Lemon Squeezy Fees at a Glance
Lemon Squeezy charges its fees on the order total.
| Fee | Percentage | Flat | Notes |
|---|---|---|---|
| Merchant-of-record fee | 5% | $0.50 | โ |
Fees That Apply in Some Cases
| Fee | Percentage | Flat | When |
|---|---|---|---|
| International card | 1.5% | โ | Applies in some cases |
What You Keep
The flat component is what makes small sales expensive. The same fee schedule costs a very different effective rate depending on the order size:
| Sale | Fees | You receive | Effective rate |
|---|---|---|---|
| $5.00 | $0.75 | $4.25 | 15.00% |
| $20.00 | $1.50 | $18.50 | 7.50% |
| $50.00 | $3.00 | $47.00 | 6.00% |
| $100.00 | $5.50 | $94.50 | 5.50% |
| $500.00 | $25.50 | $474.50 | 5.10% |
The Fee Includes Tax Compliance
Lemon Squeezy is a merchant of record: it is legally the seller, which means it collects and remits VAT, GST and US sales tax on your behalf. The single rate covers processing and that compliance work together.
| Component | Rate |
|---|---|
| Merchant-of-record fee | 5% + 50ยข |
| International cards | +1.5% |
| Separate processor fee | None |
Comparing Against Stripe Directly
Stripe's 2.9% + 30ยข is visibly cheaper โ until you price the rest of what a merchant of record does.
| Cost | Stripe direct | Merchant of record |
|---|---|---|
| Processing | 2.9% + 30ยข | Included |
| VAT/GST registration | Yours, per jurisdiction | Included |
| Tax filing and remittance | Yours, ongoing | Included |
| Invoices with correct tax | Yours to build | Included |
| Liability for errors | Yours | Theirs |
Where the Break-Even Sits
The rate difference is roughly 2โ3 points. At $10,000 monthly revenue that is $200โ$300 a month โ comparable to a few hours of an accountant's time. Below that, the merchant of record is almost always the right call; well above it, bringing tax in-house starts to pay.
Refunds and Chargebacks
Confirm which components are returned on a refund. A merchant of record that keeps its flat fee on refunds costs more than the rate suggests if you sell into a high-refund category.
Charging to Hit a Target Payout
Adding 5.00% to your price under-recovers, because the percentage then applies to the larger amount as well. The correct gross-up divides:
``
charge = (target + flat fees) รท (1 โ percentage rate)
``
| To receive | Charge |
|---|---|
| $100.00 | $105.79 |
| $1,000.00 | $1,053.16 |
Reducing What You Pay
- Raise average order value. The flat fee is fixed, so bundling two $20.00 orders
- Watch the optional surcharges. International and currency-conversion fees stack on top
- Negotiate at volume. Most processors will discuss custom rates once you are processing
- Do not migrate for 0.2%. The engineering and support cost of changing platforms
The fee covers processing and sales-tax remittance, so no separate processor is charged.