Merchant of Record for AI
With the rise of AI, more people are vibe coding, launching products, and getting paid.
They don't need to master every part of software development anymore, they use Claude Fable 5, Codex, and other AI tools to build faster.
Payments are just another integration.
Most AI products are built for a global audience, not just a local market.
When you sell a product internationally, taxes, compliance requirements, and risks vary across countries, and these regulations change over time.
This is where the Merchant of Record (MoR) model comes in.
What is Merchant of Record (MoR) model?
The MoR is the entity legally responsible for processing transactions and delivering goods or services to end customers.
It manages payment acceptance, compliance, taxes, and chargebacks/refunds, allowing sellers to focus on scaling their business instead of building regulatory and financial infrastructure.
How does it work?
The seller sells products/services to the MoR.
The MoR processes customer payments, ensuring taxes, compliance, and local regulations are handled.
End customers purchase from the MoR.
The MoR pays out the net amount to the seller after deducting taxes, fees, and associated costs.
Why modern AI products need a modern MoR?
AI products are moving beyond fixed monthly subscriptions. They use prepaid credits or pay-as-you-go (PAYG) pricing based on usage.
Modern MoR platforms, like Kelviq, combine billing, usage metering, payments, taxes, compliance, payouts, and support for prepaid credits and PAYG pricing in a single platform.
Instead of building billing infrastructure and navigating global regulations, AI companies can report customer usage, while the MoR handles the rest.
As AI makes it easier to build products, MoR will become the essential infrastructure for selling globally.
