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Overview

Polar uses a simple, transparent pricing model with no monthly fees or hidden charges. You only pay when you make money.

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Platform Fee

Polar charges a flat rate per transaction:
4% + 40¢ per successful transaction
This covers:
  • Payment processing infrastructure
  • Merchant of record services
  • Tax calculation and remittance
  • Compliance and regulatory requirements
  • Invoice generation
  • Customer support
  • Platform maintenance and development

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What’s Included

  • No Monthly Fees: Pay only per transaction
  • No Setup Fees: Start selling immediately
  • No Hidden Charges: Transparent pricing
  • All Features: Access to full platform capabilities

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Fee Calculation

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Formula

Platform Fee = (Transaction Amount × 0.04) + $0.40

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Examples

Example 1: $10 Product
  • Transaction Amount: $10.00
  • Platform Fee: (10.00×0.04)+10.00 × 0.04) + 0.40 = $0.80
  • Your Revenue: 10.00−10.00 - 0.80 = $9.20
Example 2: $50 Subscription
  • Transaction Amount: $50.00
  • Platform Fee: (50.00×0.04)+50.00 × 0.04) + 0.40 = $2.40
  • Your Revenue: 50.00−50.00 - 2.40 = $47.60
Example 3: $200 License
  • Transaction Amount: $200.00
  • Platform Fee: (200.00×0.04)+200.00 × 0.04) + 0.40 = $8.40
  • Your Revenue: 200.00−200.00 - 8.40 = $191.60

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Fee Rounding

Fees are calculated using Stripe’s rounding logic:
  • Calculated to the cent
  • Rounded using standard rounding rules
  • Ensures consistency with payment processor

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Payment Processor Fees

In addition to Polar’s platform fee, payment processor fees apply:

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Stripe Processing Fees

Standard Rates:
  • US cards: 2.9% + 30¢
  • International cards: 3.9% + 30¢
  • Currency conversion: +1%
These fees are separate from Polar’s platform fee and are set by Stripe.

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Combined Fee Example

For a $100 US card transaction: 
Transaction Amount: $100.00
Stripe Fee: ($100 × 0.029) + $0.30 = $3.20
Polar Fee: ($100 × 0.04) + $0.40 = $4.40
Total Fees: $7.60
Your Revenue: $92.40 (92.4%)
Actual processor fees depend on card type, location, and payment method. Check Stripe’s pricing for details.

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Fee Deduction Timing

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When Fees Are Charged

Fees are deducted at different stages:

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Immediate (Transaction Time)

  1. Customer completes payment
  2. Payment processor fees deducted by Stripe
  3. Net amount credited to your Polar balance

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At Payout

  1. You initiate payout
  2. Platform fees calculated on gross revenue
  3. Platform fees deducted from balance
  4. Net amount transferred to your bank

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Why Split Timing?

This approach:
  • Provides accurate balance tracking
  • Enables fee credit application
  • Supports multi-currency accounting
  • Simplifies reconciliation

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Fee Credits

You may receive fee credits from:

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Campaign Credits

Referral campaigns may offer:
  • Reduced platform fees
  • Fixed credit amounts
  • Time-limited promotions

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Credit Application

Credits automatically apply:
  1. Payout initiated
  2. Platform fee calculated
  3. Credits applied first
  4. Remaining fees charged normally
  5. Net payout transferred

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Viewing Credits

Check your credit balance:
  • Finance dashboard
  • Account details page
  • API: account.credit_balance

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Additional Fees

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Payout Fees

Standard bank transfers:
  • Free for most currencies and regions
  • Some regions may incur nominal bank fees
  • Instant payouts may have additional charges

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Currency Conversion

When customer currency ≠ your account currency:
  • Stripe’s exchange rate applies
  • Typically includes ~1% spread
  • Rate determined at transaction time
  • Additional 1% fee for international cards

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Refund Fees

For refunded transactions:
  • Stripe processing fee not refunded
  • Polar platform fee fully refunded
  • Original amount returned to customer
  • Your balance debited for refund amount

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Chargeback Fees

If a chargeback occurs:
  • Stripe chargeback fee: $15
  • Deducted from your balance
  • Refunded if you win the dispute

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Custom Pricing

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Volume Discounts

Not currently available, but we’re considering volume-based pricing for high-volume sellers. Contact us to discuss your needs.

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Enterprise Pricing

For enterprise requirements:
  • Custom fee arrangements
  • Dedicated support
  • SLA guarantees
  • White-label options
Contact [email protected] to discuss.

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Fee Structure by Product Type

Our fee structure applies uniformly across all product types:
  • Digital Products: 4% + 40¢
  • Subscriptions: 4% + 40¢ per billing cycle
  • License Keys: 4% + 40¢
  • File Downloads: 4% + 40¢
  • Repository Access: 4% + 40¢ per billing period

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Comparing to Alternatives

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Polar vs Payment Processors

Stripe alone:
  • Fee: ~2.9% + 30¢
  • You handle: Tax, compliance, invoicing
  • Setup: Complex integration
Polar:
  • Fee: 4% + 40¢ + processor fees
  • We handle: Everything including tax compliance
  • Setup: Minutes to start selling

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Polar vs Other Platforms

Gumroad:
  • Fee: 10% (or $10/mo + 3.5%)
  • Similar features
Paddle:
  • Fee: 5% + 50¢ + processor fees
  • Similar merchant of record model
Polar:
  • Fee: 4% + 40¢ + processor fees
  • Open source
  • Developer-focused
  • GitHub integration

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Transparency

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Fee Breakdown

Every payout includes:
  • Detailed fee breakdown
  • Transaction-by-transaction accounting
  • Platform fee calculation
  • Processor fee totals
  • Net payout amount

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Downloadable Reports

  • CSV exports of all transactions
  • Fee detail per transaction
  • Payout summaries
  • Historical data

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API Access

Programmatically access: 
const estimate = await polar.payouts.estimate({
  account_id: accountId
});

console.log(`Gross: $${estimate.gross_amount / 100}`);
console.log(`Fees: $${estimate.fees_amount / 100}`);
console.log(`Net: $${estimate.net_amount / 100}`);

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Tax Implications

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For Sellers

Polar’s fees are:
  • Business expenses
  • Tax-deductible in most jurisdictions
  • Documented in payout invoices
  • Reportable on your tax returns
Consult a qualified tax advisor about your specific tax obligations. We provide documentation but not tax advice.

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Fee Invoices

Reverse invoices available:
  • Platform fees itemized
  • Legal entity details
  • Tax documentation
  • Downloadable PDF
See payout invoices for details.

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Fee Configuration

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Account-Specific Fees

Some accounts may have custom fee arrangements:
  • Campaign-based fee reductions
  • Promotional pricing
  • Legacy pricing grandfathering
Your specific fee rate is shown in:
  • Account settings
  • Payout estimates
  • Transaction details

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Checking Your Rate

const account = await polar.accounts.get(accountId);
const [basisPoints, fixed] = account.platform_fee;
console.log(`Your rate: ${basisPoints/100}% + ${fixed}¢`);

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Questions About Fees

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Why the fixed fee?

The 40¢ fixed fee covers:
  • Payment processing base cost
  • Tax calculation API calls
  • Database transactions
  • Infrastructure costs
  • Support and compliance overhead

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Can fees be waived?

Generally no, but exceptions for:
  • Charity/non-profit projects (case by case)
  • Open source maintainers (campaign credits)
  • Platform development contributors
Contact us to discuss your situation.

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How do fees compare internationally?

Our 4% + 40¢ rate is:
  • Competitive globally
  • Same rate worldwide
  • No regional surcharges
  • Transparent and predictable

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Next Steps

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