# Paddle vs FastSpring: fees and tax · CheckoutScale > Source: https://checkoutscale.com/compare/paddle-vs-fastspring ## Paddle vs FastSpring: fees and tax Head-to-head [All head-to-heads →](/compare) Pick Paddle if you sell self-serve SaaS or a digital product and want the published 5% + 50¢ checkout rate, with tax filing included and a signup on the homepage. Pick FastSpring if you sell B2B or global software and need affiliates, interactive quotes, or a negotiated all-inclusive fee. By [Marcus Reyes](/authors/marcus-reyes), Editor. Updated 10/22/2026. **Disclosure:**We may earn a commission when you buy through links on this page. It never affects our rankings. Quick answer **Paddle** is our top pick for most people. Choose Paddle if you sell software, SaaS or digital products and you want Paddle to handle sales tax, VAT and compliance on those sales. If you sell physical products, supplements or a business opportunity, Paddle's own rules rule you out before price ever enters the decision. * **Paddle.** Best for software, SaaS and digital-product sellers who want tax and compliance handled. * **FastSpring.** Best for SaaS and digital-product sellers who want worldwide tax handled. Pick Paddle if you sell self-serve SaaS or a digital product and want the published 5% + 50¢ checkout rate, with tax filing included and a signup on the homepage. Pick FastSpring if you sell B2B or global software and need affiliates, interactive quotes, or a negotiated all-inclusive fee. [See what Paddle costs at your monthly revenue](/best/checkout-cost-calculator-what-each-platform-costs-at-your-monthly-revenue) ### Side by side | | Paddle | FastSpring | | --------------------- | ------------------ | ---------------------- | | From | $0/mo | Quote-based | | Merchant of record | Yes | Yes | | Sales tax | 100+ jurisdictions | Collected and remitted | | Subscriptions | Yes | Yes | | Payout | Monthly | — | | Affiliates | — | Yes | | B2B proposals | — | Yes | | Founded | 2012 | 2005 | | Same-URL split test | No | No | | Multi-MID routing | No | No | | Order bumps & upsells | No | No | | Free trial | — | Free to start | ### A published rate, with a monthly payout ##### What works * As Merchant of Record, Paddle takes the whole sales-tax, VAT and GST job off your plate: it registers, charges, files and remits across 100-plus jurisdictions, so a global software business does not have to stand up its own tax compliance. * One rate covers a lot of ground. The 5% + 50¢ fee includes payments, subscription billing, fraud and chargeback protection, failed-payment recovery through Retain, and buyer billing support, with no monthly fee and no migration fee. * Paddle says there is no lock-in period, and you can move your data to another provider. Confirm that in writing before you hand billing over. * It is not a bet on a startup. Paddle has been operating since 2012, reports more than 10,000 customers and says it has processed over 190 million transactions, so the infrastructure is proven at scale. ##### What to watch * Paddle's acceptable use policy is written for software companies. Physical products and services delivered by a person fall outside that policy, and the prohibited list blocks medical and weight-loss advice, business or investment opportunities, gambling and adult content. * It costs more than a standard payment gateway: 5% + 50¢ compared with Stripe's 2.9% + 30¢. You pay that rate for tax and compliance handling, which is worth it when that workload is heavy. On a low-priced product the fixed 50¢ takes a large share of the sale. * Account risk is the loudest long-term complaint. Founders describe risk reviews they cannot follow, and some end with the account suspended or closed and the payout frozen while the seller still owes refunds and has subscriptions to keep running. A June 2025 FTC settlement is why underwriting has been stricter since. Keep a cash buffer and a backup provider ready. * Payouts are monthly. Paddle closes each seller balance at month-end and sends the payout around the 15th, which is later than a gateway on a rolling schedule. ### Affiliates and B2B proposals, fee on request ##### What works * As merchant of record, FastSpring becomes the legal seller and registers, collects, files and remits sales tax and VAT worldwide, so a global software business never files a return. Sellers name this as the single reason they chose it. * It is not a bet on a startup. FastSpring has been operating since 2005, holds an average near 4.5 across more than 200 G2 reviews, and reviewers report payouts arriving on time, often a day or two early. * One flat, all-inclusive fee covers payments, subscription billing, tax compliance, fraud and chargeback handling, and a branded checkout, with no per-feature line items to reconcile. * It is built for how software sells: recurring subscription management, a checkout localized into local currencies and payment methods, a built-in affiliate network, and interactive quotes for B2B deals. ##### What to watch * The price is a black box. FastSpring does not publish its rate, and sellers report the fixed per-transaction fee pushes the effective rate into double digits on low-ticket monthly subscriptions, well above a raw processor. Get a quote at your own price points before you commit. * FastSpring sells digital goods only. FastSpring serves SaaS, software, digital products, games and AI. If you sell physical products, supplements or a business opportunity to paid traffic, you are in the wrong category, and in most cases FastSpring will not open your account. * Buyers see FastSpring on the card statement. The FS\* descriptor is what shows, and refunds route through you first, so buyer confusion is common. That is why Trustpilot sits near 2.8 while sellers rate it about 4.5 on G2. * It is a billing layer. Same-URL split testing and routing across your own merchant accounts are both missing, because FastSpring is the single processor. Growth that depends on testing whole checkouts against cold traffic will hit that wall. ### FastSpring vs Paddle: one rate is public You are down to these two for software or a digital product, and the fee is what splits them. Paddle's [pricing page](https://www.paddle.com/pricing) lists the standard rate: 5% + 50¢ per checkout transaction on the pay-as-you-go plan. That price covers payments, checkout, billing, global tax compliance, fraud protection, chargebacks and payment-related buyer support. Extra payment methods and moving existing subscriptions are included. The plan has no monthly fee. Paddle's cut is a percentage plus a fixed amount. FastSpring gives one all-inclusive figure for the service. | Charge | Paddle keeps | You keep | | ------ | ------------ | -------- | | $10 | $1.00 | $9.00 | | $50 | $3.00 | $47.00 | On the smaller charge, half of what Paddle keeps is the fixed part of the rate. On the larger charge, most of what Paddle keeps is the percentage. Both rows apply the cut to the charge before sales tax is added. Below that smaller charge, the fixed part is the larger share of the cut. The pricing page offers custom pricing for products at those lower prices, and again for high volume. [FastSpring's own site](https://fastspring.com/llms.txt) describes a flat, all-inclusive fee. One charge covers payments, tax compliance, subscriptions and checkout, and the price is not broken out by feature. FastSpring puts the exact percentage in the custom figure it prepares for your products. Use the calculator linked above for the Paddle side, then ask what FastSpring would charge for the same products in the same countries. [G2's FastSpring vs Paddle page](https://www.g2.com/compare/fastspring-vs-paddle) lists Paddle's entry price and has no FastSpring figure next to it. ### Both platforms are the legal seller The buyer pays the platform, and the platform pays you. Tax registration, card-data duties, refunds and chargebacks sit with that platform. FastSpring says it handles tax collection and remittance, compliance and chargeback management. Paddle's [tax page](https://www.paddle.com/billing/tax-and-compliance) says it registers, charges and remits sales tax in over 100 jurisdictions. The [homepage](https://www.paddle.com/) says this covers 300+ markets. The products these two will sell are digital. Paddle's [acceptable-use page](https://www.paddle.com/help/start/intro-to-paddle/what-am-i-not-allowed-to-sell-on-paddle) says it is built for software companies, including B2B SaaS, consumer software and games. Human services, such as consulting or design, fall outside that scope. Selling physical goods does too. FastSpring's own description covers SaaS, software, digital products, games and AI. Supplements, shipped goods and business-opportunity offers are the cases the [digital-products guide](/best/merchant-of-record-for-digital-products) sends elsewhere. Each of these two is the only processor on the order. Same-URL split testing, and a split of the sale across your own merchant accounts, are outside what either product does. If you need one URL for an ad while the checkout changes, or you need to split the first sale across your own merchant accounts, the digital-products guide covers those cases. ### Paddle is the account you can price before you apply The homepage shows a Get started button beside a demo booking, so the signup path is on the site. Retain, on that same page, recovers failed payments and reduces cancellations. Payouts follow a fixed schedule. [Paddle's payout page](https://www.paddle.com/help/manage/get-paid/when-and-how-do-i-get-paid) says you cannot pull your balance whenever you want, because payouts go out once a month. The payout runs on the 1st when the balance is at least $100\. Paddle sends the money by the 15th. Support is the complaint that shows up when founders put the two side by side. On [a thread about choosing between them](https://www.reddit.com/r/SaaS/comments/ollbag/choosing%5Fbetween%5Fpaddle%5Fand%5Ffastspring%5Ffor/), founders say Paddle leaves support emails unanswered. Suspensions and held balances are the other account risk. A second provider, already approved, is the practical answer to that risk. ### FastSpring fits affiliates and B2B deals FastSpring has been in this business longer than Paddle. FastSpring's site highlights features for partner channels and for sales-led deals. [Affiliate marketing](https://fastspring.com/affiliates/) is one of them. [Interactive quotes](https://fastspring.com/interactive-quotes/) cover deals a buyer accepts before paying. A partner program, or a proposal before checkout, is the reason to wait for FastSpring's figure. A seller who has used both, writing on [a FastSpring vs Paddle thread](https://www.reddit.com/r/SaaS/comments/kuei50/fastspring%5Fvs%5Fpaddle/), credits FastSpring with more room to customize checkout, products and fulfillment. On [a separate processor thread](https://www.reddit.com/r/SaaS/comments/12ef0ic/what%5Fpayment%5Fprocessor%5Fdo%5Fyou%5Fuse%5Flooking%5Ffor%5Fas/), a founder who kept FastSpring on the shortlist disliked the screens a buyer sees. The card statement carries a FastSpring descriptor. Buyer confusion over that descriptor is a real cost, and a finance lead should weigh it before switching. ### My take I would start with Paddle for self-serve SaaS or a digital download. The rate is public, tax filing is in that rate, and the homepage has a signup path. I would ask FastSpring for its fee when sales run through affiliates, when a deal needs a proposal first, or when the company wants one negotiated number for a global software catalog. If FastSpring's figure is lower than Paddle's cut on your prices, FastSpring is the cheaper option. The longer write-ups are the [full Paddle review](/reviews/paddle) and the [full FastSpring review](/reviews/fastspring). [Lemon Squeezy vs FastSpring](/compare/lemon-squeezy-vs-fastspring) is the neighbouring pair. [Legal seller or your own processor](/compare/merchant-of-record-vs-payment-processor) is the page for whether your company should stay the seller of record. Our pick ### Paddle Choose Paddle if you sell software, SaaS or digital products and you want Paddle to handle sales tax, VAT and compliance on those sales. If you sell physical products, supplements or a business opportunity, Paddle's own rules rule you out before price ever enters the decision. ### Frequently asked questions Can I sell a physical product on Paddle or FastSpring? A shipped product sits outside both. Paddle also sets aside a business whose main work is a person delivering a service. FastSpring's description stays on software, downloads, games and AI. Which is cheaper, Paddle or FastSpring? Paddle is the side with a public rate. FastSpring's fee is the figure it sends for your products, so set that figure next to the two sample charges above. Can I split-test checkouts on either? The same-URL row is a no for both, and so is a split across merchant accounts you own. A pay step you need to rotate under one ad is covered in the merchant of record guide. How often does each one pay out? Paddle follows the monthly calendar in the payout section. FastSpring's payout timing comes with the fee it sends you, because those pages give no calendar. Can I migrate between Paddle and FastSpring? Paddle's pricing page says seller data can move to another provider, and that there is no lock-in period. Ask FastSpring how a catalog leaves before you move one. Its index covers affiliates and proposals, and the exit path is a question for that conversation. ### Paddle sources #### From Paddle * * Localized branded checkout * Sales tax and compliance handled as Merchant of Record #### Other sources 5 discussions and reviews read for this page. Quotes are excerpts; open a link to read the original in context. 1. \[r1\] [Struggling to choose between Paddle and Lemon Squeezy for our SaaS ](https://www.reddit.com/r/SaaS/comments/1od9su7/struggling%5Fto%5Fchoose%5Fbetween%5Fpaddle%5Fand%5Flemon/) Reddit, 1 Oct 2025 2. \[r2\] [Do not use Paddle if you're an early-stage startup ](https://www.reddit.com/r/SaaS/comments/1r6hi9s/do%5Fnot%5Fuse%5Fpaddle%5Fif%5Fyoure%5Fan%5Fearlystage%5Fstartup/) Reddit, 16 Feb 2026 3. \[r3\] [Payments: Paddle v Stripe v LemonSqueezy v Polar ](https://www.reddit.com/r/SaaS/comments/1nd8he4/payments%5Fpaddle%5Fv%5Fstripe%5Fv%5Flemonsqueezy%5Fv%5Fpolar/) Reddit, 1 Sep 2025 4. \[ftc1\] [Paddle Will Pay $5 Million to Settle FTC Allegations of Unfair Payment-Processing Practices and Facilitation of Deceptive Tech-Support Schemes ](https://www.ftc.gov/news-events/news/press-releases/2025/06/paddle-will-pay-5-million-settle-ftc-allegations-unfair-payment-processing-practices-facilitation) Blog, 16 Jun 2025 5. \[ftc2\] [Stipulated Order for Permanent Injunction, Monetary Judgment, and Other Relief ](https://www.ftc.gov/system/files/ftc%5Fgov/pdf/PaddleStipulatedFinalOrder.pdf) Blog, 20 Jun 2025 ### FastSpring sources #### From FastSpring * #### Other sources 5 discussions and reviews read for this page. Quotes are excerpts; open a link to read the original in context. 1. \[g2-tax\] [FastSpring G2 testimonial ](https://www.g2.com/products/fastspring/testimonials/9250.embed) G2 2. \[trustpilot-fraud\] [FastSpring Reviews | Trustpilot ](https://www.trustpilot.com/review/fastspring.com) Trustpilot 3. \[heldfunds-descriptor\] [FSPRG or FS\* charge on your card ](https://heldfunds.com/fastspring-charge/) Blog 4. \[dodo-pricing\] [FastSpring Pricing Explained | Dodo Payments ](https://dodopayments.com/blogs/fastspring-pricing-explained) Blog 5. \[dodo-support\] [FastSpring Review 2026 | Dodo Payments ](https://dodopayments.com/blogs/fastspring-review-alternative) Blog [See what these fees cost at your monthly revenue](/best/checkout-cost-calculator-what-each-platform-costs-at-your-monthly-revenue) ### Related reading * [Paddle review](/reviews/paddle) * [FastSpring review](/reviews/fastspring) * [The full ranking](/best) * [Paddle vs Lemon Squeezy](/compare/paddle-vs-lemon-squeezy) * [Lemon Squeezy vs FastSpring](/compare/lemon-squeezy-vs-fastspring) * [Digital products and who files the tax](/best/merchant-of-record-for-digital-products) * [Legal seller or your own processor](/compare/merchant-of-record-vs-payment-processor) * [How we research checkout tools](/methodology) * [All head-to-head comparisons](/compare) --- We rank the platforms that build the pages and host the checkout for teams running paid traffic: order bumps, one-click upsells, split-testing whole checkouts, different checkouts per traffic source, and payment routing for high-risk verticals. 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