Stripe vs Merchant of Record Fees: Paddle, Lemon Squeezy

Stripe direct vs Merchant of Record: comparing the real fees

For Stripe direct, the tool adds up card fees, currency conversion, Stripe Tax and your monthly VAT compliance cost, then compares the total with a Merchant of Record's all-in rate (5% + 0.50 per order). At mid-range volumes the gap is often a few dozen euros a month, and the accounting cost is what tips the result.

Formulas used

• Stripe direct = domestic sales × 1.5% + €0.25 per domestic order + international sales × (3.15% + 2% currency conversion) + €0.25 per international order + 0.5% Stripe Tax on all revenue + your monthly VAT software and accountant cost.
• Merchant of Record (Lemon Squeezy or Paddle) = revenue × 5% + 0.50 per order, nothing else.

The order count is monthly revenue divided by the average order value, rounded.

Worked example

€8,500 of sales a month, a €49 average order, 55% of sales outside your home country and €150 of compliance costs give 173 orders. Stripe costs €76.88 (domestic) + €264.51 (international) + €42.50 (Stripe Tax) + €150 = €533.89 a month, or 6.3% of revenue. The Merchant of Record costs €425 + €86.50 = €511.50, or 6.0%, about €269 less per year. With no compliance cost, Stripe becomes €1,531 a year cheaper.

What the tool leaves out

• Every international sale is treated as a non-EEA card with currency conversion; a German card paying in euros really costs 1.5% + €0.25.
• Lemon Squeezy's surcharges (+1.5% outside the US, +1.5% for PayPal, +0.5% on subscriptions) and its non-US payout fees are not added, and its $0.50 fixed fee is counted as €0.50.
• Premium EEA cards (2.8%), disputes and refunds are ignored.

A Merchant of Record resells your product in its own name and collects and remits EU VAT, US sales tax and UK VAT. With Stripe direct, those filings (the EU One Stop Shop) stay with you. This is an estimate, not advice from an accountant.

Sources and dates: Stripe France pricing page (standard EEA cards 1.5% + €0.25, international cards 3.15% + €0.25, currency conversion +2%, Stripe Tax 0.5% per transaction for no-code integrations); Paddle's public pricing (5% + 50¢) and Lemon Squeezy's pricing (5% + 50¢, surcharges listed in its help centre). Lemon Squeezy has been owned by Stripe since 2024, and Stripe now sells its own merchant-of-record product, Managed Payments. (checked 14/10/2026)

Frequently Asked Questions

What does Stripe charge per card payment in France?

According to Stripe's French pricing page checked on 14/10/2026: 1.5% + €0.25 for a standard EEA card, 2.8% + €0.25 for a premium EEA card, 2.5% + €0.25 for a UK card and 3.15% + €0.25 for a non-EEA card. Currency conversion adds 2%, and Stripe Tax adds 0.5% per transaction on no-code integrations.

How much do Lemon Squeezy and Paddle take per sale?

Both list 5% + $0.50 per transaction, tax compliance included. Lemon Squeezy adds 1.5% on sales outside the US, 1.5% on PayPal payments and 0.5% on subscriptions. Paddle lists no surcharge but offers custom pricing for products sold under $10.

At what revenue does Stripe direct become cheaper than a Merchant of Record?

It depends mainly on your fixed VAT compliance cost. With a €49 average order and €150 a month of software and accounting, Stripe wins from about €10,000 of monthly sales when 55% are international, about €5,400 when 20% are, and about €4,300 for purely domestic sales.

Do I have to file VAT in every EU country when selling software through Stripe?

For electronic services sold to consumers, the customer's country VAT applies once your cross-border EU sales exceed €10,000 a year (Article 59c of the VAT Directive, in force since 1 July 2021). You then file through the One Stop Shop (OSS); a Merchant of Record handles this for you because it sells in its own name.

Is this tool really free?

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