What is a Merchant of Record?

6/15/2023
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Discover how a Merchant of Record can empower your business with local acquiring and ensure you remain compliant as you scale into international markets.

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A Merchant of Record is the entity that is responsible for the actual transaction itself. So a business like Reach steps into the transaction and becomes liable for the transaction. We ensure that customer service, fraud, and dispute management is taken away from being a burden for a merchant themselves.

So merchants can go directly to any payment processor they want, but the problem is they can't go local with that payment processor unless they too have a local entity - and they'll say: "Great, where are your offices?" You say: "Oh, well I'm only in Canada." "Oh, well then you can only process locally in Canada." You can do everything else cross-border, but your authorization rates are gonna suffer. The cost is gonna be higher. They make no guarantees, and you can't offer local payment methods. It's the difference between a payment facilitator and a Merchant of Record. So Reach is a Merchant of Record because we take it that much further.

So I think merchants think it's really simple to expand ...

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