Best Merchant of Record for SaaS in 2026: Fees, Payouts & Usage Billing Compared
Eight merchants of record for SaaS, compared on what you actually pay and when the money reaches you.
Product
Prices from each provider’s pricing page, checked 24 Oct 2026. Fees change, so check the provider’s page before you sign up.
A merchant of record (MoR) sells your software to your customer on your behalf. It takes the payment and deals with sales tax, VAT and chargebacks, then pays you what’s left. You give up a few percent per sale so you don’t have to register for tax in every country you sell to.
The fee on the pricing page is rarely what you end up paying. Surcharges for international cards, subscriptions, PayPal and payouts can add two or three points, so I’ve put them next to the headline rate for every provider below.
The short answer
- You bill for usage (tokens, API calls, credits) and want tax handled: Kelviq. Metering is included with no ingestion fee, and the merchant of record and the billing engine are one system. Polar is the closest alternative.
- You’re a large SaaS company that wants a negotiated rate: Paddle, FastSpring or PayPro Global. All three offer custom or quote-based pricing.
- You’re already on Stripe Checkout and based in a supported country: Stripe Managed Payments. It’s the smallest change to your code, though it’s the most expensive on a US card in this list.
- You’re on Lemon Squeezy today: plan a move. Lemon Squeezy’s own team says its goal is to help users migrate to Stripe Managed Payments.
Comparison table
| Provider | Base fee | Common surcharges | Payout timing | Usage billing | License keys | Best for |
|---|---|---|---|---|---|---|
| Kelviq | 3.5% + 40¢ (2.9% + 40¢ on first $5,000) | +1.5% non-US cards, +0.7% recurring | T+7 rolling, no payout fee | Yes, no metering fees | Yes | Usage-based SaaS and AI products |
| Paddle | 5% + 50¢ | None listed | Not listed | Not native yet (private preview early 2027) | Not listed | Large SaaS wanting custom pricing |
| Lemon Squeezy | 5% + 50¢ | +1.5% non-US, +1.5% PayPal, +0.5% subscriptions | Twice a month | Listed as a feature | Yes | Existing users only (see below) |
| Polar | 5% + 50¢ free plan; down to 3.4% + 30¢ at $400/mo | +1.5% non-US cards; Stripe payout fees passed through | Not listed; manual withdrawals | Yes | Yes | US-heavy sales at volume |
| Creem | 3.9% + 40¢ | No international card fee | 1st and 15th of each month | Listed as a feature | Not listed | One flat rate |
| FastSpring | Quote-based | Not listed | Not listed | Not listed | Not listed | Established software companies |
| Stripe Managed Payments | 3.5% on top of Stripe processing | Subscriptions need Stripe Billing, 0.7% of Billing volume | Stripe’s payout schedule | Through Stripe Billing | No | Existing Stripe Checkout users |
| PayPro Global | Quote-based | Not listed | Not listed | Has a usage-billing page, no pricing | License management listed | Desktop and downloadable software |
“Not listed” means the provider’s pricing page doesn’t say. It doesn’t mean the feature is missing. Ask their sales team.
What a $50 monthly subscription costs on each
One renewal, paid with a US card, before tax. Fixed fees are included. Monthly plan fees and payout fees are not.
| Provider | Rate used | Fee | You keep |
|---|---|---|---|
| Kelviq (first $5,000) | 2.9% + 0.7% recurring + 40¢ | $2.20 | $47.80 |
| Polar Pro ($20/mo plan) | 3.8% + 40¢ | $2.30 | $47.70 |
| Creem | 3.9% + 40¢ | $2.35 | $47.65 |
| Kelviq (after $5,000) | 3.5% + 0.7% recurring + 40¢ | $2.50 | $47.50 |
| Paddle | 5% + 50¢ | $3.00 | $47.00 |
| Polar Starter (free) | 5% + 50¢ | $3.00 | $47.00 |
| Lemon Squeezy | 5% + 0.5% subscription + 50¢ | $3.25 | $46.75 |
| Stripe Managed Payments | 2.9% + 30¢ + 3.5% + 0.7% Billing | $3.85 | $46.15 |
On a non-US card, Kelviq, Polar and Lemon Squeezy each add 1.5%, so check the international fee column above if most of your buyers are outside the US.
1. Kelviq
Kelviq is a merchant of record with a usage billing engine built in. It’s made for SaaS and AI products that charge per token, API call, seat or credit.
Pricing. 3.5% + 40¢ per successful transaction, with no setup or monthly fee (Kelviq pricing). The first $5,000 you process is charged 2.9% + 40¢. Non-US cards add 1.5% and recurring subscription charges add 0.7%. The fee is charged on the full amount the customer pays, tax included.
Payouts. T+7 rolling, with T+3 or custom schedules on Enterprise. There’s no payout fee. You only pay currency conversion if your bank account is in another currency. You don’t need your own Stripe account. Payouts go through a payout account set up inside Kelviq, which works in countries where Stripe doesn’t open regular accounts, such as India.
What it does well
- Metering is free. Tokens, API calls, compute, storage and custom units are metered in real time, and every invoice line links to the raw event log.
- Entitlements are part of the product. Your app checks whether a customer has access to a feature or has hit a usage limit through the SDK, so you don’t build that layer yourself.
- Checkout shows 49 payment methods without setting each one up, including UPI with AutoPay, Pix and SEPA debit, and supports 135+ currencies.
- You can move Stripe customers over without them re-entering card details.
- License keys and digital downloads are included.
2. Paddle
Paddle charges 5% + 50¢ per Checkout transaction with no monthly fee, and offers custom pricing for high-volume businesses.
What it does well
- Custom pricing exists for high-volume businesses and for high-volume, low-value transactions.
- Its AI Toolkit is live for Claude Code, Codex, Cursor and Gemini CLI, including an MCP server that can create products and prices.
- Fraud protection, chargebacks and buyer support are included in the standard plan.
Where it falls short
- 5% + 50¢ ties with Lemon Squeezy and Polar’s free plan for the highest base rate here.
- Native usage-based billing is in private preview “in early 2027”. Until then, usage models run through third-party billing tools.
- The pricing page doesn’t list payout timing or license keys.
Pick Paddle if you’re big enough to negotiate a custom rate. Pick something else if you bill for usage today.
3. Lemon Squeezy
Lemon Squeezy’s team now builds inside Stripe. In January 2026 they wrote that their goal is to give users “an easy way to migrate to Stripe Managed Payments”.
Pricing. 5% + 50¢ per transaction. Non-US payments add 1.5%, PayPal adds 1.5% and subscriptions add 0.5%. Recovered abandoned carts cost an extra 5% and affiliate referrals an extra 3%. Payouts are free to US bank accounts through Stripe and cost 1% per payout to non-US accounts.
What it does well
- License keys are issued automatically after each sale.
- Payouts reach 200+ countries by bank wire or PayPal, twice a month.
Where it falls short
- The team’s stated plan is migration to Stripe Managed Payments, so new SaaS products would be building on a platform its owner is moving people off.
- Surcharges stack. A non-US subscription paid through PayPal carries 8.5% + 50¢ before any payout fee.
Pick Lemon Squeezy if you’re already on it and need time to plan a move. For a new product, start elsewhere.
4. Polar
Polar is a merchant of record with four plans, and the per-transaction rate drops as the monthly fee rises.
Pricing. Starter is free at 5% + 50¢. Pro is $20 a month at 3.8% + 40¢. Growth is $100 a month at 3.6% + 35¢. Scale is $400 a month at 3.4% + 30¢. Non-US cards add 1.5% on every plan, and there’s no separate subscription fee. Organizations created before 27 May 2026 stay on 4% + 40¢ plus 0.5% on subscriptions. Disputes cost $15 each whatever the outcome.
Payouts. Polar passes Stripe’s payout fees through without a markup: $2 for each month with an active payout, plus 0.25% + 25¢ per payout, plus 0.25% (EU) to 1% for cross-border conversion. You can withdraw manually to control when payouts happen.
What it does well
- Usage billing is built in, with meters, event ingestion and cost and margin analytics. Metered prices support volume and graduated tiers.
- Scale’s 3.4% + 30¢ is the lowest standard card rate in this list. On US subscription revenue above about $5,000 a month, Pro costs less per sale than Kelviq’s standard rate (3.8% vs 4.2%, both + 40¢) even after the $20 fee.
- License keys and feature-flag benefits are included.
Where it falls short
- Payout fees are extra on every plan, where some providers here charge none.
- Its agent billing features (agent identities, local entitlement checks, billing simulations) are early access only, behind a form.
Pick Polar if you sell mostly to US buyers and have the volume to justify a paid plan.
5. Creem
Creem charges 3.9% + 40¢ per successful transaction with no monthly or setup fee.
What it does well
- No international card fee listed.
- Payouts on the 1st and 15th of each month, to a bank account or a USDC wallet.
- Usage-based billing is listed as built in.
Where it falls short
- The pricing page doesn’t mention license keys, payout fees or dispute fees, so check with Creem before you rely on them.
- Payouts come twice a month, where Kelviq pays on a rolling T+7.
Pick Creem if you want one flat rate and don’t need license keys or clear payout terms.
6. FastSpring
FastSpring doesn’t publish rates. Pricing is set with its sales team, based on transaction type and volume, with discounts for ACH and wire transfers.
What it does well
- Rates are negotiated to your volume, which suits companies with predictable, high revenue.
- Discounted rates for ACH and wire transfer payments.
Where it falls short
- You can’t compare its cost without a sales call.
- The pricing page doesn’t mention usage billing, license keys or payout timing.
Pick FastSpring if you’re past the stage where a sales conversation is a cost.
7. Stripe Managed Payments
Stripe’s own merchant of record, and the easiest switch if you already sell through Stripe Checkout. It “adds 3.5% per successful transaction to your standard Stripe processing fees”, with no setup fee or monthly minimum. On a US card at Stripe’s 2.9% + 30¢, that totals 6.4% + 30¢. Subscriptions need Stripe Billing, at 0.7% of Billing volume.
What it does well
- If you already use Stripe Checkout or Payment Links, it’s a flag on your existing integration.
- Tax is handled in 80+ countries, and customers can buy from 195+ countries and territories.
Where it falls short
- It costs the most per US card sale in this list.
- Only businesses based in 37 locations across North America, Europe and Asia Pacific can use it. India isn’t one of them.
- It works only with Checkout and Payment Links, not embedded payment forms, and subscriptions must be created through Checkout or Payment Links.
- It’s for fully automated digital products. Consulting, development services and live coaching don’t qualify.
Pick Stripe Managed Payments if you’re on Stripe Checkout, based in a supported country, and want the smallest change to your code.
8. PayPro Global
PayPro Global quotes one price with every feature included. You get the number by filling in its quote form.
What it does well
- License management is part of the feature list, which suits downloadable and desktop software.
- One price covers every feature, so there are no add-on fees to track.
Where it falls short
- No published rates, so you can’t compare it without a quote.
- Its usage-based billing page gives no pricing detail.
Pick PayPro Global if you sell downloadable software with license keys and prefer a negotiated rate.
How we checked
I took every price from the provider’s own pricing page or docs on 24 Oct 2026, Kelviq’s included. Where a page didn’t say something, the table says “Not listed” instead of guessing. If a provider changes its pricing, email us and we’ll update this page.
Final thoughts
If you take one thing from this: work out the rate on your real mix of buyers, not the headline number. A US-heavy SaaS and one selling mostly to Europe or India get different winners from the same table.
FAQ
What is a merchant of record? The company legally selling to your customer. It collects payment, charges and files sales tax and VAT, and handles chargebacks, then pays you what’s left.
Is a merchant of record worth it for a small SaaS? Usually. Without one you register and file tax yourself in each country where you cross a threshold. An MoR does that for a few percent per sale.
Which merchant of record is cheapest? It depends on where your buyers are. For US subscriptions, Kelviq’s first $5,000 and Polar’s paid plans are cheapest. For non-US cards, compare the international card fees in the table above.
Which merchant of record supports usage-based billing? Kelviq and Polar have it built in. Creem and Lemon Squeezy list it as a feature. Paddle’s native usage billing is planned for early 2027.
