The Merchant of Record is the legal entity recognized by the payment networks and the customer as the seller in a transaction. The MoR is responsible for payment processing, taxes, regulatory compliance, refunds, chargebacks, and the overall customer payment relationship. In a Merchant of Record model, each operator or shop owner processes payments directly through their own merchant account, retains full ownership of their revenue, and controls cash flow and settlement timing, while the platform or software provider facilitates transactions without taking legal ownership of the sale.