Merchant of Record (MoR)
What is a Merchant of Record?
A Merchant of Record is the legal entity that processes a transaction on behalf of a seller. When a player purchases a game or in-game item, the MoR appears as the seller on the player's bank or card statement, assumes liability for the transaction, and takes on the associated legal and financial obligations -- including tax remittance, dispute resolution, and regulatory compliance.
How Neon operates as your MoR
When you integrate with Neon, we become the Merchant of Record for all transactions processed through your storefront. This means:
- Tax compliance: Neon calculates, collects, and remits applicable sales tax, VAT, and GST across all supported markets on your behalf. You do not need to register for tax in each jurisdiction where you sell.
- Payment processing: Neon manages relationships with payment processors and acquirers globally, routing transactions through the appropriate PSP for each market.
- Chargebacks and disputes: Neon owns the chargeback and dispute process end-to-end. We absorb dispute liability and handle responses directly with the card networks and processors.
- Fraud and risk: Neon applies fraud screening and risk controls at the transaction level. Publishers are not exposed to payment fraud losses on transactions processed through Neon.
- Regulatory compliance: Neon maintains the licensing, KYC, and AML programs required to operate as a payment facilitator and reseller across supported regions.
What this means for currency handling
Because Neon is the entity of record on every transaction, all currency conversion, FX exposure, and cross-border settlement flow through Neon -- not directly through the publisher. Publishers set pricing in their configured base currency (typically USD), and Neon handles conversion at checkout, FX risk management, and payout in the publisher's preferred settlement currency. The sections below describe how Neon manages currency display, conversion, and settlement in detail.