Merchant of Record (MoR)
Suby is the legal seller on the card statement and the invoice. Every dispute is filed against Suby’s merchant account, not yours, and it lands in the same ratio Suby reports to Visa and Mastercard, a ratio shared across every merchant on MoR, not just you.- Your reserve-increase and hard-ceiling thresholds (0.5%–0.75%, then 0.75%) are tracked at your account level, but they exist to protect the shared MoR pool: one merchant running hot puts every other MoR merchant’s processing at risk.
- On MoR, every dispute is automatically refunded to the customer on receipt, without contestation, to protect Suby’s aggregate dispute ratio with the schemes and acquirers under that model. You may request in writing to move to a contested-dispute process instead, subject to Suby’s prior written agreement and possibly different pricing or reserve terms.
- Suby, not you, decides how a dispute is represented by default. You get compliance handled for you, in exchange for less discretion over individual cases.
PayFac
In PayFac mode you’re boarded as your own sub-merchant with an identity of your own inside Suby’s payment-facilitation relationship with its banking partners. You control how disputes are handled: your refund policy, your evidence and representment strategy.- Your ratio is tracked at your own sub-merchant level, directly with the underlying processing/banking partner. It isn’t pooled with other Suby merchants the way MoR is.
- If you cross the same 0.75% hard ceiling, the partner can flag, restrict, or terminate your specific sub-merchant independently of everyone else on Suby.
- Because that flag sits with the partner directly, an excessive ratio here risks your standing with that specific banking relationship, and can make future approvals with similar partners harder.