Payhip vs Lemon Squeezy: Fees and Merchant of Record
Short answer
Payhip Free takes 5% plus Stripe or PayPal; Plus is USD 29 with 2%; Pro is USD 99 with 0%. Lemon Squeezy takes 5% + USD 0.50 per sale with no monthly ecommerce fee and includes card processing as merchant of record. On a USD 20 US card sale, published fees leave about USD 18.12 on Payhip Free and USD 18.50 on Lemon Squeezy before intl or PayPal add-ons.
On this page 5 sections
At a glance
| Plan | Payhip FreeUSD 0/moVisit site (opens in new tab) | Lemon Squeezy StandardUSD 0/moVisit site (opens in new tab) |
|---|---|---|
| What it is | Digital store; you connect Stripe or PayPal | Digital commerce platform; Lemon Squeezy is merchant of record |
| Monthly ecommerce fee | USD 0 / 29 / 99 by plan | Yes (USD 0 for ecommerce features) |
| Platform fee | 5% Free; 2% Plus; 0% Pro | 5% + USD 0.50 per transaction |
| Card processing | Stripe or PayPal standard rates on top | Yes (Included in the platform fee per Lemon Squeezy docs) |
| Extra payment fees | Whatever Stripe or PayPal charge for intl, currency, etc. | +1.5% intl; +1.5% PayPal; +0.5% subscriptions (docs) |
| Merchant of record / VAT | Partial (EU/UK VAT and US/Canadian sales tax collected for you) | Yes (Full MoR; collects and remits tax; docs show fee on order total incl. tax) |
| Feature gating | Yes (All features on every plan; plans differ by fee) | Yes (Ecommerce features included; email marketing priced by subscribers separately) |
| Keep on USD 20 (US card, published fees) | About USD 18.12 on Free | About USD 18.50 (no intl/PayPal add-on) |
| Sources: payhip.com (opens in new tab) · www.lemonsqueezy.com (opens in new tab) · docs.lemonsqueezy.com (opens in new tab). | ||
Payhip vs Lemon Squeezy at a glance. Prices checked 29 Oct 2026.
Payhip Free
USD 0/mo
- What it is
- Digital store; you connect Stripe or PayPal
- Monthly ecommerce fee
- USD 0 / 29 / 99 by plan
- Platform fee
- 5% Free; 2% Plus; 0% Pro
- Card processing
- Stripe or PayPal standard rates on top
- Extra payment fees
- Whatever Stripe or PayPal charge for intl, currency, etc.
- Merchant of record / VAT
- Partial (EU/UK VAT and US/Canadian sales tax collected for you)
- Feature gating
- Yes (All features on every plan; plans differ by fee)
- Keep on USD 20 (US card, published fees)
- About USD 18.12 on Free
Lemon Squeezy Standard
USD 0/mo
- What it is
- Digital commerce platform; Lemon Squeezy is merchant of record
- Monthly ecommerce fee
- Yes (USD 0 for ecommerce features)
- Platform fee
- 5% + USD 0.50 per transaction
- Card processing
- Yes (Included in the platform fee per Lemon Squeezy docs)
- Extra payment fees
- +1.5% intl; +1.5% PayPal; +0.5% subscriptions (docs)
- Merchant of record / VAT
- Yes (Full MoR; collects and remits tax; docs show fee on order total incl. tax)
- Feature gating
- Yes (Ecommerce features included; email marketing priced by subscribers separately)
- Keep on USD 20 (US card, published fees)
- About USD 18.50 (no intl/PayPal add-on)
Last checked 29 Oct 2026 · Prices from payhip.com/pricing, lemonsqueezy.com/pricing, Lemon Squeezy fees docs and stripe.com/pricing.
Payhip and Lemon Squeezy both target digital downloads and memberships. The practical difference for low-ticket sellers is who is merchant of record and whether card processing sits inside the platform fee or on top of it.
Fees side by side
| Payhip Free | Payhip Plus | Payhip Pro | Lemon Squeezy | |
|---|---|---|---|---|
| Monthly | USD 0 | USD 29 | USD 99 | USD 0 ecommerce |
| Platform fee | 5% | 2% | 0% | 5% + USD 0.50 |
| Processing | Stripe / PayPal on top | Same | Same | Included in base fee |
| Tax role | EU/UK VAT + US/CA sales tax | Same | Same | Full MoR |
What you keep (one US card sale)
| Price | Payhip Free | Lemon Squeezy |
|---|---|---|
| USD 5 | USD 4.30 | USD 4.25 |
| USD 10 | USD 8.91 | USD 9.00 |
| USD 20 | USD 18.12 | USD 18.50 |
Who each fits, from published pricing
This is a reading of the pricing and fee docs, not a hands-on test.
- Payhip fits sellers who want Stripe or PayPal under their own processor relationship and who may graduate from Free to Plus or Pro as volume grows.
- Lemon Squeezy fits sellers who want MoR tax handling and a single published fee that already includes card processing, and who mostly take domestic card payments (so intl/PayPal add-ons stay rare).
Related reading
Creator Software Cost Cheat Sheet
Every plan price we track, on three pages. Enter your email to download it.
We store your email with our email provider. See our privacy policy.
Frequently asked questions
Is Lemon Squeezy cheaper than Payhip Free?
On a single USD 20 US card sale, Lemon Squeezy's published 5% + USD 0.50 leaves about USD 18.50 and Payhip Free about USD 18.12 after Stripe. At USD 5, Lemon Squeezy leaves about USD 4.25 and Payhip Free about USD 4.30. Volume, PayPal, and international add-ons change the ranking.
Does Lemon Squeezy include card fees?
Yes, for the base platform fee. Lemon Squeezy's fees docs say the platform fee covers credit card transaction fees, currency conversion and taxes as merchant of record, with listed add-ons for international, PayPal and subscription payments.
When does Payhip Pro beat Lemon Squeezy?
Payhip Pro is USD 99 a month with a 0% Payhip fee, then Stripe or PayPal. Once monthly sales are high enough that Payhip's percentage (or Lemon Squeezy's 5% + USD 0.50) exceeds roughly USD 99 plus the processing gap, Pro can win on fee maths alone. Run your own volume.
Who is the merchant of record?
Lemon Squeezy states it is merchant of record. Payhip states it collects EU/UK VAT and US/Canadian sales tax on your behalf but does not describe itself as a full worldwide MoR on the pricing page.
Does Lemon Squeezy charge for email?
Ecommerce is listed at USD 0 a month. Email marketing is priced separately by subscriber count and is free up to 500 subscribers on the pricing page (checked 29 Oct 2026).
Can fees exceed 5% + USD 0.50 on Lemon Squeezy?
Lemon Squeezy's pricing FAQ says edge cases can add small additional fees, and the fees docs list +1.5% international, +1.5% PayPal and +0.5% subscription. Check those docs for your payment mix.
Do both support subscriptions?
Lemon Squeezy's pricing page lists recurring billing and subscriptions. Payhip sells memberships and lists all features on every plan. Confirm checkout behaviour in each product's help centre before you rely on a specific billing interval.
Is this a hands-on test?
No. tested is false. Numbers apply published fee formulas to one-time US domestic card sales. Not tax advice.