Yes, Lemon Squeezy acts as a merchant of record.
A merchant of record (sometimes shortened to "MoR") is a term used to describe the legal entity selling goods or services to an end customer.
When a customer makes a purchase, they are buying from the merchant of record. The merchant of record is responsible for handling all payments and takes responsibility for everything relating to the purchase, including collecting sales tax, processing refunds and chargebacks, and ensuring PCI compliance.
Part of Lemon Squeezy's mission is to make selling digital goods online easy peasy. As such, we take on all of the liability mentioned above so that sellers don't have to worry about it. Instead, they can focus their talent and energy on building great products to sell.