Every "merchant of record for AI companies" roundup is written by an MoR vendor. Here's the version with the two things they leave out: the effective fee on small tickets, and the fact that in 2026 you can get a live merchant account the same day — which kills the main reason most builders reach for an MoR in the first place.
An MoR becomes the legal seller of your product. Your customer buys from Paddle/Lemon Squeezy/FastSpring — not from you. In exchange, the MoR handles VAT/GST/sales tax, compliance and disputes. That is genuinely valuable if global tax is your top concern. It also means: their name involved in the sale, your customer relationship intermediated, and you cannot move money between your own users (no marketplace/community payouts).
| Provider | Known for | Headline price |
|---|---|---|
| Paddle | The enterprise-ish MoR for SaaS; strong tax coverage, slower onboarding reviews | 5% + $0.50 |
| Lemon Squeezy | Indie-friendly MoR (now Stripe-owned); easy start, same price shape | 5% + $0.50 |
| FastSpring | Veteran MoR, software/downloads heritage | quote-based |
| Creem / Dodo / Kelviq | Newer MoRs aimed at AI/indie builders | ~4–5% + fixed |
| paas.build (not an MoR) | Instant live merchant account — you stay the seller; splits & payouts for your users | 3.9% flat |
MoR pricing looks like "5% + 50¢". AI products price like "$9/month". Put those together:
| On a… | Paddle / Lemon Squeezy (5% + $0.50) | Effective rate | paas.build (3.9% flat) | Effective rate |
|---|---|---|---|---|
| $9 subscription | $0.95 | 10.6% | $0.35 | 3.9% |
| $29 subscription | $1.95 | 6.7% | $1.13 | 3.9% |
| $99 purchase | $5.45 | 5.5% | $3.86 | 3.9% |
| 100 × $9 subs, one year | $1,140 in fees | $421 in fees | ||
Published headline rates as of July 2026 — Paddle and Lemon Squeezy list 5% + $0.50 per transaction; other MoRs (FastSpring, Creem, Dodo, Kelviq) price similarly or by quote. Cross-border/currency surcharges excluded on all sides. Always check current vendor pricing.
This was true — and it's the real reason MoRs became the default advice for indie and AI builders. It stopped being true. With progressive KYB, paas.build opens a real merchant account — sandbox and production — the same session: individuals and sole traders included, no company formation, live immediately with a cap (~£1,500) while verification completes in the background. UK, EU and US builders. Your brand on the checkout, your customer, 3.9% flat, and platform features (splits, payouts to your users) an MoR structurally cannot offer.
Being honest both ways: if you sell globally at meaningful volume and refuse to touch tax filings, an MoR earns its fee — VAT/GST across 100+ jurisdictions is real work (we ship tax guides and tax-engine integrations, not "tax handled for you"). If you're outside the UK/EU/US, an MoR may currently be your only fast option. Compare properly: paas.build vs Paddle.
Paddle and Lemon Squeezy are the usual picks (both 5% + $0.50); FastSpring for veterans, Creem/Dodo for newer indie-focused options. But first ask whether you need an MoR at all: if you reached for one because merchant accounts were slow or required a company, that reason is obsolete — paas.build opens a live merchant account the same day for individuals, at 3.9% flat.
Headline pricing is typically 5% + $0.50 per transaction. On a $9 subscription that is $0.95 — an effective 10.6% of revenue. On $29 it is 6.7%. The fixed fee makes small AI-app tickets disproportionately expensive.
Only if handing off global tax/compliance is worth ~2-3× the payment fees on small tickets, and you accept selling through a reseller. If what you actually need is to start charging fast without a company, a PayFac with progressive KYB (like paas.build) gives you a live account today and you remain the seller.
A payment facilitator (PayFac). You stay the legal seller, keep your brand and customer data, handle your own tax (with tooling), and pay a flat rate — on paas.build, 3.9%, with same-day onboarding, no company required, and payouts/splits for platforms. UK, EU and US.
AI products skew to small recurring prices ($5–$29). A $0.50 fixed fee is 5.6% of a $9 charge by itself — before the 5% percentage. Flat-rate pricing without a fixed fee (3.9% at paas.build) keeps the effective rate identical at every ticket size.