What a processor does
A payment processor helps you accept card and payment method transactions. You usually keep more checkout control, but tax, invoices, refunds, disputes, compliance, and buyer support may stay with your business.
Billing stack decision
Payment Processor vs Merchant of Record for SaaS
Decide whether your SaaS should use a direct payment processor like Stripe or a merchant-of-record provider such as Paddle, Lemon Squeezy, or Polar.
What an MoR changes
A merchant of record sells to the buyer on your behalf. The fee can be higher, but more payment operations, tax handling, fraud work, and buyer support may be bundled.
Choose a processor when
Use direct processing when you need custom checkout logic, already have tax and finance operations, sell mostly domestically, or want maximum control over subscriptions and customer data.
Choose an MoR when
Use a merchant of record when selling globally, avoiding tax complexity, launching quickly, or reducing payment support work matters more than the raw percentage fee.
Run the model
Compare direct processing and merchant-of-record economics from one revenue and order scenario.
Open the calculatorRelated pages
FAQ
Is a merchant of record just a payment processor?
No. A merchant of record usually takes on more seller-side responsibilities, while a processor mainly helps move money.
Which is cheaper?
Direct processing often has lower transaction fees. MoR can be cheaper operationally if bundled tax and support work saves enough time and risk.