A merchant of record becomes the legal seller of your software, so it collects, files and remits sales tax and absorbs chargebacks in your place.
This guide ranks smaller independent sellers first and compares four things: what a sale costs, what the vendor does besides tax, how openly it names itself, and how easily you can leave.
Vendors can pay for more visibility on this website, for example a higher place in a ranking or more room on a page. Commercial relationships can also affect which products we feature and how prominently. Every vendor link is marked the same, whatever the arrangement behind it. How that works.
In short
What merchant of record platforms do
A merchant of record platform sells your product to customers in its own name, calculates and remits indirect taxes, handles disputes, and pays you the remainder of each sale.
In this order: setup effort, what it really costs, how your data comes back out, whether you can leave, and who each merchant of record platform is built for. One rule overrides the order: smaller vendors take the first three places when the category offers them, and the best-known brands start at four. Reasons for the choice of tests, and for skipping a score out of ten, can be read on the how we work page.
Quoted per organisation; the pricing page offers a meeting request and a contact form
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Larger sellers ready to start with a sales meeting
Small teams wanting to see a price before any meeting
The country column shows the vendor's headquarters or contracting entity. Data hosting is a separate matter, and an entry flags it when the two diverge.
Merchant of record with credit wallets, affiliates and an MCP server
Ranked #1 of 11 in Best Merchant of Record Platforms in 2026.
Published pricingEurope
Creem suits a seller who wants to read the price before talking to anyone: 3.9% plus 40 cents per successful transaction, nothing monthly, and a test mode to build the store first.
It also bundles credit wallets, custom meters, revenue splits that route a share of each sale to partners, and short links with conversion tracking. The catch is scale: the higher-volume Partner plan has no published numbers, and the site says nothing about hosting.
What stands out
Credit wallets
Affiliate revenue splits
MCP server and CLI
Where it costs you
Partner pricing for larger volumes carries no figures and needs a booked call
The terms name a company but no registered address or owner
Right for
Small software sellers wanting a published rate and built-in affiliate payouts
Wrong for
Finance teams needing a negotiated rate printed before any call
EstoniaPublished pay-as-you-go rate per successful transaction; custom Partner terms for higher volume
Store builder with tax, fraud screening and chargebacks inside one commission
Ranked #2 of 11 in Best Merchant of Record Platforms in 2026.
Free tierPublished pricingElsewhere
The appeal is that cost only starts when a customer pays. The pricing page lists no monthly, hosting, setup, per-seat or per-dispute charges, and states no caps on products or assets.
One commission covers payments, tax, fraud screening and chargebacks, so budgeting is simple arithmetic. On a cheap item the fixed 50 cents still bites, and a sale-heavy catalogue will eventually want the negotiated volume rate, which needs a contact form or demo.
What stands out
Free store builder
Own-domain publishing
Flat commission
Where it costs you
The vendor states no country of establishment or owner
A lower rate at volume is promised but no figure is published
Right for
Sellers who want to open a store before paying anything at all
Wrong for
High-volume sellers who need a quoted rate in writing first
Not stated by the vendorFree forever store builder; published flat commission per sale, negotiable at higher volume
Usage metering and credits billing for AI products with tax handled
Ranked #3 of 11 in Best Merchant of Record Platforms in 2026.
Published pricingElsewhere
Polar is the pick when what you sell is consumption rather than seats. Event ingestion and real-time meters feed usage charges, credits sit beside subscriptions on a single invoice, and an MCP server connects Claude, Cursor and ChatGPT over OAuth.
The price ladder is clear: the free Starter plan carries the highest per-sale rate, and each paid step lowers it. A buyer should still read the early-access label on the Usage Billing Engine before building on it.
What stands out
Usage meters
Prepaid credits
MCP server over OAuth
Where it costs you
The Usage Billing Engine is listed as coming soon in early access
Country of establishment and parent company are not stated
Right for
AI product teams billing by tokens, credits or compute time
Wrong for
Sellers of one-off downloads who need no usage metering
Not stated by the vendorPublished tiers combining a monthly plan fee with a per-transaction rate; free Starter plan
Merchant of record with licence keys, storefronts and affiliate programmes
Ranked #4 of 11 in Best Merchant of Record Platforms in 2026.
Published pricingElsewhere
Dodo bundles the distribution pieces that small software sellers otherwise assemble: storefronts, licence key generation, affiliate programmes and file delivery, with credit-based, usage-based and subscription billing on top.
Its adapters for BetterAuth, Next.js, Astro and Express and an agent plugin with two MCP servers suit developers. The pricing page ties the posted percentage to domestic US sales, which leaves the cross-border cost unclear until you ask, and the startup credits need an application.
What stands out
Licence key management
Storefronts and affiliates
Bank debit rates
Where it costs you
The published rate is limited to domestic US transactions
Country, owner and hosting model are not stated
Right for
Software sellers wanting licence keys and affiliates beside tax handling
Wrong for
Buyers selling mostly outside the US who need a posted rate
Not stated by the vendorPublished standard rate for domestic US sales, flat bank-debit rate, custom Enterprise terms
Merchant of record for SaaS, software and games with dunning built in
Ranked #5 of 11 in Best Merchant of Record Platforms in 2026.
Pricing on requestNorth America
The strength is subscription upkeep. Manual and automatic renewals, a subscription API, payment retries and dunning sit next to real-time sales tax, VAT and GST calculation, plus customisable fraud rules and card tester blocking.
The vendor quotes 13,000+ tax jurisdictions and 140+ currencies. Against that, the single bundled price cannot be compared until a quote arrives, and a seller needing licence keys or an affiliate scheme will find neither mentioned.
What stands out
SaaS sales tax
Dunning and retries
70+ payment methods
Where it costs you
No price is shown, only a quote request
Licence keys and affiliate programmes are absent from the page read
Right for
SaaS vendors wanting renewals, dunning and tax handled by one seller
Wrong for
Sellers who want to compare prices before speaking to anyone
CanadaSingle all-features price shown only through a quote request; no figures on the page
French revenue-share seller of record, priced only through sales contact
Ranked #6 of 11 in Best Merchant of Record Platforms in 2026.
Pricing on requestEurope
Nexway aligns its income with yours: pricing is success-based, and the FAQ says it can follow transaction volume, subscription revenue or both. That can suit a seller who dislikes a fixed monthly fee.
The cost is opacity, because the only figures that appear are the promise of zero setup on most plans and support without extra service fees. Expect a sales conversation before you can estimate a net margin or compare it to a posted rate.
What stands out
Revenue share
Zero setup fees
French company
Where it costs you
No rates or plan names are published
No trial is named and hosting is not described
Right for
Software vendors comfortable negotiating a revenue share with a French seller
Wrong for
Founders needing a fast self-serve start with posted prices
FranceQuoted per organisation; success-based revenue share with no rates shown
Checkout and subscriptions that are free to start, with twice-monthly payouts
Ranked #7 of 11 in Best Merchant of Record Platforms in 2026.
Free tierPublished pricingElsewhere
The draw here is the lack of commitment: nothing monthly for ecommerce, no contract, and payouts twice a month by wire or PayPal. The rate is 5% plus 50 cents, but the page warns of added fees on some payments and non-US transactions, so the headline is a floor.
An email tier is free up to 500 subscribers. The footer's reference to Link, LLC and Stripe Managed Payments deserves a read before committing.
What stands out
Twice-monthly payouts
Email marketing tier
Pay on each sale
Where it costs you
Some payments and non-US transactions may carry extra fees
Payment method and currency counts are inconsistent on the pricing page
Right for
Founders who want a no-contract start and predictable payout dates
Wrong for
Sellers who need exact all-in cost for non-US sales
Not stated by the vendorFree to start, no contract; published rate per transaction, extra fees on some payments
Pay-as-you-go checkout with no monthly fees and advisory extras
Ranked #8 of 11 in Best Merchant of Record Platforms in 2026.
Published pricingElsewhere
Paddle's page is the most explicit about its edges: a flat per-transaction rate with no monthly or migration fees, but products below ten dollars are moved to bespoke pricing and complex cases to custom terms.
Advisory and implementation work is sold as extra services with no price shown. The separate ProfitWell Metrics product is described as free, though it is not part of the payment service. A seller with cheap items should ask early.
What stands out
No monthly fees
Custom volume pricing
Advisory services
Where it costs you
Products priced under ten dollars need bespoke pricing
Advisory and implementation services show no price
Right for
Established software sellers with a clear price point above ten dollars
Wrong for
Sellers of very cheap digital items who want a posted rate
Not stated by the vendorPublished pay-as-you-go rate per checkout transaction; custom pricing for high-volume or complex needs
Revenue-share seller with ACH and wire discounts and no minimum volume
Ranked #9 of 11 in Best Merchant of Record Platforms in 2026.
Pricing on requestElsewhere
Because no plan tiers or rates are listed, the only way to see FastSpring's cost is the custom quote form. In its favour, the page says there is no minimum transaction volume and that fees come out of payouts rather than arriving as a monthly bill.
Discounted ACH and wire rates matter for larger invoices, though no amounts are given. Several offices are listed and no single headquarters country, so a buyer should confirm the contracting entity during the quote.
What stands out
Commission on each sale
Custom quote form
ACH and wire rates
Where it costs you
The commission rate is not shown anywhere on the pricing page
The free trial mentioned has no stated length or terms
Right for
Sellers who accept a quote and want no minimum volume
Wrong for
Teams that want to compare a posted percentage this week
Not stated by the vendorQuoted per organisation; commission withheld from payouts; no minimum volume
Creator sales page with a posted direct rate and a marketplace rate
Ranked #10 of 11 in Best Merchant of Record Platforms in 2026.
Published pricingElsewhere
Within this ranking Gumroad is the costliest on paper: its direct rate is double the 5% seen at most rivals, before the fixed 50 cents. In return the tiers are plain, with posted figures and no sales call.
Send buyers through your own link and Discover stays at 30% only for strangers it finds for you. The page does not describe tax handling or merchant of record status, so a seller who needs that should confirm it directly.
What stands out
Direct link sales
Discover marketplace
Fixed fee per sale
Where it costs you
The fixed 50 cents weighs heavily on low-priced items
Discover sales cost 30%, three times the direct rate
Right for
Creators selling through their own links who want posted rates
Wrong for
Sellers of cheap items relying on marketplace discovery
Not stated by the vendorPublished two-rate model: one for direct sales, a higher one for Discover sales; no contact-sales tier
Los Angeles seller of record with sales-contact pricing only
Ranked #11 of 11 in Best Merchant of Record Platforms in 2026.
Pricing on requestNorth America
Xsolla is placed last because the pricing page gives a buyer nothing to compare: no plans, no rates, no currencies, no limits, only a booking link and an enquiry form.
The company dates its footer from 2006 and lists a Los Angeles headquarters, and refers to an Xsolla Family of brands without saying who owns it. If a quote arrives, ask what the rate covers, what limits apply and where the service runs.
What stands out
Sales-led pricing
Los Angeles headquarters
Xsolla Family brands
Where it costs you
The pricing page shows no plans, prices or limits
Owner and hosting model are not stated
Right for
Larger sellers ready to start with a sales meeting
Wrong for
Small teams wanting to see a price before any meeting
United StatesQuoted per organisation; the pricing page offers a meeting request and a contact form
A merchant of record platform sells your product to customers in its own name, calculates and remits indirect taxes, handles disputes, and pays you the remainder of each sale. Work through these questions in order; they separate the products better than a feature matrix does.
01
Decide whether you need a published price
Only 7 of the 11 print a price; 4 quote per organisation. Comparable without a sales call: Creem, Fungies, Polar, Dodo Payments, Lemon Squeezy, Paddle, Gumroad.
02
Look at where the vendor sits
Where a company is established decides which courts and regulators can reach it. Here that means 5 countries: Elsewhere 7, North America 2, Europe 2.
How to compare merchant of record platforms by net rate
Start with what one sale costs after everything is added. Creem and Fungies post a percentage plus a fixed amount, Polar and Paddle post similar figures, and Gumroad posts a direct rate and a higher marketplace rate. Nexway, FastSpring, PayPro Global and Xsolla show no figures, so you cannot compare until a quote arrives.
Check whether the stated rate covers tax, fraud screening and chargebacks, as Fungies says it does, or whether extras apply. A fixed fee matters most for cheap items, so run your lowest price through each formula. Ask whether a posted rate has conditions: Dodo Payments ties its standard rate to domestic US transactions, and Lemon Squeezy warns of extra fees on some payments.
Run your cheapest product through every formula
Ask what the posted rate excludes
Request a written quote where none is posted
What a merchant of record should do besides tax
The tax liability is the reason to buy, yet vendors differ in what surrounds it. PayPro Global lists dunning, payment retries and a subscription API, which suit renewals. Dodo Payments adds licence key management, storefronts and affiliate programmes. Creem offers credit wallets, custom meters and revenue splits, while Polar meters tokens and agent runs.
A seller of one-off downloads needs delivery and keys, a subscription business needs retries and invoices, and an AI product needs usage metering. Write down which of these you would otherwise build yourself, then discard vendors that do not mention them. A feature missing from a vendor page is not proof it is absent, so ask before ruling it out.
List the features you would otherwise build
Match billing type to the vendor's stated strengths
Ask about any feature the page does not mention
Who is actually the seller behind the Merchant of Record Platforms you shortlist
Because the vendor becomes the legal seller, its identity matters more than in most software. Several pages give a company name but no country: Polar Software, Inc., Dodo Payments, Inc. and Paddle.com Market Ltd. appear without a stated country of establishment. Creem names Armitage Labs OÜ in Estonia, Nexway SASU is in Nîmes, PayPro Global lists Toronto and Xsolla lists Los Angeles.
FastSpring lists four offices and no headquarters. Lemon Squeezy's footer names Link, LLC, formerly Lemon Squeezy LLC. Ask which entity appears on your customers' receipts, which entity signs your contract, and where disputes are heard. Polar's terms give Delaware for governing law, which shows why reading the contract matters for a seller whose customers live elsewhere.
Ask which entity appears on customer receipts
Confirm the contracting entity before signing
Note where disputes are heard
Leaving a merchant of record without losing customers
Moving away is harder than signing up, because the vendor holds the customer relationship and the payment records. Paddle states no migration fees, which is a useful sign, but check what data you may export. Ask for customer lists, subscription states and tokenised payment methods in writing, and whether renewals can move without asking buyers to pay again.
Test mode, as Creem offers, lets you rehearse the store before going live. Keep your own record of prices, plan names and tax settings, since licence keys from Dodo Payments or credits in a Polar wallet live inside the vendor. Plan the exit before the first sale, not after a rate change.
Ask for an export of customers and subscriptions
Check whether renewals can move without re-checkout
Keep your own copy of plans, prices and keys
What goes wrong most often when buying merchant of record platforms
Comparing a posted percentage with a quote that bundles different services and then picking the lower headline.
Forgetting that a fixed fee per sale can take a large share of a very cheap product.
Assuming a vendor's price covers non-US cards, bank debits or marketplace sales when the page limits it.
Signing before learning which legal entity, in which country, appears on customer receipts.
07
Frequently asked questions
6 answers
What are the best merchant of record platforms in 2026?
Our ranking of 11 puts Creem first. Creem takes payments, taxes, invoices, fraud and chargebacks on each sale and publishes its rate: one percentage plus a fixed 40 cents, with no monthly or setup charge.
Armitage Labs OÜ, Estonia, is named in the terms, though no owner is. A test mode exists for building a store, but no trial is named and Partner pricing needs a call.
Which merchant of record platforms publish their pricing?
7 out of 11 state a price model on their own site:
Creem: Published pay-as-you-go rate per successful transaction; custom Partner terms for higher volume.
Fungies: Free forever store builder; published flat commission per sale, negotiable at higher volume.
Polar: Published tiers combining a monthly plan fee with a per-transaction rate; free Starter plan.
Dodo Payments: Published standard rate for domestic US sales, flat bank-debit rate, custom Enterprise terms.
Lemon Squeezy: Free to start, no contract; published rate per transaction, extra fees on some payments.
Paddle: Published pay-as-you-go rate per checkout transaction; custom pricing for high-volume or complex needs.
Gumroad: Published two-rate model: one for direct sales, a higher one for Discover sales; no contact-sales tier.
The other 4 quote per organisation.
Is there a free merchant of record platform?
Fungies, Lemon Squeezy have a free plan or free self-hosted edition.
Where are these merchant of record platform vendors established?
The headquarters are spread over 5 countries and 3 regions, Elsewhere 7, North America 2, Europe 2:
Creem: Estonia.
Fungies: Not stated by the vendor.
Polar: Not stated by the vendor.
Dodo Payments: Not stated by the vendor.
PayPro Global: Canada.
Nexway: France.
Lemon Squeezy: Not stated by the vendor.
Paddle: Not stated by the vendor.
FastSpring: Not stated by the vendor.
Gumroad: Not stated by the vendor.
Xsolla: United States.
What should you use instead of Creem?
Fungies and Polar are the next two on this page. Fungies is for Sellers who want to open a store before paying anything at all; Polar is for AI product teams billing by tokens, credits or compute time.
Who should not buy Creem?
Finance teams needing a negotiated rate printed before any call. Partner pricing for larger volumes carries no figures and needs a booked call.
This list covers 11 merchant of record platforms products. A product we left out can be put to us by its maker, with a short note on its purpose and its customers; we decide on inclusion ourselves. The rules are under software advice.
