Merchant of record, explained simply
Updated October 24, 2026
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 accepted by the MoR and able to receive its payout.
What you get
- Card and wallet payments from customers in many countries.
- Sales tax and VAT handled by the platform: Dodo Payments says that, as merchant of record, it handles VAT, GST and sales tax.
- A payout to your bank account: Dodo Payments pays out by local bank transfer or SWIFT, and accepts a Payoneer account as a bank account.
What it costs
Fees are higher than a plain payment processor because tax and compliance are included. Dodo Payments, for example, charges 4% + 40¢ per domestic US card payment, plus 1.5% for international cards and 0.5% for subscriptions. On a $20 sale to a US customer, that is $1.20, or 6%.
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
- Eligibility depends on the country that issued your ID: Dodo Payments publishes its list of accepted countries, and no longer accepts new merchants from Morocco, Egypt, Nigeria or Bangladesh.
- Payouts have a threshold ($100 by default, $50 minimum) and a $5 fee below $1,000.
- You still owe income tax in your own country on what you earn.
How to check your country
Open your country's page on this site: the Dodo Payments line shows whether your country is on its official list, with the link to that list.
Our partners
Services we work with. Same checked statuses as everywhere else on the site — the partnership never changes a status or the order of our recommendations.
doola
Forms a US LLC or C corporation and can handle the yearly US filings. Free 15-minute call before you pay.
Offer. 10% off your first purchase: sign up through our link, then enter the code PWB10 at checkout.
Firstbase
Forms a US company (LLC or C corporation) for founders abroad, with the tax ID (EIN). The usual path to Stripe.
Offer. New customers get $25 off their first order: sign up through our link, then enter the code PARTNERGIFT2024 at checkout.
Wise
Multi-currency account to hold, receive and convert money; Wise Business for a US company. Check that Wise serves your country first.
Partner links: if you sign up, we may earn a commission, at no extra cost to you.
Services mentioned
Dodo Payments
4% + 40¢ per domestic US card or wallet payment, +1.5% for international cards and payment methods outside the US, +0.5% for subscriptions. Payout fee: $5 for payouts under $1,000; USD SWIFT payouts carry an extra fee.
Go to Dodo Payments (opens in a new tab)Official sources
Checked October 24, 2026. Prices and rules change: confirm on the official page before you act.