Resellers vs Merchant Account: Basics

by | Jan 5, 2023 | merchant account

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In this article, we will share with you the basic details of resellers vs merchant account. There are many intricacies in banking. In reality, it might be challenging to distinguish between the reseller and merchant account because they are two terms that are very similar to each other.

• An account that has been opened with a payment processor or an Independent Sales Organization (ISO) to provide payment processing services to third parties is known as a reseller account.
An account that has been opened with a payment processor or Independent Sales Organization (ISO) to process transactions is referred to as a merchant account.

• In simple words, a reseller account is targeted at facilitating the usage of payment processing services by other businesses.
A merchant account, on the other hand, is meant for a business’s own payment processing needs.

Merchant of Record: What?

• A merchant’s authorized representative in processing credit and debit card transactions for clients is known as a merchant of record (MoR), also known as a “reseller).

• When a seller is prevented from doing so by legal restrictions or restricted access, they handle the actual payment for the goods or services.

Merchant of Record: How it works?

• A merchant of the record takes payments from your customers and pays you for the goods.
The entire process only takes a few seconds.

• Because your MoR is the backend owner of the merchant account when customers submit their payment information at the checkout on your website, the payment is handled in their name.

• The name of the MoR, who is also in charge of all legal requirements for the region, will therefore appear on your customer’s credit card account.
Additionally, you normally sell to your MoR, who then resells your clients.

Merchant Of Records is Specifically Helpful in –

• Global Financial Compliance

• Borderless SaaS Payment and Pro Merchant Accounting

Seller of Record: What?

• The legal body referred to and acknowledged as the seller of a product to the final consumer is known as a “Seller of Record.”

• Unless otherwise noted, they are also accountable for accounting transaction tax and the risk of product responsibility.

Seller of record: How it works?

• The objective of a Seller of Record is typically to uphold commerce standards for online sales and simplify sales tax. You can delegate your sales duties to a Seller of Record so that you can concentrate on production and distribution.

• A payment system, channels, processors, and settlers will be provided by the SoR in order to handle payments.

• Your Seller of Record will be the subject of every transaction recorded through the payment systems.


• Outsource liabilities

• Manage recourse and Reputation control.

Credit card reseller: What?

A company that sells credit cards on behalf of an issuing company is what a credit card reseller appears to be.
However, it usually refers to a business that resells a payment processing company’s services. There might be card service resellers in some circumstances.
But instead of using credit cards, these frequently use debit, gift, and anonymous card services.

Merchant Acquirer:

• The merchant acquirer, often known as the merchant acquiring bank. It is one of the most crucial components in the payment processing puzzle.

• An organization that supplies the framework is basically a merchant acquirer.
In addition, it also provides the businesses ability to process credit card payments and license requirements.

• However, an Independent Sales Organization (ISO), which is essentially a reseller of merchant acquiring services, frequently confuses the job of a merchant acquirer with that of an ISO.

Service Reseller Program:

• Notably, a service reseller program refers to businesses with direct connections to merchant acquirers in the context of credit card processing.

• To put it simply, these businesses package and resell credit card processing services to their own clients or users.
This frequently incorporates enhanced services and an interface that is simpler to use. Direct API access, payment gateway integration, special reporting tools, etc are some examples. In the above article, we try to share with you all details about resellers vs merchant accounts. To get more information contact us!