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Merchant of Record

Sell in Latin America without opening local entities.

Localpayment acts as the seller of record in selected markets. We collect in local currency with local methods, handle local invoicing, tax collection and remittance, take on the compliance obligations of the Merchant of Record, then convert and settle to you abroad.

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  • Local seller of record
  • Local invoicing and taxes
  • Settlement abroad

Who it is for

Built for companies that sell digital products to Latin America

If your customers are in the region and your company is not, a Merchant of Record removes the local setup.

MoR vs. PSP

Your own local entity and a PSP, or Localpayment as Merchant of Record

A PSP moves the money. A Merchant of Record also becomes the local seller.

Own local entity + PSP

  • You set up the entityEach market can mean a local company, bank accounts and registrations.
  • You are the sellerInvoicing, tax filings and local obligations stay with your team.
  • You manage complianceLocal rules, reviews and reporting are your responsibility.
  • Several vendorsAccountants, tax advisors and payment providers to coordinate.

Localpayment as Merchant of Record

  • We provide the local entitySell in selected markets without opening one yourself.
  • We are the local sellerWe issue invoices and handle tax collection and remittance in supported markets.
  • We take on MoR complianceCompliance and KYC obligations of the Merchant of Record sit with us.
  • One partner, one integrationThe same Localpayment API and checkout, with settlement to you abroad.

How it works

From a local checkout to settlement abroad

Your customer buys from Localpayment’s local entity. You receive the settlement.

  1. 1

    CustomerLocalpayment (MoR, local entity):

    Customer buys locally

    The customer pays in local currency, with a method they already use.

  2. 2

    Localpayment (MoR, local entity)Local rail:

    Charged on a local rail

    Localpayment’s local entity collects through the local payment method.

  3. 3

    Local railLocalpayment (MoR, local entity):

    Payment confirmed

    The rail confirms the payment and Localpayment reconciles it to the order.

  4. 4

    Localpayment (MoR, local entity)Customer:

    Local invoice and taxes

    We issue the local invoice and handle applicable taxes as Merchant of Record in supported markets.

  5. 5

    Localpayment (MoR, local entity)Merchant abroad:

    Settled to you in USD

    We convert the funds and settle them to you abroad.

Illustrative flow. Tax handling and settlement details are scoped country by country with our team.

Scope

What Localpayment takes on as Merchant of Record

Scoped country by country with our team. Where a figure is not stated here, ask sales.

  • Countries

    Scope
    Selected Latin American markets
    Notes
    Confirmed per market during scoping

  • Payment methods

    Scope
    Local bank transfers, QR, wallets and cards as available per country
    Notes
    Same methods as our pay-ins

  • Collection currency

    Scope
    Local currency of each market
    Notes
    Prices shown in local currency to the buyer

  • Settlement to you

    Scope
    USD, EUR, GBP, CAD, AUD, NZD, CHF, USDC or USDT
    Notes
    Converted within local market hours

  • Invoicing and taxes

    Scope
    Local invoice issued by Localpayment; indirect taxes collected and remitted in supported markets
    Notes
    Tax treatment reviewed per country and product

  • Product scope

    Scope
    Digital products and services; no gambling
    Notes
    Restricted categories reviewed in compliance

  • Limits and pricing

    Scope
    Set per market and product
    Notes
    Contact sales

Localpayment as Merchant of Record is available in selected markets. Scope, tax treatment and settlement terms are confirmed in your agreement.

What is included

Everything the local seller has to do, handled for you

Available in selected markets and scoped country by country with our team.

  • Local entity

    Localpayment sells to your customers through its local entity.

  • Local invoicing

    Invoices issued locally for each sale, as the market requires.

  • Indirect tax handling

    Collection and remittance of applicable local taxes in supported markets.

  • Local payment methods

    Transfers, QR, wallets and cards, according to each market.

  • FX and settlement

    Conversion and settlement to you abroad, in USD.

  • Refunds and chargebacks

    We handle refund requests and card disputes with the payer and the payment method.

  • Compliance and KYC

    Compliance and KYC obligations of the Merchant of Record, handled by Localpayment.

  • Customer payment support

    Support for your customers’ payment questions, with 24/7 customer support for you.

Onboarding

From first call to your first market

We scope each market with you before anything goes live.

  1. Commercial and compliance review

    We learn what you sell and review the business with our compliance team.

  2. Product and tax scoping per country

    We define, market by market, what is sold and how taxes apply.

  3. Integrate through the same API or checkout

    Use the Localpayment API or checkout you may already use for other flows.

  4. Go live market by market

    Each market launches once its scope is confirmed.

For developers

Same API, different seller of record

A Merchant of Record sale is created with the same Create Payin request you would use for any pay-in. The MoR configuration lives on your account, so the request shape, statuses and webhooks do not change.

  • Authenticate with POST /api/token/, then call POST /api/payin/
  • Your externalId on every request; duplicates return HTTP 409
  • Stage mirrors production with no real money
Create Payin API reference
# Create a Pix sale in Brazil under your MoR account (fictitious values)
curl -X POST https://api.stage.localpayment.com/api/payin/ \
  -H "Authorization: Bearer $ACCESS_TOKEN" \
  -H "Content-Type: application/json" \
  -d '{
    "paymentMethod": { "type": "BankTransfer", "code": "1314", "flow": "DIRECT" },
    "externalId": "3f9a1b20-0000-4000-8000-000000000077",
    "country": "BRA",
    "currency": "BRL",
    "amount": 49.9,
    "accountNumber": "<your-account-number>",
    "conceptCode": "0003",
    "merchant": { "type": "COMPANY", "name": "Streaming Exemplo Inc." },
    "payer": {
      "type": "INDIVIDUAL",
      "name": "João",
      "lastname": "Pereira",
      "email": "joao@example.com",
      "document": { "type": "CPF", "id": "000.000.000-00" }
    }
  }'

Frequently asked questions

How is a Merchant of Record different from a PSP?

A PSP processes payments for you while you remain the seller. As Merchant of Record, Localpayment is the seller of record locally: it sells to the customer, issues the local invoice and takes on the related tax and compliance obligations, then settles to you.

Which countries are available?

The Merchant of Record offering is available in selected markets. We scope it country by country with our team, so talk to sales to confirm the markets that fit your business.

Who issues the invoices?

Localpayment issues the local invoice to your customer through its local entity, as required in each supported market.

How are taxes handled?

Localpayment collects and remits applicable local taxes as Merchant of Record in supported markets. The scope is confirmed per country.

In which currency do I get paid?

Your customers pay in local currency. We convert and settle to you abroad, in USD by default. Other settlement options can be discussed with our team.

What happens with refunds and chargebacks?

Localpayment handles refund requests and disputes with the payer and the payment method as the seller of record, and coordinates with you on anything related to the product.

Do I need a different integration?

No. You integrate through the same Localpayment API or checkout, and we configure the Merchant of Record scope for each market with you.

Also on the same API

Sell locally without a local entity

Tell us what you sell and where. We will scope the Merchant of Record offering with you, country by country.

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How can we help?

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