Question 1

What are LemonSqueezy's fees as a Merchant of Record?

Accepted Answer

LemonSqueezy charges 5% + 50 cents per transaction with no monthly fees. As of December 2024, additional fees apply: +1.5% for international (non-US) transactions, +1.5% for PayPal payments, and +0.5% for subscription renewals. This all-inclusive fee covers payment processing, currency conversion, fraud protection, and global tax compliance. Volume discounts are available for high-volume sellers. LemonSqueezy was acquired by Stripe in July 2024 but continues operating as a separate service.

Question 2

How does LemonSqueezy handle sales tax and VAT?

Accepted Answer

LemonSqueezy handles all global tax compliance automatically as a Merchant of Record. They collect, report, and remit sales tax and VAT to over 13,000 tax jurisdictions worldwide, including complex US state taxes and EU VAT. You see tax amounts in your dashboard, and LemonSqueezy deducts taxes from payouts before remitting to authorities. They also offer tax-inclusive pricing where customers pay the listed price regardless of tax. Note that you may still owe income tax on payouts in your country.

Question 3

How does LemonSqueezy compare to Paddle and Gumroad?

Accepted Answer

LemonSqueezy offers lower fees than Gumroad (5% vs 10%) and is more accessible than enterprise-focused Paddle. All three are Merchants of Record handling tax compliance. LemonSqueezy excels for indie hackers and small SaaS with built-in affiliate programs, license key management, and easy integration. Gumroad has marketplace discovery features for creators. Paddle targets larger SaaS with custom enterprise pricing. LemonSqueezy is known for simpler setup than Paddle and more modern developer experience.

Question 4

What digital product delivery features does LemonSqueezy offer?

Accepted Answer

LemonSqueezy provides automatic license key generation with flexible controls. You can set activation limits (e.g., one device per license), license duration (e.g., one year), and manage keys per product variant. Keys integrate with subscriptions, staying active while subscriptions are active. The License API allows external validation in your software. You can disable, reissue, and fully manage keys from your dashboard. License key variables can be added to redirect URLs for seamless customer experiences.

Question 5

What payment methods does LemonSqueezy support?

Accepted Answer

LemonSqueezy accepts 21+ payment methods across 150+ countries. Supported methods include Visa, Mastercard, American Express, Discover, Diners Club, JCB, China UnionPay, PayPal, Apple Pay, Google Pay, ACH bank debits, WeChat Pay, and Alipay. For subscriptions specifically, only cards, Apple Pay, Google Pay, and PayPal are supported. PayPal subscriptions were added in February 2024. Some payment methods are location or device-specific.

Question 6

How long does it take to set up LemonSqueezy?

Accepted Answer

Basic LemonSqueezy setup takes minutes. After email verification, you create a store with a subdomain (e.g., my-store.lemonsqueezy.com), add products, and configure settings in Test mode. You can make test purchases immediately. Going live requires store activation where their team reviews your business for compliance. Review times vary but are typically quick for straightforward digital products. Add payout details to receive payments. The developer guide is an 8-minute read for API integration.

Question 7

What happened after Stripe acquired LemonSqueezy?

Accepted Answer

Stripe acquired LemonSqueezy in July 2024, but it continues operating as a separate payment service. The acquisition brings questions about long-term roadmap and support. Some users have reported issues since the acquisition including occasional payment errors, 500 errors during checkout, and delayed payouts. However, LemonSqueezy maintains its core value proposition as an indie-friendly Merchant of Record with simpler setup than using Stripe directly for global tax compliance.

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