> ## Documentation Index
> Fetch the complete documentation index at: https://docs.spotflow.one/llms.txt
> Use this file to discover all available pages before exploring further.

# How Spotflow works

> What it means for Spotflow to be your Merchant of Record, how money flows, and the building blocks you integrate with.

Spotflow is your **Merchant of Record (MoR)**. When your customer pays, Spotflow is the legal seller: we collect the payment through local payment methods, handle local tax and compliance, and send you the net revenue. You don't need a local entity in every country you sell in.

## The money flow

```mermaid theme={null}
flowchart TB
  C["Your customer"] -->|"pays by card, bank transfer,<br/>mobile money, USSD or EFT"| SF{{"Spotflow<br/>Merchant of Record"}}
  SF -->|"collects, applies tax,<br/>manages risk and compliance"| BAL["Your Spotflow balance"]
  BAL -->|"settlement"| BANK["Your bank account"]
  BAL -->|"disbursements"| OUT["Recipients' bank accounts"]
```

**1. Your customer pays**

You start a payment through the API, a payment link, our SDKs or libraries. The customer pays with a method that's local to them, such as mobile money, a bank transfer or a card. Supported methods are activated automatically once your account is verified. See [Payment methods](https://docs.spotflow.one/features/payment-methods.md).

**2. Spotflow collects and handles compliance**

As the legal seller, Spotflow handles local tax and regulatory requirements, with built-in fraud and chargeback protection. Taxes you configure are collected on each payment. See [Tax configuration](https://docs.spotflow.one/features/tax-collections.md).

**3. Funds land in your balance**

The payment moves from `PENDING` to `SUCCESSFUL`, and the funds are credited to your Spotflow balance. See [Payment lifecycle](https://docs.spotflow.one/developer-resources/payment-states.md).

**4. You get paid out**

Revenue is [settled](https://docs.spotflow.one/features/settlement.md) to your bank account on your [payout cycle](https://docs.spotflow.one/features/payout-structure.md), or you can send money onward with [disbursements](https://docs.spotflow.one/features/single-and-bulk-disbursements.md).

## Merchant of Record vs payment gateway

| | Spotflow (MoR) | Traditional payment gateway |
| - | - | - |
| Legal seller | Spotflow | Your company |
| Tax and compliance | Handled by Spotflow | Your responsibility in every country |
| Payment methods | Local methods such as mobile money and EFT across 26+ African countries | Mostly global card networks |
| Risk management | Built-in fraud and chargeback protection | You set up your own tools |
| Payouts | Aggregated payouts to your preferred account | Direct from the gateway, with complex bank setup |

Read the full comparison in [MoR vs PG](https://docs.spotflow.one/features/mor-vs-pg.md).

## Building blocks

> [card] [Payment collections](https://docs.spotflow.one/features/payment-collections.md)
>
> One-time payments through a hosted checkout, the API, SDKs or payment links.

> [card] [Subscriptions](https://docs.spotflow.one/features/subscription-payment-collections.md)
>
> Recurring billing with plans, trials and automated renewals.

> [card] [Virtual accounts](https://docs.spotflow.one/features/static-accounts.md)
>
> Static accounts that hold funds, and dynamic accounts that route payments.

> [card] [Disbursements](https://docs.spotflow.one/features/single-and-bulk-disbursements.md)
>
> Single and bulk payouts to bank accounts.

> [card] [Tax configuration](https://docs.spotflow.one/features/tax-collections.md)
>
> Collect VAT or a flat levy by region.

> [card] [Webhooks](https://docs.spotflow.one/developer-resources/webhooks/overview.md)
>
> Real-time notifications when payments, subscriptions and accounts change.

## Two ways to work

| | Dashboard | API |
| - | - | - |
| Who it's for | Teams operating day to day, or anyone who wants to start without code | Platforms integrating Spotflow into their product |
| Where | [app.spotflow.co](https://app.spotflow.co/) | `https://api.spotflow.co/api/v1` |
| Start here | [Payment links in under 5 minutes](https://docs.spotflow.one/developer-resources/integration-guide.md) | [Quickstart](https://docs.spotflow.one/quickstart.md) |


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