Paddle vs Lemon Squeezy: Side-by-Side Comparison
Side-by-side comparison across 14 dimensions. Data is approximate and for informational purposes only.
| Dimension | Paddle | Lemon Squeezy |
|---|---|---|
| Model | Merchant of Record | Merchant of Record |
| Domestic Card Fee (US) | 5% + $0.50 | 5% + $0.50 |
| International Card Fee | Included | +1.5% international; +1.5% PayPal; +0.5% subscriptions |
| Currency Conversion | 2% (USD/EUR/GBP), 2.5% (CZK/DKK/NOK/THB), 3% all other currencies | Included on purchases; 1–3% on payouts to non-US accounts |
| Chargeback Fee | Up to $20 per chargeback + the full refunded amount | $15 per dispute (plus the refunded amount, deducted from your payout) |
| Monthly Fee | $0 | $0 |
| Sales Tax / VAT | Included (100+ tax jurisdictions) | Included (full MoR) |
| Tax Filing & Remittance | Yes (Paddle files as MoR) | Yes (files as MoR) |
| Subscription Billing | Included | Included (+0.5% per subscription payment) |
| Payout Frequency | Monthly (balance converts on the 1st, paid by the 15th; $100 minimum) | Twice monthly (created 1st & 15th; paid 14th & 28th after a 13-day hold) |
| Payout Currencies | 31 payout currencies; 5 balance currencies (USD, GBP, EUR, AUD, CAD) | USD (bank payouts convertible to a selected currency; PayPal always USD) |
| US Bank Required | No | No |
| Charge in Local Currencies | 30+ currencies | 130 display currencies (all transactions processed in USD) |
| Account Freeze Risk | Low–moderate (GS assessment) | Low (GS assessment) |
Key Notes
Paddle
Higher base rate but includes everything: tax calculation, filing, chargebacks, international fees. You never register for VAT/GST. Trade-off: Paddle owns the customer relationship and monthly payouts.
Lemon Squeezy
Stripe-owned merchant of record for digital products, and the reason to pick it is tax: LS registers, files and remits sales tax/VAT as the seller of record, which the binding terms back. Headline fee matches Paddle (5% + $0.50), but surcharges stack — +1.5% international, +1.5% PayPal, +0.5% subscriptions — and non-US sellers pay 1% (bank) or 3% capped at $30 (PayPal) per payout. LS does NOT absorb chargebacks: you lose the refunded amount plus a $15 dispute fee. Payouts run on a fixed twice-monthly schedule after a 13-day hold, with a $50 minimum. No US bank account required (119 countries for bank payouts, more via PayPal). Currently in maintenance mode: the changelog has been frozen since 2025-08-18, the roadmap is retired, and the co-founder has stated an intent to migrate users to Stripe Managed Payments. No sunset has been announced and signups remain open, but treat feature growth as unlikely.
What Real Users Say
Anonymized and paraphrased observations from founder communities, review platforms, and forums.
Both are merchant of record — they handle sales tax. Paddle is more established and supports more countries. Lemon Squeezy is newer, cheaper, and simpler.
Source: Reddit r/SaaSLemon Squeezy checkout UI is cleaner and more modern. Paddle checkout feels dated but is battle-tested at scale.
Source: Reddit r/indiehackersLemon Squeezy was acquired by Stripe in 2024. Long-term, it may become Stripe's MoR offering. That is either reassuring or concerning depending on your perspective.
Source: Founder communitiesFrequently Asked Questions
How We Compared
We compared transaction fees (domestic + international), tax handling, MoR status, payout terms, and platform features from each provider's published pricing pages.
Disclaimer: All data on this page is approximate and for informational purposes only. Pricing, features, and availability change frequently. This is not legal, tax, or financial advice. Verify all figures directly with each provider before making decisions. Data reflects conditions as of early 2026.
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