Most comparisons of Stripe alternatives look at the card rate. For a software business that misses half the bill. Stripe Billing — the product that runs subscriptions, invoices, proration and dunning — is priced on top of processing, at 0.7% of billing volume on its pay-as-you-go plan. Stripe Tax, if you use it, is another fee again.
So the real question for a SaaS founder is not "who has a lower card rate" but "what does it cost to take a recurring payment, all in?" There are three broad answers.
The three ways to bill subscriptions
| Approach | Examples | Who handles sales tax | Monthly cost at $50k MRR |
|---|---|---|---|
| Processor + paid billing add-on | Stripe + Stripe Billing | You | ~$2,100 |
| Processor with billing included | Paydude | You | ~$1,550 |
| Merchant of record | Paddle, Lemon Squeezy | They do | ~$3,000 |
The working: Stripe is $1,750 in processing plus $350 for Billing. Paydude is $1,550 at 2.6% + 25¢, with subscriptions at +0%. Paddle is $3,000 at 5% + 50¢ — but that figure includes tax compliance that the other two leave to you.
Option 1: a processor with billing included
Paydude's subscriptions, invoices, proration and failed-payment retries are part of payments rather than a second product, so a renewal costs the same as any other card payment. Fixed plans, per-seat, usage-based and hybrid pricing are supported, and card account updater keeps reissued cards from turning into involuntary churn. See Paydude for SaaS.
Best for US-focused SaaS businesses that already handle sales tax (or have little exposure) and want a lower all-in cost with an API that feels like Stripe's.
Option 2: a merchant of record
Paddle and Lemon Squeezy become the legal seller of your software. They calculate, collect and remit sales tax and VAT in every jurisdiction, handle invoices that satisfy local rules, and take on fraud liability. That is a lot of work removed, and for a small team selling into dozens of countries it is often worth the higher rate. Read what a merchant of record is before deciding.
Best for software sold globally, especially to consumers, by teams that do not want to register for VAT and sales tax themselves.
Option 3: stay on Stripe and negotiate
If you rely on Stripe-only integrations or your volume is high, ask Stripe for custom pricing on both processing and Billing. A published lower rate elsewhere is useful leverage. Just remember that negotiated discounts are usually reviewed, and list price is what applies until they are agreed.
What to check before you switch
- Work out your all-in effective rate on Stripe: processing, Billing, Tax and disputes, divided by volume.
- Decide who will own sales tax. That one question picks between a processor and a merchant of record.
- Confirm the new provider supports your pricing model — per-seat, usage-based, trials and proration.
- Plan the migration: saved cards come across via Stripe's export, but subscription schedules must be recreated. See how to switch from Stripe.
- Check how failed payments are retried. Recovering failed renewals is worth more than most rate differences — the failed payment revenue calculator shows how much.
For the full list of options beyond SaaS, see the best Stripe alternatives.
GOOD QUESTIONS
Frequently asked
How much does Stripe Billing cost?+
Stripe Billing's pay-as-you-go plan is 0.7% of billing volume, charged on top of Stripe's card processing fee of 2.9% + 30¢. On $50,000 a month of recurring revenue that is about $350 a month, or $4,200 a year, for billing alone.
What is the best Stripe alternative for a SaaS business?+
If you handle your own sales tax and want a processor with subscriptions built in, Paydude charges 2.6% + 25¢ with no extra percentage for subscriptions. If you sell into many countries and want VAT and sales tax handled for you, a merchant of record such as Paddle or Lemon Squeezy is usually the better fit despite the higher rate.
Can I move my existing subscriptions off Stripe?+
Yes, in two parts. Saved cards are exported by Stripe to the new PCI Level 1 processor, so customers do not re-enter them. Subscription schedules are not part of that export, so plans, prices and next billing dates are exported from Stripe's API and recreated on the new platform against the imported cards.
Does a merchant of record replace Stripe completely?+
Yes. Paddle and Lemon Squeezy process the payment, run the subscription and act as the legal seller, so you do not need a separate processor. The trade-off is a higher fee and less control over checkout and the customer relationship.