Stripe vs Paddle vs Lemon Squeezy for SaaS Billing: Fees, Tax and Payouts
Stripe moves your money and leaves the tax to you. Paddle and Lemon Squeezy sell your product for you and take the tax on. Here is what each charges on its official pricing page, what that comes to at $10,000 MRR, and which to pick at each stage.
Stripe is a payment processor. A US business pays 2.9% + 30¢ per domestic card payment (+1.5% for international cards), 0.7% for Billing subscriptions and 0.5% for Stripe Tax, and stays the seller, so sales tax and VAT filings are yours. Paddle (5% + 50¢) and Lemon Squeezy (5% + 50¢, +1.5% outside the US, +0.5% on subscriptions) are merchants of record: they resell your product and take on the tax and chargebacks. Stripe's own merchant of record option, Managed Payments, adds 3.5% to its standard fees.
At $10,000 MRR (200 customers at $50 a month, 30% outside the US), fees come to $515 a month on Stripe, $600 on Paddle, $695 on Lemon Squeezy and $815 on Managed Payments. Stripe bought Lemon Squeezy in 2024. Our MVPs include Stripe checkout, and subscription billing is +$1,000 on our price list.
The fee gap between these options is a percentage point or two. The bigger difference is who legally sells to your customer: that decides who owes the sales tax and VAT, who fights chargebacks and whose name is on the receipt. Every outside figure here comes from the providers' own pages. For the rest of what a subscription product needs at launch, see our SaaS MVP development checklist.
Payment Processor vs Merchant of Record
A payment processor moves the money. Your company is the seller, which makes it the merchant of record: the company legally responsible for the sale. Stripe Tax can calculate and collect tax for you, but its Basic plan does not register you anywhere or file returns.
A merchant of record (MoR) sells your product to the customer in its own name. Paddle says it "acts as a reseller of your product" and is responsible for "the collection and payment of VAT and tax instead of you." The MoR also handles chargebacks (a customer disputing a card payment with their bank), then pays you the rest.
Tax follows the customer. A business outside the EU that sells digital services to EU consumers declares that VAT through the EU's non-Union One Stop Shop, registering in one EU country and filing quarterly returns. In the US, Paddle notes that taxability "varies greatly by, and within, states." An MoR takes that work off your desk.
| Who handles it | Stripe (processor) | Stripe Managed Payments | Paddle | Lemon Squeezy |
|---|---|---|---|---|
| Seller to your customer | Your business | Stripe; buyers see "Sold through Link" | Paddle, as reseller | Lemon Squeezy; statements show LEMSQZY* STORE |
| Calculating and collecting tax | Stripe Tax, if you turn it on | Stripe, in more than 80 countries | Paddle | Lemon Squeezy |
| Registering, filing and paying tax | You (Tax Complete adds this, from $90 a month) | Stripe, in more than 80 countries | Paddle | Lemon Squeezy, out of your payouts |
| Chargebacks | You respond | Stripe responds | Paddle contests them automatically | Lemon Squeezy |
| Receipts and invoices | Yours; one-off invoices cost 0.4% each | Sent from Link | Paddle emails receipts | Email receipt after purchase |
| Buyer payment support | You | Link | Paddle | You first, then Lemon Squeezy |
Fees From the Official Pricing Pages
| Fee | Stripe (US) | Stripe Managed Payments | Paddle | Lemon Squeezy |
|---|---|---|---|---|
| Per payment | 2.9% + 30¢ (domestic card) | Stripe's standard fees | 5% + 50¢ | 5% + 50¢ on the total, tax included |
| International buyers | +1.5% (international card) | +1.5% | No surcharge listed | +1.5% outside the US |
| Currency conversion | +1% if needed | None with Adaptive Pricing (on by default) | None listed | Not listed separately |
| Subscriptions | Billing: 0.7% | Billing: 0.7% | Included | +0.5% |
| Tax | Basic: 0.5% where registered. Complete: from $90 a month | In the 3.5% | Included | Included |
| Merchant of record fee | None | +3.5%, on the amount including tax | Included | Included |
| Chargeback | $15, plus $15 to counter (refunded if you win) | Dispute fee applies; Stripe pays the evidence fee | $20, kept even if Paddle wins | $15 |
From Stripe's pricing, Tax pricing and Managed Payments pages, Paddle's pricing page and help center, and Lemon Squeezy's fee and chargeback docs. Checked November 2026. See Sources.
Optional extras cost more on the MoRs. Paddle adds 10% on checkouts recovered by its abandoned-checkout emails. Lemon Squeezy adds 5% on payments recovered by abandoned-cart emails, 3% on affiliate referrals and 1.5% on PayPal payments.
Worked Example: $10,000 MRR From 200 Customers at $50
Our assumptions (not the providers', so swap in your own):
- 200 customers on a $50 monthly plan, charged once a month by card: 200 × $50 = $10,000 MRR.
- 140 customers (70%) pay with US cards; 60 (30%) are outside the US and pay with non-US cards.
- A US company pricing in US dollars, so no currency conversion. No tax added on top, no refunds or disputes.
- Stripe Tax Basic on every payment, which assumes you are registered everywhere you sell.
Per $50 payment: Stripe $1.45 (2.9%) + 30¢, Billing $0.35 (0.7%) and Tax $0.25 (0.5%); Managed Payments adds $1.75 (3.5%); Paddle $2.50 (5%) + 50¢; Lemon Squeezy the same plus $0.25 (0.5%) on subscriptions. Non-US cards add $0.75 (1.5%), except on Paddle.
| Line | Stripe + Billing + Tax | Stripe Managed Payments | Paddle | Lemon Squeezy |
|---|---|---|---|---|
| Fee per US payment | $1.75 + $0.35 + $0.25 = $2.35 | $1.75 + $1.75 + $0.35 = $3.85 | $2.50 + $0.50 = $3.00 | $3.00 + $0.25 = $3.25 |
| Fee per non-US payment | $2.35 + $0.75 = $3.10 | $3.85 + $0.75 = $4.60 | $3.00 | $3.25 + $0.75 = $4.00 |
| 140 US payments | 140 × $2.35 = $329 | 140 × $3.85 = $539 | 140 × $3.00 = $420 | 140 × $3.25 = $455 |
| 60 non-US payments | 60 × $3.10 = $186 | 60 × $4.60 = $276 | 60 × $3.00 = $180 | 60 × $4.00 = $240 |
| Monthly fees | $515 (5.15%) | $815 (8.15%) | $600 (6%) | $695 (6.95%) |
| You keep | $9,485 | $9,185 | $9,400 | $9,305 |
| Tax filings | Yours | Stripe's | Paddle's | Lemon Squeezy's |
Three things stand out.
- The MoR premium is $85 to $300 a month here. Paddle costs $600 minus $515 = $85 more than Stripe; Managed Payments $815 minus $515 = $300 more. That buys registration, filing and chargeback handling. Stripe's own Tax Complete, from $90 a month on a one-year contract (up to 200 transactions a month, 2 registrations and 4 filings a year), would make Stripe $395 + $70 + $90 = $555.
- Customer mix moves Stripe and Lemon Squeezy, not Paddle. Each extra 10% of customers outside the US adds 20 × $0.75 = $15 a month on Stripe, Managed Payments and Lemon Squeezy.
- Tax added on top raises MoR fees. Lemon Squeezy and Managed Payments charge on the amount including tax: with 20% VAT, a $50 plan is a $60 charge, so a 5% fee is $3.00, not $2.50. Paddle's pricing page does not say.
Outside the US, payouts can cost extra: Lemon Squeezy charges 1% per payout to a non-US bank, about 1% × $9,305 = $93 a month here; Paddle charges nothing in most countries and a $15 SWIFT fee in some.
Lemon Squeezy Now That Stripe Owns It
Stripe acquired Lemon Squeezy. The record from Lemon Squeezy's own blog:
- July 26, 2024: CEO JR Farr announced the acquisition; the mission "remains the same."
- April 29, 2025: he called Stripe Managed Payments the first major milestone since the deal; existing customers needed to do nothing.
- January 28, 2026: he wrote that the team had been building Stripe's merchant of record product, acknowledged "slower support responses and less frequent product updates," and named an easy migration to Managed Payments as the goal, without dates.
On November 1, 2026, Lemon Squeezy still offered sign-up at its published fees, and its footer read "Sold through Link, LLC f/k/a Lemon Squeezy LLC." Stripe's Managed Payments page offered direct sign-up, subject to an eligibility review. Before you plan around Managed Payments, check its limits:
- Your business must be in one of 37 supported locations: the US, Canada, all 27 EU countries, the UK, Switzerland, Norway, Liechtenstein, Australia, Hong Kong, Japan and Singapore.
- Fully automated digital products only, sold directly. Professional services and products with human work in them, such as live coaching, do not qualify.
- Checkout and Payment Links only: no embedded payment forms, custom checkout domains or Stripe Connect.
- Stripe can refund customers within 60 days in some cases, and may refund without your approval if you leave a support escalation unanswered for 48 hours.
Our read: Lemon Squeezy works today, but new work is going into Managed Payments. Starting now, compare Paddle and Managed Payments first. Already on Lemon Squeezy? Nothing forces a move yet.
Payouts and Supported Seller Countries
| Item | Stripe | Stripe Managed Payments | Paddle | Lemon Squeezy |
|---|---|---|---|---|
| Payout schedule | Daily, weekly, monthly or manual | Into your Stripe balance, tax withheld | Monthly, sent by the 15th | Twice a month, on the 14th and 28th |
| When a sale can be paid out | US: after 2 business days. UK and EU: 3 business days (7 calendar days at first). First payout 7 to 14 days after your first live payment | Not stated separately | At the next monthly payout | After a 13-day hold |
| Minimum and fees | Standard payouts free; Instant Payouts 1.5% (50¢ minimum) | Not stated separately | $100 minimum; $15 SWIFT fee in some countries | $50 minimum; non-US bank 1%; PayPal $0.50 (US) or 3% capped at $30 |
| Where sellers can be based | 51 countries and regions listed: 44 standard, India and Indonesia in preview, 5 via its extended network | 37 locations | Anywhere except 28 unsupported countries and regions | Bank payouts to 119 countries; PayPal to 200+ countries and regions |
Lemon Squeezy notes that Stripe has accepted new accounts from India by invitation only since May 2024, so Indian sellers without an approved Stripe account take payouts through PayPal.
Switching Later: Migration Between Them
Switching later is possible, but it is a project, not a setting.
- Leaving Stripe: Stripe transfers customer card data to a new processor that is PCI DSS Level 1 compliant (the top card security standard). It does not export subscriptions or payment history, and excludes cards saved with Link.
- To Paddle: payment details move server to server into Paddle's vault, and Paddle imports subscriptions on an agreed date. It says the median migration takes 12 days.
- To Lemon Squeezy from Stripe: it recreates subscriptions and requests a secure migration of customers and payment methods. Link, SEPA, Bacs and ACH records cannot be copied.
- To Stripe: imports usually finish within 10 business days of Stripe receiving valid data, but the old provider's export can take "anywhere from a few days to several months." You recreate subscriptions and cancel the old ones, or customers are billed twice.
- Leaving an MoR: the Paddle and Lemon Squeezy pages we checked do not describe a card data export. Ask before you sign.
In code, the costly part is the billing layer: webhooks (the provider's messages to your app when a payment succeeds or fails), plan checks, trials and the customer portal. Keep each account's plan and access dates in your own database, updated from the provider's events, and a switch means rewriting one module, not the app.
Which to Pick at Each Stage
| Stage | Our default | Choose differently if |
|---|---|---|
| Validating, before the first paying customers | Stripe Checkout, included in our MVP | You sell to consumers in many countries from day one: Paddle, or Managed Payments if you qualify |
| Early revenue, up to $10,000 MRR | Stay where you started | Tax filings pile up with nobody to do them. An MoR cost $85 a month more in our example |
| Growing, $10,000 to $100,000 MRR | Re-run the numbers yearly | At $100,000 MRR with our mix, Stripe costs $5,150 a month and Paddle $6,000: $10,200 a year to weigh against handling tax in-house |
| High volume | Ask for custom pricing | All three say it is available |
Three special cases override the table:
- You are based outside Stripe's list: Paddle or Lemon Squeezy.
- You are building a marketplace that pays other sellers: that needs Stripe Connect, which Managed Payments does not support. See our page on marketplace MVP development.
- You sell a service with human work in it: Managed Payments excludes it, and Paddle describes its customers as "software businesses."
What This Means for Your MVP
Our fixed-price MVP includes Stripe checkout, so a customer can pay you on launch day. Subscription billing (plans, trials, upgrades and a billing portal, beyond a simple checkout) is +$1,000 and 2 build days on our published price list, so a SaaS MVP with subscriptions is $5,000 + $1,000 = $6,000 before other add-ons. You can price a SaaS MVP with subscription billing in the calculator.
Stripe is the payments layer in our MVP tech stack, and FeedbackFlow, one of our case studies, launched with a single Pro plan and a 14-day free trial handled through Stripe. The price list assumes Stripe. If you have already chosen Paddle or Managed Payments, raise it on the scoping call so it is in the written scope before the price is fixed.
When We Are Not the Right Choice
- You only sell a few licenses, a course or a download. A hosted Paddle or Lemon Squeezy checkout, or a Stripe Payment Link, plus a landing page may be all you need. Our guide to no-code vs custom MVPs helps with that call.
- You need tax or legal advice. We build billing; we are not tax advisers. Where you must register is a question for an accountant in your country.
- You need complex billing on day one, such as metered usage across many products, negotiated enterprise invoicing or revenue recognition. That is past a 30-day MVP: launch simple, then add it on our Growth Partner retainer (from $5,000 a month for 60 hours, month to month with 7 days notice) or with your own team.
Get Billing Right in Your MVP
Book a free call. We will scope your MVP with Stripe checkout or subscriptions, give you a fixed price, and tell you plainly if a merchant of record suits your market better.
Book a Free Call →Frequently Asked Questions
Is Paddle better than Stripe for SaaS?
Paddle is better if you want someone else to handle sales tax, VAT and chargebacks. Stripe is cheaper if you can handle them yourself. Paddle charges 5% + 50¢ per transaction as the merchant of record. Stripe charges a US business 2.9% + 30¢ per domestic card payment plus 0.7% for Billing. In our $10,000 MRR example, Paddle cost $600 a month and Stripe, with Billing and Tax, $515.
What is a merchant of record?
A merchant of record is the company that legally sells to your customer. Paddle, Lemon Squeezy and Stripe Managed Payments resell your product, so they collect and pay the sales tax and VAT and handle chargebacks, then pay you the rest. With plain Stripe, your business is the merchant of record, so tax registrations and filings stay with you even when Stripe Tax collects the tax.
Did Stripe buy Lemon Squeezy?
Yes. Lemon Squeezy announced on July 26, 2024 that Stripe had acquired it. Its team has since built Stripe Managed Payments, Stripe's own merchant of record product, which adds 3.5% to Stripe's standard fees. In January 2026, Lemon Squeezy's CEO acknowledged slower support and less frequent product updates. In November 2026, Lemon Squeezy still offered sign-up at 5% + 50¢ per transaction.
How much does Stripe charge for SaaS subscriptions?
A US business pays 2.9% + 30¢ per domestic card payment, plus 1.5% for international cards and 1% if currency conversion is needed. Stripe Billing adds 0.7% on pay-as-you-go pricing, and Stripe Tax Basic adds 0.5% per transaction where you are registered. On a $50 monthly plan paid with a US card, that is $1.75 + $0.35 + $0.25 = $2.35 a month.
Can I switch from Stripe to Paddle later?
Yes, but plan it as a project. Stripe transfers card data to a new processor that is PCI DSS Level 1 compliant, so saved cards can move with you, but it does not export subscriptions or payment history, and it excludes cards saved with Link. Paddle imports the cards into its vault and the subscriptions on an agreed date, and says the median migration takes 12 days.
Does Stripe handle sales tax and VAT?
Stripe calculates and collects it if you turn on Stripe Tax, but you stay the seller. Tax Basic, at 0.5% per transaction where you are registered, excludes registration and filing. Tax Complete, from $90 a month on a one-year contract, adds them within plan limits. With Managed Payments, for 3.5% extra, Stripe becomes the merchant of record and files and remits tax in more than 80 countries.
Sources
All pages checked November 2026. Fees change, so check each provider's pricing page before you decide. Stripe figures are its US prices.
- Stripe, Pricing and fees (2.9% + 30¢, +1.5% international cards, +1% currency conversion, $15 dispute and counter fees, Billing 0.7%, Tax Basic 0.5%, Tax Complete from $90 a month, Invoicing 0.4% per paid invoice, Instant Payouts 1.5% with a 50¢ minimum, Managed Payments 3.5%, custom pricing for large volume): stripe.com/pricing
- Stripe, Tax pricing (Basic fees apply where you are registered and exclude registration and filing; Complete from $90 a month on a one-year contract with up to 200 transactions a month, 2 registrations and 4 filings a year): stripe.com/tax/pricing
- Stripe, Managed Payments (3.5% on top of standard processing fees, tax automated in 80+ countries, sign-up): stripe.com/managed-payments
- Stripe Support, Managed Payments pricing (fee on the full amount including taxes, Billing fees apply separately, no conversion fee with Adaptive Pricing): support.stripe.com/questions/managed-payments-pricing
- Stripe Docs, Managed Payments (merchant of record comparison; Connect and embedded payment forms not supported): docs.stripe.com/payments/managed-payments
- Stripe Docs, How Managed Payments works (files and remits tax, Link as seller, receipts and support from Link, disputes, refunds within 60 days, 48-hour escalations, no custom domains, tax withheld): docs.stripe.com/payments/managed-payments/how-it-works
- Stripe Docs, Managed Payments eligibility (37 business locations, fully automated digital products sold directly, no professional services, eligibility review): docs.stripe.com/payments/managed-payments/eligibility
- Stripe, Global availability (51 countries and regions listed, India and Indonesia in preview, 5 in the extended network): stripe.com/global
- Stripe Docs, Receive payouts (first payout 7 to 14 days, payout schedules, settlement timing by country): docs.stripe.com/payouts
- Stripe Docs, Request a payment data export (PCI DSS Level 1 requirement, no export of subscriptions or payment history, Link credentials excluded): docs.stripe.com/get-started/data-migrations/pan-export
- Stripe Docs, Import payment data to Stripe (10 business days, previous processor's export timing, subscriptions migrated separately, cancel old subscriptions): docs.stripe.com/get-started/data-migrations/pan-import
- Paddle, Pricing (5% + 50¢ per checkout transaction; tax, fraud, chargebacks and buyer support included; custom pricing): paddle.com/pricing
- Paddle Help Center, How Paddle takes on your VAT and tax responsibilities (reseller, collection and payment of VAT and tax): paddle.com/help/start/intro-to-paddle/how-paddle-is-able-to-take-on-your-vat-and-tax-responsibilities
- Paddle Help Center, Which countries Paddle charges sales tax or VAT for (US taxability varies by and within states): paddle.com/help/sell/tax/which-countries-does-paddle-charge-sales-tax-or-vat-for
- Paddle Help Center, Understanding chargebacks with Paddle ($20 fee, automatic contest, fee not refunded): paddle.com/help/manage/risk-prevention/understanding-chargebacks-with-paddle
- Paddle Help Center, When and how do I get paid (monthly payouts sent by the 15th, $100 minimum, $15 SWIFT fee in some countries): paddle.com/help/manage/get-paid/when-and-how-do-i-get-paid
- Paddle Help Center, Which countries are supported by Paddle (software businesses anywhere except 28 unsupported countries and regions): paddle.com/help/start/intro-to-paddle/which-countries-are-supported-by-paddle
- Paddle Help Center, Which emails customers receive on Paddle Billing (receipts by default, 10% fee on recovered checkouts): paddle.com/help/manage/your-customers/which-emails-will-customers-receive-on-paddle-billing
- Paddle, Subscription migration process (server-to-server transfer into Paddle's vault, median 12 days): paddle.com/seller-guides/subscription-migration
- Lemon Squeezy, Pricing (5% + 50¢, merchant of record, payouts twice a month, custom pricing, 2026 update banner): lemonsqueezy.com/pricing
- Lemon Squeezy Docs, Fees (fee on the total including tax, +1.5% outside the US, +1.5% PayPal, +0.5% subscriptions, payout fees, +5% abandoned cart, +3% affiliates): docs.lemonsqueezy.com/help/getting-started/fees
- Lemon Squeezy Docs, Refunds and chargebacks (Lemon Squeezy handles chargebacks, $15 dispute fee): docs.lemonsqueezy.com/help/payments/refunds-chargebacks
- Lemon Squeezy Docs, Getting paid (payouts on the 14th and 28th, 13-day hold, $50 minimum): docs.lemonsqueezy.com/help/getting-started/getting-paid
- Lemon Squeezy Docs, Supported countries (bank payouts to 119 listed countries, PayPal payouts in 200+ countries and regions, note on Stripe accounts in India): docs.lemonsqueezy.com/help/getting-started/supported-countries
- Lemon Squeezy Docs, Sales tax and VAT (tax deducted from payouts, reported and remitted): docs.lemonsqueezy.com/help/payments/sales-tax-vat
- Lemon Squeezy Docs, Customizing receipt emails (email receipt after purchase): docs.lemonsqueezy.com/help/checkout/customizing-receipt-emails
- Lemon Squeezy, Why did Lemon Squeezy charge me (LEMSQZY* STORE on statements, buyers contact the merchant first, escalations to Lemon Squeezy): lemonsqueezy.com/why-did-lemon-squeeezy-charge-me
- Lemon Squeezy Docs, Migrating from Stripe (subscriptions recreated; Link, SEPA, Bacs and ACH records not copied): docs.lemonsqueezy.com/help/migrating/migrating-from-stripe
- Lemon Squeezy Blog, Stripe acquires Lemon Squeezy (July 26, 2024): lemonsqueezy.com/blog/stripe-acquires-lemon-squeezy
- Lemon Squeezy Blog, Stripe + Lemon Squeezy update (April 29, 2025): lemonsqueezy.com/blog/stripe-lemon-squeezy-update-2025
- Lemon Squeezy Blog, 2026 Update: Lemon Squeezy + Stripe Managed Payments (January 28, 2026): lemonsqueezy.com/blog/2026-update
- Lemon Squeezy, Homepage (sign-up buttons; footer "Sold through Link, LLC f/k/a Lemon Squeezy LLC"): lemonsqueezy.com
- European Union, Your Europe, VAT One Stop Shop (non-Union scheme for non-EU businesses selling services to EU consumers, one country of registration, quarterly returns): europa.eu/youreurope/business/finance-and-tax/vat/one-stop-shop
- minidev.pro, MVP cost calculator price list (Stripe checkout in the base MVP, subscription billing +$1,000): minidev.pro/mvp-cost-calculator
- minidev.pro, FeedbackFlow case study (Pro plan with a 14-day free trial through Stripe): minidev.pro/case-studies/feedbackflow