Paydude is a payments API for software businesses, with card rates from 2.6% + 25¢ and no monthly platform fee. The questions below are the ones people actually ask, including the ones where the answer is that another provider fits better.
The short version
| Card rate | 2.6% + 25¢ | falling to 2.5% + 15¢ above $5M/month |
|---|---|---|
| Monthly fee | $0 | on every tier |
| Subscriptions | +0% | no separate billing product |
| Chargeback fee | $12 | below the $15–$25 norm |
| ACH | $0.75 | per transaction |
| Payouts | Standard, next-day or instant | chosen per payout; instant costs 1% |
| API | Payments, customers, subscriptions, refunds, payouts, webhooks | typed SDKs, official MCP server |
| Availability | Sandbox open, live waitlisted | sandbox keys need no signup |
What Paydude does not do
Worth stating plainly, because it saves everyone time.
- No in-person payments. No hardware, no register, no card-present rates.
- Not a merchant of record. Sales tax and VAT registration remain yours.
- No marketplace split payments. No connected accounts or transfers to third-party sellers.
- Not a hosted storefront. It is an API; you need a developer or a coding agent.
Each of those has a better answer elsewhere, set out in Paydude alternatives.
More detail
Full fee list with worked examples in Paydude pricing explained. Integration flow in how Paydude works. Card data handling in security and compliance. And an honest fit assessment in is Paydude right for my business.
GOOD QUESTIONS
Frequently asked
What is Paydude?+
A payment processor and payments API for software businesses. It covers card payments, subscriptions, invoices, refunds and payouts through one API, with published volume-based pricing from 2.6% + 25¢ and no monthly platform fee.
How much does Paydude cost?+
2.6% + 25¢ per successful card transaction under $100k of monthly volume, 2.55% + 20¢ from $100k to $5M, and 2.5% + 15¢ above $5M. Tiers apply automatically from last month's volume and lock for six months once reached.
Does Paydude charge a monthly fee?+
No monthly platform fee on any tier. A $5 monthly difference charge applies only if the account generates under $5 of processing revenue in a month, which makes it a floor on very low volume rather than a subscription.
Are subscriptions charged extra?+
No. Subscriptions and invoicing carry no additional Paydude percentage. Several providers price recurring billing as a separate product on top of processing, and on recurring revenue that difference is often larger than the headline rate gap.
Is Paydude available yet?+
The sandbox is open and needs no signup — sandbox API keys work immediately. Live processing is currently waitlisted for early API access.
How do the volume tiers work?+
The tier is set by last month's card volume and applies automatically. Cross a threshold once and the better rate locks for six months; reach that tier again during those six months and it renews. There is nothing to apply for and nothing to negotiate.
What does the API cover?+
Payments, customers, subscriptions, refunds, payouts and webhooks, with typed SDKs and stable error codes. There is also an official MCP server so an AI coding agent can build and test the integration against the sandbox.
Does card data touch my servers?+
No. Drop-in card fields capture the card inside Paydude's environment and return a token. Your database stores the token, never the card number, which keeps your PCI obligation at the shortest self-assessment level.
How fast are payouts?+
Standard, next-day or instant, chosen per payout rather than fixed on the account. Instant payouts cost 1%; the others carry no fee.
What costs extra?+
Premium rewards, corporate and business cards add 0.3%. International cards add 0.5%. Instant payout is 1%. ACH is $0.75 per transaction. Retrieval, chargeback and chargeback-reversal fees are $12 each.
Is pricing negotiable?+
No, deliberately. Rates are published and tiers apply automatically by volume. There is no sales process in which a better rate could be obtained, which means nobody at your volume is paying less than you.
Can Paydude handle sales tax and VAT?+
No. Paydude is a payment processor, not a merchant of record, so tax registration and remittance remain your responsibility. If you sell internationally and want that handled for you, Paddle or Lemon Squeezy are built for it.
Does Paydude support in-person payments?+
No. It is an API for online and card-not-present payments, with no hardware or card-present rates. If most of your volume is across a counter, Square, Clover or Toast are the right shape.
Does Paydude support marketplaces and split payments?+
Not currently. The API covers payments, customers, subscriptions, refunds, payouts and webhooks. If you need connected accounts and transfers to third-party sellers, Stripe Connect or Adyen for Platforms are built for that.
How does Paydude compare to Stripe?+
Lower published rates on both components, no extra percentage for subscriptions, tiers that improve automatically, and an official MCP server. Stripe has a far larger product surface and a much longer track record — if you need Connect, Issuing or Terminal, that is not a rate question.