Paddle vs Polar
Paddle vs Polar: 5% + 50¢ (Merchant of Record) and 5% + 50¢ (Merchant of Record). Compare seller eligibility, tax responsibilities, payouts and subscription portability.
The useful answer
Both sit in the merchant of record category, but that does not make their fees or eligibility identical. Investigate Paddle for software and saas businesses that want an mor; investigate Polar for developers selling software or digital products. Neither wins for every country or workflow.
| Decision factor | Paddle | Polar |
|---|---|---|
| Model | Merchant of Record | Merchant of Record |
| Public headline | 5% + 50¢ Standard checkout · USD | 5% + 50¢ Starter · new organizations |
| Best investigated for | Software and SaaS businesses that want an MoR Teams that want billing and transaction-tax handling together | Developers selling software or digital products Teams prepared to compare plan cost against transaction volume |
| Stripe relationship | No personal Stripe account required. An exclusive upstream processing dependency was not established by this research. | Confirmed infrastructure dependency: Stripe processing and Stripe Connect payouts. A standalone merchant Stripe Payments account and a Polar payout configuration are different. |
| Seller eligibility | Paddle describes worldwide software-business support with explicit country and territory exclusions. All matches here remain conditional on business and product review. Buyer-country restrictions are separate. | Buyer acceptance and seller payout-country lists differ. Polar explicitly notes that payout eligibility can exist where a standalone Stripe Payments account is unavailable. Individual business types require separate verification. |
| Payout considerations | Monthly payouts. Once the minimum balance is reached, payout is generated on the 1st and sent by the 15th. The threshold is $100, £100 or €100 for the relevant balance. Some transfer routes carry a SWIFT charge. Sent does not mean received by your bank. | Stripe Connect is part of the payout flow. The reviewed fee documentation lists an active payout-month charge and per-payout charges, with additional cross-border costs. These are separate from the checkout headline. |
| Refunds and disputes | Paddle handles disputes as MoR, but the disputed transaction and applicable fee can be deducted from your seller balance. Winning a dispute does not necessarily return the chargeback fee. | Original fees are not returned for refunds under the reviewed rules. Disputes cost $15 regardless of outcome. Preventive refunds can affect the balance; verify current agreement and supported product type. |
| Portability | Before migrating, verify subscription transfer, customer records, payment-data movement and invoice history. An MoR relationship is not equivalent to a Stripe account you directly own. | Export your product, customer, entitlement and subscription records. Payment credentials and an MoR contract need a separate migration plan; confirm what is supported before switching. |
Before you decide
- Confirm seller, owner and payout-bank eligibility for the exact product.
- Identify who is the contractual seller and who handles taxes, refunds and disputes.
- Model your real checkout and payout volume, including fixed and add-on fees.
- Check subscription portability, data access and retained balances on exit.
Compare fees at your sales volume → · Compare tax responsibilities →
Primary sources
Sources: Paddle pricing · Paddle supported countries · Paddle payout schedule · Paddle chargebacks · Paddle: compatibility review source · Polar current fees and plan generations · Polar supported countries · Polar processing partners · Polar: compatibility review source · Polar: supporting feature documentation