By default, Stripe sets the merchant of record as what?

Stripe sets the merchant of record by default as the platform account. This means that when a transaction is processed, the platform or application that is utilizing Stripe for payment processing is recognized as the entity responsible for the sale. Being the merchant of record entails having ownership of the transaction, which includes managing customer interactions, handling disputes, and ensuring compliance with relevant laws and regulations.

This default setting is particularly beneficial for platforms that facilitate transactions on behalf of their users, as it allows for a streamlined payment experience and simplifies the processing of transactions. The platform can then manage payouts to individual users or vendors, while maintaining legal responsibility for the payments processed through its system. This structure helps to protect both the users and customers by centralizing responsibility with the platform for handling payments and returns.