PAYMENTS (MERCHANT OF RECORD)

Lemon Squeezy

Acts as merchant of record for digital-product payments and handles checkout, tax collection, subscriptions, and payouts.

Last verified September 10, 2026

Best for / Not for

BEST FOR

  • Digital products that want a merchant-of-record checkout
  • Small teams selling across multiple tax jurisdictions
  • Subscription or one-time software sales without an internal tax operation

NOT FOR

  • Businesses that need direct ownership of payment processing relationships
  • Physical-goods businesses
  • Teams that need unsupported payout methods or settlement regions

Where it fits in your stack

Connects product pricing and checkout to account entitlements through hosted payment pages and webhooks. As merchant of record, it can replace separate subscription billing and sales-tax handling infrastructure.

Pricing

Pricing model: No monthly fee. 5% + $0.50 per transaction.

Free allowance: Not applicable — no monthly fee, no trial, no contract.

Overage rule: Additional fees: +1.5% for transactions outside the US · +1.5% for PayPal transactions · +0.5% for subscription payments. 1% per payout via Stripe to bank accounts outside the US. Marketing features: +5% for payments recovered through abandoned cart emails · +3% for affiliate referrals (merchants) · +2% for affiliate payouts (affiliates).

Region: Turkey is supported in the bank payout list.

Trade-offs

  • The company now trades as Sold through Link, LLC f/k/a Lemon Squeezy LLC and has moved onto Stripe's infrastructure.
  • Merchant-of-record convenience comes with platform and conditional processing fees
  • Payout timing and account review remain platform dependencies

Sources

Last verified: 2026-09-10