PA
Payment Approval

Lemon Squeezy vs Paddle

Side-by-side spec comparison, transaction fee calculation, and direct policy audits for SaaS builders.

Quick Verdict

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.

Fee & Payout Simulation

Net Payout Calculator

Estimate processing, currency exchange and hidden billing fees.

live math
Monthly Volume$5,000
Avg Ticket Size$29
Int'l Customers30%
Lemon Squeezy payout$4,611
Total Fees$389
Effective Rate7.77%
Paddle payout$4,611
Total Fees$389
Effective Rate7.77%

Feature & Model Matrix

SpecificationLemon SqueezyPaddle
Processing ModelMerchant of RecordMerchant of Record
Tax & Invoicing LiabilityHandled (Merchant of Record)Handled (Merchant of Record)
Base Fees5% + $0.55% + $0.5
FX Currency Markups+2%+2%
Cross Border Fee+1.5%+1.5%
Supports IndividualsMay support individuals after account reviewPrimarily software sellers; verification still applies
Onboarding Risk ConfidenceHighHigh

Anonymized Developer Cases

Account Frozen / SuspendedCountry: Canada
Case ID: case-03

LS closed my account because of anime art assets

Was selling a digital design asset pack of anime characters. Lemon Squeezy flagged it as 'NSFW' and 'sexually suggestive' and froze the account with $3,400 inside. Support said they cannot act as MoR for any age-restricted or borderline materials.

Developer Lesson & Advice:

// Lemon Squeezy is basically a black box. If your art or templates look even slightly suggestive, their upstream providers will demand a freeze. Funds were held for 180 days.

Onboarding RejectedCountry: India
Case ID: case-02

Paddle rejected my extension due to scraping code in client script

Applied to Paddle for a LinkedIn outreach tool chrome extension. Onboarding team audited the extension source code and rejected it under their AUP for 'unauthorized scraping and automation' of third-party platforms.

Developer Lesson & Advice:

// Paddle is extremely strict about web scraping and automation products. If your extension interacts with social networks or automates actions, they will reject you outright.

Key Risk Factors

  • ·Lemon Squeezy charges 5% + 50c. Paddle has custom enterprise tiers if your annual volume crosses $100k.
  • ·Lemon Squeezy handles subscription management via customer portal overlays. Paddle has custom billing portals.
  • ·Both platforms block high-chargeback accounts to protect their merchant standings.

Onboarding Card Stops

  • ·Offering unauthorized automation tools on social platforms (Paddle ban)
  • ·Selling templates without copyright ownership proof (Lemon Squeezy ban)
  • ·Unresponsive merchant contact email during onboarding audits

Policy Sources & Underwriting Rules

Lemon Squeezy Terms, Appendix A Prohibited Products/Services

Used for digital product scope, IP ownership, age-restricted, adult, regulated and prohibited product risks.

Checked: 2026-06-09Official Policy
Paddle Acceptable Use Policy: What Am I Not Allowed To Sell?

Used for software focus, prohibited categories, restricted content generation, scraping-adjacent and adult content risks.

Checked: 2026-06-09Official Policy

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.