Payments and billing · Comparison
Stripe vs Paddle vs Lemon Squeezy: Stripe leads at 8.1; fees on $10,000 from $500
We read the pricing, security, help and docs pages of a payment processor and two merchants of record on the same day and scored them on the same six indicators. What $10,000 a month costs, who files the tax, and who should pick which.
On this page8 sections
On six indicators read from each vendor's public pages, Stripe scores 8.1, Paddle 6.9 and Lemon Squeezy 4.7 out of 10. For our reference scenario, $10,000 a month in card subscriptions, Stripe's fees come to $500, Paddle's to $600 and Lemon Squeezy's to $680, all by our arithmetic from their pricing and fee pages. The difference is what the fee buys: Paddle and Lemon Squeezy are merchants of record that file and remit sales tax and VAT for you, while on Stripe you stay the seller and tax filing is yours unless you pay for it.
Stripe tops four of six items: payouts and currencies, team controls, data portability and the scenario fee. Paddle has the best score for the tax and compliance you inherit. Lemon Squeezy is owned by Stripe, and its own January 2026 update says its team is building Stripe Managed Payments and aims to help Lemon Squeezy users migrate. The scores measure what the public pages commit to, not checkout conversion or how a product feels to use, and we did not sign up for any of the three.
At a glance
| Stripe | Paddle | Lemon Squeezy | |
|---|---|---|---|
| What you pay for | A payment processor; you are the seller | A merchant of record for software | A merchant of record for digital products |
| Base fee | 2.9% + 30¢ per US card | 5% + 50¢ per transaction | 5% + 50¢ per transaction |
| $10,000/mo scenario | $500 (5.0%), computed | $600 (6.0%), computed | $680 (6.8%), computed |
| Sales tax and VAT filing | Yours; Tax Complete from $90/mo or Managed Payments +3.5% | Paddle files and remits | Lemon Squeezy files and pays |
| Dispute fee | $15, plus $15 to counter (refunded if won) | $20, not refunded if won | $15 |
| Payouts | Daily, weekly or monthly | Monthly, $100 minimum | Twice a month, $50 minimum |
| Charge currencies | 135+ | 33 | USD only (prices shown in 130) |
| Team access | Granular roles, SAML SSO, audit log | Five roles, 2FA | Owner and members, 2FA |
| Score (public pages) | 8.1 Excellent | 6.9 Good | 4.7 Fair |
What the public pages show
Stripe prices each product separately with no setup, monthly or closure fees: 2.9% + 30¢ per domestic card, +1.5% for international cards, Billing at 0.7% of subscription volume, and Tax Basic at 0.5% per transaction where you are registered. You verify your business and remain the seller. Tax Complete (from $90 a month, one-year contract) adds registrations and filings, and Managed Payments, Stripe's own merchant of record, costs 3.5% per transaction on top of payment fees. The security docs list PCI Service Provider Level 1 and annual SOC 1 and SOC 2 Type II reports.
Paddle has one self-serve price, 5% + 50¢ per checkout transaction, covering payments, subscriptions, tax collection and filing, fraud protection and buyer billing support, with no monthly or migration fees. The help center adds a $20 chargeback fee and a $15 SWIFT fee on payouts to some countries. Each domain you sell from is reviewed before a live checkout opens (most automatically, per the help center). The trust center lists SOC 2 Type II and a PCI DSS attestation.
Lemon Squeezy lists 5% + 50¢ per transaction on its pricing page; its fee docs add 1.5% outside the US, 1.5% for PayPal and 0.5% for subscription payments. It is the merchant of record and files and pays tax on your behalf, and includes a storefront, license keys and email marketing. Every store is reviewed (KYC and KYB checks) before it can sell live. Prices can be shown in 130 currencies, but every charge is processed in USD.
Strengths and things to know
Stripe. Strengths: the lowest fees in our scenario, frequent payouts, 135+ charge currencies, granular roles with SAML SSO and an audit log, a documented card-data export, and a merchant-of-record option when you want one. Things to know: tax filing is yours by default, the total is several lines added together, disputes cost $15 each, and processing fees are not returned on refunds.
Paddle. Strengths: tax filing and buyer billing support included, one fee with no surcharges, SOC 2 Type II and a PCI DSS attestation on file, role-based team access. Things to know: payouts are monthly, each chargeback costs $20 even when won, no card-export process is published, and we found no SSO or audit log on its pages.
Lemon Squeezy. Strengths: tax filing included, digital-product tools in the same account, no card to sign up, payouts twice a month. Things to know: its team says its focus is Stripe Managed Payments, surcharges are listed in the docs rather than the pricing page, every charge is in USD, and team access is owners and members.
Pricing reality
The three sell on different models. Stripe is a processor: you pay per card and add Billing and Tax as you need them, and you file tax yourself or pay for filing. Paddle and Lemon Squeezy are merchants of record: one fee, and they file the tax. So we state one scenario and show the arithmetic. Reference scenario: $10,000 a month in card subscriptions, 200 charges of $50 (160 on US cards, 40 on EU cards), all charged in USD at tax-inclusive prices, at standard published rates.
| Service | Model | Monthly fees | Where the number comes from |
|---|---|---|---|
| Stripe | Processor, Billing and Tax Basic | $500 | Computed: 160 × $1.75 + 40 × $2.50 for cards, plus Billing 0.7% ($70) and Tax Basic 0.5% ($50) |
| Paddle | Merchant of record | $600 | Computed: 200 × ($2.50 + $0.50) |
| Lemon Squeezy | Merchant of record | $680 | Computed: 200 × ($2.50 + $0.50), plus 0.5% on subscriptions ($50) and 1.5% on $2,000 of non-US charges ($30) |
Stripe's figure rests on an assumption: you are registered to collect tax wherever these charges are taxed, so Tax Basic applies to all 200. It does not include registering or filing, which Paddle and Lemon Squeezy do inside their fee; Stripe's Tax Complete starts at $90 a month on a one-year contract. If you use Stripe Managed Payments instead, so Stripe is the merchant of record, the arithmetic is $380 in card fees plus 3.5% ($350) plus Billing ($70): $800.
Tax itself is not a fee and is not counted: at tax-inclusive prices, the tax inside the $10,000 is remitted on every path, by you on Stripe and by the merchant of record on Paddle and Lemon Squeezy. If you add tax on top instead, Lemon Squeezy's docs say its fee is calculated on the total order value. Payouts to a US bank are free on Stripe's standard schedule and on Lemon Squeezy (via Stripe); Paddle says most countries pay no payout fee.
How we scored them
Every product in this category is scored on the same six indicators, read from the vendor's own pricing, security, help or docs pages, with fixed formulas. The overall score is the plain mean. Our methodology page explains how these scores work.
| Indicator | Stripe | Paddle | Lemon Squeezy |
|---|---|---|---|
| Pricing clarity | 6 | 8 | 2 |
| Fees on $10,000 a month | 6.3 | 5 | 4 |
| Tax and compliance you inherit | 6.5 | 10 | 9 |
| Payouts and currencies | 10 | 5.8 | 5 |
| Team and control | 10 | 5 | 3 |
| Data portability | 10 | 7.5 | 5 |
| Overall | 8.1 | 6.9 | 4.7 |
Stripe loses points on clarity because the scenario needs three lines beyond the card rate, and on tax because filing and buyer support are paid options rather than included. Paddle loses most on the scenario fee and on team controls (no SSO or audit log stated), then on payouts (monthly, 33 currencies) and on clarity, for two fees found only in its help center. Lemon Squeezy's clarity score reflects surcharges and other fees listed only in its docs and two figures that differ on its pricing page; its payouts score reflects USD-only charges.
The rubric gives the tax you hand off one item of six. If not registering for and filing sales tax and VAT is the main reason you are shopping, weigh that item more heavily than the overall score does: there, Paddle and Lemon Squeezy include what Stripe sells as add-ons. The rubric cannot see checkout conversion, authorization rates or support quality. Hands-on runs will add that later.
Who should choose which
- Choose Stripe if you want to build checkout and billing your own way, need SSO, roles and frequent payouts, and can handle tax filing or pay for Tax Complete. Look elsewhere if you want the seller-of-record role taken off your hands without an add-on.
- Choose Paddle if you sell software internationally and want one fee that includes tax filing and buyer billing support. Look elsewhere if you need payouts more often than monthly or SAML SSO.
- Choose Lemon Squeezy if you sell digital products and want a storefront, license keys and email marketing with tax handled, and are comfortable following its move toward Stripe Managed Payments.
Bottom line
From public pages alone, Stripe has the lowest fees in our scenario and the strongest controls and exit path, but tax filing stays with you unless you pay for it. Paddle is the most complete merchant of record here for a SaaS business. Lemon Squeezy's lower score reflects surcharges in its docs, USD-only charges and simple team controls; its own update points sellers toward Stripe Managed Payments.
How we checked
We read the vendors' pricing, security or trust, help and developer pages, Stripe's Managed Payments pages and Lemon Squeezy's January 2026 update on Oct 15, 2026. We did not sign up, take a payment or contact sales. Facts the pages did not state, such as whether Stripe or Paddle ask for a card at sign-up, or whether Paddle offers SSO, are left out rather than guessed. Every figure is on the vendors' pages as of that date or, where marked, computed from them.
