Paddle and Stripe: how charging your students actually works — Frequently Asked Questions

Last updated: August 12, 2026

This document explains how Paddle and Stripe actually work when you connect them to your 3LIT3 app to charge your students — what each one does, who invoices whom, how often you get paid, and how much commission each one charges.

Note: 3LIT3 is the platform you use to build and manage your app — it's created and operated by IANOVA. When this document mentions "IANOVA," it refers to the company behind 3LIT3; they're the same thing, seen from two different angles.

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Quick glossary — before you continue

These terms come up all the time when talking about payments, and they're not always clear. You'll need them to understand the rest of the document.

BYOP (Bring Your Own Processor) This is the model 3LIT3 uses so you can charge your students: instead of the money passing through an IANOVA account, you connect your own Stripe or Paddle account, and the money from each sale goes straight to your own account — it never passes through IANOVA. That's why IANOVA doesn't charge commission on your sales: your only cost with IANOVA is the fixed fee for your plan (Starter, Pro, Elite, or Empire), no matter how much you sell.

MoR (Merchant of Record) This is the entity that, before the law and before your student's bank or card, appears as the one who actually sold the product. Whoever holds the MoR role is responsible for three things: issuing the invoice or receipt to the buyer, calculating and remitting the taxes on that sale (VAT, sales tax, or whatever applies depending on the buyer's country), and responding to chargebacks or card disputes.

• Paddle IS MoR for your sales — legally, it's Paddle who sells to your student, not you.
• Stripe, in the mode 3LIT3 uses (BYOP), is NOT MoR — you remain the legal seller to your student.

"Legal seller" The person or company who, before each country's tax authority, is responsible for declaring that sale and paying the corresponding taxes. With Paddle, that role belongs to Paddle. With Stripe (BYOP), that role is yours.

Reverse Invoice A document Paddle automatically generates for you every time it pays you. It's an invoice, but reversed from the usual: instead of you invoicing a customer, it's the accounting record that Paddle is paying you the net amount of your sales for the month. It's not an invoice to a student — it's the invoice for your payment.

KYB (Know Your Business) The identity and business verification process that any serious payment processor requires before letting you charge real money. They ask for your personal details, your business details, and sometimes documents like your articles of incorporation. Both Stripe and Paddle require it before switching to "Live" mode (real money) — it's normal, not a rejection.

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1. What is each one, in one sentence?

• Paddle: your payment processor when your country isn't in Stripe's direct coverage. It's Merchant of Record (MoR) — Paddle sells, you receive a net payment.
• Stripe (in BYOP mode): your payment processor when your country IS directly supported. You connect your own account and remain the legal seller of each sale.

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2. What type of creator is each one meant for?

Paddle is a good fit if:

• Your country isn't among those Stripe supports with a direct account (most of Latin America, except Brazil and Mexico).
• You sell to students in many different countries and don't want to deal with VAT or sales tax for each one yourself — Paddle does it for you, because it's MoR.
• You prefer simplicity over full control: you give up some flexibility and commission, but you get rid of all the tax and invoicing burden.

Stripe (BYOP) is a good fit if:

• Your country is in Stripe's direct coverage (Spain and most of Europe, the US, Canada, Brazil, Mexico).
• You prefer lower fees and faster payouts, and you don't mind handling your own invoicing and tax filing (or you already have an accountant/agency that does it for you).

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3. Who invoices my student?

This is the core difference between the two models, and it depends directly on who the MoR is (see glossary above).

With Paddle

Paddle is legally who sells to your student. Paddle issues that invoice or receipt directly to your student, under Paddle's name, and handles calculating and remitting any tax on that sale.

You don't invoice your students at all. Instead, every month you receive a payment, Paddle sends you:

• A Statement — a summary of your sales, Paddle's fees, and the month's balance.
• One or two Reverse Invoices (see glossary) — the accounting record of the payment made to you.
• A Remittance Advice — proof of the transfer itself.

With Stripe (BYOP)

You remain the legal seller to each student. You (or your own invoicing tool) must issue the invoice to each student, and you bear the responsibility of declaring and remitting any corresponding tax in your country.

Important note: how to record the documents Paddle sends you (the Statement and the Reverse Invoice) in your local accounting is something you should confirm with your accountant — Paddle's mechanism is the same for every country, but how it's declared varies by jurisdiction. This document explains how the mechanism works, it doesn't replace your accountant's advice.

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4. How often do I get paid?

Paddle pays monthly, not per individual sale. The actual cycle:

1. Your sales balance accumulates in your Paddle account throughout the month.
2. On the 1st of each month, Paddle puts together the payment with the accumulated balance — as long as it's above the minimum threshold you configured (minimum $100, adjustable up to $100,000).
3. Paddle sends that payment before the 15th.
4. From there, it takes up to 3 more business days to reach your bank account, depending on the method (SEPA, ACH, or international wire).

If you don't reach the minimum threshold in a given month, you don't receive a payment that month — but you still get the monthly Statement with your sales detail, even if there's no payment attached.

Stripe pays on a shorter cycle, usually every 2 business days in standard mode (rolling payout) — although this varies by country and can start slower on new accounts before stabilizing. Since you're the legal seller, there's no Reverse Invoice or Statement from Paddle — the money arrives directly, and you keep the accounting for each sale yourself.

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5. Fees: how much each one charges

Important — don't confuse two separate charges: this section is about Paddle's or Stripe's own fee for processing the payment. It's completely separate from the monthly fee you pay IANOVA for your plan (Starter/Pro/Elite/Empire, see glossary — BYOP model), which stays the same no matter which processor you use. IANOVA doesn't charge commission on your sales.

Stripe's numbers vary quite a bit by country and by your students' card type — the table shows references, not a fixed rate. Confirm your exact rate in your own Stripe dashboard before setting your prices.

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6. Quick summary

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To keep researching on your own

This document is a help guide so you understand how each platform works in the context of 3LIT3 — it doesn't replace either platform's official documentation, or your accountant's advice for your specific case. For any specific question about your account, your payments, or your taxes, the official source always has the final word:

• Paddle Help Center: paddle.com/help
• Stripe Support Center: support.stripe.com