Major payment processors for online businesses, compared

Choosing a payment processor is one of the bigger decisions for an online business, especially one selling digital products or subscriptions, like a SaaS company. This comparison looks at ten major processors: Stripe, Paddle, Lemon Squeezy, FastSpring, Digital River, PayPal, Braintree, Adyen, Square, and Authorize.Net. For each one we cover pricing, features, compliance (with EU businesses in mind), and whether the processor acts as a merchant of record (MoR). The goal is to help you pick a processor that fits your business, with extra weight on EU compliance and digital products.

What is a merchant of record?

A Merchant of Record (MoR) is the entity legally responsible for processing card transactions, handling tax compliance, fraud protection, and customer support related to payments. When a processor acts as MoR, it simplifies compliance for businesses, especially in regions like the EU with complex VAT regulations. Without an MoR, merchants must manage these responsibilities themselves, often requiring additional tools or services.

Payment processor comparisons

1. Stripe

Overview: Stripe is a payment processor known for its developer-friendly API, and the feature set keeps expanding. It supports both standard payment processing, where the merchant is the MoR, and a newer Managed Payments service, where Stripe acts as the MoR, launched in 2025 after its acquisition of Lemon Squeezy.

Pricing:

• Standard: 2.9% + $0.30 per transaction (US), varies by country.
• Managed Payments: Custom pricing, likely similar to Lemon Squeezy’s 5% + $0.50 per transaction.

Merchant of Record: Yes, with Managed Payments; otherwise, the merchant is the MoR.

Features:

• Subscription management for recurring billing.
• Invoicing and prebuilt checkout pages.
• Extensive API for custom integrations.
• Fraud prevention with Stripe Radar and Adaptive Acceptance.
• Supports one-time payments, marketplaces, and in-person payments.

Compliance and Taxes: With Managed Payments, Stripe handles global tax compliance (sales tax, VAT, GST), which makes the service a good fit for EU businesses. In the standard model, merchants are responsible for tax compliance but can use Stripe Tax for automation.

Integration: Offers APIs, SDKs in multiple languages, and integrations with platforms like Shopify and WooCommerce.

Supported Payment Methods: Credit/debit cards, ACH, SEPA, iDEAL, Apple Pay, Google Pay, and over 100 other methods.

Global Reach: Available in 195+ countries, supports 135+ currencies.

Customer Support: 24/7 support via phone, chat, email, and extensive documentation.

Best For: Startups, SaaS businesses, and developers needing flexibility. Managed Payments is particularly suited for EU companies seeking tax compliance.

2. Paddle

Overview: Paddle is built for digital products and SaaS and acts as the MoR to simplify tax compliance and payment processing. It is especially appealing to EU businesses because it handles VAT and sales taxes across the board.

Pricing: 5% + $0.50 per transaction, with custom pricing for high-volume businesses.

Merchant of Record: Yes, Paddle handles all payment-related compliance.

Features:

• Subscription and one-time payment management.
• Checkout pages and license key management.
• Customer support for transaction-related queries.
• ProfitWell Metrics for real-time revenue reporting.
• Retain tool for recovering failed payments.

Compliance and Taxes: As MoR, Paddle manages global tax compliance, including VAT and sales taxes, which puts it high on most EU companies’ shortlists.

Integration: API, prebuilt checkout solutions, and integrations with platforms like Laravel and Fortinet.

Supported Payment Methods: Credit cards, PayPal, wire transfers, and more.

Global Reach: Supports 245 territories and multiple currencies.

Customer Support: Merchant support and transaction-level customer support, though some users note slow response times.

Best For: SaaS and digital product businesses, especially in the EU, needing simplified tax compliance.

3. Lemon Squeezy

Overview: Lemon Squeezy is built for digital products and SaaS and acts as the MoR to take the pain out of tax compliance and payment processing. Stripe acquired it in 2024; its technology underpins Stripe’s Managed Payments, but the service still runs standalone.

Pricing: 5% + $0.50 per transaction, with additional fees for international transactions (e.g., +1.5% outside the US).

Merchant of Record: Yes.

Features:

• Subscription and one-time payment management.
• Checkout pages and license key management.
• Customer support for transaction-related queries.
• ProfitWell Metrics for revenue reporting.
• Retain tool for failed payment recovery.
• A.I.-powered fraud protection.

Compliance and Taxes: As MoR, Lemon Squeezy handles global tax compliance, including VAT and sales taxes, which is enough for most EU businesses.

Integration: API, prebuilt checkout solutions, and integrations with various platforms.

Supported Payment Methods: Credit cards, PayPal, wire transfers, and more.

Global Reach: Supports 245 territories and 130+ currencies.

Customer Support: Merchant support and transaction-level customer support.

Best For: SaaS and digital product businesses needing simplified tax compliance, particularly those not yet integrated with Stripe’s ecosystem.

4. FastSpring

Overview: FastSpring provides a full-stack e-commerce solution for software and SaaS companies and acts as the MoR to manage payments, subscriptions, and global tax compliance.

Pricing: Custom pricing based on transaction volume; contact for details (previously 8.9% or 5.9% + $0.95 per transaction, though rates may vary).

Merchant of Record: Yes.

Features:

• Global payments and subscription management.
• Tax compliance and remittance.
• Fraud protection and risk management.
• Localized checkout in 17 languages and 23 currencies.
• Advanced reporting and analytics.

Compliance and Taxes: FastSpring handles global tax compliance as MoR, which suits EU businesses.

Integration: API and prebuilt checkout tools for easy integration.

Supported Payment Methods: Credit/debit cards, PayPal, bank transfers, and 30+ other methods.

Global Reach: Supports multiple currencies and languages worldwide.

Customer Support: Support via email, chat, and extensive documentation.

Best For: Software and SaaS companies that want a full e-commerce package with global reach.

5. Digital River

Overview: Digital River offers global e-commerce, payments, and marketing services and acts as the MoR to manage payments, taxes, and compliance for businesses selling online.

Pricing: Custom pricing; contact for details.

Merchant of Record: Yes.

Features:

• Global payments and subscription billing.
• Tax and compliance management.
• Fraud protection and risk management.
• Marketing and merchandising tools.
• Advanced analytics and reporting.

Compliance and Taxes: Digital River handles global tax compliance and regulatory requirements, suitable for EU businesses.

Integration: API and extensions for platforms like Magento.

Supported Payment Methods: Credit cards, local payment methods, and more.

Global Reach: Presence in 244 countries and territories.

Customer Support: Dedicated support for clients.

Best For: Large enterprises and businesses that need global e-commerce coverage across multiple markets.

6. PayPal

Overview: PayPal is a payment processor with a global footprint and a wide range of services for online businesses. Its ease of use and buyer trust are the main draws.

Pricing: 3.49% + $0.49 per transaction (US), with an additional 1.50% for international transactions.

Merchant of Record: No, the merchant is the MoR.

Features:

• Subscription management and invoicing.
• PayPal checkout buttons for quick integration.
• Buyer and seller protection policies.
• Supports PayPal Pay Later options.

Compliance and Taxes: Merchants are responsible for tax compliance, but PayPal provides tools for tax calculation.

Integration: API, checkout buttons, and integrations with platforms like WooCommerce and Shopify.

Supported Payment Methods: PayPal, credit/debit cards, Venmo (US), and digital wallets.

Global Reach: Available in 200+ countries, supports 100+ currencies.

Customer Support: 24/7 support via phone, chat, email, and a full help center.

Best For: Businesses seeking a trusted brand with broad customer recognition and simple setup.

7. Braintree

Overview: Braintree, owned by PayPal, focuses on online and mobile payments and offers advanced features like payment vaulting and marketplace support.

Pricing: 2.59% + $0.49 per transaction (US), negotiable for interchange-plus pricing.

Merchant of Record: No, the merchant is the MoR.

Features:

• Subscription management and customizable checkout.
• Payment vault for storing customer payment methods.
• Marketplace support for platforms.
• Fraud protection tools.

Compliance and Taxes: Merchants handle tax compliance.

Integration: API, SDKs, and integrations with major e-commerce platforms.

Supported Payment Methods: Credit/debit cards, PayPal, Venmo, Apple Pay, Google Pay, and local methods.

Global Reach: Supports multiple currencies and countries, including Australia, Canada, and Europe.

Customer Support: Support via email, phone, and documentation, though some users report reliance on PayPal’s support.

Best For: Growing businesses needing advanced payment features and PayPal integration.

8. Adyen

Overview: Adyen is a global payment processor favored by large enterprises for its extensive payment method support and customization options.

Pricing: Interchange-plus pricing, customized based on business volume and needs.

Merchant of Record: No, the merchant is the MoR.

Features:

• Supports a vast array of global payment methods.
• Omnichannel payment solutions for online and in-store.
• Advanced risk management and fraud prevention.
• Real-time reporting and analytics.

Compliance and Taxes: Merchants are responsible for tax compliance.

Integration: API and integrations with platforms like Sharetribe for marketplaces.

Supported Payment Methods: Credit/debit cards, local payment methods, digital wallets, and more.

Global Reach: Global presence, supports numerous currencies.

Customer Support: Dedicated support for large clients, with solid documentation.

Best For: Large enterprises needing scalable, customizable payment solutions.

9. Square

Overview: Square is best known for its point-of-sale products but also offers solid online payment processing, which suits businesses with both physical and online sales.

Pricing: 2.9% + $0.30 per transaction (online), with lower rates for in-person transactions.

Merchant of Record: No, the merchant is the MoR.

Features:

• Online store builder and invoicing.
• Subscription management.
• Integration with Square’s POS ecosystem.
• Fraud prevention and dispute management.

Compliance and Taxes: Merchants handle tax compliance, with Square providing tools for tax calculation.

Integration: API and integrations with e-commerce platforms.

Supported Payment Methods: Credit/debit cards, ACH, Apple Pay, Google Pay.

Global Reach: Primarily US-focused, with expansion to Canada, Japan, Australia, and the UK.

Customer Support: Phone, email, and chat support, with a free POS app.

Best For: Businesses with both online and physical sales needing integrated solutions.

10. Authorize.Net

Overview: Authorize.Net is a long-standing payment gateway owned by Visa, known for its reliability and extensive integrations.

Pricing:

• All-in-One: $25/month + 2.9% + $0.30 per transaction.
• Gateway Only: $25/month + $0.10 per transaction (requires separate merchant account).

Merchant of Record: No, the merchant is the MoR.

Features:

• Payment gateway with subscription management.
• Fraud detection with AVS and CVV.
• Virtual terminal for manual transactions.
• Customizable payment pages.

Compliance and Taxes: Merchants are responsible for tax compliance.

Integration: API and integrations with major e-commerce platforms like WooCommerce.

Supported Payment Methods: Credit cards, eChecks.

Global Reach: Primarily US, with support for international transactions.

Customer Support: Phone, email support, and detailed documentation.

Best For: Businesses needing a reliable gateway with extensive integrations.

11. Polar.sh

Overview: Polar.sh is an open-source payment infrastructure built for developers who want to sell digital products, including SaaS and memberships. It acts as the merchant of record and handles payments, billing, and tax compliance so developers can stay focused on the product itself. Between the developer-friendly API and the community-driven approach, it competes well against platforms like Lemon Squeezy.

Pricing: 4% + $0.40 per transaction (early member pricing, subject to change for non-early members).

Merchant of Record: Yes, Polar.sh handles all payment-related compliance, including sales tax, VAT, and GST.

Features:

• Subscription and one-time payment management.
• Checkout pages and potentially license key management.
• Automatic tax calculation and remittance.
• Open-source platform with APIs and SDKs for custom integrations.
• Integration with platforms like GitHub for funding open-source projects.

Compliance and Taxes: As the merchant of record, Polar.sh manages global tax compliance, including VAT, sales tax, and GST. For businesses operating across multiple jurisdictions, especially the EU with its strict rules, that is a real plus.

Integration: Provides APIs and SDKs (e.g., TypeScript, Python) for easy integration into various platforms, with support for webhooks and public APIs.

Supported Payment Methods: Includes credit/debit cards and likely other common methods such as PayPal (specific methods to be confirmed).

Global Reach: Supports multiple currencies and territories worldwide, though exact coverage may vary.

Customer Support: Offers support through Discord and email, with a strong developer community focus. Users report active discussions and quick response times.

Best For: Developers and SaaS businesses seeking an all-in-one payment solution with built-in tax compliance, particularly those who value open-source transparency and community support.

Additional tools: Billing management with UseAutumn.com

Overview: UseAutumn.com is an open-source billing management platform that plugs into Stripe to simplify complex pricing models for startups and developers. It lets businesses manage subscriptions, usage-based billing, credits, and seat-based pricing with little coding. If you are already on Stripe and need advanced billing, this is an easy add-on.

Pricing:

• Builder: Free for up to $3,000 MRR with support for up to 10 products.
• Growth: $50/month for $3,000-$10,000 MRR, unlimited products.
• Startup: $375/month for $10,000-$40,000 MRR, unlimited products.
• Plus Stripe’s standard transaction fees (typically 2.9% + $0.30 per transaction).

Merchant of Record: No, UseAutumn.com relies on Stripe for payment processing; merchants are responsible for tax compliance.

Features:

• Supports diverse pricing models, including usage-based, credits, seat-based, and prepaid billing.
• Provides functions for handling checkouts, upgrades, downgrades, and usage tracking.
• Offers customer state management for implementing paywalls and displaying usage data.
• Includes a dashboard for managing products and plans.
• Simplifies billing logic with minimal code, often requiring just a few function calls.

Compliance and Taxes: Merchants must manage tax compliance themselves, potentially using services like Stripe Tax, which incurs additional costs (e.g., 0.5% per transaction).

Integration: Integration takes a few lines of code and works with full-stack frameworks like Next.js. It includes components like <AutumnProvider> for smooth frontend-backend connectivity.

Supported Payment Methods: Inherits Stripe’s extensive payment methods, including credit/debit cards, ACH, SEPA, iDEAL, Apple Pay, Google Pay, and over 100 other methods.

Global Reach: Inherits Stripe’s global reach: 195+ countries and 135+ currencies.

Customer Support: Provides support via Discord and email, with users reporting responsive assistance for integration queries.

Best For: Startups and developers using Stripe who need to implement complex billing scenarios, such as usage-based or credit-based pricing, without extensive development resources.

Comparing Polar.sh and UseAutumn.com

Polar.sh and UseAutumn.com both aim to simplify payments and billing for online businesses, but they do different jobs and suit different needs.

Polar.sh:

• Type: Payment processor acting as the merchant of record.
• Features: Handles payments, billing, and global tax compliance, including VAT, sales tax, and GST. The feature set is aimed at digital products and SaaS, with checkout pages and potentially license key management.
• Pricing: 4% + $0.40 per transaction (early member pricing).
• Best For: Businesses that want a single provider handling tax compliance, especially those operating in multiple jurisdictions like the EU. The open-source angle also appeals to developers who value transparency and customization.

UseAutumn.com:

• Type: Billing management platform integrated with Stripe.
• Features: Simplifies complex pricing models, such as usage-based billing, credits, and seat-based pricing, with minimal code. Also provides tools for customer state management and usage tracking.
• Pricing: Tiered plans from free (up to $3,000 MRR) to $375/month (up to $40,000 MRR), plus Stripe’s standard fees (typically 2.9% + $0.30 per transaction).
• Best For: Businesses already on Stripe for payment processing that want to sort out complex billing scenarios without a big development effort.

Why Choose Polar.sh:

• You require a merchant of record to handle payment processing and tax compliance, which reduces the burden of managing VAT and sales tax across jurisdictions.
• You prefer a platform specifically designed for digital products and SaaS, with features like automatic tax calculation and remittance.
• You are comfortable with a percentage-based transaction fee and value the open-source community-driven approach.

Why Choose UseAutumn.com:

• You are already using Stripe or prefer its extensive payment method support and global reach.
• You need to implement advanced billing models, such as usage-based or credit-based pricing, with minimal coding.
• You seek a cost-effective solution, particularly if your business qualifies for the free or lower-tier plans, though you must manage tax compliance separately.

Cost Comparison Example: For a business with $10,000 MRR and 100 transactions of $100 each:

• Polar.sh: 4% of $10,000 = $400, plus 100 × $0.40 = $40, for a total of $440.
• UseAutumn.com: Growth plan at $50/month, plus Stripe fees (2.9% of $10,000 = $290, plus 100 × $0.30 = $30), for a total of $370. If tax compliance is needed, adding Stripe Tax (0.5% of $10,000 = $50) brings the total to $420.

Polar.sh costs a bit more, but it handles tax compliance in exchange, which can save real time and effort, especially for EU businesses. UseAutumn.com works out cheaper for businesses that are fine managing compliance on their own.

Polar.sh fits businesses that want a complete payment solution with tax compliance handled, particularly for digital products and SaaS. UseAutumn.com fits Stripe users who need flexible billing management for complex pricing models.

Comparison table

Choosing the right processor

Selecting a payment processor depends on your business’s specific needs, transaction volume, and compliance requirements:

• Startups and Small Businesses: Stripe (standard), PayPal, and Square stay cost-effective with no monthly fees and solid integrations. For those using Stripe, UseAutumn.com can improve billing management for complex pricing models.
• EU Compliance Needs: Paddle, Lemon Squeezy, FastSpring, Digital River, Stripe’s Managed Payments, and Polar.sh are the strongest picks here. They act as merchants of record and handle the VAT and sales tax compliance that EU regulations demand.
• Large Enterprises: Adyen and Digital River offer customizable solutions built for high-volume businesses with global operations.
• Businesses with Physical Presence: Square combines online and POS in one platform, which works well for retailers with both channels.
• Traditional Gateway Needs: Authorize.Net offers reliability and extensive integrations for businesses with existing merchant accounts.
• Developers and Open-Source Enthusiasts: Polar.sh offers an open-source payment infrastructure with merchant of record services. It suits people who value transparency and community-driven development.
• Complex Billing Needs: For businesses using Stripe, UseAutumn.com is a practical way to implement advanced pricing models without extensive coding.

Considerations for EU companies

EU businesses face stringent VAT and tax compliance requirements. Processors acting as MoR (Paddle, Lemon Squeezy, FastSpring, Digital River, and Stripe’s Managed Payments) simplify these obligations by managing tax calculations and remittances across multiple jurisdictions. That is a real advantage for SaaS and digital product companies in the EU, since it reduces the need for in-house tax expertise.

Conclusion

The best payment processor depends on your business model and needs. For EU businesses or anyone selling digital products, Paddle, Lemon Squeezy, FastSpring, Digital River, Stripe’s Managed Payments, and Polar.sh are all strong candidates thanks to their merchant-of-record services and built-in tax compliance. Polar.sh’s open-source, developer-friendly approach (4% + $0.40 per transaction) holds particular appeal for engineering-led teams.

For startups already using Stripe that must implement sophisticated billing scenarios (usage-based, seat-based, or credit-based), UseAutumn.com offers a cost-effective solution: free up to $3 000 MRR, scaling to $375 / month, with no additional Autumn transaction fees (standard Stripe rates still apply). Because Autumn is not a merchant of record, you’ll still need to handle tax compliance separately (e.g., via Stripe Tax).

Traditional low-cost options such as Stripe’s standard plan, Square, PayPal, and Braintree still hold up well for straightforward payment flows, while enterprise-scale organisations may favour Adyen or Digital River for highly customised, global setups.

Weigh your transaction volume, compliance obligations, billing complexity, and integration effort, then pick whichever platform or combination of tools supports your roadmap and growth plans.

Sources

Stripe Acquires Lemon Squeezy
Lemon Squeezy Payments and Billing
FastSpring Digital Commerce for SaaS
FastSpring Pricing Information
Digital River Global Commerce Solutions
Stripe Managed Payments Documentation
Paddle Pricing Page
PayPal Merchant Fees Overview
Braintree Payment Processing Review
Adyen Pricing Information
Square Pricing Details
Authorize.Net Pricing Plans
Polar.sh
Polar.sh Documentation
UseAutumn.com
UseAutumn.com Documentation
Stripe Pricing