Comparison · Updated November 15, 2026
Freemius vs Lemon Squeezy (merchant of record for software sellers)
Freemius
B
Freemius is a merchant of record for software makers: SaaS products, desktop and mobile apps, browser extensions and, its original market, WordPress plugins and themes. Freemius, Inc., a Delaware company, buys each licence from you at a wholesale price and resells it to your customer, so it collects and remits US sales tax and EU and UK VAT, handles refunds and disputes, and is the seller your buyer pays. As of November 2026 the published price is 3.8% + 50¢ per transaction plus gateway fees, calculated on the full amount the buyer pays including any sales tax or VAT. Its vendor terms list the gateway fees as maximums Freemius uses best efforts not to exceed: 2.9% + 30¢ for a US card through Stripe, with 1.5% more for non-US cards and 0.5% more for subscription payments. WordPress plugins and themes pay an extra 2.3% for licensing, updates and WordPress-specific tools. There are no setup or monthly fees, its documentation says the percentage share falls in steps above $50,000 a month in sales, and you can leave on 30 days' notice. The catch is cash flow: earnings are paid once a month, on or around the 10th, for sales made in the month before last, so a sale can take roughly 40 to 70 days to reach you, with a $100 minimum payout.
Lemon Squeezy
C+
Lemon Squeezy is a merchant-of-record platform for selling software, digital downloads, subscriptions and licence keys, launched publicly in 2021 by a small team of founders led by JR Farr and acquired by Stripe in July 2024. As merchant of record it is the legal seller of record on every transaction: it collects and remits sales tax and VAT worldwide, absorbs fraud and chargeback liability, and pays the merchant a net amount twice a month. The price is one number — 5% plus 50 cents per transaction, with no monthly fee — plus surcharges of 1.5% on international and PayPal transactions and 0.5% on subscription payments, and the tooling around it (checkout overlays, licence keys, signed download links, affiliates, email marketing) is unusually complete for the price. The catch is what has happened since the acquisition. Stripe has built its own merchant-of-record product, Stripe Managed Payments, priced at 3.5% on top of standard Stripe fees, and in January 2026 Lemon Squeezy's chief executive wrote that the team had been heads-down on it, that Lemon Squeezy users had seen slower support and fewer updates as a result, and that the goal was to give them an easy way to migrate. Independent sentiment has collapsed accordingly: 1.2 on Trustpilot from 173 reviews, 88% of them one-star, mostly about onboarding rejections and unanswered support requests. The product still works and still signs up new merchants, but a buyer today is choosing a platform whose own maker is steering customers to its successor.
VS
Overview
We compare the two as a merchant of record for a US-based software seller taking card payments from buyers worldwide, on each one's standard published pricing and seller terms, read on 15 November 2026. The main basis is a SaaS or other non-WordPress software product; Freemius charges WordPress plugins and themes 2.3% more, which we note where it matters. Both are the legal seller to your customer and both collect and remit sales tax and VAT, screen fraud and deal with disputes. The pricing works differently. Lemon Squeezy charges one fee, 5% + 50¢, that includes card processing, plus 1.5% on non-US and PayPal payments and 0.5% on subscription payments. Freemius charges 3.8% + 50¢ and passes the Stripe or PayPal gateway fee through on top; its vendor terms list maximums of 2.9% + 30¢ for a US card, plus 1.5% for a non-US card and 0.5% on Stripe subscription payments, which Freemius says it uses best efforts not to exceed. Both fees are charged on the full amount the buyer pays, tax included. At those maximums a $100 US-card sale costs up to $7.50 on Freemius and $5.50 on Lemon Squeezy. Freemius's share falls in published steps above $50,000 a month, so on our arithmetic it only becomes cheaper than Lemon Squeezy's list price at around $210,000 a month in sales. Lemon Squeezy pays out twice a month; Freemius pays once a month, for sales made in the month before last. The bigger difference is direction. Freemius is an independent company still building its product. Lemon Squeezy has been owned by Stripe since July 2024, and in January 2026 its chief executive wrote that support had slowed and that the goal was an easy migration for its users to Stripe Managed Payments, Stripe's own merchant-of-record product.
Key Takeaways
- ✓Freemius is the safer choice for a new software business. It is independent and still developing its product. Lemon Squeezy has been owned by Stripe since July 2024, and in January 2026 its chief executive wrote that support had become slower and that the goal was to give Lemon Squeezy users an easy way to migrate to Stripe Managed Payments, Stripe's own merchant-of-record product.
- ✓Lemon Squeezy is cheaper per sale at list prices. A $100 US-card sale costs $5.50 against up to $7.50 on Freemius once gateway fees are added at their listed maximums, and Freemius charges WordPress plugins and themes another 2.3%.
- ✓Freemius's share falls in published steps above $50,000 a month, to 0.5% on sales above $100,000. Lemon Squeezy offers volume pricing only by negotiation.
- ✓Lemon Squeezy pays out on the 14th and 28th, after a 13-day hold. Freemius pays around the 10th of each month for sales made in the month before last, so you wait roughly 40 to 70 days for each sale.
- ✓Freemius charges nothing extra for affiliate sales or cart-recovery sales, and returns its percentage share on refunds within 30 days. Lemon Squeezy adds 3% on affiliate-referred orders and 5% on recovered carts, and keeps its platform fee when you refund.
Freemius
Freemius suits an independent developer or small team selling SaaS, apps, browser extensions or WordPress plugins and themes who wants a merchant of record that is still being actively developed. It is especially strong for WordPress, where its SDK handles licensing, updates and in-dashboard sales, for 2.3% more. Expect to pay more per sale than Lemon Squeezy's list price below about $210,000 a month, and to wait one to two months for each payout.
Lemon Squeezy
Lemon Squeezy suits a seller already on the platform with a working store, or a solo seller of a low-volume digital product who wants the lowest all-in published fee and payouts twice a month. Its chief executive has said the goal is to give users an easy way to migrate to Stripe Managed Payments, and its support record is poor, so anyone starting there should plan for a move.
Overall Winner
🏆 Winner
Freemius
Bexpert grade
Runner-up
Lemon Squeezy
Why?
For a software seller choosing a merchant of record today, Freemius is the better pick, though not on price. At list prices it costs more per sale: a $100 US-card sale costs up to $7.50 against Lemon Squeezy's $5.50, WordPress products pay 2.3% more, and payouts take one to two months. Lemon Squeezy is cheaper below about $210,000 a month and pays faster. The deciding factor is direction. Freemius is independent and still developing its product, charges nothing extra for affiliate or cart-recovery sales, cuts its share on published steps as sales grow, and has a much higher Trustpilot score. Lemon Squeezy's chief executive wrote in January 2026 that support had slowed and that the goal was to give its users an easy way to migrate to Stripe Managed Payments, so a new seller there should expect a second move. A seller already on Lemon Squeezy with a working store can stay for now, but should plan that move.
Feature by feature
Detailed Comparison
Filter Options
Fees per sale (US seller, software, USD)
| Feature | Freemius | Lemon Squeezy |
|---|---|---|
| Platform fee | 3.8% + 50¢ + gateway fees | 5% + 50¢ (card fees included) |
| As of November 2026. Both are charged on the full amount the buyer pays, including sales tax or VAT. Freemius's figure is its own share; the Stripe or PayPal gateway fee is passed through on top. Lemon Squeezy's fee includes card processing and currency conversion. Neither charges a setup or monthly fee. Freemius charges €0.45 or £0.40 instead of 50¢ on EUR and GBP sales. | ||
| Gateway fee on top | Up to 2.9% + 30¢ (US card) | None |
| Freemius's vendor terms (last updated 14 October 2026), in an exhibit headed "Maximum Gateway Fees", list Stripe's fee at 2.9% + 30¢ for a US-issued card, plus 1.5% for a non-US card and 0.5% on subscription payments, and PayPal's at 3.49% + 30¢ for a US PayPal account, plus 1.5% for non-US accounts. Freemius says it uses best efforts not to exceed these figures and that they can change with the gateways' own pricing. Freemius's documentation says the current average effective gateway rate is 3.5% and that it keeps no part of it. Lemon Squeezy has no separate gateway fee. | ||
| Surcharges | +1.5% non-US card; +0.5% subscriptions | +1.5% non-US; +1.5% PayPal; +0.5% subscriptions |
| Freemius's surcharges are part of the gateway fee in its vendor terms, and its 0.5% subscription surcharge is listed for Stripe only; Lemon Squeezy's are added to its platform fee. Paid by US card, a $100 one-off sale costs up to $7.50 on Freemius and $5.50 on Lemon Squeezy; a $100 subscription renewal from a non-US card costs up to $9.50 and $7.50. Before tax, with Freemius gateway fees at the Exhibit A maximums. | ||
| WordPress plugins and themes | +2.3% | No extra fee |
| Freemius adds 2.3% for WordPress plugins, themes, add-ons and templates, which it says covers its WordPress SDK, the server resources that deliver updates, and compliance with WordPress's guidelines. Lemon Squeezy charges the same fee for any product; it delivers WordPress plugin and theme updates through its licence keys, API and its own WordPress plugin, which you set up yourself. | ||
| Volume pricing | Published steps above $50,000/month | By negotiation |
| Freemius's pricing page lists a falling share on each band of monthly gross sales: 3.7% from $50,000 to $60,000, 3.5% to $70,000, 3.0% to $80,000, 2.0% to $90,000, 1.0% to $100,000 and 0.5% above $100,000. Gateway fees still apply. On our arithmetic, with $100 US-card sales and gateway fees at the listed maximums, Freemius becomes cheaper than Lemon Squeezy's list price at around $210,000 a month. Lemon Squeezy offers custom pricing on request to large sellers, high-volume sellers and products under $10. Freemius says existing sellers on older plans keep them unless they ask to switch. | ||
Platform fee
Freemius
3.8% + 50¢ + gateway fees
Lemon Squeezy
5% + 50¢ (card fees included)
As of November 2026. Both are charged on the full amount the buyer pays, including sales tax or VAT. Freemius's figure is its own share; the Stripe or PayPal gateway fee is passed through on top. Lemon Squeezy's fee includes card processing and currency conversion. Neither charges a setup or monthly fee. Freemius charges €0.45 or £0.40 instead of 50¢ on EUR and GBP sales.
Gateway fee on top
Freemius
Up to 2.9% + 30¢ (US card)
Lemon Squeezy
None
Freemius's vendor terms (last updated 14 October 2026), in an exhibit headed "Maximum Gateway Fees", list Stripe's fee at 2.9% + 30¢ for a US-issued card, plus 1.5% for a non-US card and 0.5% on subscription payments, and PayPal's at 3.49% + 30¢ for a US PayPal account, plus 1.5% for non-US accounts. Freemius says it uses best efforts not to exceed these figures and that they can change with the gateways' own pricing. Freemius's documentation says the current average effective gateway rate is 3.5% and that it keeps no part of it. Lemon Squeezy has no separate gateway fee.
Surcharges
Freemius
+1.5% non-US card; +0.5% subscriptions
Lemon Squeezy
+1.5% non-US; +1.5% PayPal; +0.5% subscriptions
Freemius's surcharges are part of the gateway fee in its vendor terms, and its 0.5% subscription surcharge is listed for Stripe only; Lemon Squeezy's are added to its platform fee. Paid by US card, a $100 one-off sale costs up to $7.50 on Freemius and $5.50 on Lemon Squeezy; a $100 subscription renewal from a non-US card costs up to $9.50 and $7.50. Before tax, with Freemius gateway fees at the Exhibit A maximums.
WordPress plugins and themes
Freemius
+2.3%
Lemon Squeezy
No extra fee
Freemius adds 2.3% for WordPress plugins, themes, add-ons and templates, which it says covers its WordPress SDK, the server resources that deliver updates, and compliance with WordPress's guidelines. Lemon Squeezy charges the same fee for any product; it delivers WordPress plugin and theme updates through its licence keys, API and its own WordPress plugin, which you set up yourself.
Volume pricing
Freemius
Published steps above $50,000/month
Lemon Squeezy
By negotiation
Freemius's pricing page lists a falling share on each band of monthly gross sales: 3.7% from $50,000 to $60,000, 3.5% to $70,000, 3.0% to $80,000, 2.0% to $90,000, 1.0% to $100,000 and 0.5% above $100,000. Gateway fees still apply. On our arithmetic, with $100 US-card sales and gateway fees at the listed maximums, Freemius becomes cheaper than Lemon Squeezy's list price at around $210,000 a month. Lemon Squeezy offers custom pricing on request to large sellers, high-volume sellers and products under $10. Freemius says existing sellers on older plans keep them unless they ask to switch.
Best For Your Business
Recommendations based on your business type
WordPress plugin or theme seller
Recommended
Freemius
Freemius's WordPress SDK handles sales inside the WordPress admin, licensing, automatic updates and staged releases. It costs 2.3% more, but Lemon Squeezy's updater has to be wired up yourself on a platform whose chief executive has said the goal is an easy migration to Stripe Managed Payments.
New SaaS or app business choosing its first merchant of record
Recommended
Freemius
Freemius is independent and still developing its product. Lemon Squeezy is cheaper per sale, but its chief executive has said the goal is to give users an easy way to migrate to Stripe Managed Payments, so a new business would likely face a second migration.
Existing Lemon Squeezy seller with a working store
Recommended
Lemon Squeezy
There is no fee to stay and no closure date has been announced, and Lemon Squeezy's list price is lower per sale. Plan a move at your own pace rather than waiting to be moved.
Seller who needs cash flow within weeks
Recommended
Lemon Squeezy
Lemon Squeezy pays out twice a month after a 13-day hold. Freemius pays monthly for sales made in the month before last, a wait of roughly 40 to 70 days.
Software business selling over about $210,000 a month
Recommended
Freemius
Freemius's share falls on published steps to 0.5% on sales above $100,000 a month, which on our arithmetic makes it cheaper than Lemon Squeezy's list price at around $210,000 a month with gateway fees at their listed maximums. Lemon Squeezy's volume pricing is by negotiation only.
Freemius: Best for 3 use cases
Lemon Squeezy: Best for 2 use cases
Frequently Asked Questions
Common questions about this comparison
No closure has been announced, and Lemon Squeezy still takes sign-ups as of November 2026. But Stripe, which bought it in July 2024, now runs its own merchant-of-record product, Stripe Managed Payments. In January 2026 Lemon Squeezy's chief executive wrote that the team had been focused on it, that support had slowed, and that the goal was to give Lemon Squeezy users an easy way to migrate.
Not at list prices for most sellers. Freemius charges 3.8% + 50¢ plus a Stripe or PayPal gateway fee listed at a maximum of 2.9% + 30¢ on a US card; Lemon Squeezy charges 5% + 50¢ with card fees included. A $100 US-card sale costs up to $7.50 on Freemius and $5.50 on Lemon Squeezy. Freemius's share falls above $50,000 a month in sales, so it becomes cheaper at around $210,000 a month on our arithmetic. Freemius does not charge extra for affiliate or cart-recovery sales, which Lemon Squeezy does.
Freemius adds 2.3% for WordPress plugins, themes, add-ons and templates. It says this pays for its WordPress SDK, which sells, licenses and updates a plugin from inside the WordPress admin, plus compliance with WordPress's guidelines and the servers that deliver updates. SaaS, desktop apps and browser extensions pay the base 3.8% + 50¢ plus gateway fees.
Freemius pays around the 10th of each month for sales made in the month before last, with a $100 minimum, so January's sales are paid on 10 March. Lemon Squeezy pays on the 14th and 28th of each month after holding sales for 13 days, with a $50 minimum. Payouts to a US bank account are free on both.
Yes. Both act as merchant of record: they are the legal seller to your customer, and they collect and remit sales tax and VAT, issue invoices and handle fraud screening, refunds and disputes. Both charge their fee on the full amount the buyer pays, including tax.
Yes. Neither has a fixed term or exit fee. Freemius's vendor terms ask for 30 days' written notice, and it may keep a reserve from renewals processed after you leave for up to three months. Lemon Squeezy lets you cancel at any time, but your access ends after the billing cycle, so export your data first.
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