paas.build Open my account
Reviewed honestly, sources linked

Best merchant of record for SaaS in 2026: an honest, fee-verified roundup

A Merchant of Record (MoR) becomes the legal seller and remits VAT, GST and sales tax worldwide for you - that's the whole point, and for global SaaS it can be worth every basis point. This roundup compares the five MoRs builders actually shortlist in 2026 - Paddle, Lemon Squeezy, Creem, Dodo and Polar - with fees taken from each provider's own pricing page (July 2026). Then it's honest about the trade every MoR asks: you stop being the merchant. If that trade doesn't fit, there's a stay-the-merchant option at a flat 3.9%. No affiliate spin, no fabricated numbers - anything we couldn't verify, we left out.

The 2026 fee table, from each provider's own page

Base rate is only half the story - MoR payout fees, minimums and clearing holds do real damage at small tickets, so read the notes column.
ProviderBase rateThe fine print that matters
Paddle5% + 50cProducts under $10 require custom pricing (contact sales). Global tax, chargeback protection and revenue recovery included.
Lemon Squeezy5% + 50c+1.5% international cards, +0.5% subscriptions. US bank payouts free; international payouts 1%. Now owned by Stripe.
Creem3.9% + 40cPayout fee "7 USD/EUR or 1%, whichever is higher"; paid 1st and 15th; $50/€50 minimum; funds "held 7-12 days for risk assessment". ~50 countries.
Dodo Payments4% + 40c+1.5% international, +0.5% subscriptions; $5 fee on settlements under $1,000; $25 SWIFT payout; $30 dispute. 220+ countries.
Polar5% + 50c**Starter plan. Only orgs created before 27 May 2026 keep the 4% + 40c "Early Member" rate. Payout: $2/mo + 0.25% + $0.25 per withdrawal.
paas.build (not an MoR)3.9% flatNo fixed fee, no payout fee, no minimum, no clearing hold. You stay the merchant. Same-day live via progressive KYB, no company needed.
Sources: paddle.com/pricing · lemonsqueezy.com/pricing · creem.io/pricing & Creem payouts docs · dodopayments.com/pricing · Polar fees docs (all July 2026)

Why the fixed fee decides small-ticket SaaS

On a $9 AI subscription, a 50c fee is already 5.6% before the percentage rate lands. That's why headline order flips at small tickets - the fixed component dwarfs the rate:
On a $9 chargeFeeEffective rate
Paddle / Lemon Squeezy (5% + 50c)$0.9510.6%
Dodo (4% + 40c)$0.768.4%
Creem (3.9% + 40c)$0.758.3%
paas.build (3.9% flat)$0.353.9%
The gap narrows as tickets grow - by $99 the 50c matters far less - so for higher-priced annual plans the MoR base rate is what counts, and the tax-handling value can easily justify it. But if your ARPU is a few dollars a month, the flat, no-fixed-fee model wins cleanly.

When to pick each - honestly

Paddle - the enterprise-grade MoR. Deepest API, strong reporting and subscription/dunning tooling, and the most battle-tested tax coverage. Best when you're scaling B2B SaaS and want a mature partner; note the sub-$10 custom-pricing gate.
Lemon Squeezy - best for selling digital products alongside SaaS: license keys, software update distribution, storefronts and email are built in. Now inside Stripe, so expect convergence. The 5% + 50c and +1.5% international add up on small or global sales.
Creem - the lowest headline rate and genuinely good agent-native docs; a favourite of indie and AI builders. Watch the payout side: the "$50 minimum + 1%/$7 payout fee + 7-12 day hold" is where small-payout margins go, and coverage is ~50 countries.
Dodo Payments - the widest reach here at 220+ countries, developer-first, and a hair above Creem on rate. Strong if you sell into emerging markets; mind the $5 fee on sub-$1,000 settlements.
Polar - the developer-favourite open-source MoR. Great DX, but the pricing moved: new orgs land on 5% + 50c, and only accounts created before 27 May 2026 keep the 4% Early Member rate. Confirm which rate you're actually on before you commit.
paas.build - the option when you don't want an MoR at all. You stay the legal merchant: your brand on the checkout, your customer, your funds on FCA-authorised safeguarded rails - not a third party's balance sheet. 3.9% flat, no fixed fee, no payout fee, no minimum, no clearing hold. Live the same day via progressive KYB, individuals welcome, no company required. UK/EU/US (US also available via an MoR arrangement under our UK entity, or J.P. Morgan acquiring for US-incorporated companies). And it's agent-native by design: SKILL.md, llms.txt, and an MCP server on the official registry. The honest line: if you need worldwide sales tax remitted for you, pick one of the MoRs above. If you'd rather keep the merchant relationship and pay less on small tickets, this is the pick.
Get your keys by email
Go live when you're ready - no company needed, 3.9% flat.
FAQ

What is the cheapest merchant of record for SaaS in 2026?

On headline rate, Creem is lowest at 3.9% + 40c, then Dodo at 4% + 40c. Polar was 4% + 40c but its Starter plan is now 5% + 50c (only organizations created before 27 May 2026 keep the 4% Early Member rate). Paddle and Lemon Squeezy are 5% + 50c. But headline isn't the true cost: MoR payout fees, minimums and clearing holds change the picture at small tickets.

Which merchant of record is best for small-ticket AI subscriptions?

The fixed per-transaction fee dominates at small tickets. A 40c or 50c fee on a $9 charge is a huge effective percentage before the base rate applies, so Creem (3.9% + 40c) and Dodo (4% + 40c) beat Paddle and Lemon Squeezy (5% + 50c) there. If you can stay the merchant rather than use an MoR, a flat 3.9% with no fixed fee - like paas.build - is cheaper still on tickets under roughly $50.

Do I have to give up being the merchant to get global tax handled?

With a true MoR, yes - the MoR becomes the legal seller of record, remits VAT/GST/sales tax worldwide, and owns the merchant relationship (and the funds until payout). That is the value and the trade. If you'd rather stay the legal merchant and keep your own account, paas.build is a PayFac model at flat 3.9%; US coverage is available via an MoR arrangement under our UK entity, or J.P. Morgan acquiring for US-incorporated companies.

When should I use paas.build instead of a merchant of record?

Use paas.build when you want your own brand on the checkout, your own funds on safeguarded rails, same-day go-live via progressive KYB with no company required, and a flat 3.9% with no fixed or payout fee - especially for small-ticket UK/EU/US billing. Use a full MoR when having worldwide sales tax remitted for you outweighs owning the merchant relationship.