What does the term 'Merchant of Record' refer to?

The term 'Merchant of Record' specifically refers to the entity that is responsible for processing transactions and holds liability for any chargebacks or returns. This means that when a customer makes a purchase, the Merchant of Record is the party that appears on the customer's credit card statement, and it is also this entity that bears the financial responsibility in the event of disputes regarding transactions, such as chargebacks initiated by customers when they contest a charge.

Understanding the role of the Merchant of Record is crucial for travel professionals as it directly impacts financial accountability, customer service protocols, and the overall transaction process within the travel and hospitality industries. Recognizing who carries the liability in these transactional relationships helps in establishing clear communication with customers and suppliers about who they can turn to for resolving issues related to payments.