Merchant of record
Paddle as a Stripe alternative
Paddle is a merchant of record. On November 9, 2026 the rate line is 5% + $0.50. The dispute line is Not listed on the pricing page we read. Confirm the billed row before you leave Stripe. The provider's own page is the figure a contract will follow.
- Type
- Merchant of record
- Pricing
- Merchant of record
- Card rate
- 5% + $0.50
- Dispute fee
- Not listed on the pricing page we read
- Payouts
- See Paddle's payout terms. The pricing page does not add a separate US card surcharge.
- Where
- Global software sales. Paddle is the seller, so coverage is Paddle's, not yours.
- Underwriting
- Paddle reviews the product because Paddle is the merchant. A business Stripe closed can still be declined.
- What it replaces
- Stripe plus a tax filing stack, for software. It does not fit physical goods or a business that must be the merchant of record for procurement reasons.
What is Paddle?
Paddle is the seller of record for software companies. The published pay-as-you-go price is 5% + $0.50 per checkout transaction, and that price is meant to include payments, billing, tax, and buyer support. You are not the merchant.
Who should choose Paddle?
Paddle fits: SaaS and software companies that want sales tax and VAT handled and will pay a merchant-of-record cut. A listing here is not an approval, and a published rate is not a quote.
Who should look elsewhere?
What Paddle replaces: Stripe plus a tax filing stack, for software. It does not fit physical goods or a business that must be the merchant of record for procurement reasons. Look elsewhere when you need something outside that.
Underwriting: Paddle reviews the product because Paddle is the merchant. A business Stripe closed can still be declined.
How does Paddle charge?
Paddle has 2 fee lines in this dataset, each read on November 9, 2026. Headline rate: 5% + $0.50.
| Fee | Amount | Source |
|---|---|---|
| Pay as you go | 5% + $0.50 per checkout transaction. No monthly fee on that plan. | Source |
| High volume or products under $10 | Custom. No public figure on the pricing page. | Source |
What does Paddle cost at $10,000, $100,000, and $1 million a month?
The arithmetic below uses a $50 average ticket and successful charges only. It is not a quote for international cards or disputes.
| Monthly volume | Stripe US cards | Paddle pay as you go |
|---|---|---|
| $10,000.00 | $350.00 (200 × $0.30 + 2.9% of $10,000.00) | $600.00 (200 × $0.50 + 5% of $10,000.00) |
| $100,000.00 | $3,500.00 (2000 × $0.30 + 2.9% of $100,000.00) | $6,000.00 (2000 × $0.50 + 5% of $100,000.00) |
| $1,000,000.00 | $35,000.00 (20000 × $0.30 + 2.9% of $1,000,000.00) | $60,000.00 (20000 × $0.50 + 5% of $1,000,000.00) |
Merchant-of-record price, not a card-processing price. Tax compliance is the reason the rate is higher. High-volume and sub-$10 products are custom.
Where does Paddle operate?
Coverage: Global software sales. Paddle is the seller, so coverage is Paddle's, not yours. That is where Paddle operates, not a list of industries it accepts.
Do not treat a processor logo as an industry approval. If the business is on Stripe's prohibited list, switching the logo does not make the card payment lawful. The restricted-business guide is the map of Stripe's own words.
How does Paddle differ from Stripe?
Stripe is a payment service provider at 2.9% + $0.30 for US domestic cards, read November 9, 2026, and it can review an account after you have started processing. Paddle is a merchant of record with the rate line 5% + $0.50 and the dispute line Not listed on the pricing page we read.
Paddle stands in the seller's place for the sale. Stripe leaves you as the merchant. The higher percent, when one is published, is the price of that shift, not a discount on Stripe's card rate.
How do you switch from Stripe to Paddle?
Stripe's data export page, read November 10, 2026, says Stripe transfers saved cards only to a PCI DSS Level 1 processor and does not export subscriptions or payment history. The switching guide covers what moves, what needs Stripe's approval, and how to keep subscriptions billing. Read it before you cancel the Stripe account.
- Export Stripe customers, prices, and dispute history while the dashboard still allows it.
- Ask Paddle, in writing, whether it can receive a card transfer from Stripe. The switching guide names the providers whose own pages describe one.
- Recreate plans and the next billing date. Run five real customers in a test mode, including one annual plan and one past-due plan.
- Map webhooks and payout reconciliation before the cutover. Do not bill the same period on both systems.
- If Stripe has already closed the account, plan for customers to enter cards again.
What usually goes wrong?
The dispute fee is the small line. The disputed amount and the card-network ratio are the ones that close accounts.
The other failure is comparing a different product, such as a merchant-of-record percent or a gateway monthly fee, to Stripe's card rate as if they were the same line.
Which providers are similar?
These listings share Paddle's type. The order is alphabetical, not a rank.
- PayPro Global: Quoted.
- Polar: See Polar.
- Whop: 2.7% + $0.30.
- 2Checkout (Verifone): Quoted.
Also read Stripe's fee breakdown and the pricing dataset.
01What does Paddle publish as its card rate?
Paddle's rate line in this directory is 5% + $0.50, read on November 9, 2026. Use that line only for the product it describes.
02What is Paddle's dispute fee?
Paddle's dispute line is Not listed on the pricing page we read. Stripe's published fee to receive a dispute is $15 on the same date, November 9, 2026.
03Is Paddle the merchant of record?
Paddle is listed as a merchant of record. The buyer is contracting with that seller model, which is why the price is not Stripe's 2.9% + $0.30 card rate.
04Where does Paddle operate?
Global software sales. Paddle is the seller, so coverage is Paddle's, not yours. That is the coverage note stored with the November 9, 2026 reading. It is not a list of merchant category codes Paddle has approved.
05Should you leave Stripe for Paddle?
Only when this is the fit: SaaS and software companies that want sales tax and VAT handled and will pay a merchant-of-record cut. If the Stripe account is healthy and Stripe's other products are part of why you chose it, staying is often the smaller move. Paddle does not become a yes just because it is on this page.
06How much is Paddle at $10,000 a month?
At $10,000 a month and a $50 ticket, Paddle pay as you go is $600.00 using the published rate read on November 9, 2026. Stripe on the same assumptions is $350.00. Merchant-of-record price, not a card-processing price. Tax compliance is the reason the rate is higher. High-volume and sub-$10 products are custom.
Which sources were checked?
Paddle has 2 fee lines in this dataset. Each one links to the page it was read from.
Last verified .
Which related pages should you read next?
Open the Stripe profile before you treat a single percent as the whole decision.