Paddle vs Lemon Squeezy
Side-by-side spec comparison, transaction fee calculation, and direct policy audits for SaaS builders.
Quick Verdict
Fee & Payout Simulation
Net Payout Calculator
Estimate processing, currency exchange and hidden billing fees.
Feature & Model Matrix
| Specification | Paddle | Lemon Squeezy |
|---|---|---|
| Processing Model | Merchant of Record | Merchant of Record |
| Tax & Invoicing Liability | Handled (Merchant of Record) | Handled (Merchant of Record) |
| Base Fees | 5% + $0.5 | 5% + $0.5 |
| FX Currency Markups | +2% | +2% |
| Cross Border Fee | +1.5% | +1.5% |
| Supports Individuals | Primarily software sellers; verification still applies | May support individuals after account review |
| Onboarding Risk Confidence | High | High |
Anonymized Developer Cases
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.
// 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.
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.
// 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.
Key Risk Factors
- ·Paddle has a dedicated global support desk for tax audits. Lemon Squeezy handles taxes under its parent company structure.
- ·Paddle requires manual onboarding approval before you can test live payments.
- ·Lemon Squeezy checkout supports easy integration with affiliate programs out of the box.
Onboarding Card Stops
- ·Website missing contact details, refund terms, or company address
- ·Selling physical templates or courses that require inventory shipping
- ·Using the platform to redirect users to external Stripe gateways
Policy Sources & Underwriting Rules
Used for software focus, prohibited categories, restricted content generation, scraping-adjacent and adult content risks.
Used for digital product scope, IP ownership, age-restricted, adult, regulated and prohibited product risks.
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.