What is a merchant of record, and why it matters when you sell digital products
A merchant of record is the company that legally sells the product to the buyer. When Skalp is the merchant of record, the card charge carries Skalp's name, Skalp issues the invoice, collects and reports the VAT, and deals with refunds and chargebacks. You set the price, run the product and receive your share.
The problem it solves
Digital goods sold to consumers in the EU are taxed at the VAT rate of the buyer's country, from the first sale. Other countries have similar GST rules. Selling on your own payment account means registering, collecting the right rate, keeping evidence of where each buyer is and filing returns. Then come invoices, refund requests and chargeback disputes with banks.
Who does what on Skalp
| Task | Who handles it |
|---|
| Price, product, delivery content | You |
| Charging the buyer | Skalp (SDN Ventures LLC), named on the statement |
| VAT or GST for the buyer's country | Skalp, reported under EU OSS |
| Invoice | Skalp, for every order |
| Refunds, chargebacks, buyer support on payments | Skalp's team |
| Your income tax on payouts | You, in your own country |
What it costs
Skalp's 10% per sale (7% above $20,000 in 30 days) covers the merchant of record work and payment processing. There is no monthly, listing or setup fee. Each order settles 7 days after it completes, then you request a payout to your bank or a USDT wallet.
Getting approved
Because Skalp sells in its own name, every store goes through a short file: your details, a tax form and the Supplier Agreement. An admin reviews it within 2 business days, and bank details are only needed before your first payout.
Questions people ask
Is a merchant of record the same as a payment processor?
No. A processor moves the money and the sale stays yours. A merchant of record takes on the sale itself, with its tax and dispute duties.
Do I still need a company?
The seller file asks for your details and a tax form. Your own tax on what Skalp pays you depends on your country.