What does Paddle take care of when someone buys your software?
If you sell a monthly booking plan through Paddle, the customer pays Paddle, the legal seller for that purchase. Paddle handles the order and covered sales tax or VAT, then pays you what’s due after deductions.
Paddle can answer an order question. If the customer’s card was charged but the app still won’t open a paid calendar, you’re the one who can fix their account.
What can stop you from using Paddle at launch?
Paddle checks the business, product and websites you’ll use to open checkout. It focuses on software. Consulting or physical goods as the main offer are outside that fit. Check the current product rules for your business.
Put a working product description, pricing and terms, privacy and refund policies on your website before submitting it for review. Show what a buyer actually receives. Submit the addresses that will open checkout.
Check the country where your business operates and how you’ll receive the money. A working test checkout doesn’t give you approval for live payments.
What should you try in Paddle’s test account?
Set up a product and price in Paddle’s sandbox. It has its own settings and uses test cards that don’t move real money. Buy your plan as a made-up customer and open the paid part of the app with that account.
In the sandbox, try a plan change, a failed renewal and a cancellation. For each one, compare what Paddle says the customer bought or still has with what their account can actually use. Once the live account and website are approved, set up live products, prices, keys and notification settings separately.
How does the right account get the right plan?
When a customer buys or changes a plan, Paddle sends a message directly to your app called a webhook. The app verifies the signature to check who sent the message, then records which customer has which plan and when a scheduled change takes effect.
If the customer bought access to three booking calendars, check the plan when they add a calendar. An older update for the one-calendar plan should never override a newer upgrade.
Applying the same message twice should leave the customer with the same three calendars. If access looks wrong, compare the current subscription in Paddle with the account it’s attached to in your app.
What does Paddle take out before you get paid?
The public standard rate is 5% plus 50¢ per Checkout transaction. If your account charges the fixed amount in USD, a $20 USD transaction with no added tax gives a $1.50 fee at that rate. That’s a checkout calculation. A payout, the money Paddle sends to your bank, can include other deductions.
If you refund the sale or the buyer disputes it through their bank, check the balance and the terms that apply to the refund and any related costs. When pricing for other countries, check the payout currency and bank route as well as the checkout rate.
| What changes the amount | Where it can cost more |
|---|---|
| Standard Checkout | No standard monthly fee. Custom pricing and separately chargeable optional services are possible. |
| Refunds and disputes | Refund amounts and associated costs can be deducted under the agreement. |
| Receiving your earnings | International transfers, fees charged by banks and currency conversion can affect the amount you receive. |
Should canceling or a declined card lock someone out?
If the customer cancels at the end of the paid period, keep access until the subscription’s scheduled end. Paddle’s customer portal lets the customer cancel, update payment details and get invoices. The app must follow the resulting dates and status.
When an automatic renewal goes past due, Paddle’s guidance is to keep access while the customer has a chance to update the payment details. Test what the app shows while a renewal is being recovered and what it does when the subscription actually ends.
Can you take existing subscribers to another service?
Paddle documents a move to another payment provider that passes its security checks. The providers transfer eligible saved payment details between their secure systems. Export the subscription records separately and agree how the new provider will recreate them.
A working checkout only tells you that you can make a new sale. Rehearse the next renewal for each kind of subscription you need to move. Check the plan, payment method, date and app account. Keep a way to look up old orders and handle refunds from before the move.