Merchant of record, explained simply

When a customer buys your product through a merchant of record (MoR), the MoR is legally the seller. It charges the card, collects the right sales tax or VAT for the buyer's country, files that tax, and then pays you your share.

For someone living in a country that Stripe doesn't support, this matters because the MoR holds the payment relationship. You only need to be able to receive its payout.

What you get

• Card and wallet payments from customers almost everywhere.
• Global VAT and sales tax handled for you — no registrations in the EU, UK or US states.
• Invoices, refunds and chargebacks handled by the platform.
• A payout to your local bank account or PayPal, depending on the provider and your country.

What it costs

Fees are higher than a plain payment processor because tax and compliance are included. Lemon Squeezy, for example, charges 5% + 50¢ per transaction. On a $20 product that is $1.50, or 7.5%.

The lower your prices, the larger the fixed part weighs. Very cheap products ($2–5) lose a big share to fees, so bundle them or raise the price.

The limits

• Digital goods only: software, templates, courses, e-books, licences. No physical products, and usually no services billed by the hour.
• Because the MoR carries legal risk, it reviews your product and can pause an account it considers risky. Keep your product page clear and your refund policy fair.
• You still owe income tax in your own country on what you earn.

Which one to pick

Lemon Squeezy is the quickest start for digital products and small SaaS, with bank payouts in many countries Stripe doesn't cover. Paddle is built for software subscriptions and reviews your business first. Check each provider's page here for your country's status.