Merchant of record
Merchant of record for software and digital products, acquired by Stripe in 2024. Handles sales tax and payments for a per-transaction fee. Physical goods are prohibited. In January 2026 it said it is building toward Stripe Managed Payments.
Strengths
Watch out for
Best for
A solo founder or small team selling software, courses or downloads who wants tax handled and can accept higher fees.
| Type | Merchant of record |
|---|---|
| Pricing model | flat rate (merchant of record) |
| Card rate | 5% + 50¢ |
| International | +1.5% for transactions outside the US |
| Monthly fee | None |
| Setup fee | Not published |
| Chargeback fee | Not published |
| High-risk businesses | No |
|---|---|
| Dropshipping | No |
| Reserves | Net sales are held 13 days before they become available for payout |
| Payout speed | Twice monthly (1st and 15th) |
|---|---|
| Merchant countries | Merchants who can receive payouts to a bank in a listed country or to PayPal (200+ countries and regions) |
| Currencies | Prices shown in 130 currencies; all transactions processed in USD |
| Shopify | Not published |
|---|---|
| WooCommerce | Not published |
| Subscriptions | Yes |
| One-click upsells | Not published |
| Apple Pay | Yes |
| Multiple MIDs | No |
| Token portability | Not published |
+1.5% for PayPal transactions, +0.5% for subscription payments, +5% on abandoned-cart recoveries, +3% on affiliate referrals. Payout fees: free to US banks via Stripe, 1% per payout outside the US; PayPal payouts $0.50 in the US or 3% (capped at $30) elsewhere. Custom pricing for products under $10 or high volume.
Physical goods of any kind are prohibited; the general rule is digital goods that can be fulfilled through Lemon Squeezy. Pharmaceuticals and nutraceuticals, CBD, gambling and adult content are also prohibited.
Funds take 1 to 5 days to arrive. $50 minimum payout. Bank transfer (USD, or converted to your chosen currency) or PayPal (USD).
Sold through hosted checkout, checkout overlays and the API. Digital products only.