Comprehensive Comparison of Major Payment Processors for Online Businesses

Selecting the right payment processor is crucial for online businesses, particularly those dealing with digital products or subscriptions, such as SaaS companies. This comparison dives into ten major payment processors—Stripe, Paddle, Lemon Squeezy, FastSpring, Digital River, PayPal, Braintree, Adyen, Square, and Authorize.Net—focusing on their pricing, features, compliance capabilities (especially for EU businesses), and whether they act as merchants of record (MoR). The analysis aims to help you choose the best processor for your business needs, with a special emphasis on EU compliance and support for digital products.

What is a Merchant of Record?

A Merchant of Record (MoR) is the entity legally responsible for processing card transactions, handling tax compliance, fraud protection, and customer support related to payments. When a processor acts as MoR, it simplifies compliance for businesses, especially in regions like the EU with complex VAT regulations. Without an MoR, merchants must manage these responsibilities themselves, often requiring additional tools or services.

Payment Processor Comparisons

1. Stripe

Overview: Stripe is a leading payment processor known for its developer-friendly API and robust feature set. It supports both standard payment processing, where the merchant is the MoR, and a newer Managed Payments service, where Stripe acts as the MoR, launched in 2025 following its acquisition of Lemon Squeezy.

Pricing:

• Standard: 2.9% + $0.30 per transaction (US), varies by country.
• Managed Payments: Custom pricing, likely similar to Lemon Squeezy’s 5% + $0.50 per transaction.

Merchant of Record: Yes, with Managed Payments; otherwise, the merchant is the MoR.

Features:

• Subscription management for recurring billing.
• Invoicing and prebuilt checkout pages.
• Extensive API for custom integrations.
• Fraud prevention with Stripe Radar and Adaptive Acceptance.
• Supports one-time payments, marketplaces, and in-person payments.

Compliance and Taxes: With Managed Payments, Stripe handles global tax compliance (sales tax, VAT, GST), making it ideal for EU businesses. In the standard model, merchants are responsible for tax compliance but can use Stripe Tax for automation.

Integration: Offers APIs, SDKs in multiple languages, and integrations with platforms like Shopify and WooCommerce.

Supported Payment Methods: Credit/debit cards, ACH, SEPA, iDEAL, Apple Pay, Google Pay, and over 100 other methods.

Global Reach: Available in 195+ countries, supports 135+ currencies.

Customer Support: 24/7 support via phone, chat, email, and extensive documentation.

Best For: Startups, SaaS businesses, and developers needing flexibility. Managed Payments is particularly suited for EU companies seeking tax compliance.

2. Paddle

Overview: Paddle is tailored for digital products and SaaS, acting as the MoR to simplify tax compliance and payment processing. It’s particularly appealing for EU businesses due to its comprehensive handling of VAT and sales taxes.

Pricing: 5% + $0.50 per transaction, with custom pricing for high-volume businesses.

Merchant of Record: Yes, Paddle handles all payment-related compliance.

Features:

• Subscription and one-time payment management.
• Checkout pages and license key management.
• Customer support for transaction-related queries.
• ProfitWell Metrics for real-time revenue reporting.
• Retain tool for recovering failed payments.

Compliance and Taxes: As MoR, Paddle manages global tax compliance, including VAT and sales taxes, making it a top choice for EU companies.

Integration: API, prebuilt checkout solutions, and integrations with platforms like Laravel and Fortinet.

Supported Payment Methods: Credit cards, PayPal, wire transfers, and more.

Global Reach: Supports 245 territories and multiple currencies.

Customer Support: Merchant support and transaction-level customer support, though some users note slow response times.

Best For: SaaS and digital product businesses, especially in the EU, needing simplified tax compliance.

3. Lemon Squeezy

Overview: Lemon Squeezy is designed for digital products and SaaS, acting as the MoR to streamline tax compliance and payment processing. Acquired by Stripe in 2024, its technology underpins Stripe’s Managed Payments, but it continues to operate as a standalone service.

Pricing: 5% + $0.50 per transaction, with additional fees for international transactions (e.g., +1.5% outside the US).

Merchant of Record: Yes.

Features:

• Subscription and one-time payment management.
• Checkout pages and license key management.
• Customer support for transaction-related queries.
• ProfitWell Metrics for revenue reporting.
• Retain tool for failed payment recovery.
• A.I.-powered fraud protection.

Compliance and Taxes: As MoR, Lemon Squeezy handles global tax compliance, including VAT and sales taxes, making it suitable for EU businesses.

Integration: API, prebuilt checkout solutions, and integrations with various platforms.

Supported Payment Methods: Credit cards, PayPal, wire transfers, and more.

Global Reach: Supports 245 territories and 130+ currencies.

Customer Support: Merchant support and transaction-level customer support.

Best For: SaaS and digital product businesses needing simplified tax compliance, particularly those not yet integrated with Stripe’s ecosystem.

4. FastSpring

Overview: FastSpring provides a full-stack e-commerce solution for software and SaaS companies, acting as the MoR to manage payments, subscriptions, and global tax compliance.

Pricing: Custom pricing based on transaction volume; contact for details (previously 8.9% or 5.9% + $0.95 per transaction, though rates may vary).

Merchant of Record: Yes.

Features:

• Global payments and subscription management.
• Tax compliance and remittance.
• Fraud protection and risk management.
• Localized checkout in 17 languages and 23 currencies.
• Advanced reporting and analytics.

Compliance and Taxes: FastSpring handles global tax compliance as MoR, ideal for EU businesses.

Integration: API and prebuilt checkout tools for easy integration.

Supported Payment Methods: Credit/debit cards, PayPal, bank transfers, and 30+ other methods.

Global Reach: Supports multiple currencies and languages worldwide.

Customer Support: Support via email, chat, and extensive documentation.

Best For: Software and SaaS companies needing a comprehensive e-commerce solution with global reach.

5. Digital River

Overview: Digital River offers global e-commerce, payments, and marketing services, acting as the MoR to manage payments, taxes, and compliance for businesses selling online.

Pricing: Custom pricing; contact for details.

Merchant of Record: Yes.

Features:

• Global payments and subscription billing.
• Tax and compliance management.
• Fraud protection and risk management.
• Marketing and merchandising tools.
• Advanced analytics and reporting.

Compliance and Taxes: Digital River handles global tax compliance and regulatory requirements, suitable for EU businesses.

Integration: API and extensions for platforms like Magento.

Supported Payment Methods: Credit cards, local payment methods, and more.

Global Reach: Presence in 244 countries and territories.

Customer Support: Dedicated support for clients.

Best For: Large enterprises and businesses needing comprehensive global e-commerce solutions.

6. PayPal

Overview: PayPal is a globally recognized payment processor offering a wide range of services for online businesses, known for its ease of use and buyer trust.

Pricing: 3.49% + $0.49 per transaction (US), with an additional 1.50% for international transactions.

Merchant of Record: No, the merchant is the MoR.

Features:

• Subscription management and invoicing.
• PayPal checkout buttons for quick integration.
• Buyer and seller protection policies.
• Supports PayPal Pay Later options.

Compliance and Taxes: Merchants are responsible for tax compliance, but PayPal provides tools for tax calculation.

Integration: API, checkout buttons, and integrations with platforms like WooCommerce and Shopify.

Supported Payment Methods: PayPal, credit/debit cards, Venmo (US), and digital wallets.

Global Reach: Available in 200+ countries, supports 100+ currencies.

Customer Support: 24/7 support via phone, chat, email, and a comprehensive help center.

Best For: Businesses seeking a trusted brand with broad customer recognition and simple setup.

7. Braintree

Overview: Braintree, owned by PayPal, focuses on online and mobile payments, offering advanced features like payment vaulting and marketplace support.

Pricing: 2.59% + $0.49 per transaction (US), negotiable for interchange-plus pricing.

Merchant of Record: No, the merchant is the MoR.

Features:

• Subscription management and customizable checkout.
• Payment vault for storing customer payment methods.
• Marketplace support for platforms.
• Fraud protection tools.

Compliance and Taxes: Merchants handle tax compliance.

Integration: API, SDKs, and integrations with major e-commerce platforms.

Supported Payment Methods: Credit/debit cards, PayPal, Venmo, Apple Pay, Google Pay, and local methods.

Global Reach: Supports multiple currencies and countries, including Australia, Canada, and Europe.

Customer Support: Support via email, phone, and documentation, though some users report reliance on PayPal’s support.

Best For: Growing businesses needing advanced payment features and PayPal integration.

8. Adyen

Overview: Adyen is a global payment processor favored by large enterprises for its extensive payment method support and customization options.

Pricing: Interchange-plus pricing, customized based on business volume and needs.

Merchant of Record: No, the merchant is the MoR.

Features:

• Supports a vast array of global payment methods.
• Omnichannel payment solutions for online and in-store.
• Advanced risk management and fraud prevention.
• Real-time reporting and analytics.

Compliance and Taxes: Merchants are responsible for tax compliance.

Integration: API and integrations with platforms like Sharetribe for marketplaces.

Supported Payment Methods: Credit/debit cards, local payment methods, digital wallets, and more.

Global Reach: Global presence, supports numerous currencies.

Customer Support: Dedicated support for large clients, with robust documentation.

Best For: Large enterprises needing scalable, customizable payment solutions.

9. Square

Overview: Square is renowned for its point-of-sale solutions but also offers robust online payment processing, ideal for businesses with both physical and online sales.

Pricing: 2.9% + $0.30 per transaction (online), with lower rates for in-person transactions.

Merchant of Record: No, the merchant is the MoR.

Features:

• Online store builder and invoicing.
• Subscription management.
• Integration with Square’s POS ecosystem.
• Fraud prevention and dispute management.

Compliance and Taxes: Merchants handle tax compliance, with Square providing tools for tax calculation.

Integration: API and integrations with e-commerce platforms.

Supported Payment Methods: Credit/debit cards, ACH, Apple Pay, Google Pay.

Global Reach: Primarily US-focused, with expansion to Canada, Japan, Australia, and the UK.

Customer Support: Phone, email, and chat support, with a free POS app.

Best For: Businesses with both online and physical sales needing integrated solutions.

10. Authorize.Net

Overview: Authorize.Net is a long-standing payment gateway owned by Visa, known for its reliability and extensive integrations.

Pricing:

• All-in-One: $25/month + 2.9% + $0.30 per transaction.
• Gateway Only: $25/month + $0.10 per transaction (requires separate merchant account).

Merchant of Record: No, the merchant is the MoR.

Features:

• Payment gateway with subscription management.
• Fraud detection with AVS and CVV.
• Virtual terminal for manual transactions.
• Customizable payment pages.

Compliance and Taxes: Merchants are responsible for tax compliance.

Integration: API and integrations with major e-commerce platforms like WooCommerce.

Supported Payment Methods: Credit cards, eChecks.

Global Reach: Primarily US, with support for international transactions.

Customer Support: Phone, email support, and detailed documentation.

Best For: Businesses needing a reliable gateway with extensive integrations.

11. Polar.sh

Overview: Polar.sh is an open-source payment infrastructure tailored for developers to sell digital products, including SaaS and memberships. It acts as the merchant of record, managing payments, billing, and tax compliance, allowing developers to focus on their core products. Its developer-friendly API and community-driven approach make it a compelling alternative to platforms like Lemon Squeezy.

Pricing: 4% + $0.40 per transaction (early member pricing, subject to change for non-early members).

Merchant of Record: Yes, Polar.sh handles all payment-related compliance, including sales tax, VAT, and GST.

Features:

• Subscription and one-time payment management.
• Checkout pages and potentially license key management.
• Automatic tax calculation and remittance.
• Open-source platform with APIs and SDKs for custom integrations.
• Integration with platforms like GitHub for funding open-source projects.

Compliance and Taxes: As the merchant of record, Polar.sh manages global tax compliance, including VAT, sales tax, and GST, making it an excellent choice for businesses operating in multiple jurisdictions, particularly in the EU with its stringent tax regulations.

Integration: Provides APIs and SDKs (e.g., TypeScript, Python) for seamless integration into various platforms, with support for webhooks and public APIs.

Supported Payment Methods: Includes credit/debit cards and likely other common methods such as PayPal (specific methods to be confirmed).

Global Reach: Supports multiple currencies and territories worldwide, though exact coverage may vary.

Customer Support: Offers support through Discord and email, with a strong emphasis on developer community engagement, as evidenced by active discussions and rapid response times reported by users.

Best For: Developers and SaaS businesses seeking an all-in-one payment solution with built-in tax compliance, particularly those who value open-source transparency and community support.

Additional Tools: Billing Management with UseAutumn.com

Overview: UseAutumn.com is an open-source billing management platform that integrates with Stripe to simplify the implementation of complex pricing models for startups and developers. It enables businesses to manage subscriptions, usage-based billing, credits, and seat-based pricing with minimal coding effort, making it ideal for those already using Stripe but needing advanced billing capabilities.

Pricing:

• Builder: Free for up to $3,000 MRR, supporting up to 10 products.
• Growth: $50/month for $3,000-$10,000 MRR, unlimited products.
• Startup: $375/month for $10,000-$40,000 MRR, unlimited products.
• Plus Stripe’s standard transaction fees (typically 2.9% + $0.30 per transaction).

Merchant of Record: No, UseAutumn.com relies on Stripe for payment processing; merchants are responsible for tax compliance.

Features:

• Supports diverse pricing models, including usage-based, credits, seat-based, and prepaid billing.
• Provides functions for handling checkouts, upgrades, downgrades, and usage tracking.
• Offers customer state management for implementing paywalls and displaying usage data.
• Includes a dashboard for managing products and plans.
• Simplifies billing logic with minimal code, often requiring just a few function calls.

Compliance and Taxes: Merchants must manage tax compliance themselves, potentially using services like Stripe Tax, which incurs additional costs (e.g., 0.5% per transaction).

Integration: Facilitates easy integration with a few lines of code, supporting full-stack frameworks like Next.js. It includes components like <AutumnProvider> for seamless frontend-backend connectivity.

Supported Payment Methods: Inherits Stripe’s extensive payment methods, including credit/debit cards, ACH, SEPA, iDEAL, Apple Pay, Google Pay, and over 100 other methods.

Global Reach: Leverages Stripe’s global reach, supporting 195+ countries and 135+ currencies.

Customer Support: Provides support via Discord and email, with users reporting responsive assistance for integration queries.

Best For: Startups and developers using Stripe who need to implement complex billing scenarios, such as usage-based or credit-based pricing, without extensive development resources.

Comparing Polar.sh and UseAutumn.com

While both Polar.sh and UseAutumn.com aim to simplify payment and billing processes for online businesses, they serve distinct purposes and cater to different needs.

Polar.sh:

• Type: Payment processor acting as the merchant of record.
• Key Features: Comprehensive handling of payments, billing, and global tax compliance, including VAT, sales tax, and GST. Offers features tailored for digital products and SaaS, such as checkout pages and potentially license key management.
• Pricing: 4% + $0.40 per transaction (early member pricing).
• Ideal For: Businesses needing an all-in-one solution that manages tax compliance, especially those operating in multiple jurisdictions like the EU. Its open-source nature appeals to developers who value transparency and customization.

UseAutumn.com:

• Type: Billing management platform integrated with Stripe.
• Key Features: Simplifies the implementation of complex pricing models, such as usage-based billing, credits, and seat-based pricing, with minimal code. Provides tools for customer state management and usage tracking.
• Pricing: Tiered plans from free (up to $3,000 MRR) to $375/month (up to $40,000 MRR), plus Stripe’s standard fees (typically 2.9% + $0.30 per transaction).
• Ideal For: Businesses already using or preferring Stripe for payment processing, seeking to streamline intricate billing scenarios without significant development effort.

Why Choose Polar.sh:

• You require a merchant of record to handle payment processing and tax compliance, reducing the burden of managing VAT and sales tax across jurisdictions.
• You prefer a platform specifically designed for digital products and SaaS, with features like automatic tax calculation and remittance.
• You are comfortable with a percentage-based transaction fee and value the open-source community-driven approach.

Why Choose UseAutumn.com:

• You are already using Stripe or prefer its extensive payment method support and global reach.
• You need to implement advanced billing models, such as usage-based or credit-based pricing, with minimal coding.
• You seek a cost-effective solution, particularly if your business qualifies for the free or lower-tier plans, though you must manage tax compliance separately.

Cost Comparison Example: For a business with $10,000 MRR and 100 transactions of $100 each:

• Polar.sh: 4% of $10,000 = $400, plus 100 × $0.40 = $40, totaling $440.
• UseAutumn.com: Growth plan at $50/month, plus Stripe fees (2.9% of $10,000 = $290, plus 100 × $0.30 = $30), totaling $370. If tax compliance is needed, adding Stripe Tax (0.5% of $10,000 = $50) brings the total to $420.

Polar.sh may have a slightly higher cost but offers the advantage of handling tax compliance, which can save significant time and resources, especially for EU businesses. UseAutumn.com is more cost-effective for businesses comfortable managing compliance separately.

In summary, Polar.sh is ideal for businesses seeking a comprehensive payment solution with tax compliance handled, particularly for digital products and SaaS. UseAutumn.com is best for Stripe users needing streamlined billing management for complex pricing models.

Comparison Table

Choosing the Right Processor

Selecting a payment processor depends on your business’s specific needs, transaction volume, and compliance requirements:

• Startups and Small Businesses: Stripe (standard), PayPal, and Square remain cost-effective with no monthly fees and robust integrations. For those using Stripe, UseAutumn.com can enhance billing management for complex pricing models.
• EU Compliance Needs: Paddle, Lemon Squeezy, FastSpring, Digital River, Stripe’s Managed Payments, and Polar.sh are top choices as they act as merchants of record, handling VAT and sales tax compliance critical for EU regulations.
• Large Enterprises: Adyen and Digital River offer customizable solutions tailored to high-volume businesses with global operations.
• Businesses with Physical Presence: Square’s integration of online and POS solutions is perfect for retailers with both channels.
• Traditional Gateway Needs: Authorize.Net offers reliability and extensive integrations for businesses with existing merchant accounts.
• Developers and Open-Source Enthusiasts: Polar.sh offers an open-source payment infrastructure with merchant of record services, ideal for those who value transparency and community-driven development.
• Complex Billing Needs: For businesses using Stripe, UseAutumn.com provides a streamlined solution for implementing advanced pricing models without extensive coding.

Considerations for EU Companies

EU businesses face stringent VAT and tax compliance requirements. Processors acting as MoR—Paddle, Lemon Squeezy, FastSpring, Digital River, and Stripe’s Managed Payments—simplify these obligations by managing tax calculations and remittances across multiple jurisdictions. This is particularly advantageous for SaaS and digital product companies operating in the EU, as it reduces the need for in-house tax expertise.

Conclusion

The best payment processor depends on your business model and needs. For EU businesses or those selling digital products, Paddle, Lemon Squeezy, FastSpring, Digital River, Stripe’s Managed Payments, and Polar.sh stand out thanks to their merchant-of-record services and integrated tax-compliance support. Polar.sh’s open-source, developer-friendly approach (4% + $0.40 per transaction) is particularly attractive for engineering-led teams.

For startups already using Stripe that must implement sophisticated billing scenarios—usage-based, seat-based, or credit-based—UseAutumn.com offers a cost-effective solution: free up to $3 000 MRR, scaling to $375 / month, with no additional Autumn transaction fees (standard Stripe rates still apply). Because Autumn is not a merchant of record, you’ll still need to handle tax compliance separately (e.g., via Stripe Tax).

Traditional low-cost options such as Stripe’s standard plan, Square, PayPal, and Braintree remain compelling for straightforward payment flows, while enterprise-scale organisations may favour Adyen or Digital River for highly customised, global solutions.

Ultimately, assess your transaction volume, compliance obligations, desired billing complexity, and integration effort to choose the platform or combination of tools that best supports your roadmap and growth goals.

Sources

Stripe Acquires Lemon Squeezy
Lemon Squeezy Payments and Billing
FastSpring Digital Commerce for SaaS
FastSpring Pricing Information
Digital River Global Commerce Solutions
Stripe Managed Payments Documentation
Paddle Pricing Page
PayPal Merchant Fees Overview
Braintree Payment Processing Review
Adyen Pricing Information
Square Pricing Details
Authorize.Net Pricing Plans
Polar.sh
Polar.sh Documentation
UseAutumn.com
UseAutumn.com Documentation
Stripe Pricing