---
title: "What Is a Merchant of Record? Telehealth Definition"
description: "A merchant of record is the business that sells in its own name and takes the payment. Why it matters for a telehealth brand, and who holds it on Cuvo Health."
canonical: "https://cuvo.co/glossary/merchant-of-record"
last-updated: "Oct 26, 2026"
---
**Definition:** A merchant of record is the business that sells to the customer in its own name and takes the card payment through its own merchant account, so its name appears on the card statement and it answers for refunds and chargebacks.

# What is a merchant of record in telehealth?

Whoever is the merchant of record holds the patient's payment, the card on file and the chargeback risk, which decides how fast a brand gets paid and whether it can leave its platform. On Cuvo Health, patient payments settle directly to the brand's own merchant account.

Published Oct 26, 2026. Facts reviewed Oct 26, 2026.

A merchant of record (MoR) is the business that sells to the customer in its own name and takes the card payment through its own merchant account, so its name appears on the card statement and it answers for refunds and chargebacks. Stripe's documentation puts it from the buyer's side: the merchant of record is the entity the customer understands they are buying from. In telehealth the question is whether the brand or its platform holds that role, which decides where patient payments land first, who holds the cards on file, and how hard it is to change platforms. On Cuvo Health, patient payments settle directly to the brand's own merchant account, so the brand is the merchant of record.

**At a glance**
- What it is: The business that sells in its own name and takes the payment
- What it carries: The card statement name, refunds, disputes and chargebacks
- Why it matters: Cash flow, the cards on file and the ability to change platforms
- Not the same as: The payment processor, which moves the money for the merchant
- On Cuvo: Patient payments settle directly to the brand's own merchant account

**Brand as merchant of record vs platform as merchant of record**

| Question | Brand is merchant of record | Platform is merchant of record |
| --- | --- | --- |
| **Where patient payments land first** | The brand's own merchant account | The platform's account, with the brand paid out later |
| **Name on the card statement** | The brand | The platform |
| **Refunds and chargebacks** | Handled by the brand | Handled by the platform |
| **Cards on file and subscriptions** | In the brand's processor account | In the platform's account; a move can require patients to re-enter cards |
| **Changing platforms** | Billing and saved cards stay with the brand | Billing and saved cards may have to be rebuilt |

## 01. Why does the merchant of record matter for a telehealth brand?

Three reasons. Cash flow: the merchant of record is paid first, and anyone else waits for a payout. Control: refunds, disputes and chargeback rates sit with the merchant of record, and so does the processor relationship. Exit: saved cards and subscriptions live in the merchant of record's processor account, so a brand that does not hold them can lose recurring billing when it leaves a platform.

## 02. How is a merchant of record different from a payment processor?

The processor, such as Stripe, moves the money; the merchant of record is the seller the money is for. Stripe's documentation says the merchant of record should be decided from the customer's perspective, not from the charge type, and that card network rules require the brand's identity to be consistent across the website, checkout, terms, receipts and statement descriptor. A platform that processes a brand's payments is not the merchant of record unless the customer is buying from the platform.

## 03. What rules apply to the merchant of record on subscriptions?

Telehealth programs often bill as subscriptions, and the Restore Online Shoppers' Confidence Act, 15 U.S.C. 8403, puts three duties on whoever charges a consumer online through a negative option feature: disclose all material terms clearly and conspicuously before taking billing information, obtain express informed consent before charging, and provide a simple way to stop recurring charges. Where the brand is the merchant of record, those duties sit with the brand's own checkout and billing.

## 04. What should a brand ask a platform about the merchant of record?

Whose merchant account takes the patient's payment, whose name is on the card statement, who holds the saved cards and subscription records, whether any transaction fee or revenue share is taken before money reaches the brand, and what happens to the cards on file if the brand leaves. Get each answer in the contract. On Cuvo, revenue settles directly to the brand's merchant account and there are no platform transaction fees and no revenue share.

## Frequently asked questions

**Q: What is a merchant of record?**

A: It is the business that sells to the customer in its own name and takes the payment through its own merchant account, carrying the card statement name, refunds and chargebacks. On Cuvo, patient payments settle directly to the brand's own merchant account.

**Q: Who is the merchant of record in telehealth?**

A: It depends on the platform contract: either the brand, with payments in its own merchant account, or the platform, with the brand paid out later. On Cuvo Health, the brand is the merchant of record and revenue settles directly to its account.

**Q: Merchant of record vs payment processor: what is the difference?**

A: The processor moves the money and the merchant of record is the seller it is for, the business the customer believes it is buying from. On Cuvo, the brand keeps its own merchant account and Cuvo charges no platform transaction fees.

**Q: Merchant of record vs seller of record: what is the difference?**

A: The terms are often used for the same role: the business that sells in its own name and stands behind the transaction. On Cuvo Health, that business is the brand, and patient payments settle to its merchant account.

**Q: Why should a telehealth brand be the merchant of record?**

A: Because the merchant of record is paid first, controls refunds and chargebacks, and holds the cards on file that recurring billing depends on, which makes leaving a platform possible. On Cuvo, the brand owns the patient relationship, the customer list and every business record, exportable at any time.

**Related pages**

- [Who owns the patients and data in white label telehealth?](/blog/who-owns-the-patients-and-data-on-a-white-label-telehealth-platform): Card tokens, merchant of record and data export, explained
- [Flat fee vs revenue share unit economics](/blog/telehealth-unit-economics-explained-transparent-flat-fee-vs-revenue-share-pricing-models): How the merchant of record shapes cash flow
- [Revenue share (telehealth platforms)](/glossary/telehealth-platform-revenue-share): The pricing model to compare it with
- [FTC rules for telehealth subscriptions and health ads](/blog/ftc-rules-for-telehealth-subscriptions-and-health-ads): ROSCA and subscription billing in depth
- [Cuvo pricing](/pricing): Revenue settles to the brand's merchant account

Canonical page: https://cuvo.co/glossary/merchant-of-record