Viktoria Soltesz's Article - Merchant of Record (MoR) vs Payment Facilitator (PayFac) Models - At The Green Sheet Magazine

The Green Sheet Magazine is out, and my latest article explores one of the most misunderstood areas in payments and banking today: Merchant of Record (MoR) versus Payment Facilitator (PayFac) models.

Payment providers can operate under various models, which can affect our pocket greatly. However, this can be very confusing if we do not know what to look out for. The two most common -the Merchant of Record and Payment Facilitator - are frequently used terms in payments but are still confused by businesses. Without a clear view of how money flows, who is truly accountable and to what extent these choices can determine the difference between sustainable success and sudden failure, companies unknowingly expose themselves to risks which can undermine their entire operation.

The article explains the structural, legal, operational, and strategic differences between MoR and PayFac models, including:

• who owns the customer relationship

• how risk and liability move between parties

• how reserves, chargebacks, and monitoring programmes impact businesses

• why hidden dependencies between providers create serious operational exposure

• how platforms like Paddle, Lemon Squeezy, Stripe Connect, Shopify Payments, Apple App Store, and Google Play use these models differently

  
  

The article disusses why these decisions affect far more than payments alone, influencing customer experience, compliance, finance, growth, liquidity, and business continuity.

You can read the full article here: https://www.greensheet.com/ebooks/gs260501/