specification: FinOps Framework
specificationVersion: '1.0'
schema: https://www.finops.org/framework/
provider: Polar
providerId: polar-sh
created: '2026-06-21'
modified: '2026-06-21'
reconciled: true
tags:
- Billing
- Payments
- Merchant of Record
- Monetization
- FinOps
- Cost Management
- FOCUS
description: >-
  FinOps view of Polar as a Merchant of Record. Because Polar sells on the
  developer's behalf, "spend" is the set of fees Polar deducts from gross
  sales - a base Merchant of Record transaction fee (percentage + fixed),
  international card surcharges, dispute fees, and Stripe-based payout fees -
  netted against revenue before payout. Tiered monthly plans trade a fixed
  monthly fee for a lower variable rate.
notes: >-
  Fee schedule verified against Polar pricing and Merchant of Record fees pages
  on 2026-06-21; rates change. Verify against the pricing page at reconciliation.
sources:
- https://polar.sh/resources/pricing
- https://polar.sh/docs/merchant-of-record/fees
- https://focus.finops.org/focus-specification/v1-3/
alignedWith:
  framework: FinOps Foundation Framework
  frameworkUrl: https://www.finops.org/framework/
  dataSpec: FOCUS
  dataSpecVersion: '1.3'
  dataSpecUrl: https://focus.finops.org/focus-specification/v1-3/
publisherName: Polar
serviceCategory: Billing and Payments
billingModel:
  pricingCategory: Usage-Based
  billingFrequency: Per Transaction
  billingCurrency: USD
  chargeCategories:
  - Usage
  - Purchase
  - Adjustment
focusColumns:
  ServiceName: Polar Merchant of Record
  ServiceCategory: Billing and Payments
  ProviderName: Polar
  PublisherName: Polar
  InvoiceIssuerName: Polar
  BillingCurrency: USD
  ChargeCategory: Usage
  PricingCategory: Usage-Based
meters:
- name: transaction_fee_percent
  description: Percentage component of the Merchant of Record fee on each transaction (4-5% depending on plan).
  unit: percent
  aggregation: sum
  dimensions:
  - organization
  - plan
- name: transaction_fee_fixed
  description: Fixed per-transaction component of the Merchant of Record fee ($0.30-$0.50 depending on plan).
  unit: transactions
  aggregation: sum
  dimensions:
  - organization
  - plan
- name: subscription_surcharge
  description: Additional 0.5% on subscription payments for Early Member (grandfathered) organizations.
  unit: percent
  aggregation: sum
  dimensions:
  - organization
- name: international_card_surcharge
  description: Additional 1.5% applied to transactions paid with an international card.
  unit: percent
  aggregation: sum
  dimensions:
  - organization
- name: dispute_fee
  description: Flat $15 charged per dispute/chargeback regardless of outcome.
  unit: disputes
  aggregation: sum
  dimensions:
  - organization
- name: payout_fee
  description: Stripe payout fees - 0.25% + $0.25 per payout, $2 per active payout month, plus cross-border conversion fees.
  unit: payouts
  aggregation: sum
  dimensions:
  - organization
- name: monthly_platform_fee
  description: Fixed monthly plan fee ($0 Starter, $20 Pro, $100 Growth, $400 Scale).
  unit: months
  aggregation: sum
  dimensions:
  - organization
  - plan
principles:
- name: Visibility
  description: Reconcile gross sales against Polar fees in the dashboard and via the Orders / Subscriptions export and webhook events.
- name: Allocation
  description: Tag products and use customer external IDs and metadata to map fees and revenue to internal cost centers and teams.
- name: Optimization
  description: Move to a higher monthly plan once sales clear its breakeven (Pro ~$1,379, Growth ~$5,634, Scale ~$19,048 per month) to lower the variable rate; batch payouts to reduce per-payout fees.
- name: Accountability
  description: Review net-of-fee revenue monthly per product and per plan, and monitor dispute rates to control $15 dispute fees.
maintainers:
- FN: Kin Lane
  email: kin@apievangelist.com