diff --git a/app/models/account/provider_import_adapter.rb b/app/models/account/provider_import_adapter.rb
index d30e8154e..52964b165 100644
--- a/app/models/account/provider_import_adapter.rb
+++ b/app/models/account/provider_import_adapter.rb
@@ -93,27 +93,39 @@ class Account::ProviderImportAdapter
   def find_or_create_merchant(provider_merchant_id:, name:, source:, website_url: nil, logo_url: nil)
     return nil unless provider_merchant_id.present? && name.present?
 
-    # ProviderMerchant has a unique index on [source, name], so find by those first
-    # This handles cases where the provider_merchant_id format changes
-    merchant = begin
-      ProviderMerchant.find_or_create_by!(source: source, name: name) do |m|
-        m.provider_merchant_id = provider_merchant_id
-        m.website_url = website_url
-        m.logo_url = logo_url
+    # First try to find by provider_merchant_id (stable identifier derived from normalized name)
+    # This handles case variations in merchant names (e.g., "ACME Corp" vs "Acme Corp")
+    merchant = ProviderMerchant.find_by(provider_merchant_id: provider_merchant_id, source: source)
+
+    # If not found by provider_merchant_id, try by exact name match (backwards compatibility)
+    merchant ||= ProviderMerchant.find_by(source: source, name: name)
+
+    if merchant
+      # Update logo if provided and merchant doesn't have one (or has a different one)
+      # Best-effort: don't fail transaction import if logo update fails
+      if logo_url.present? && merchant.logo_url != logo_url
+        begin
+          merchant.update!(logo_url: logo_url)
+        rescue StandardError => e
+          Rails.logger.warn("Failed to update merchant logo: merchant_id=#{merchant.id} logo_url=#{logo_url} error=#{e.message}")
+        end
       end
+      return merchant
+    end
+
+    # Create new merchant
+    begin
+      merchant = ProviderMerchant.create!(
+        source: source,
+        name: name,
+        provider_merchant_id: provider_merchant_id,
+        website_url: website_url,
+        logo_url: logo_url
+      )
     rescue ActiveRecord::RecordNotUnique
-      # Handle race condition where another process created the record
-      ProviderMerchant.find_by(source: source, name: name)
-    end
-
-    # Update provider_merchant_id if it changed (e.g., format update)
-    if merchant.provider_merchant_id != provider_merchant_id
-      merchant.update!(provider_merchant_id: provider_merchant_id)
-    end
-
-    # Update logo if provided and merchant doesn't have one (or has a different one)
-    if logo_url.present? && merchant.logo_url != logo_url
-      merchant.update!(logo_url: logo_url)
+      # Race condition - another process created the record
+      merchant = ProviderMerchant.find_by(provider_merchant_id: provider_merchant_id, source: source) ||
+                 ProviderMerchant.find_by(source: source, name: name)
     end
 
     merchant