Lemon Squeezy vs Paddle
Side-by-side spec comparison, transaction fee calculation, and direct policy audits for SaaS builders.
Quick Verdict
Fee & Payout Simulation
Net Payout Calculator
Estimate processing, currency exchange and hidden billing fees.
Feature & Model Matrix
| Specification | Lemon Squeezy | Paddle |
|---|---|---|
| Processing Model | Merchant of Record | Merchant of Record |
| Tax & Invoicing Liability | Handled (Merchant of Record) | Handled (Merchant of Record) |
| Base Fees | 5% + $0.5 | 5% + $0.5 |
| FX Currency Markups | +2% | +2% |
| Cross Border Fee | +1.5% | +1.5% |
| Supports Individuals | May support individuals after account review | Primarily software sellers; verification still applies |
| Onboarding Risk Confidence | High | High |
Anonymized Developer Cases
LS closed my account because of anime art assets
Was selling a digital design asset pack of anime characters. Lemon Squeezy flagged it as 'NSFW' and 'sexually suggestive' and froze the account with $3,400 inside. Support said they cannot act as MoR for any age-restricted or borderline materials.
// Lemon Squeezy is basically a black box. If your art or templates look even slightly suggestive, their upstream providers will demand a freeze. Funds were held for 180 days.
Paddle rejected my extension due to scraping code in client script
Applied to Paddle for a LinkedIn outreach tool chrome extension. Onboarding team audited the extension source code and rejected it under their AUP for 'unauthorized scraping and automation' of third-party platforms.
// Paddle is extremely strict about web scraping and automation products. If your extension interacts with social networks or automates actions, they will reject you outright.
Key Risk Factors
- ·Lemon Squeezy charges 5% + 50c. Paddle has custom enterprise tiers if your annual volume crosses $100k.
- ·Lemon Squeezy handles subscription management via customer portal overlays. Paddle has custom billing portals.
- ·Both platforms block high-chargeback accounts to protect their merchant standings.
Onboarding Card Stops
- ·Offering unauthorized automation tools on social platforms (Paddle ban)
- ·Selling templates without copyright ownership proof (Lemon Squeezy ban)
- ·Unresponsive merchant contact email during onboarding audits
Policy Sources & Underwriting Rules
Used for digital product scope, IP ownership, age-restricted, adult, regulated and prohibited product risks.
Used for software focus, prohibited categories, restricted content generation, scraping-adjacent and adult content risks.
Disclaimer: This tool is for informational purposes only. It does not provide legal, tax, financial, or compliance advice. Payment platforms may change policies or make case-by-case decisions. Always verify with the official provider before applying or integrating.