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Merchant of Record

One line on the receipt moves every obligation off your books.

A Merchant of Record is the legal seller. When that is Paddle, the sales tax, VAT, chargebacks, fraud, refunds and buyer billing support belong to Paddle, and you are paid out for what you sold.

Scroll the ledger. Each line is an obligation you carry as the seller of record today, and where it sits once Paddle is the seller.

You, before PaddlePaddle, as Merchant of Record
  1. Register for sales tax and VAT in each jurisdiction
    Registered by Paddle
  2. Calculate the right rate for every buyer
    Calculated at checkout
  3. File returns and remit tax to each authority
    Filed and remitted by Paddle
  4. Fight chargebacks and absorb the losses
    Paddle's liability
  5. Screen fraud and card-testing attacks
    Screened by Paddle
  6. Process refunds and answer buyer billing questions
    Paddle's billing support
  7. Add local payment methods, country by country
    Card, PayPal, Apple Pay, Google Pay, iDEAL, Alipay, Bancontact, more
  8. Issue compliant invoices in each market
    Issued by the seller of record

Obligations as described on paddle.com. You keep your product, your customers and your data.

Processor vs Merchant of Record

A processor moves the money. A Merchant of Record owns the sale.

Who is on the receipt
You
Paddle.com Market Limited
Who owes the tax
You, in every market
Paddle
Who fights the chargeback
You
Paddle
Who answers 'why was I charged?'
Your inbox
Paddle billing support
Who owns the customer
You
You

ProcessorPaddle

Questions

The questions finance asks first.

What is a Merchant of Record?
The legal entity that sells a product to the buyer. It appears on the receipt, owes the sales tax or VAT on the sale, carries the chargeback and fraud risk, and is responsible for refunds and billing support. With Paddle, that entity is Paddle.com Market Limited, and you are paid out for what you sold.
How is that different from a payment processor?
A processor moves money. You stay the seller, so tax registration, remittance, chargebacks and compliance stay with you, in every market you sell to. A Merchant of Record takes those obligations off your books.
Do I still own my customers?
Yes. Your customers, your product and your data are yours, and the data is portable. Paddle sits on the receipt and in the tax filings, not between you and your users.
Which taxes does Paddle handle?
Paddle registers, charges and remits sales tax and VAT in over 100 jurisdictions, and keeps up with rate and rule changes so you do not have to.

Certifications published by Paddle for its billing and tax platform.

  • SOC 2 Type 2
  • GDPR
  • PCI DSS SAQ A
  • CCPA

Start selling

You obsess. We handle the rest.

That's the weight Paddle takes. Start self-serve, or book a demo to plan a migration.

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