your Store or Game

Integration takes minutes, not weeks. Fungies provides SDKs for popular platforms including Unity, Unreal Engine, JavaScript, and REST APIs for custom implementations. For SaaS companies, the JavaScript SDK drops into your existing checkout with a single line of code. Game developers can use the Unity or Unreal plugins to add in-game purchases without complex backend work.

Step 2: Configure Your Products

Add your products through the Fungies dashboard or API. Define pricing in multiple currencies, set up subscription billing, configure trial periods, and establish usage-based pricing models. Fungies supports one-time purchases, recurring subscriptions, and hybrid models — whatever fits your business.

Step 3: Global Checkout Activation

Your customers see a localized checkout experience with 50+ payment methods including credit cards, PayPal, Apple Pay, Google Pay, and region-specific options like iDEAL (Netherlands), SEPA (Europe), and UPI (India). The checkout automatically adapts to local languages and currencies, increasing conversion rates by up to 30% compared to generic payment forms.

Step 4: Automatic Tax Handling

Here’s where Fungies shines as a Merchant of Record. Every transaction is automatically analyzed for tax obligations. Selling to a customer in Germany? Fungies charges 19% VAT, collects it, and remits it to German authorities. Selling to California? Fungies handles the sales tax based on the customer’s exact location. You never worry about tax rates, filing deadlines, or compliance audits.

Step 5: Receive Your Payouts

Fungies pays you weekly via bank transfer to your account, minus the processing fee. No holding periods for established accounts. No surprise deductions. You get predictable cash flow while Fungies handles the complexity of global tax compliance behind the scenes.

Fungies vs Traditional Payment Processors

Understanding the difference between Fungies and traditional payment processors helps clarify when a Merchant of Record makes sense for your business.

Stripe, PayPal, and Standard Processors

Traditional processors handle payment authorization and fund transfers. They’re excellent at moving money but leave you responsible for:

• Registering for VAT/sales tax in every jurisdiction where you have customers
• Calculating correct tax rates based on customer location and product type
• Filing periodic tax returns (monthly, quarterly, or annually depending on jurisdiction)
• Maintaining tax records for audits
• Handling chargebacks and payment disputes
• Staying compliant with changing regulations

For a SaaS company selling globally, this often means registering for VAT in 20+ countries, obtaining sales tax permits in multiple US states, and hiring tax consultants to ensure compliance. The administrative burden grows with your international success.

Fungies as Your Merchant of Record

Fungies includes all payment processing capabilities plus assumes legal responsibility for tax compliance:

• No tax registrations needed: Fungies is already registered where required
• Automatic tax calculation: Real-time rate determination for every transaction
• Tax remittance handled: Fungies pays authorities directly
• Compliance guaranteed: Fungies maintains current registrations and filings
• Audit protection: Fungies handles tax authority inquiries
• Simplified accounting: You receive net revenue, not gross plus tax liabilities

The trade-off is a higher processing fee compared to bare-bones payment processors. However, when you factor in the cost of tax compliance software, consultant fees, and your time, most businesses find the total cost comparable or lower with Fungies — plus you eliminate compliance risk entirely.

Who Should Use Fungies?

Fungies is designed for specific types of businesses selling digital products globally:

SaaS Companies

If you run a SaaS business with customers in multiple countries, Fungies eliminates the tax compliance burden that scales with your international growth. Whether you’re a startup with your first European customers or an established company expanding to Asia, Fungies handles the complexity.

Game Developers

Indie game developers and studios selling direct-to-consumer benefit from Fungies’ game-specific features including in-game purchase support, virtual currency handling, and integration with popular game engines. Keep more of your revenue compared to platform stores while still offering a seamless purchase experience.

Digital Product Creators

Selling ebooks, courses, templates, or software? Fungies provides a professional checkout experience with instant delivery and automated tax compliance. Focus on creating great products instead of wrestling with international tax law.

Fungies Pricing and Fees

Fungies uses a transparent, all-inclusive pricing model. You pay a percentage of each transaction that covers payment processing, tax compliance, and platform features. There are no monthly fees, setup costs, or hidden charges.

Compare this to traditional setups where you pay: payment processor fees (2.9% + 30¢), tax compliance software ($100-500/month), tax consultant fees ($200-1000/month), and your time managing registrations and filings. Fungies bundles everything into a single, predictable rate.

Getting Started with Fungies

Starting with Fungies takes under an hour:

• Create your account: Sign up at app.fungies.io with your business details
• Complete verification: Submit standard business verification documents (usually approved within 24 hours)
• Connect your integration: Install the SDK or plugin for your platform
• Add your products: Configure pricing, descriptions, and delivery settings
• Go live: Start accepting payments with full tax compliance handled

No long-term contracts. No minimum volumes. You can start processing payments immediately after verification and scale as your business grows.

Frequently Asked Questions About Fungies

What countries does Fungies support?

Fungies supports sales to customers in 150+ countries with automatic tax compliance for major markets including the United States, all EU countries, United Kingdom, Canada, Australia, India, and many others. New countries are added regularly as tax infrastructure expands.

How does Fungies handle EU VAT?

Fungies is registered for VAT in all 27 EU member states plus the UK. When you sell to EU customers, Fungies automatically charges the correct VAT rate based on the customer’s location, collects the tax, and remits it to the appropriate tax authority. You don’t need to register for VAT anywhere in the EU.

Can I use Fungies with my existing website?

Yes. Fungies provides JavaScript SDKs, React components, and REST APIs that integrate with any website or application. You can embed the checkout directly in your site or redirect to a hosted checkout page — whichever fits your user experience.

What payment methods does Fungies support?

Fungies supports 50+ payment methods including all major credit cards (Visa, Mastercard, Amex), PayPal, Apple Pay, Google Pay, and region-specific methods like iDEAL, SEPA Direct Debit, Bancontact, and UPI. This global coverage increases conversion rates by letting customers pay how they prefer.

How quickly do I receive payouts?

Fungies pays out weekly via bank transfer to your connected account. After your account is established (typically 2-4 weeks of processing history), payouts proceed on a predictable schedule with no holding periods.

Conclusion: Is Fungies Right for Your Business?

Fungies is ideal for SaaS companies, game developers, and digital product creators who want to sell globally without the administrative burden of tax compliance. As a Merchant of Record, Fungies eliminates the need for multiple tax registrations, complex filings, and ongoing compliance management.

If you’re currently using Stripe or PayPal and spending time on tax compliance — or avoiding international markets because of tax complexity — Fungies offers a compelling alternative. The all-inclusive pricing covers everything you need to sell globally with confidence.

Ready to simplify your payments and compliance? Start your free trial at Fungies.io and see how a Merchant of Record can transform your global sales strategy.