Developer-first payments infrastructure for internet businesses.
2.9% + $0.30
online rate
$0
monthly fee
2-day
payout
Developers
SaaS
Marketplaces
Paddle Review
Merchant of record for software companies: one 5% + $0.50 fee covers payments, global sales tax, billing, fraud and chargeback liability.
No reviews yetFounded 2012London, United KingdomListing updated
- Starting rate
- 5% + $0.50
- Monthly fee
- None
- Payout
- Varies
- Contract
- No contract
- PCI level
- Level 1
- Regions
- Global
Overview
Paddle is different from a standard payment processor because its Merchant of Record model can take responsibility for parts of the payment, tax, and compliance process on behalf of eligible software businesses.
For SaaS companies selling internationally, that distinction can be more important than simply comparing payment-processing rates.
What Is a Merchant of Record?
A Merchant of Record is a company that can handle the transaction as the seller of record and take responsibility for certain payment, tax, and compliance obligations.
For a SaaS company selling in multiple countries, this can reduce some of the operational work involved in managing international sales.
Paddle Pricing and Fees
Paddle's pricing should be evaluated as the cost of using a broader Merchant of Record service rather than comparing it directly with a basic card-processing fee.
Consider:
- Transaction fees
- Fixed fees
- Currency conversion
- Refund handling
- Tax handling
- Chargebacks
- Payout terms
Paddle Tax and Compliance
One of Paddle's major selling points for software companies is reducing the administrative burden associated with international sales tax and VAT.
This can be particularly valuable for companies selling digital products in multiple countries.
Is Paddle Good for SaaS?
Paddle is particularly relevant to:
- SaaS companies
- Software businesses
- Digital products
- Subscription software
- Companies selling internationally
Paddle vs Stripe
Stripe gives businesses significant control over their own payment infrastructure. Paddle's Merchant of Record model can be attractive when a company would rather outsource more of the tax and compliance workload.
Best for
SaaS
Consumer software
Game developers
Global digital sales
Regions
Global
Industries
B2B SaaS
Consumer software
Games
Digital products
Listed in
Pros
- True merchant of record: Paddle registers, collects and remits sales tax and VAT worldwide and carries chargeback, refund and PCI liability
- All-inclusive flat pricing of 5% + $0.50 with no monthly or setup fees replaces a whole billing, tax and dunning stack
- Deep global coverage on one contract: 18 payment methods including Pix, UPI, iDEAL, BLIK and Korean local cards, in 33 pricing currencies
Cons
- Monthly-only payouts with net terms mean revenue can sit with Paddle for two to six weeks, with a 100 dollar minimum threshold
- Strict digital-only vetting: physical goods, services, marketplaces, gambling, adult, crypto and financial products are all prohibited, and onboarding reviews can be slow
- The 5% + $0.50 headline is expensive for pure processing, refunds retain the processing fee, and sub-10-dollar products need custom pricing
Pricing
Pricing at a glance
Pay-as-you-go is 5% + $0.50 per transaction, all-inclusive: payment processing, global sales tax and VAT remittance, subscription billing, fraud, dunning and support. No monthly, setup or migration fees. Custom pricing applies to high volume and to products under $10.
- Pricing model
- Flat rate, Custom quote
- Contract
- No contract
- Free trial
- Yes
- Monthly minimum
- None
Fee breakdown
| Online card rate | 5% + $0.50 |
|---|---|
| International surcharge | Included, same all-in rate worldwide |
| Monthly fee | None |
| Setup fee | None |
| Monthly minimum | None |
| Chargeback fee | USD 15 per card chargeback, USD 20 on PayPal, returned if the dispute is won |
| Early termination fee | None |
| Refund policy | Full or partial refunds from the dashboard, card refunds land in 3 to 5 working days, processing fee is retained |
Listing updated How we keep listings current
Features
Payment methods
- Visa
- Mastercard
- Amex
- Discover
- Apple Pay
- Google Pay
- PayPal
- ACH
- SEPA
- UPI
- Wallets
- Wire
Integrations & deployment
- API
- Hosted checkout
- Drop-in UI
- Payment links
- Invoicing
Capabilities
- Recurring billing
- Multi-currency
- Fraud protection
- 3D Secure
- Tokenization
- Chargeback protection
- Reporting dashboard
- Developer-friendly
- 24/7 support
At a glance
- Currencies
- 33 pricing currencies with payouts in USD, EUR, GBP, AUD and CAD
- Payout
- Varies
- PCI level
- Level 1
- High-risk friendly
- No
Reviews
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Frequently asked questions
- How much does Paddle cost?
- Pay-as-you-go pricing is 5% + $0.50 per checkout transaction with no monthly, setup or migration fees. The single fee bundles payment processing, global sales tax and VAT compliance, subscription billing, fraud protection, chargeback prevention, dunning and support. Rapidly scaling businesses can negotiate custom rates, and custom pricing is required for products under 10 dollars or invoicing workflows.
- What does merchant of record actually cover?
- Paddle is the legal seller of every transaction. It registers for, collects and remits sales tax and VAT in jurisdictions worldwide, carries PCI compliance, absorbs refund and chargeback liability, and its name appears on the customer's card statement. The merchant ships one integration instead of managing tax and payment compliance in dozens of countries.
- How fast does Paddle pay out?
- Monthly. The balance converts to a payout on the 1st of the month and is sent between the 2nd and the 15th, arriving up to three further working days later, via wire transfer or Payoneer in USD, EUR, GBP, AUD or CAD. The minimum payout threshold is 100 dollars, and balances below it roll to the next month.
- Who cannot use Paddle?
- Paddle only accepts software, SaaS, digital products and games, after account and domain verification. Prohibited categories include physical products, standalone human services such as consulting, marketplaces with third-party sellers, gambling, adult content, financial services, crypto exchanges and license resales. High-risk merchants and anyone selling physical goods need a different provider.