Foundation 2026-04-15 6 min read
Why we will never be the merchant of record.
Settlement and tax compliance stay with the merchant, by design. We route data, not money.
The temptation
A protocol that handled settlement could charge a percentage of GMV, hold balances, and become economically self-sustaining without grants or sponsorship. Stripe Connect-style architecture is well understood. The board would write a compliant document tomorrow if we asked.
Why we did not
Sitting on the payment path makes us a regulated entity in every jurisdiction we serve. It pulls KYC, AML, tax remittance, refund arbitration, and chargeback exposure into the foundation. The protocol stops being neutral the moment the operator has a balance sheet incentive to favor one merchant or rail over another.
The trade we made
OpenKarta is funded by grants, infra subsidies, and optional paid SLAs for the badge service. Settlement happens entirely between the merchant's existing payment processor and the buyer's payment instrument. We never touch a paise.
The merchant's reciprocal duty
Because we route data not money, the merchant remains responsible for fulfillment, taxation, refunds, and dispute resolution. The terms of service and the charter both state this plainly. We will not silently change that posture.