Slap Alert
If you sell software on your own, you'll eventually face this choice: plain Stripe, or a merchant of record that handles sales tax for you. In 2026, Stripe sells its own merchant of record too.
This page puts the real numbers side by side. All fees come from each provider's official pricing page or docs, checked on October 22, 2026. The worked math assumes a US customer paying with a US card and no sales tax, unless we say otherwise. Change any of those and the numbers move, so we show how.
The short answer
- Cheapest per sale: plain Stripe, but you handle sales tax and VAT yourself.
- Cheapest merchant of record at indie volume: Dodo Payments on a US card, then Polar's paid Pro plan once you're past roughly $1,400 a month.
- Simplest "Stripe, but they handle tax": Stripe Managed Payments. It's not the cheapest on a $12 sale.
- Paddle and Lemon Squeezy: both list 5% + 50¢. Lemon Squeezy's own team says it's in maintenance mode while it builds Managed Payments (see below).
Merchant of record, in one paragraph
A merchant of record (MoR) is the legal seller of your product. It charges the customer, then calculates, collects and remits sales tax, VAT and GST in every country where that's owed. It also handles fraud and disputes, and pays you what's left. Plain Stripe is a payment processor, not an MoR. You're the seller, so registering and filing taxes is your job. Stripe Tax (0.5% per transaction where you're registered) calculates the tax but doesn't take on the liability. Stripe Managed Payments, Paddle, Polar, Dodo and Lemon Squeezy are all MoRs.
Headline rates
| Provider | MoR? | Base fee | Common extras | Source |
|---|---|---|---|---|
| Stripe | No | 2.9% + 30¢ (US domestic card) | Billing 0.7% for subscriptions; Tax 0.5% where registered; $15 dispute fee + $15 if you counter it (refunded if you win) | stripe.com/us/pricing |
| Stripe Managed Payments | Yes | Stripe fees + 3.5% | Billing extra; no setup or monthly fees | stripe.com/managed-payments |
| Paddle | Yes | 5% + 50¢ | Custom pricing for high-volume, low-value sales | paddle.com/pricing |
| Polar (Starter, free) | Yes | 5% + 50¢ | +1.5% non-US cards; $15 disputes; payout fees | Polar fees |
| Polar Pro ($20/mo) | Yes | 3.8% + 40¢ | Same extras | Same |
| Dodo Payments | Yes | 4% + 40¢ (US domestic card) | +1.5% international; +0.5% subscriptions; $30 disputes; $1 refunds | dodopayments.com/pricing |
| Lemon Squeezy | Yes | 5% + 50¢ | +1.5% outside US; +0.5% subscriptions; +1.5% PayPal; custom pricing under $10 | LS fees |
A note on Polar: organizations created on or after May 27, 2026 start on Starter. Early members keep a legacy 4% + 40¢ (+0.5% on subscriptions). Polar also offers Growth ($100/mo, 3.6% + 35¢) and Scale ($400/mo, 3.4% + 30¢).
Worked math: a $19 and a $12 one-time sale
US card, no sales tax. Fee = percentage × price + fixed fee.
| Provider | Fee on $19 | You keep | Effective rate | Fee on $12 | You keep | Effective rate |
|---|---|---|---|---|---|---|
| Stripe | $0.85 | $18.15 | 4.5% | $0.65 | $11.35 | 5.4% |
| Stripe Managed Payments (6.4% + 30¢) | $1.52 | $17.48 | 8.0% | $1.07 | $10.93 | 8.9% |
| Paddle (5% + 50¢) | $1.45 | $17.55 | 7.6% | $1.10 | $10.90 | 9.2% |
| Polar Starter (5% + 50¢) | $1.45 | $17.55 | 7.6% | $1.10 | $10.90 | 9.2% |
| Polar Pro (3.8% + 40¢, +$20/mo) | $1.12 | $17.88 | 5.9% | $0.86 | $11.14 | 7.1% |
| Lemon Squeezy (5% + 50¢) | $1.45 | $17.55 | 7.6% | $1.10 | $10.90 | 9.2% |
| Dodo (4% + 40¢) | $1.16 | $17.84 | 6.1% | $0.88 | $11.12 | 7.3% |
Three things stand out.
- The fixed fee dominates at low prices. At $12, a 50¢ fixed fee alone is 4.2% of the sale. If you're choosing between $12 and $19, the higher price loses a smaller share to fees everywhere.
- Stripe Managed Payments beats the 5% + 50¢ crowd at $12 and loses to them at $19. Its lower fixed fee wins on cheap items, and its higher percentage catches up as the price rises. The crossover is about $14.29.
- Polar Pro's $20 a month only pays off with volume. Polar puts the break-even against Starter at about $1,379 a month in sales.
Worked math: a $49/month subscription
Each provider's subscription surcharge is included: Stripe Billing 0.7%, Dodo +0.5% and Lemon Squeezy +0.5%. Paddle and Polar's current plans have no separate subscription fee.
| Provider | Fee per $49 charge | You keep | Per year (12 charges) |
|---|---|---|---|
| Stripe + Billing (3.6% + 30¢) | $2.06 | $46.94 | $563.23 |
| Stripe Managed Payments + Billing (7.1% + 30¢) | $3.78 | $45.22 | $542.65 |
| Paddle | $2.95 | $46.05 | $552.60 |
| Polar Starter | $2.95 | $46.05 | $552.60 |
| Polar Pro (before the $20/mo plan fee) | $2.26 | $46.74 | $560.86 |
| Lemon Squeezy (5.5% + 50¢) | $3.20 | $45.81 | $549.66 |
| Dodo (4.5% + 40¢) | $2.61 | $46.40 | $556.74 |
Plain Stripe still nets the most per customer. The roughly $7–21 a year you give up per subscriber to an MoR is the price of not registering for VAT in the EU and UK, or for sales tax in each US state where you cross a threshold.
The fine print that changes the math
Fees are charged on the tax-inclusive total. Paddle, Polar and Lemon Squeezy all say so. Take a $19 sale to a UK buyer with 20% VAT, a $22.80 total:
- Paddle: 5% × $22.80 + 50¢ = $1.64.
- Polar Starter or Lemon Squeezy, with the +1.5% international fee: $1.98.
- Dodo, with its +1.5% international fee: 5.5% × $22.80 + 40¢ = $1.65, if it applies the percentage to the same total. Its pricing page doesn't say.
International cards cost more almost everywhere. Polar, Dodo and Lemon Squeezy each add 1.5%. Paddle's 5% + 50¢ is flat. Stripe also adds fees for international cards and currency conversion, which vary by country, so check your country's pricing page.
Refunds and disputes. Polar doesn't return its fees when you refund, and may refund a customer itself within 60 days. Dodo charges $1 per refund and $30 per dispute. Stripe charges $15 per dispute, plus $15 more if you counter it, refunded if you win. Managed Payments handles dispute responses for you.
Payouts: when the money shows up
| Provider | Payout timing | Minimum and fees |
|---|---|---|
| Stripe | First payout typically 7–14 days after your first payment, then your regular schedule (docs) | Standard payouts free; Instant Payouts 1.5% |
| Stripe Managed Payments | Stripe says "up to 4x faster than the monthly cycles typical of other providers" | No details beyond that |
| Paddle | Monthly: balance converted on the 1st if over your threshold, sent by the 15th, up to 3 working days to arrive (help) | $100 minimum threshold; $15 SWIFT fee in some countries |
| Polar | Manual withdrawals once funds clear a 7-day settlement delay for orgs created on or after May 12, 2026 (docs) | $10 minimum; Stripe payout fees: $2/month with a payout, 0.25% + 25¢ per payout, plus 0.25–1% cross-border |
| Dodo | Twice a month by default: sales from the 1st–15th paid on the 18th, the rest on the 4th; weekly on request (docs) | $100 default minimum (can go to $50); $5 fee under $1,000; $25 SWIFT for non-US |
| Lemon Squeezy | Paid on the 14th and 28th after a 13-day hold, 1–5 days to arrive (docs) | $50 minimum; Stripe payout free in the US, 1% elsewhere |
For a brand-new product, Paddle's monthly cycle means your first dollar can take more than a month to reach your bank. Polar's manual withdrawals give you the most control, but each withdrawal costs a little.
Who each one fits
Plain Stripe fits if you're happy to register and file taxes yourself, or you sell mostly in one country under its thresholds. It has the lowest fees, the most control and the best API. You can switch on Managed Payments later without leaving Stripe.
Stripe Managed Payments fits if you want MoR coverage and already think in Stripe. It works with Checkout, Payment Links and Billing for one-time and subscription sales. The limits are real, though. It's for digital products only: no Connect, no physical goods, no professional services (eligibility). It went generally available on April 22, 2026 in 39 countries (changelog), and handles tax in 80+.
Paddle fits B2B SaaS that wants a long-established MoR and flat pricing on international cards. The monthly payouts are the main drawback for a cash-tight solo founder.
Polar fits developers selling software, licence keys or subscriptions who want an open-source platform and quick withdrawals. Starter costs the same as Paddle. Pro is cheaper once you pass about $1,400 a month.
Dodo Payments has the lowest listed MoR rate for US cards, at 4% + 40¢, and pays out twice a month. Watch the surcharges: +0.5% on subscriptions, +1.5% on international cards and +3% on PayPal.
Lemon Squeezy has been owned by Stripe since 2024. In a January 28, 2026 update, its team acknowledged "slower support responses and less frequent product updates" and said they're helping build Stripe Managed Payments, with a migration path planned. If you're starting today, that post is worth reading before you commit.
Where sale alerts fit in
Whichever you choose, you'll want to know when money arrives. Every provider here offers email or webhooks; see our comparison of sale notification options. If you'd like it on your Mac, Slap Alert is ours. It's a menu-bar app: a pixel monkey swings down and slaps a sticky note on your screen for each sale from Stripe, Paddle, Polar or Dodo Payments. It also tracks Today, This Week and All Time revenue, plus current MRR and ARR, from Stripe and RevenueCat. Milestones, sales and those revenue figures become cards you can copy, save or post to X, with amounts hidden until you turn them on. Its JSON inbox is free with no licence, so any script on your Mac can make the monkey slap. For Lemon Squeezy, that's the do-it-yourself route: a script on your Mac that checks your orders, or a Lemon Squeezy webhook passed through a service like ntfy, can write the file. It's US$19 one-time (US$12 for the first 50 buyers from Oct 26 to Nov 2), with a 7-day free trial, and needs macOS 14 or later.
FAQ
How much does Stripe Managed Payments cost?
It's 3.5% per successful transaction on top of your normal Stripe processing fees, with no setup or monthly fee. For a US card that works out to 6.4% + 30¢. Stripe Billing (0.7%) and local payment methods are charged separately.
Which countries does Stripe Managed Payments support?
It launched generally on April 22, 2026 for sellers in 39 countries across North America, Europe and Asia Pacific. It calculates and remits tax in 80+ countries. Check Stripe's eligibility page for your country.
Stripe vs Paddle: which has lower fees?
Plain Stripe, by a lot: 2.9% + 30¢ against 5% + 50¢. But Paddle is a merchant of record and Stripe isn't, so the fair comparison is Paddle against Stripe Managed Payments. There, Managed Payments is cheaper below about $14.29 and Paddle is cheaper above it, on US cards.
Is Polar cheaper than Stripe?
Not per transaction. Polar Starter is 5% + 50¢ and runs on Stripe underneath. Polar is cheaper than plain Stripe plus the cost of handling global sales tax yourself. Against Stripe Managed Payments, Polar Starter costs more below about $14.29 and less above it.
Do I need a merchant of record for SaaS?
Not legally, but selling digital products internationally can create VAT and sales tax obligations in places you've never been. An MoR takes that on for roughly 2–4 extra percentage points per sale. Many solo founders find that cheaper than an accountant and multiple registrations.
What's a good Lemon Squeezy alternative in 2026?
Stripe Managed Payments is the path Lemon Squeezy's own team points to. Polar and Dodo have similar fees and are actively shipping. Paddle is the long-established option.