Who is merchant of record by default?

• A. The platform
• B. The connected account
• C. Stripe
• D. The customer

Answer: (A)

The merchant of record is the entity responsible to the customer for the sale and for handling refunds, disputes, and tax reporting. In Stripe Connect, when the platform processes payments on behalf of connected accounts (the common platform-managed flow), the platform takes on that role by default. It’s the platform that the customer contracts with and relies on for the purchase, even though the connected account ultimately receives the funds after any platform fees. The connected account would be the MoR only in specific direct-charge setups, not in the default platform-managed scenario. Stripe itself is the processor, not the merchant of record, and the customer isn’t the MoR.