Any merchant has legal obligations when he wants to sell his products and services, and this is more complex when you decide to develop a cross-border business.

The legal term for this obligation is Merchant of Record (or “MoR,” for short). As an online business, you are legally obligated to act as your own MoR by default. This means you are required to tackle different administrative tasks on your own. Or you can look to a service provider to operate as MoR on your behalf! This partner will deal with the hassle of all of these compliance measures at the local, regional, and global levels on their own.

Nexway has years of experience serving as the Merchant of Record for online businesses of all sizes. We provide an all-in-one solution that saves you time, money, and effort — and keeps your business compliant with all local and global regulations — as you scale and grow your business to operate in multiple currencies, languages, and payment methods. And we do this by providing 100% transparency around the fees you pay for.

Nexway Monetize can manage your entire payment journey – from accepting payments, fraud prevention, currency conversion, taxation and security management, local tax and VAT management, chargeback detection and negotiation, customer data protection compliance (GDPR) to managing pay-outs to your suppliers around the world.

We maintain merchant accounts, giving you the ability to act locally in 140+ markets without the expense or trouble of maintaining a local entity.

What is a Merchant of Record?

A Merchant of Record (MoR) can be an entity that operates a webstore or platform to manage interactions with its customers, sellers (sub-merchants) or suppliers, providing due diligence and oversight over all commercial activity that happens on that platform, including:

Maintaining financial liability for the goods sold
Overseeing payment compliance while mitigating risk
Managing transactions, refunds, cancellations, and disputes utes
Handling chargebacks and fraud resolution
Responsible for sales & import taxes
Adhering to customer data compliance
Avoiding the sale of illegal, prohibited, or counterfeit products or services
Maintaining a direct relationship with payment service providers
Providing billing-related customer support

Why pay all these yourself?

Outsource your e-commerce payment operations, let us handle the complexities of international taxes, take care of fraud monitoring, invoicing, and global compliance.

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Build vs Buy

Trust Nexway to be
your Merchant of Record.

1/ Global Tax Management & Compliance

Each state has its own set of rules and regulations that may differ from other states. Maintaining tax and regulatory compliance around the globe can cause companies to struggle. Indeed, the increasing complexity and multiplication of sales taxes on products purchased online make the development of its international activity more and more complicated. As your dedicated provider of commerce services, it is Nexway’s responsibility to stay up to date on worldwide financial and legal requirements to make sure you benefit from a seamless and fully compliant international buying and selling experience. Nexway, with its global expertise, manages sales taxes and VAT on your behalf, expertise reinforced by a network of expert consultancy partners who help us to be compliant in more than 140 countries and thus advise and support you as best as possible according to the countries where you want to scale.

2/ Managing Refunds and Chargebacks So Your Team Doesn’t Have To

A refund is a return of funds to a shopper for the purchase of a product or service. Handling refund requests and chargebacks is one of the many services we offer at Nexway. In some geographical locations, like in the European Union, shoppers are entitled to a right of withdrawal (cooling-off period) for products and services that are sold online. This is a period allowed under the law during which the shopper can cancel and return purchases for any reason, without incurring any penalty, and obtain a full refund. If your shopper asks for a refund during the eligible period, Nexway returns the full transaction cost on your behalf.

Chargebacks were designed to protect shoppers from unauthorized transactions and dishonest merchants. They result in the return of funds to a shopper and the loss of sales for businesses. The difference, however, is that with chargebacks, instead of contacting you for a refund, the shopper contacts directly their bank to request a refund. If the bank approves the request, the business is “forced” to return the funds to the shopper. The chargeback can be initiated for several reasons which may include criminal fraud, chargeback fraud, and friendly fraud.

3/ Fraud Detection

Nexway stops online fraud by providing you with the highest approval rates and the lowest false-positive rates in the industry. To help protect your business against fraud, Nexway Monetize leverages artificial intelligence to detect and help prevent fraud. Each order submitted through the Nexway payment service is subject to fraud detection algorithms that screening and scoring process. During the screening process, orders are assigned points and if the points exceed a certain limit, the orders are flagged as being potentially fraudulent.

There are a number of solutions that can help minimize the risk of fraud and chargeback fraud. This includes implementing 3D secure, fraud detection monitoring, address verification services, credit card verification code validation, and beyond. Nexway, as Merchant of Record, already has all of these solutions in place to help you run a more successful, efficient, and profitable e-commerce business.

4/ International Compliance

The Payment Card Industry Data Security Standard (PCI DSS) is a set of policies and guidelines that guarantee the security of debit, credit, and cash card transactions. They are intended to prevent the misuse of cardholders’ personal information and protect businesses and shoppers from data theft and fraud. A major focus for PCI DSS is the technology used to collect, store and process card data. Some of the measures include encryption, anti-malware software, extensive monitoring, risk analysis and more. To comply with PCI DSS protocol Nexway Monetize ensures a secure electronic transfer by providing secure connection, encrypted payment data, adherence to data privacy regulations. By outsourcing your payment services to us, we are essentially taking all the risks for you.


As a merchant taking responsibility for selling your digital goods online, we guarantee full compliance with the new PSD2 regulation. Working with us gives your business an edge in this new regulatory environment: Immediate SCA implementation on your cart and checkout – when required. Real-time AI-powered fraud detection. Conversion rate optimization through highly qualitative fraud management and strong authorization rates. Considered as a trusted merchant by our network of leading payment services providers partners.


The General Data Protection Regulation (GDPR) is the primary legislation adopted by the European Union (EU) to regulate how companies protect EU citizens’ data. The GDPR affects any organization or company that does online business with European residents and processes (accesses, collects, receives, stores) the personal data of individuals residing in the EU, regardless of the company’s location. These companies are required to take the necessary steps to comply with the regulations.
Nexway Monetize is a GDPR-compliant solution, that ensures that you are on the right side of the law. At Nexway we have implemented some strategies to align with this condition and ensure that consent is properly handled such as: appointment of a designated Data Protection Officer (DPO) to ensure that all regulations are followed and the shoppers/EU residents’ rights are upheld ; integration of clear and actionable consent management tools for your end-user into all points throughout the customer journey (cart, end-user portal, emails, etc.) ; creation of a consent management service to help you manage your shoppers’ consent through APIs if needed ; integration of an “Unsubscribe” link in all emails, including marketing campaigns (customizable to fit customers’ brand).


The end-user experience is the cornerstone of your online sales success. Maintaining a high level of experience isn’t easy when you start to multiply your sales points. Nexway Monetize solves this by managing your end-user relationships with a localized customer care service. Nexway is World-class level 1 end-user support via email, live chat, and telephone in 12 languages over 3 time zones (EU, US, APAC). We support your customers for all issues related to payment, subscription and access to the product.

  • Hamster Connect
    Nexway is able to serve as MoR for us, removing the complexity of selling globally, processing payments, managing global taxation, and maintaining security and compliance. They take this service to the next level. The Nexway Team provides us with very valuable marketing services and strategic account development, such as setting up specific marketing campaigns for our ambassadors offering them discount codes. Thanks to the Nexway Team, we have the time to focus on our product and services. That is what attracted us above everything else compared with other providers.
    Dennis van der Veen
    Fondateur et CEO de Hamster Connect

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What Does It Really Mean to Be a Merchant of Record?

Merchant of Record

Build vs Buy: should you outsource your online payment operations?

Nexway Monetize is here to help you manage your entire payment journey – from accepting payments to preventing fraud to maintaining security and data compliance to adhering to local sales tax regulations, and so much more!