Merchant of Record for a Telehealth Brand: Who Should Process the Payment?

What Merchant of Record means

When a patient pays, one business's merchant account takes the payment. That business is the Merchant of Record: it is the seller as far as the card networks are concerned, and refunds and chargebacks run through its account. For a healthcare brand the choice matters more than in ordinary e-commerce, because the payment covers clinical services delivered by a licensed medical group as well as whatever the brand sells.

Option A: TrueEval as Merchant of Record (preferred)

TrueEval serves as Merchant of Record, combining patient billing, clinical care, prescribing and pharmacy coordination in one integrated operating structure. With TrueEval as Merchant of Record, patients pay through a TrueEval-approved payment rail. The clinical (professional) portion stays with TrueEval's medical group, and the brand's management company is paid under its management services agreement. Best fit: Partners seeking turnkey operations with an integrated patient billing and clinical care experience. Merchant of Record: TrueEval. Patient checkout and billing: Processed through a TrueEval-approved payment rail. Clinical care and pharmacy coordination: Delivered through TrueEval's clinical infrastructure.

Option B: Partner-owned Merchant of Record

The partner keeps its own merchant account and patient billing. TrueEval supplies the clinical infrastructure behind the partner's brand, supported by a prefunded service balance. Best fit: Established brands that already manage checkout, subscriptions and payment processing. Merchant of Record: The partner. Patient checkout and billing: Managed through the partner's merchant account. Clinical care and pharmacy coordination: Supported through TrueEval's clinical infrastructure.

How the prefunded service balance works

The partner maintains a rolling prepaid balance for medical visits and pharmacy fulfillment. Launch, Growth and Established tiers scale the required balance and replenishment trigger to expected activity. TrueEval does not extend credit. Fund before use: Available cleared funds are reserved for each new visit booking or pharmacy order before it proceeds. Committed funds cannot be reused. Draw down as used: Medical visit charges and pharmacy costs reduce the prepaid balance as they are incurred. Replenish before depletion: The partner restores the balance when it reaches the agreed trigger. A pending transfer does not count as available funding. Pause when funding is insufficient: New visit bookings and new pharmacy fulfillment pause until sufficient cleared funds are available. Existing patient continuity remains subject to applicable clinical obligations.

How to choose

Choose TrueEval as Merchant of Record if you want one integrated operation for patient billing and clinical care and do not already run a mature checkout. Choose Partner-owned Merchant of Record if you already manage checkout, subscriptions and payment processing and want to keep them. In both structures, clinical decisions remain with the treating clinician.

A note on advice

This guide is general information, not legal advice. Corporate practice of medicine rules, fee-splitting rules and licensing requirements differ by state; an operator should have its own healthcare counsel review entity structure and contracts.

Frequently asked questions

What is a Merchant of Record in telehealth?

The business whose merchant account processes the patient's payment and that the card networks treat as the seller. Refunds and chargebacks run through its account.

Can my brand keep its own checkout?

Yes, under Partner-owned Merchant of Record. The partner keeps its own merchant account and patient billing. TrueEval supplies the clinical infrastructure behind the partner's brand, supported by a prefunded service balance.

Does TrueEval extend credit under the prefunded model?

No. Cleared funds are reserved before each new visit booking or pharmacy order, and new bookings pause if cleared funds run short.

Who makes clinical decisions in each model?

In both structures, clinical decisions remain with the treating clinician.