Choosing a billing stack is one of the most consequential financial decisions for an indie SaaS founder. Pick the wrong model, and you will spend weekends wrestling with foreign tax forms and reconciling multi-currency payouts.
Payment Gateway vs. Merchant of Record
Payment Gateways (Stripe, Braintree, Adyen): Pure technical pipes. You are the legal merchant. You register for taxes, handle disputes, and maintain compliance.
Merchant of Record (LaunchXact, Dodo Payments, Paddle): Full-stack legal and financial partner. The MoR is the merchant of record on paper. They assume tax and dispute liability, giving you clean, passive payouts.
The 4 Key Cost Drivers
- 1. International Customer Percentage: Higher cross-border volume triggers exponential tax and FX fees on raw gateways.
- 2. Average Order Value (AOV): Fixed per-transaction fees (30¢) disproportionately penalize low-cost micro-SaaS ($10–$29/mo).
- 3. Number of Tax Jurisdictions: Each country where you cross nexus thresholds adds filing overhead.
- 4. Founder Time Cost: Your hours spent on bookkeeping carry a massive opportunity cost.