GetPaidWhat is a merchant of record? A plain-English guide for founders outside Stripe countries
Short answer: a merchant of record (MoR) sells your product for you. It is the legal seller, takes the payment, handles sales tax/VAT, and pays you out. That's why an MoR can work in countries where you can't open Stripe: what matters is whether the MoR pays out to your country.
Merchant of record vs payment processor
| Merchant of record (e.g. Paddle, Lemon Squeezy, Polar) | Payment processor (e.g. Stripe) | |
|---|---|---|
| Who is the legal seller? | The platform | You |
| Who handles sales tax/VAT? | The platform | You |
| Where must you be based? | A country on the MoR's seller or payout list | A country the processor supports (Stripe: 49 countries Yes in our data) |
| What you can sell | Reviewed by the MoR. Paddle is software-only; Paddle and Lemon Squeezy don't accept services like coaching. | Set by the processor's own rules |
| Headline fees | A percentage plus a fixed fee per transaction, e.g. Paddle 5% + 50¢ per checkout transaction; Lemon Squeezy 5% + 50¢ per transaction. Each MoR's official rate is in the table below. | Not tracked |
Stripe, per our data: Payment processor. You need a business/individual account in a Stripe-supported country. You are the seller of record and handle your own sales tax/VAT.
Why it matters if Stripe isn't available where you live
Stripe is No in 199 of 250 countries and territories in our data. An MoR's payout list is separate from Stripe's. In 179 of those 199, at least one merchant of record we track lists the country for sellers. A few examples:
| Country guide | Stripe | Merchants of record listed as Yes |
|---|---|---|
| Pakistan | No | Paddle, Lemon Squeezy, Polar, Creem, Gumroad |
| Bangladesh | No | Paddle, Lemon Squeezy, Polar, Creem, Gumroad |
| Egypt | No | Paddle, Lemon Squeezy, Polar, Creem, Gumroad |
| Jordan | No | Paddle, Lemon Squeezy, Polar, Dodo Payments, Gumroad |
| Türkiye (Turkey) | No | Paddle, Lemon Squeezy, Polar, Dodo Payments, Creem, Gumroad |
| Vietnam | No | Paddle, Lemon Squeezy, Polar, Dodo Payments, Creem, Gumroad |
| Philippines | No | Paddle, Lemon Squeezy, Polar, Dodo Payments, Creem, Gumroad |
| Sri Lanka | No | Paddle, Lemon Squeezy, Polar, Dodo Payments, Creem, Gumroad |
| Argentina | No | Paddle, Lemon Squeezy, Polar, Dodo Payments, Creem, Gumroad |
| Colombia | No | Paddle, Lemon Squeezy, Polar, Dodo Payments, Creem, Gumroad |
Stripe alternatives in every country →
The merchants of record we track
| Merchant of record | Countries Yes (of 250) | Yes where Stripe is No (of 199) | What it sells (our data) | Headline fees |
|---|---|---|---|---|
| Paddle alternatives | 228 | 177 | Merchant of Record for software/SaaS/digital products. Paddle handles sales tax/VAT. Sellers are reviewed; services like coaching are not accepted. Software only. | 5% + 50¢ per checkout transaction official pricing, checked 2026-10-20 |
| Lemon Squeezy alternatives | 119 | 70 | Merchant of Record for digital products and SaaS. Pays out by bank (listed countries) or PayPal (where PayPal can pay you). Services like coaching are not accepted. | 5% + 50¢ per transaction official pricing, checked 2026-10-20 |
| Polar alternatives | 119 | 70 | Developer-focused Merchant of Record. Payouts via Stripe Connect Express to the listed countries (Stripe Payments need not be available locally). | Starter (free): 5% + 50¢ per transaction official pricing, checked 2026-10-20 |
| Dodo Payments alternatives | 176 | 128 | Merchant of Record for SaaS/digital. Eligibility is based on the country that issued your government ID (and every director/UBO's ID for companies). | 4% + 40¢ per transaction (Standard plan) official pricing, checked 2026-10-20 |
| Creem alternatives | 87 | 38 | Merchant of Record for SaaS/digital. Local bank payouts (fee: 7 EUR/USD or 1%), USDC payouts, Alipay for China. | 3.9% + 40¢ per successful transaction official pricing, checked 2026-10-20 |
| Gumroad alternatives | 120 | 70 | Creator marketplace/MoR. Pays out to local bank accounts in listed countries; elsewhere PayPal only (2% fee, USD). | 10% + $0.50 per sale on your own Gumroad page; 30% flat for sales through Gumroad's Discover marketplace official pricing, checked 2026-10-20 |
Whop is tracked too, but our data classifies it as a marketplace, not a merchant of record (see Whop alternatives). PayPal, Wise and Payoneer are payout routes, not sellers.
Before you pick one
- "Listed" isn't "approved". Every MoR reviews your business, products and identity documents.
- Check how you get paid. Lemon Squeezy and Gumroad pay by bank only in listed countries; elsewhere it's PayPal only, which we mark Unclear because PayPal's list doesn't say whether accounts can receive money.
- Dodo Payments goes by your ID. Eligibility is based on the country that issued your government ID.
- Fees have extras. International cards, currency conversion and payouts can add to the headline rate; each pricing link has the details.
- No MoR for your country? The US LLC route or the Stripe Atlas alternatives may help, within Mercury's residence limits.
FAQ: merchant of record
What is a merchant of record?
A merchant of record (MoR) is the company that legally sells your product to the customer. It takes the payment, handles sales tax/VAT, and pays you your share.
What is the difference between a merchant of record and a payment processor?
With a payment processor such as Stripe, you are the seller of record: you need an account in a country the processor supports and you handle your own sales tax/VAT. With a merchant of record, the platform is the seller and handles sales tax/VAT; you need to be based in a country on its seller or payout list.
Is Stripe a merchant of record?
No. Our data classifies Stripe as a payment processor. You need a business/individual account in a Stripe-supported country. You are the seller of record and handle your own sales tax/VAT.
Can I use a merchant of record if Stripe isn't available in my country?
Often, yes. In 179 of the 199 countries and territories where Stripe is No, at least one merchant of record we track lists the country for sellers. Check your country's page for the exact status and source.
Which merchants of record do you track?
Paddle (228 countries Yes), Lemon Squeezy (119 countries Yes), Polar (119 countries Yes), Dodo Payments (176 countries Yes), Creem (87 countries Yes), Gumroad (120 countries Yes). Whop is tracked too, but our data classifies it as a marketplace, not a merchant of record.
Next: compare alternatives · side-by-side comparisons · check your country
Last checked: Paddle 2026-10-20; Lemon Squeezy 2026-10-20; Polar 2026-10-20; Dodo Payments 2026-10-20; Creem 2026-10-20; Gumroad 2026-10-20; Stripe 2026-10-20; fees 2026-10-20.
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Not legal, tax or financial advice. Provider rules change often and depend on your business type, what you sell, and the documents you hold. Always verify with the provider before you build or sign up. 'Unclear' means we could not confirm it from an official source.