PA
Payment Approval
Policy Checker

Payment Approval Checker

Check whether Stripe, PayPal, Paddle, Lemon Squeezy, Dodo Payments, Polar, Coinbase Commerce, NOWPayments or OpenNode may fit your project before you integrate.

// Based on public policies & developer use cases. Not legal or financial advice.

Checking Scope
v1.0.0
Policy-based Risk Classificationchecked
Official Evidence & Source Referenceschecked
Targeted Next-step Action Planschecked
Verification Confidence Indicatorschecked
Supported Company Status Verificationchecked
Supported Scenarios

What scenarios do we check?

Verify platform policy alignment across these common indie hacker business categories.

At a Glance

Platform Risk Matrix

A high-level orientation comparison. Run the checker for product-specific risks and context.

PlatformModelBest FitApproval RiskMoR / TaxIndividualsAI RiskChrome Ext RiskAdult Risk
StripePayment gateway / PayFacStandard SaaS, developer tools, clear subscriptions, API servicesLower riskNoDepends on supported country and verificationCase-by-caseCase-by-caseHigh risk
PayPalDigital wallet / payment processorMainstream digital services, invoices, one-time payments, PayPal wallet demandLower riskNoCountry, account type and verification dependentCase-by-caseCase-by-caseHigh risk
PaddleMerchant of RecordSaaS, software, subscriptions, global tax handlingLower riskYesPrimarily software sellers; verification still appliesCase-by-caseCase-by-caseHigh risk
Lemon SqueezyMerchant of RecordDigital products, software, templates, memberships, subscriptionsLower riskYesMay support individuals after account reviewCase-by-caseUnknownHigh risk
Dodo PaymentsMoR / global payments for digital businessesIndie SaaS, global digital sellers, card and local method coverageCase-by-caseYesNeeds direct verificationUnknownUnknownHigh risk
PolarDeveloper monetization / MoR-like platformOpen-source, developer tools, sponsors, digital benefits, subscriptionsCase-by-caseYes, for supported use casesDeveloper-oriented; verify onboarding requirementsUnknownUnknownHigh risk
Coinbase CommerceCrypto commerceCrypto-native customers, transparent legal products, merchant-controlled crypto settlementCase-by-caseNoProvider and region dependentUnknownUnknownHigh risk
NOWPaymentsCrypto payment gatewayInternational crypto payers, multi-coin checkout, fallback experimentsCase-by-caseNoProvider and verification dependentUnknownUnknownCase-by-case
OpenNodeBitcoin / Lightning paymentsBitcoin-first audiences, Lightning checkout, simple crypto payment flowsCase-by-caseNoProvider and region dependentUnknownUnknownCase-by-case
GumroadMerchant of RecordEbooks, templates, digital downloads, simple software, individual creators without a companyLower riskYesYes, no company entity requiredUnknownUnknownHigh risk
About the Checker

Why we built this tool

Payment policies are scattered, written in dense legal jargon, and often discovered after you’ve already integrated the SDK. This tool aggregates policy sources into plain checklists.

Stripe vs Paddle

Stripe gives you full API control and lower base fees (2.9% + $0.30) but leaves global sales tax compliance entirely to you. Paddle is a Merchant of Record (MoR) with higher fees (5% + $0.50) but automatically handles VAT, invoice creation, and sales tax filing globally.

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Paddle vs Stripe

Choose Paddle if you don't want to hire an international tax accountant to handle EU/UK VAT compliance. Choose Stripe if you already have a tax compliance stack and want lower per-transaction fees.

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Stripe vs Lemon Squeezy

Stripe is a raw payment gateway that requires a registered company and tax management. Lemon Squeezy is an MoR tailored for digital creators and indie hackers, allowing payouts with automated global sales tax handling.

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Lemon Squeezy vs Stripe

Lemon Squeezy is better for solo hackers who want to launch in 10 minutes without registering a company or filing VAT. Stripe is better for scaled businesses with their own accounting departments.

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Stripe vs Polar

Stripe is a generic payment network. Polar is a developer-centric MoR built specifically for open-source maintainers, developers, and SaaS creators, allowing easy setup of tiers, sponsorships, and digital file delivery.

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Polar vs Stripe

Choose Polar if you want to monetize GitHub repositories, API keys, or developer newsletters without complex company billing code. Choose Stripe if you are building standard B2B enterprise software.

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Paddle vs Lemon Squeezy

Paddle is better for pure SaaS, B2B billing, custom invoicing, and scaled software businesses. Lemon Squeezy is better for B2C SaaS, templates, PDF downloads, and creators who want a ready-made checkout store.

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Lemon Squeezy vs Paddle

Lemon Squeezy is the indie hacker darling due to its fast setup and polished UI. Paddle is the enterprise-grade MoR for B2B billing that handles complex seat-based subscriptions and international wire transfers.

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Dodo Payments vs Lemon Squeezy

Dodo Payments is a modern MoR built for indie B2B/B2C SaaS, offering direct card processing and regional pricing. Lemon Squeezy is the established giant owned by Hostinger, focusing on digital downloads, courses, and SaaS subscriptions.

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Lemon Squeezy vs Dodo Payments

Go with Dodo Payments if you want modern developer APIs and direct feedback from the founding team on edge-case compliance. Go with Lemon Squeezy if you need absolute stability and built-in affiliate tools.

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Does Paddle Allow Web Scraping Tools?

🔴 BANNED. Paddle's Acceptable Use Policy restricts software designed for automated scraping, web extraction, social media automation, and spam. Accounts selling these tools are highly prone to rejection or sudden suspension during compliance audits.

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Does Lemon Squeezy Allow NSFW Content?

🔴 BANNED. Lemon Squeezy's Terms of Service strictly prohibit sexually-oriented, adult, pornographic, or suggestive content. Attempting to sell NSFW art, models, ebooks, or templates on Lemon Squeezy leads to immediate, permanent account closure and funds holds.

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Does Stripe Allow Dropshipping?

⚠️ WARNING. Stripe does not ban dropshipping outright, but classifies it as a high-risk category. Due to high dispute rates, long shipping times, and supplier quality issues, dropshipping accounts on Stripe suffer from high suspension rates or mandatory rolling reserves.

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Does Dodo Payments Allow NSFW AI?

🔴 BANNED. Dodo Payments' Merchant Acceptance Policy explicitly bans adult content, intimacy services, and NSFW products. This policy covers both real human explicit media and AI-generated NSFW chatbots, character roleplay apps, or suggestive image generation tools.

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Does Polar Allow AI Chatbot Companions?

🔴 BANNED. Polar's Acceptable Use Policy prohibits adult content, intimacy services, and NSFW products. This includes AI-generated adult entertainment, virtual relationship companions, and uncensored chatbot products.

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Does Stripe Allow VPN & Proxy Services?

⚠️ WARNING. Stripe supports VPN and proxy B2B/B2C SaaS products, but classifies them as high-risk. Approval depends on manual compliance review of your network, strict logging policies, and customer dispute history. Rolling reserves are common.

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Does Paddle Allow SaaS Subscriptions?

🟢 ALLOWED. Paddle is specifically designed for software-as-a-service (SaaS) subscription billing. They act as your Merchant of Record, automatically generating VAT/GST tax invoices and handling multi-currency renewals out of the box.

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Stripe Alternatives for Non-US Residents

For non-US resident founders, managing local tax compliance and card network integration without a US entity is difficult. The best alternatives are **Merchant of Record (MoR) platforms** like **Paddle**, **Lemon Squeezy**, or **Dodo Payments**, which handle taxes and payouts globally without requiring a US LLC.

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Lemon Squeezy Alternatives for India Developers

Due to strict Reserve Bank of India (RBI) e-mandate rules and card verification requirements, Lemon Squeezy onboarding for Indian residents is restricted. The best working alternatives for India developers are **Dodo Payments**, **Paddle**, or registering a US LLC to access Stripe.

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Stripe Alternatives Without Company Registration

If you don't have a registered company (LLC, Ltd, etc.), Stripe onboarding will flag your account during scale KYC review. The best alternatives for individuals are **Gumroad**, **Lemon Squeezy** (supports individuals in select countries), and **Polar** (allows Tip/Sponsorship billing without formal registration).

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Paddle Alternatives for China Developers

Chinese developers face high rejection rates on Paddle due to strict website audits, language barriers, and company document verification. Working alternatives include **Lemon Squeezy**, **Dodo Payments**, or setting up a US LLC (via Stripe Atlas) to use **Stripe** directly.

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Polar Alternatives for Developers Without LLC

If you want to monetize code, files, or developer APIs without registering an LLC, the best Polar alternatives are **Gumroad** (zero entity requirements but 10% fee) and **Lemon Squeezy** (supports individuals in select jurisdictions). Both function as MoRs and handle global VAT.

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Dodo Payments Alternatives for Global Founders

For global founders looking for alternatives to Dodo Payments, the strongest Merchant of Record (MoR) competitors are **Lemon Squeezy** (best for easy setups and digital downloads) and **Paddle** (best for enterprise B2B software and custom billing).

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Best Payment Gateways for NSFW AI Tools

Traditional processors like Stripe, Paddle, and Lemon Squeezy strictly ban NSFW AI tools, virtual companions, and adult image generators. The only working billing pathways are **non-custodial crypto payment gateways** like **NOWPayments**, **Coinbase Commerce**, **OpenNode**, or specialized high-risk merchant accounts.

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Best Payment Gateways for Micro-SaaS

The best payment platform for a Micro-SaaS depends on whether you have a registered LLC and a tax accountant. If you want a fast setup with zero tax overhead, choose a **Merchant of Record (MoR)** like **Lemon Squeezy** or **Dodo Payments**. If you want the lowest transactional fees and have local tax registration, use **Stripe**.

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Best Payment Gateways for Browser Extensions

The best payment gateways for Chrome and Safari extensions are **Paddle** or **Lemon Squeezy**. Since browser extensions lack server sessions, MoR checkouts redirect users to a web portal to complete payments, automatically managing global sales tax compliance.

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Best Payment Gateways for Digital Downloads

The best payment gateways for digital downloads (notion templates, ebooks, design bundles) are **Lemon Squeezy** or **Gumroad**. Both allow solo creators to sell files instantly without registering a company, handling tax compliance as the Merchant of Record.

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Payment Platform Approval Checklist for Indie Hackers

Before you apply to any card payment provider, make sure your website, deliverables, pricing, and company identity are transparent. Auditors check for functioning pages, clear refund policies, and secure connections.

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Does Paddle Allow Chrome Extensions?

⚠️ WARNING. Paddle supports browser extensions but reviews them manually. If your extension involves web scraping, automation, messaging bots, or data extraction, Paddle's AUP will flag and reject it. Mainstream software utility extensions are approved.

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Does Stripe Allow AI Image Generators?

⚠️ WARNING. Stripe supports general-purpose AI creation tools, B2B design platforms, and AI generators. However, accounts face immediate closure if they allow generating suggestive content, NSFW materials, deepfakes, or copyrighted likenesses without licensing.

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Does Lemon Squeezy Allow AI-Generated Products?

⚠️ WARNING. Lemon Squeezy allows selling AI-generated digital downloads (design assets, graphics, novels), but requires you to hold all copyright and intellectual property rights. Sugestive materials or trademark infringement lead to account suspension.

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Best Payment Processors for Non-US Founders

Non-US resident founders face complex tax compliance hurdles when selling digital products globally. The best pathway is using a **Merchant of Record (MoR)** like **Paddle** or **Lemon Squeezy** to offload VAT/sales tax administration, or registering a US LLC to utilize Stripe.

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Stripe Alternatives for AI Tools

If Stripe rejects your AI product, the best alternatives are **Merchant of Record platforms** like **Paddle** or **Lemon Squeezy** for software-based B2C/B2B B2B SaaS. If your tool has borderline suggestive features, you must use **non-custodial crypto checkout solutions** like **NOWPayments** or **Coinbase Commerce**.

Read Guide →

Disclaimer: This tool is for informational purposes only. It does not provide legal, tax, financial, or compliance advice. Payment platforms may change policies or make case-by-case decisions. Always verify with the official provider before applying or integrating.

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