- Builds
- Digital products shop (downloads / courses): Stripe vs merchant of record
Digital products shop (downloads / courses): Stripe vs merchant of record
A storefront for a UK creator that takes payment and delivers the file or course access. VAT is handled either by you (Stripe) or by a merchant of record (Lemon Squeezy or Paddle).
Priced from vendor pages
- Prices checked
- 16 Oct 2026
- Updated
- 17 Oct 2026
- Exchange rate
- 1 USD = £0.7489
- Sources
- 8
The stack
PAYStripe Checkout (UK)Lowest feesNo monthly fee
- Layer
- Payments, Path A
- Plan
- 1.5% + 20p per standard UK card
- What it does here
- Lowest fees
- Note
- You are the seller and handle UK/EU VAT yourself
PAYStripe TaxCalculates and files taxper sale / £70.00
- Layer
- Tax (optional, Path A)
- Plan
- Basic: 40p per transaction via payment APIs; Complete from £70/mo on a 1-year contract
- What it does here
- Calculates and files tax
- Note
- Basic rate for Checkout integrations unknown (not shown on the page)
PAYLemon Squeezy (MoR)Handles VAT, signed downloads, licence keysNo monthly fee
- Layer
- Payments, Path B
- Plan
- $0/mo; 5% + 50¢ (£0.37) per transaction
- What it does here
- Handles VAT, signed downloads, licence keys
- Note
- Extra fees possible outside the US or for some payment methods (amount not quantified). Email free to 500 subscribers
PAYPaddle (MoR)Handles taxNo monthly fee
- Layer
- Payments, Path B (alt)
- Plan
- $0/mo; 5% + 50¢ per Checkout transaction
- What it does here
- Handles tax
- Note
- Bespoke pricing under $10. Whether it accepts courses is unverified
HOSTVercel / NetlifyStatic storefront£14.98 / Free / £6.74
MAILResendReceipts and access emailsFree
- Layer
- Plan
- Free (3,000/mo) or Pro $20 (£14.98)
- What it does here
- Receipts and access emails
- Note
- An MoR may send its own receipts
OPSGitHubDependabot + secret scanningFree
- Layer
- Monitoring and security
- Plan
- Free
- What it does here
- Dependabot + secret scanning
- Note
- Secret scanning + push protection free on public repos; private Secret Protection price not found
Steps
Build a static Next.js storefront on Vercel Pro or Netlify.
Done when the product page is live at your URL.
Path A
set up Stripe Checkout with a webhook that issues signed download links or course access, then turn on Stripe Tax or handle VAT with an accountant.
Done when a test purchase triggers the webhook and delivers a link that expires.
Path B
embed Lemon Squeezy checkout (built-in signed downloads and licence keys) or Paddle checkout, with a webhook that grants course access.
Done when a test purchase grants access automatically.
Send receipt and access emails with Resend, unless the MoR already sends them.
Done when the buyer gets exactly one receipt and one access email.
Watch out for
- With Stripe you are the seller of record. UK VAT registration thresholds may apply, and EU VAT on digital services to consumers may apply from your first EU sale. This is not verified here, so get tax advice.
- The MoR 50¢ fixed fee hurts low-price items, and Paddle asks sellers of items under $10 to contact it.
- MoR fees are quoted in USD, so GBP sales may incur currency fees.
What it costs each month
| Stage | Platform (no Lovable) | Stripe fees | Total | + Lovable Pro |
|---|---|---|---|---|
| (a) Free (Netlify Free + Resend Free + Stripe or an MoR) | £0.00 | £0.00 | £0.00 | £22.00 |
| (b) Paid (Vercel Pro) | £14.98 | £0.00 | £14.98 | £36.98 |
| (b) + Stripe Tax Complete (£70.00) | £84.98 | £0.00 | £84.98 | £106.98 |
| (b) + example sales, Path A Stripe (50 × £20 = £1,000, illustrative) | £14.98 | £25.00 | £39.98 | £61.98 |
| (b) + example sales, Path B MoR (50 × £20, illustrative) | £14.98 | £68.72 (MoR fees) | £83.70 | £105.70 |
- Stripe fees on the example: 1.5% × £1,000 = £15.00, plus 50 × 20p = £10.00, making £25.00. The VAT admin is yours, and Stripe Tax costs extra.
- MoR fees on the example: 5% × £1,000 = £50.00, plus 50 × 50¢ = $25 (£18.72), making £68.72, with VAT handled for you. The gap of about £43.72/mo is what it costs not to handle VAT yourself.
- Excluded: VAT on vendor bills, usage overages, domains, disputes, extra payment-method or currency fees, and your own UK VAT liability on the Stripe path.
Still open
- The Stripe Tax Basic rate for Checkout integrations is unknown (not shown on the page).
- Whether Paddle accepts courses or non-software downloads is unverified (its page targets software).
- Lemon Squeezy's "additional fees" for non-US transactions aren't quantified.
- VAT thresholds and rules aren't sourced. Nothing has been tested hands-on.
Sources
- Stackguide desk research, checked 16 Oct 2026
- Stripe UK pricing, Stripe Tax pricing, Lemon Squeezy pricing, Paddle pricing, all checked 2026-10-16
- Hosting and email prices: Vercel pricing, Netlify pricing, Resend pricing, checked 2026-10-16
- FX: Bank of England reference rate (series XUDLUSS): 1 USD = 0.7489 GBP on 16 Oct 2026, checked 2026-10-23
Change log
| Date | Change | Source |
|---|---|---|
| 2026-10-16 | New desk-costed build | Stackguide desk research |
| 2026-10-17 | FX label clarified as 15 Oct 2026 close | Editorial update |
| 2026-10-23 | USD prices re-converted at the Bank of England reference rate, 1 USD = 0.7489 GBP (16 Oct 2026), the one rate used site-wide (was 0.7535, exchangerates.org.uk 15 Oct 2026 close); £ figures and totals re-derived | Bank of England series XUDLUSS, checked 2026-10-23 |