Merchant of Record

What it means

The merchant of record is the company that takes the customer's payment in its own name. It's responsible for the transaction: its name shows on the card statement, it handles refunds and chargebacks, and in many places it carries tax obligations on the sale. In car rental, that can be the rental company (pay at the counter) or the booking site, when it takes the payment in its own name (common for prepaid bookings).

Why it matters

It decides who handles payment problems. If a customer disputes a charge, the dispute goes to the merchant of record, not necessarily the company that rented out the car.

Related terms

• Prepaid rateA rate you pay in full when you book, rather than at the rental counter.

Also related Agency model vs merchant model, Chargeback, Pay locally, Payment processor, Settlement