Is PayNow cheaper than Stripe?

Against Stripe Managed Payments, yes: their Merchant of Record surcharge is 3.5% per transaction on top of processing, ours is as low as 2.5% and is charged after the gateway cost. Against running Stripe yourself, once Stripe Tax, Billing and dispute fees are counted, the gap is under a point, and the tax registrations, filings, fraud tuning, dispute handling, storefront and delivery are all yours to build and own.

What is Stripe Managed Payments?

Stripe’s own Merchant of Record product, built out of its Lemon Squeezy acquisition. Stripe becomes the seller on the transaction and takes on tax compliance, fraud, disputes and support, for 3.5% per successful transaction plus standard Stripe processing fees.

Why do disputes matter more than the fee?

Stripe charges $15 per dispute whether you win or lose, and the labour of assembling evidence is yours. The bigger risk is the ratio: card networks police dispute rates, and a sustained rate above threshold puts your own merchant account into a monitoring programme. As Merchant of Record, that exposure is ours.

Doesn’t Stripe Tax handle tax?

On Stripe direct, Stripe Tax calculates and collects at 0.5% per transaction, but it does not register you in a market and does not file or remit. EU OSS, UK VAT and US state nexus returns stay with you. Managed Payments does cover tax, because Stripe is the seller on those transactions; that is what the 3.5% surcharge buys.

Can I keep using Stripe for anything?

Plenty of teams run their own Stripe account alongside a PayNow store, or use PayNow only for the markets and products where the compliance load is heaviest.

COMPARISON

Stripe is a payments API.
PayNow is the business around it.

Stripe now sells a Merchant of Record too, at 3.5% on top of processing. Ours goes as low as 2.5%, with the storefront and in-game delivery in the box.

Get started free Pricing calculator

MERCHANT OF RECORD FEE

2.5%as low as, charged after the gateway cost

Stripe Managed Payments3.5%per successful transaction, on the full amount

Both sit on top of the same 2.9% + $0.30 US card cost, so the gap is the Merchant of Record itself.

STOREFRONT AND DELIVERY

IncludedNonePayNow, store, checkout, in-game deliveryStripe, on either Stripe product, you build and host it

SUBSCRIPTIONS

Included+0.7%PayNow, no fee on recurring volumeStripe, Stripe Billing, on top of processing

LOCAL PAYMENT METHODS

120+FewerPayNow, with EU routing through our EU entityStripe, and no local entity routing

Two Stripe products, side by side

Stripe direct means you are the merchant of record and you buy the pieces separately. Managed Payments means Stripe is the merchant of record, for 3.5% on top of the same processing. US figures from Stripe’s own pricing pages.

Stripe directStripe Managed Payments

Online card, US domestic2.9% + $0.302.9% + $0.30The same gateway cost, passed through

International card+1.5%+1.5%Gateway rate of the method used

Currency conversion+1%+1%Gateway rate of the method used

Merchant of RecordYou are the seller+3.5% per transaction2.5–3.5% platform fee by plan

Tax registration and filingStripe Tax 0.5% per transaction, calculation onlyHandled by StripeHandled by PayNow

SubscriptionsStripe Billing 0.7% of billing volumeBilling fees apply separatelyIncluded

Fraud toolingRadar included on standard pricingHandled by StripeIncluded

3D SecureIncluded on standard pricingIncludedIncluded

Dispute received$15 each, win or loseHandled by StripeOurs to fight, no per-dispute fee

Payment methodsStripe’s own catalogue, each one enabled by youA subset of Stripe methods120+ local methods, one toggle each

Local entity routingNot offered. One acquirer, one entity.Not offeredEU payments routed through our EU entity for higher approval rates

Currency localisationAdaptive Pricing availableAdaptive Pricing availableAdaptive currency included

Checkout recoveryAdd-on, per transactionBilling fees apply separatelyAbandoned checkout and follow-up emails included

Storefront and deliveryNot provided. You build and host it.Not providedStore, checkout and in-game delivery

Who carries the liabilityYouStripe, on those transactionsPayNow, on every order

What you actually pay~6.5% plus the work3.5% + gateway fee2.5% + gateway fee

Stripe direct · Managed Payments

Online card, US domestic

Stripe direct: 2.9% + $0.30Managed Payments: 2.9% + $0.30

International card

Stripe direct: +1.5%Managed Payments: +1.5%

Currency conversion

Stripe direct: +1%Managed Payments: +1%

Merchant of Record

Stripe direct: You are the sellerManaged Payments: +3.5% per transaction

Tax registration and filing

Stripe direct: Stripe Tax 0.5% per transaction, calculation onlyManaged Payments: Handled by Stripe

Subscriptions

Stripe direct: Stripe Billing 0.7% of billing volumeManaged Payments: Billing fees apply separately

Fraud tooling

Stripe direct: Radar included on standard pricingManaged Payments: Handled by Stripe

3D Secure

Stripe direct: Included on standard pricingManaged Payments: Included

Dispute received

Stripe direct: $15 each, win or loseManaged Payments: Handled by Stripe

Payment methods

Stripe direct: Stripe’s own catalogue, each one enabled by youManaged Payments: A subset of Stripe methods

Local entity routing

Stripe direct: Not offered. One acquirer, one entity.Managed Payments: Not offered

Currency localisation

Stripe direct: Adaptive Pricing availableManaged Payments: Adaptive Pricing available

Checkout recovery

Stripe direct: Add-on, per transactionManaged Payments: Billing fees apply separately

Storefront and delivery

Stripe direct: Not provided. You build and host it.Managed Payments: Not provided

Who carries the liability

Stripe direct: YouManaged Payments: Stripe, on those transactions

MERCHANT OF RECORD

Online card, US domesticThe same gateway cost, passed through

International cardGateway rate of the method used

Currency conversionGateway rate of the method used

Merchant of Record2.5–3.5% platform fee by plan

Tax registration and filingHandled by PayNow

SubscriptionsIncluded

Fraud toolingIncluded

3D SecureIncluded

Dispute receivedOurs to fight, no per-dispute fee

Payment methods120+ local methods, one toggle each

Local entity routingEU payments routed through our EU entity for higher approval rates

Currency localisationAdaptive currency included

Checkout recoveryAbandoned checkout and follow-up emails included

Storefront and deliveryStore, checkout and in-game delivery

Who carries the liabilityPayNow, on every order

Stripe figures as published on stripe.com/pricing and support.stripe.com, checked August 2026. Gateway costs are passed through on both sides. All totals are estimates modelled on the assumptions shown; your own rate depends on payment method mix, buyer region, volume and plan. See every method and its gateway fee →

Like for like: two Merchants of Record

Both charge a Merchant of Record fee on top of the gateway cost. Estimates below model a store doing $10,000 a month: 500 orders at $20, 40% international cards, 30% of volume converting currency, 30% subscriptions.

Stripe Managed Payments

3.5%+ gateway fee

$530 processing, with international and conversion surcharges

+3.5% Merchant of Record surcharge on the full amount, $350

Stripe Billing fees still apply on subscriptions

Tax, fraud and disputes handled. No storefront, no delivery.

PayNow Business

2.5%+ gateway fee

The same $530 gateway cost, passed through

2.5% platform fee on what is left after it, $237

$49.99 a month for the Business plan

Tax, fraud, disputes, storefront and delivery included

Their Merchant of Record surcharge is 3.5% of the full transaction; ours is as low as 2.5% of what is left after the gateway. Put your own volume, method mix and plan into the calculator to see your rate, and check the gateway fee of each method on the payment methods page.

Method fees Pricing calculator

Included with PayNow. Yours on Stripe.

Running Stripe direct, as your own merchant of record. Stripe builds excellent components; operating them and carrying the liability is the job.

Tax registration and filing

Stripe Tax calculates. Registering in each market, filing the returns and remitting stays with you.

Dispute handling

$15 per dispute either way, and the evidence is assembled by you, per dispute, on a deadline.

Dispute ratio risk

The ratio sits on your merchant account. Sustained highs mean a monitoring programme, then termination.

Fraud tuned for gaming

Radar is included and it is good, but the rules are yours to tune. Nobody is watching your traffic after a wipe and adjusting the thresholds.

Buyer support

Receipts, refund requests and payment questions come to you, in your players’ timezones.

Storefront and checkout

Not a Stripe product. You design, build and host the store your players actually buy from.

In-game delivery

Plugins for Rust, Minecraft, Garry’s Mod, FiveM, Hytale, 7 Days to Die and more, plus the player and server linking behind them.

Local approval rates

One entity means one acquiring path. Routing EU volume through an EU entity is not something you can add on.

Method coverage

Enabling 120+ local methods, and keeping them working, is your integration and reconciliation work.

The honest part

Where Stripe wins

With a payments engineer in-house, Stripe is the right call.

Total control

No platform fee ceiling. At high volume, negotiated Stripe rates with an in-house team beat any platform percentage.

Stripe is a payments API.
PayNow is the business around it.

Two Stripe products, side by side

Like for like: two Merchants of Record

Included with PayNow. Yours on Stripe.

Tax registration and filing

Dispute handling

Dispute ratio risk

Fraud tuned for gaming

Buyer support

Storefront and checkout

In-game delivery

Local approval rates

Method coverage

Where Stripe wins

Total control

You own the relationship

No platform dependency

Questions

Stripe is a payments API.PayNow is the business around it.

Two Stripe products, side by side

Like for like: two Merchants of Record

Included with PayNow. Yours on Stripe.

Tax registration and filing

Dispute handling

Dispute ratio risk

Fraud tuned for gaming

Buyer support

Storefront and checkout

In-game delivery

Local approval rates

Method coverage

Where Stripe wins

Total control

You own the relationship

No platform dependency

Questions

Stripe is a payments API.
PayNow is the business around it.