Paddle is a Merchant of Record for software and SaaS: it processes payments and handles global sales tax and VAT for you. That bundling is the whole point — and the reason its fee is higher than a plain card processor. Here's the cost, what it covers, and how to get your key.
| Item | Fee | Notes |
|---|---|---|
| Per transaction no monthly fee | ~5% + 50¢ | Covers processing + tax/VAT compliance |
| Payouts / currency | small FX + payout fee | Varies by country and method |
| Chargebacks | per-dispute fee | Handled by Paddle as MoR |
| Enterprise | custom | Volume rates, support |
With a plain processor you are the merchant: you owe and file VAT/sales tax in every region you sell to. As Merchant of Record, Paddle is the seller of record — it calculates, collects and remits tax worldwide, issues invoices, and handles fraud and chargebacks. For a small software team selling globally, that compliance is often worth the extra ~2 points. Run your own numbers on the payment fee calculator.
1. Sign up at paddle.com.
2. Complete account verification — Paddle reviews your business and website before approving live sales (sandbox is available immediately).
3. Go to Developer Tools → Authentication and create an API key (server-side).
4. Generate a client-side token for Paddle.js to render checkout in the browser.
Create a price via the API:
Lemon Squeezy (see our Lemon Squeezy guide) is the closest alternative — another Merchant of Record at a similar ~5% + 50¢, popular with indie makers. Stripe (see Stripe guide) is cheaper per transaction (~2.9% + 30¢) but leaves tax compliance to you (Stripe Tax helps but you stay the merchant). Compare all of them on the payment fee calculator.
Roughly 5% + 50¢ per transaction, no monthly fee. That rate bundles payment processing with global sales-tax/VAT handling, which a plain processor doesn't.
Sign up, pass account verification, then Developer Tools → Authentication → create an API key. Generate a separate client-side token for Paddle.js checkout.
Stripe is cheaper per transaction but you remain the merchant and owe tax everywhere you sell. Paddle costs more but acts as Merchant of Record and handles global tax for you. For global SaaS the compliance often justifies the gap.
Not affiliated with Paddle. Prices are reference estimates — always verify on the official pricing page.