When using Direct bookings in Hospitable, the Merchant of Record (MoR) determines who is responsible for processing guest payments.
This impacts how payments are handled, how payouts are issued, and who is responsible for taxes and chargebacks.
What Merchant of Record Means
The Merchant of Record is the entity that:
Processes the guest’s payment
Appears on the guest’s bank or card statement
Is responsible for handling refunds and chargebacks
May handle tax calculation and remittance (depending on setup)
In Direct bookings, the Merchant of Record depends on your Direct plan.
How It Works by Direct Plan
Direct Premium
For Direct Premium, Hospitable may act as the Merchant of Record.
This means:
Payments are processed on your behalf
Hospitable may appear on the guest’s bank statement
Payouts are sent to your connected bank account after processing
Taxes may be calculated and remitted automatically (where supported)
Chargebacks are handled through Hospitable’s payment system
Merchant of Record behavior for Direct Premium depends on your region and setup. Not all accounts have the same configuration.
Direct Basic
For Direct Basic, you are the Merchant of Record via Stripe.
This means:
Payments are processed through your Stripe account
Your business name appears on the guest’s bank statement
You are responsible for handling refunds and chargebacks
You manage tax setup and reporting
Also see: Set Up a Bank Account for Direct Bookings
How This Affects Payouts
Your Merchant of Record setup determines how and when you receive payouts:
Direct Premium: Payouts are scheduled and sent after payment processing
Direct Basic (Stripe): Payout timing depends on your Stripe payout schedule
Also see: Manage Payouts and Bank Accounts for Direct Bookings
How This Affects Taxes
Tax handling depends on your setup:
Direct Premium: Taxes may be automatically calculated and remitted (where supported)
Direct Basic: You are responsible for configuring, collecting, and remitting taxes
You are responsible for filing and remitting taxes unless automatic remittance is supported in your region.
Also see: How Taxes Are Collected and Remitted for Direct Bookings
How This Affects Chargebacks and Refunds
Direct Premium: Managed through Hospitable’s payment system
Direct Basic: Managed through your Stripe account
In both cases, refunds follow your cancellation policy and payment terms.
Also see: Direct Booking Refunds and Fraud Protection and Chargebacks for Direct Bookings
Key Things to Know
The Merchant of Record determines who processes payments and handles financial responsibility
Direct Premium and Direct Basic handle payments differently
Your setup affects payouts, taxes, and chargebacks
Merchant of Record behavior may vary by region