Which of the following is an example of an indirect merchant?

• A. A consumer electronics retailer processing payments directly
• B. A SaaS platform processing payments on behalf of its customers
• C. A bakery taking cash only
• D. A rideshare app processing payments directly

Answer: (B)

Indirect merchants are platforms that process payments on behalf of other merchants, acting as the intermediary rather than the seller of their own goods. A SaaS platform that handles payments for its customers fits this role because it processes transactions for multiple users instead of selling its own products.

The other examples are direct merchants: a consumer electronics retailer processes payments for its own products, a rideshare app processes payments for rides as the merchant of record, and a bakery taking cash doesn’t handle digital payments at all.