← Payment Processor Update (x3)
So it turns out that everybody needs to be collecting sales tax based on the location of their customers. Why doesn’t anybody talk about this? Why is Stripe so popular when you have to figure out all the tax amounts for various US states and other countries and then file the taxes yourself for everything? Seriously? Do people just pretend they don’t have to do this?
As far as I can tell, the best way to go about this is to use a “merchant of record” who basically acts as an intermediary between you and your customers. This intermediary is who directly handles all your incoming money and is responsible for dealing with your sales tax. And, for the benefit of that, they take a bigger cut of the transactions than Stripe. But that’s a pretty big value for the money if you’re not some big fancy place that can hire tax people.
All that to say, I’ve switched payment processing for Cassette Nest from Stripe to Paddle. I, for one, welcome our new merchant of record overlords. I hope you enjoy your new, even more compliant payment services. Honestly, there should be very little difference for you.