Side-by-side
| Dimension | Stripe | Lemon Squeezy |
|---|---|---|
| Role | Payment processor | Merchant of record |
| Per-charge fee | 2.9% + $0.30 | 5% + $0.50 |
| Tax compliance | You handle (or Stripe Tax add-on) | Lemon Squeezy handles globally |
| Approval | Instant for clean LLC + EIN | 1-3 business days |
| Payout schedule | 2 business days | Net 30 (30-day rolling reserve) |
| Affiliate program | Build yourself or add-on | Built-in |
| License key delivery | Build yourself | Built-in |
| Best fit | Higher-volume operations, low EU exposure | Indie SaaS, info products at <$50K/month |
Lemon Squeezy MoR coverage
Lemon Squeezy collects US sales tax, EU VAT, and other regional taxes on every transaction and remits them on your behalf. You receive net revenue after Lemon Squeezy's fee and the taxes they remit.
They also handle customer billing support, refund processing, license key delivery for software, and a built-in affiliate program. The 5% + $0.50 fee covers all of this.
When Lemon Squeezy wins
- You sell info products, digital downloads, or indie SaaS at under $50K monthly revenue
- You want zero tax compliance work, license delivery, and affiliate program out of the box
- You sell globally and EU VAT compliance is a real time sink
- You want to focus on product and content, not finance ops
When Stripe wins
- Your monthly revenue is above $100K and the 5% fee premium becomes meaningful in absolute dollars
- Your customers are primarily US or in low-VAT-complexity regions
- You want 2-day payout instead of net 30
- You want full control over checkout flow, dunning, and subscription logic
Fee math by revenue tier
| Monthly revenue | Stripe fee | Lemon Squeezy fee | Premium |
|---|---|---|---|
| $5,000 | $170 | $300 | $130 |
| $10,000 | $300 | $550 | $250 |
| $25,000 | $745 | $1,300 | $555 |
| $50,000 | $1,470 | $2,550 | $1,080 |
| $100,000 | $2,920 | $5,050 | $2,130 |
Migration path: Lemon Squeezy then Stripe + Stripe Tax
Start at Lemon Squeezy for the zero-tax-compliance experience. Once monthly revenue crosses ~$100K and the fee premium is ~$2K/month, the math favors moving to Stripe + Stripe Tax (or Stripe + Quaderno) for tax compliance at lower total cost.
Most founders we serve who switch keep Lemon Squeezy as a backup checkout for specific product lines while running primary revenue through Stripe.