What is the default merchant of record in Stripe's charges flow?

What is the default merchant of record in Stripe's charges flow?

• A. The platform
• B. The connected account
• C. Stripe
• D. The customer

Answer: (A)

A merchant of record is the entity that handles the payment from the customer and bears responsibility for the charge, including refunds and disputes. In Stripe Connect’s typical charges flow, the platform is the party that presents and processes the payment to the customer, so it becomes the merchant of record by default. The connected accounts receive the funds after transfers, and Stripe handles its fees, but the platform takes on the charge-related obligations. If you configure charges to be created directly on a connected account, then that connected account would be the merchant of record instead.

A merchant of record is the entity that handles the payment from the customer and bears responsibility for the charge, including refunds and disputes. In Stripe Connect’s typical charges flow, the platform is the party that presents and processes the payment to the customer, so it becomes the merchant of record by default. The connected accounts receive the funds after transfers, and Stripe handles its fees, but the platform takes on the charge-related obligations. If you configure charges to be created directly on a connected account, then that connected account would be the merchant of record instead.