Question 1

What is Paddle's processing fee?

Accepted Answer

Paddle charges a flat 5% + $0.50 per successful checkout transaction. This is an all-inclusive rate that covers payment processing, global tax compliance, fraud protection, chargebacks, and subscription billing.

Question 2

Does Paddle charge extra for international customers?

Accepted Answer

No. Unlike Stripe, which adds a 1.5% surcharge for international cards, Paddle's 5% + $0.50 rate covers all customers globally regardless of where their card is issued.

Question 3

Does Paddle handle sales tax and VAT?

Accepted Answer

Yes. As a Merchant of Record, Paddle handles all sales tax and VAT registration, calculation, collection, and remittance globally. This is included in the 5% + $0.50 fee at no extra cost.

Question 4

How does Paddle compare to Stripe on fees?

Accepted Answer

Stripe charges 2.9% + $0.30 for processing alone, but when you add tax software (~0.5%), chargeback protection (~0.4%), subscription billing (~0.4%), and international card fees (~1.5%), the effective rate is typically 7% or more. Paddle's all-in 5% + $0.50 is often cheaper for global SaaS businesses.

Question 5

What is a Merchant of Record?

Accepted Answer

A Merchant of Record (MoR) is the legal entity responsible for selling goods or services to the end customer. When you use Paddle, Paddle is the MoR — they take on the liability for tax compliance, fraud, chargebacks, and payment regulations, so you don't have to.

Question 6

Does Paddle charge fees on refunds?

Accepted Answer

Paddle does not refund the processing fee when you issue a refund. However, since Paddle handles chargebacks as the Merchant of Record, you are protected from chargeback losses that would otherwise cost you the transaction fee plus a chargeback fee on Stripe.

Question 7

Can I get lower Paddle fees?

Accepted Answer

Yes. Paddle offers custom pricing for rapidly scaling and established large-scale businesses. Contact Paddle sales to discuss negotiated rates. Use the Custom rate option in the calculator to model your negotiated pricing.

Question 8

How is the net amount calculated?

Accepted Answer

Net amount = Gross amount − (Gross amount × 5%) − $0.50. For example: $100 − ($100 × 5%) − $0.50 = $100 − $5.00 − $0.50 = $94.50 net received.

Free Paddle Fee Calculator

Common Questions

What is Paddle's processing fee?

Does Paddle charge extra for international customers?

What is a Merchant of Record?

How does Paddle compare to Stripe in total cost?

Can I get lower Paddle fees?