Stripe 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.
By choosing Stripe, you keep an estimated $162 more per month on this volume compared to Paddle.
// Note: Stripe leaves sales tax compliance to you. You may need to allocate savings for accounting.
Feature & Model Matrix
| Specification | Stripe | Paddle |
|---|---|---|
| Processing Model | Payment gateway / PayFac | Merchant of Record |
| Tax & Invoicing Liability | Self-managed (Gateway) | Handled (Merchant of Record) |
| Base Fees | 2.9% + $0.3 | 5% + $0.5 |
| FX Currency Markups | +1% | +2% |
| Cross Border Fee | +1% | +1.5% |
| Supports Individuals | Depends on supported country and verification | Primarily software sellers; verification still applies |
| Onboarding Risk Confidence | High | High |
Anonymized Developer Cases
Card testing bots spammed my AI generator and got me banned
Launched an AI avatar generator on Product Hunt. Within 12 hours, a botnet hit our credit card form with 4,000 card testing attempts. 80 disputes rolled in the next day. Stripe automated system flagged it as fraud and closed the account instantly.
// Always set up Cloudflare Turnstile or Stripe Radar rules for custom rate limits before launching. Stripe support wouldn't help until I escalated on Twitter.
Atlas LLC banned for using personal utilities as business address
Registered Delaware LLC via Atlas from Romania. Used the default registered agent address for Stripe. Stripe flagged it during KYC review as an unverified address and closed the account after Romanian passport verification.
// Stripe requires physical verification. Make sure you have a real utility bill or bank statement associated with your virtual address/LLC, or they'll trigger a manual suspension.
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
- ·Stripe requires you to integrate external tax software like Stripe Tax or TaxJar and manually file VAT/GST in every customer's jurisdiction.
- ·Paddle acts as the legal reseller, meaning they get sued for tax compliance, not you.
- ·Stripe onboarding takes minutes. Paddle onboarding involves manual compliance review of your website and product.
Onboarding Card Stops
- ·Selling to EU/UK customers without registering for local VAT (Stripe route)
- ·Website missing clear pricing, contact info, or refund policies during Paddle audit
- ·Spammy, automation-heavy browser extensions flagged by Paddle compliance
Policy Sources & Underwriting Rules
Used to identify restricted categories such as adult content, regulated services, and other high-risk business models.
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.