New in 2026 · read before you migrate

Stripe Managed Payments, explained - and the 3.9% alternative

Stripe now offers Managed Payments - a Merchant-of-Record mode where Stripe becomes the legal seller and handles global tax, and the path it's steering Lemon Squeezy sellers toward. For some businesses that's genuinely useful. But stack the fees at AI-app ticket sizes and a different picture appears. Numbers below are as reported by industry sources in mid-2026 - always confirm Stripe's current pricing.

What Stripe Managed Payments is

It's Stripe's MoR product: Stripe becomes the seller of record on the transaction, remits sales tax/VAT globally, and manages disputes - the Paddle/Lemon Squeezy model, operated by Stripe itself. It's also where Lemon Squeezy merchants are being migrated following the acquisition. Sources: Paddle on Stripe Managed Payments · Lemon Squeezy 2026 update

The fee math nobody puts on the pricing page

The MoR service is reported at roughly +3.5% on top of standard Stripe processing (2.9% + $0.30 domestic; more internationally). Stack it:

Scenario	Reported fee (~6.4% + $0.30)	Effective rate	paas.build (3.9% flat)
$9 subscription	$0.88	~9.7%	$0.35 = 3.9%
$29 subscription	$2.16	~7.4%	$1.13 = 3.9%
$99 purchase	$6.64	~6.7%	$3.86 = 3.9%

Reported figures (see sources above; international cards and currency conversion add more). Fair caveat: the MoR fee buys global tax remittance - paas.build leaves you the seller, with tax tooling instead.

The question the migration forces

If you're being moved from Lemon Squeezy - or considering Managed Payments - you're choosing between two philosophies, not two checkboxes: be the MoR's customer (they own the sale, the tax, and effectively the customer record) or be the merchant (your name on the statement, your customer, your funds - and your tax, with tooling). At $9-$29 AI-app pricing, the difference is roughly half to two-thirds of your payment costs.

Migrating anyway? Fine - but migrate on purpose. If you're a UK/EU/US builder and you'd rather own the account: paas.build opens a real merchant account the same session (progressive KYB, individuals included), embedded checkout and subscriptions, 3.9% flat - and your users can get paid too (splits/payouts an MoR can't do).

Who should still pick Managed Payments

Heavy international B2C volume where VAT/GST handling outweighs everything, deep Stripe-ecosystem dependence, or you're outside the UK/EU/US. That's the honest MoR case - run the two-question test.

FAQ

What does Stripe Managed Payments cost?

Industry sources report roughly 3.5% for the MoR service on top of standard Stripe processing (2.9% + $0.30 domestic) - an effective ~9.7% on a $9 subscription, before international surcharges. Confirm current pricing with Stripe; it is not a single flat rate.

Is Stripe Managed Payments the same as Lemon Squeezy?

Functionally it inherits the role: Stripe acquired Lemon Squeezy and Managed Payments is the MoR product sellers are being steered toward. Stripe becomes the legal seller and handles tax, like Lemon Squeezy did.

What is the alternative to Stripe Managed Payments?

Stay the merchant instead: a PayFac like paas.build gives UK/EU/US builders a live merchant account the same session (no company required), embedded checkout and subscriptions at 3.9% flat, with your brand on the statement and your customer data in your hands.

Do I lose my customers if I use a Merchant of Record?

You lose the direct billing relationship: the MoR is the legal seller, its name appears in the payment flow, and the transaction record is fundamentally theirs. Whether that trade is worth global tax handling is the real decision.

Go live in one prompt MoR vs PayFac →