For anyone who is also looking at payment solution, you will most likely ask yourself the same question as OP.
If you decide to go with Stripe, remember that with greater control comes greater responsibility. If you have too many fraudulent payments, you can be banned, if you have too many disputes you can be banned.
It will be up to you to declare the VAT amounts to the different countries properly, Stripe will notify you when you have to do so but the won't help you with paying what you owe and won't help you register with each tax office in each different country should you need to do so.
If you have a dispute, Stripe will not help you fight it, in fact from their point of view it is better to force you to settle the dispute by making you pay back the money + dispute fee than get into a long fight with your customer even when you have proof that someone abused the dispute system.
If you go with Paddle, you will have less control. You will get paid once a month instead of having daily payouts like Stripe does. Their checkout experience is not the greatest either (it's not buggy, it juts looks a bit dated), the API access is fairly limited although I hear Paddle and LS are stepping up their game.
Finally most importantly, the users who buy your product will not be your customers. They will be the customers of the MOR and you will become a supplier to the MOR.
So the direct link between you and your customer is not present. That is why the MOR can take on the liability of reporting the VAT to all the tax agencies.
That also means that when there is a dispute related to a payment, the MOR will help you fight it because They are the ones who are technically providing the service.
My honest take is this, if you are just starting out and want to keep moving fast, then go with a MOR but if your business is mature and bringing in some serious cash each month, then maybe you are better off using Stripe and then paying an accounting firm to sort out your VAT payments.
If you decide to go with Stripe, remember that with greater control comes greater responsibility. If you have too many fraudulent payments, you can be banned, if you have too many disputes you can be banned.
It will be up to you to declare the VAT amounts to the different countries properly, Stripe will notify you when you have to do so but the won't help you with paying what you owe and won't help you register with each tax office in each different country should you need to do so.
If you have a dispute, Stripe will not help you fight it, in fact from their point of view it is better to force you to settle the dispute by making you pay back the money + dispute fee than get into a long fight with your customer even when you have proof that someone abused the dispute system.
If you go with Paddle, you will have less control. You will get paid once a month instead of having daily payouts like Stripe does. Their checkout experience is not the greatest either (it's not buggy, it juts looks a bit dated), the API access is fairly limited although I hear Paddle and LS are stepping up their game.
Finally most importantly, the users who buy your product will not be your customers. They will be the customers of the MOR and you will become a supplier to the MOR.
So the direct link between you and your customer is not present. That is why the MOR can take on the liability of reporting the VAT to all the tax agencies.
That also means that when there is a dispute related to a payment, the MOR will help you fight it because They are the ones who are technically providing the service.
My honest take is this, if you are just starting out and want to keep moving fast, then go with a MOR but if your business is mature and bringing in some serious cash each month, then maybe you are better off using Stripe and then paying an accounting firm to sort out your VAT payments.
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