> ## Documentation Index
> Fetch the complete documentation index at: https://documentation.suby.fi/llms.txt
> Use this file to discover all available pages before exploring further.

# What is a Merchant of Record?

> How Suby handles tax compliance, liability, and global payment infrastructure on your behalf.

When you sell globally, someone has to be legally responsible for the transaction — collecting taxes, remitting them to the right authorities, and absorbing the compliance liability. That entity is called the Merchant of Record.

## What a Merchant of Record Does

A Merchant of Record (MoR) is the legal entity that sells the product to the customer, calculates, collects, and remits international sales taxes (VAT, GST, US Sales Tax), assumes regulatory and tax liability for the transaction, and handles chargebacks and fraud liability.

<Note>
  Without a MoR, you are responsible for all of this yourself, registering for tax in every jurisdiction you sell into, filing returns, and absorbing compliance risk.
</Note>

## PSP vs MoR vs Suby

|                                    | PSP (e.g. Stripe) | MoR (e.g. Paddle) | Suby |
| ---------------------------------- | ----------------- | ----------------- | ---- |
| Processes payments                 | ✅                 | ✅                 | ✅    |
| Tax collection and remittance      | ❌                 | ✅                 | ✅    |
| Compliance liability               | ❌                 | ✅                 | ✅    |
| Stablecoin-native payments         | ❌                 | ❌                 | ✅    |
| Discord and Telegram integrations  | ❌                 | ❌                 | ✅    |
| You control billing infrastructure | ✅                 | Partial           | ✅    |

<CardGroup cols={3}>
  <Card title="PSPs (e.g. Stripe)" icon="server">
    Low-level APIs and maximum flexibility, but you remain liable for international tax compliance. You must register, file, and remit taxes yourself.
  </Card>

  <Card title="Traditional MoRs (e.g. Paddle)" icon="building">
    Handle compliance but often come with higher fees, less flexibility, and limited payment method support.
  </Card>

  <Card title="Suby" icon="bolt">
    Embeds a licensed MoR directly into its payment stack. Automated tax handling and compliance coverage without giving up control over your billing infrastructure or payment methods.
  </Card>
</CardGroup>

## How Suby Handles Compliance

Suby is not the Merchant of Record itself. We embed a licensed MoR into our infrastructure and orchestrate everything on top of it, card payments, stablecoin payments, Discord and Telegram integrations, and recurring billing.

<Steps>
  <Step title="Tax handled automatically">
    The licensed MoR handles tax registration, collection, and remittance across 190+ countries.
  </Step>

  <Step title="No liability for you">
    You are not liable for international tax registrations or filings.
  </Step>

  <Step title="Compliance abstracted">
    Suby abstracts the compliance layer so you never interact with it directly.
  </Step>
</Steps>

<Note>
  You remain responsible for your own income and corporate tax in your jurisdiction.
</Note>

## What This Means for You

<CardGroup cols={2}>
  <Card title="Always compliant" icon="shield-check">
    Every transaction is tax-compliant automatically. You never register for foreign VAT or GST, and you never file tax returns in markets where you sell.
  </Card>

  <Card title="Correct pricing everywhere" icon="receipt">
    Customers see the correct tax-inclusive or tax-exclusive price at checkout based on their location.
  </Card>

  <Card title="Chargebacks covered" icon="ban">
    Chargebacks and fraud liability are handled at the infrastructure level.
  </Card>

  <Card title="Focus on your product" icon="rocket">
    You focus on building and selling. We handle the legal and compliance layer underneath.
  </Card>
</CardGroup>

***

<CardGroup cols={2}>
  <Card title="Supported Countries" icon="globe" href="/v2/docs/merchants/supported-countries">
    Where Suby's checkout is available and which regions are restricted.
  </Card>

  <Card title="Acceptable Use Policy" icon="file-shield" href="docs/merchants/supported-businesses">
    Which business types are supported and which are not.
  </Card>
</CardGroup>