Paddle
Merchant of record for software
- Domestic
- 5% + $0.50
- International
- 5% + $0.50
- Conversion
- None
- Type
- MoR
Paddle's merchant-of-record model is purpose-built for software and digital product sellers who want to expand globally without building a tax compliance operation. The higher base rate (5% vs Stripe's 2.9%) is frequently offset by eliminating accountant fees, VAT reporting, and chargeback management overhead.
Best for
SaaS and digital-product sellers who want zero tax overhead.