Merchant of record
Merchant of record for software, SaaS and digital products. Paddle resells your product, handles sales tax and VAT, payments and chargebacks, and pays you monthly. Physical goods are not allowed.
Strengths
Watch out for
Best for
A SaaS or digital product seller that wants a merchant of record to handle global tax and payments for a flat percentage.
| Type | Merchant of record |
|---|---|
| Pricing model | flat rate (merchant of record) |
| Card rate | 5% + 50¢ per checkout transaction |
| International | Not published |
| Monthly fee | None |
| Setup fee | Not published |
| Chargeback fee | $20, £20 or €20 (40 CAD/AUD); not refunded if you win |
| High-risk businesses | No |
|---|---|
| Dropshipping | No |
| Reserves | Not published |
| Payout speed | Monthly (created on the 1st, sent by the 15th) |
|---|---|
| Merchant countries | Not published |
| Currencies | 30+ payment currencies; balances held in USD, EUR, GBP, AUD or CAD; buyers in 200+ countries and territories |
| Shopify | Not published |
|---|---|
| WooCommerce | Not published |
| Subscriptions | Yes |
| One-click upsells | Not published |
| Apple Pay | Yes |
| Multiple MIDs | No |
| Token portability | Yes |
Invoiced sales paid by bank transfer are 3.5% (MSA clause 3.2). Bespoke pricing is offered for products under $10 and high-volume, low-value sales. Optional Checkout Recovery takes 10% of each recovered checkout. Payouts sent by SWIFT incur a $/€/£15 wire fee, and payouts in a currency other than your balance currency can carry a conversion margin of up to 1.5%.
Physical goods are not allowed: the acceptable use policy prohibits physical products or products that require physical delivery. It also excludes human services not tied to software, adult content, gambling, financial services and gift cards or stored value. Paddle's acceptable chargeback rate is below 0.65% of monthly transaction volume.
Minimum threshold of $100, adjustable up to $100,000; balances below it roll over. Paid by wire transfer or Payoneer. No on-demand withdrawals.
Sold through Paddle Checkout (overlay, inline or hosted) and the Paddle API. Paddle targets software and digital products, not physical-goods stores.
Paddle sources · checked 2026-10-21