What are Merchant of Records (MOR)

New and startup businesses and shipping service providers often struggle to generate growth and maintain a competitive advantage. With the ever-changing market trends and consumer demands, it is difficult to manage merchant relationships and processes. Successful scalability begins with the help of outsourced omnichannel services, including outsourcing the Merchant of Records (MOR). 

That’s especially true with multiple contracts and partnerships involved.  However, as the business type and demands grow, change becomes inevitable, and overall management gets more complex.

Scaling effectively requires a new approach to operations management and fulfillment partner selection.  Businesses that can scale accordingly often show activities that are indicative of correct resource allocation and optimization. 

There are plenty of ways to enable supply chain optimization. Some options include:

  • Optimized inventory planning.
  • Well-designed Customer Resource Management (CRM) software.
  • Robust marketing strategies and more. 

Businesses use a variety of these tools to unlock growth. Establishing an outsourced MOR contributes to the improvement of omnichannel 3PL services  within businesses. But, it’s best to start by asking, “what is a Merchant of Records?”

What is a Merchant of Records?

Excessive growth often comes naturally with extra work. For instance, consider the added complexity as the following processes grow:

  • Payment processing and handling grow more complex.
  • More payments, chargebacks, and refunds need to be processed.
  • Tax documentation complexity increases every year. 
  • Pricing negotiation becomes more difficult with each partnership. 

All this work requires extra assessments and better resource management processes. Leveraging outsourced omnichannel services simplifies things.

Companies must use new and improved supply chain tools or CRM platforms. Still other opportunities to simplify exist. 

Companies can be their own merchant of record, but they can also outsource this work to entities. These third-parties  sell goods or services on behalf of a business and, by doing so, take on the liability related to the transaction (Collier, 2021). Working with a 3PL company that offers omnichannel services can improve your processes and increase your productivity.The Merchant of Records helps you stay focused and unlock resource efficiency. Together, outsourced financial services create better growth generation. Meanwhile, omnichannel fulfillment, customer interaction, contact management and other processes continue uninhibitedly. 

Of course,  outsourcing omnichannel 3PL services, including MOR, creates scalability for any business entity and is continuously improving customer support. The MOR essentially relieves the burden of performance on all payment activities. 

Well-established merchants of records provide complete transparency at all times. See the picture below for a simplified visual of the MOR  and outsourced omnichannel process.

Figure 1. Merchant of Records visual) 

As scaling is often difficult for many companies, lifting the burden of financial operational responsibility through outsourcing a Merchant of Records is critical. It enables an increase in focus and commitment that in turn, strengthens scaling and growth. According to a report on omnichannel 3PL company services by Fortunly (2022), 71% of financial service executives outsource or offshore some of their services. Meanwhile, 78% of businesses all over the world feel positive about their outsourcing partners. 

Further statistical research suggests that the outsourcing market for financial services will only continue to expand. Changes will remain a constant as time goes on and recovery from COVID-19 disruptions continues.

Figure 1. Merchant of Records visual) https://blog.payproglobal.com/what-is-a-merchant-of-record

Tapping Into New Markets With Improved MOR Services

Outsourcing a Merchant of Records enables better internal resource management. Outsourcing grants efficiency to tap into new markets. This allows them to expand their customer base. 

It can also help improve supply chain responsiveness as scalability and adaptability also improve. According to Wunker e.a. (2011), one of the greatest contributing factors of success to any business is a company’s ability to capture new markets. 

This can be related to new products, customers, industries etc. Tapping into new markets is a great way to generate additional sources of profit and gain a competitive advantage for any omnichannel 3PL company.

Merchants of Record outsourcing services also analyze market financial data. In turn, they provide a highly detailed action plan. Thus, you can better track, analyze and evaluate your operations. The value of the Merchant of Records applies across both forward and reverse logistics.

Improve Outsourced Omnichannel Services With ModusLink

As mentioned before, many successful businesses outsource at least part of their financial operational activities to optimize their practices. Would you like to know more about how your business can implement a professional Merchant of Records? If you have questions about these services and how to maximize your impact as an omnichannel 3PL company, talk to a ModusLink professional today to get started with improved MOR services and enhanced CRM solutions. 


Fastspring. “What Is a Merchant of Record (And Why Should You Care?)”. FastSpring, 23 december 2021, fastspring.com/blog/what-is-a-merchant-of-record-and-why-you-should-care.

Fortunly. “15 Must-Know Outsourcing Statistics for 2022”. Fortunly, 9 februari 2022, fortunly.com/statistics/outsourcing-statistics/#gref.

—. “15 Must-Know Outsourcing Statistics for 2022”. Fortunly, 9 februari 2022, fortunly.com/statistics/outsourcing-statistics/#gref.

Mansfield, Dani. “What is a merchant of record en why use an MoR as a solution for payments?” Paddle, paddle.com/blog/what-is-merchant-of-record. Geraadpleegd 9 februari 2022.

Meir Amzallag. “What Is A Merchant Of Record: How Does MoR Cut eCommerce Risk?” PayPro Global, 23 november 2021, https://blog.payproglobal.com/what-is-a-merchant-of-record.

Suess, Emily. “4 Tips for Growing Your Business by Tapping Into New Markets”. Small Business Bonfire, 2 januari 2013, www.smallbusinessbonfire.com/new-markets.

Wunker, Stephen, e.a. “Achieving Growth by Setting New Strategies for New Markets”. Ivey Business Journal, 13 februari 2015, iveybusinessjournal.com/publication/achieving-growth-by-setting-new-strategies-for-new-markets.

—. “Achieving Growth by Setting New Strategies for New Markets”. Ivey Business Journal, 13 februari 2015, iveybusinessjournal.com/publication/achieving-growth-by-setting-new-strategies-for-new-markets.




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