Merchant of record

Most course creators never think about who the seller is, until a sales tax question or a chargeback arrives. The merchant of record is the answer to "whose sale is this, legally?" Whoever it is carries the paperwork and the risk that come with the money.

What does a merchant of record handle?

• The charge. The sale is made in their name, through their payment account.
• Refunds. Money returned to a buyer comes out of their balance.
• Chargebacks. When a buyer disputes a charge with their bank, they answer it and absorb the loss if it goes against them.
• Sales tax and VAT. Where tax is owed on the sale, it's their job to collect it and pay it to the right government.

Two models: you as the seller, or the platform as the seller

You are the merchant of record when you connect your own Stripe or PayPal account and sales are charged there. The money lands in your account, and you own the payment relationship with your students. Stripe's own documentation describes this setup, which it calls direct charges: the payment goes to the seller's account, and refunds and chargebacks reduce that account's balance. You also handle any tax you owe.

The platform is the merchant of record when it sells to your buyer in its own name and pays you your share. Gumroad, for example, says on its pricing page that it is your merchant of record and handles sales tax collection and remittance (as of November 2026). The appeal is clear: tax across many countries becomes someone else's job.

What are the trade-offs?

A platform that takes on tax, refunds, and disputes charges for that work. Gumroad, for example, lists 10% + $0.50 on each direct sale as of November 2026. Check what each rate includes before you compare it with the 2.9% + $0.30 Stripe charges on a card payment you take yourself. Look at the total, not the headline rate, using the same math as for transaction fees. You may also have less control over refunds, payout timing, and your students' payment details, which matters if you ever move platforms.

Being your own merchant of record keeps fees lower and the customer relationship yours. The cost is that tax is your responsibility. Many places tax digital products sold to consumers, and the rules depend on where the buyer lives. If you sell internationally or in volume, I'd talk to an accountant early rather than after your first year of sales.

Who is the merchant of record on Ruzuku?

You are. You connect your own Stripe account (through Stripe Connect) or your own PayPal account, and each sale is charged on that account. Ruzuku doesn't add a transaction fee, and it doesn't collect sales tax or VAT on your behalf. Refunds go back through your Stripe or PayPal account, and in most cases you can issue them from your payment history in Ruzuku.

For many creators selling mostly in their own country, that's the simplest arrangement. If most of your buyers live abroad, a merchant-of-record platform may suit you better, and Ruzuku isn't one. If tax handling is the deciding factor for you, weigh it against the extra per-sale cost of a platform that acts as the seller. The platform fee breakdown shows how a sales-tax add-on changes the total on one major platform.