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Provider

Stripe

The default direct processor — lowest fees and full control, with you as the merchant of record. As of 2026, Stripe also offers a merchant‑of‑record option, Stripe Managed Payments.

Direct

Stripe (classic)

Role: direct processor · Tax: you remit · Fee: ~2.9% + 30¢ (varies by country/card).

You own the checkout, the data and the customer relationship — and the VAT/sales‑tax obligations. Stripe Tax can calculate and monitor thresholds, but you file and remit.

Merchant of record

Stripe Managed Payments

Role: merchant of record · Tax: Stripe remits · Fee: 5% + 50¢.

Announced in 2026 (public preview), this is Stripe's answer to Paddle/Lemon Squeezy: Stripe becomes the seller of record and handles global tax, disputes and compliance. Stripe acquired Lemon Squeezy in 2024.

Pros & cons

Strengths

Lowest headline fees; best‑in‑class APIs and docs; huge ecosystem; now offers both direct and merchant‑of‑record models under one account.

Watch‑outs

With classic Stripe, you are responsible for cross‑border VAT/sales tax. Choosing "which Stripe product" is itself a decision — direct for control and low fees, Managed Payments to offload tax.

Best for

Domestic‑heavy businesses that want the lowest fees and full control (classic Stripe), or Stripe users who want a merchant of record without adopting a second vendor (Stripe Managed Payments).

Interested in the referral/partner side? See Stripe's partner program.

Not tax advice. Confirm current pricing and your VAT obligations with Stripe and a qualified adviser.