sales-dodo-payments

name	sales-dodo-payments
description	Dodo Payments (dodopayments.com) platform help — developer-first Merchant of Record (MoR) for SaaS, AI, and digital products: sells on your behalf and handles global sales tax/VAT/GST across 220+ countries / 40+ payment methods, with subscriptions, usage/credit billing, one-time payments, embeddable checkout, and license keys. Full REST API (test/live.dodopayments.com, Bearer key) for payments/subscriptions/products/customers/checkout/license-keys/refunds/payouts, Standard-Webhooks-signed events, 9 SDKs, framework adapters, a CLI, and an MCP server. ~4% + $0.40/txn, no monthly fee. Use when integrating payments/subscriptions via the API or SDK, verifying webhooks with the standardwebhooks library, choosing MoR vs a payment processor, handling tax/VAT as MoR, or issuing license keys. Do NOT use for merchant-of-record selection across vendors (use /sales-merchant-of-record), checkout-conversion strategy (use /sales-checkout), or general digital-product strategy (use /sales-digital-products).
argument-hint	[describe what you need help with in Dodo Payments]
license	MIT
version	1.0.0
tags	["sales","payments","merchant-of-record","platform"]
github	https://github.com/dodopayments

Dodo Payments Platform Help

Step 1 — Gather context

If references/learnings.md exists, read it first for accumulated platform knowledge.

1. What are you trying to do?

   • A) Take a payment / create a subscription via the REST API or an SDK
   • B) Build checkout — hosted Checkout Session, embeddable checkout, or a framework adapter
   • C) Verify webhooks (Standard Webhooks) and react to payment/subscription events
   • D) Sell digital products — license keys, entitlements, digital delivery
   • E) Handle MoR concerns — tax/VAT/GST, refunds, disputes, payouts
   • F) Decide MoR (Dodo) vs a raw payment processor, or compare to Paddle/Lemon Squeezy

2. API/SDK or no-code? Code → REST API + a language SDK / framework adapter. Low-code → hosted Checkout Sessions + short links.

Skip-ahead rule: if the user's prompt already provides enough context, skip to Step 2.

Step 2 — Route or answer directly

If the question is about...	Route to...
Choosing a Merchant of Record across vendors (Paddle/Lemon Squeezy/Polar/Creem/Dodo)	/sales-merchant-of-record {question}
Checkout/cart conversion strategy across platforms	/sales-checkout {question}
General digital-product selling strategy across tools	/sales-digital-products {question}
Generic iPaaS wiring to a CRM/ESP	/sales-integration {question}

When routing, give the exact command, e.g. "This is a selection question — run: /sales-merchant-of-record MoR vs Stripe for a global SaaS".

Step 3 — Dodo Payments platform reference

Read references/platform-guide.md for the full reference — the MoR model (what Dodo takes liability for), the billing models (subscriptions/usage/credit/one-time), the object map (what's API vs hosted vs SDK), pricing, and quick-start recipes (create a payment; verify a webhook; spin up a checkout session).

Read references/dodo-payments-api-reference.md for the integration surface — base test/live.dodopayments.com, Bearer auth (Developer → API Keys, read-only/read-write), tiered rate limits, the endpoint catalog (payments, subscriptions, products, customers, checkout sessions, license keys/entitlements, discounts, refunds, disputes, payouts, webhooks management), Standard Webhooks signing (webhook-id/webhook-signature/webhook-timestamp via the standardwebhooks library), the 9 SDKs + framework adapters + MCP server + CLI.

Answer using only the relevant section. Don't dump the full reference.

Step 4 — Actionable guidance

Focus on the user's specific situation:

• MoR = Dodo handles tax liability. Dodo is the seller of record and remits global sales tax/VAT/GST — you don't register/file in each jurisdiction. That's the core reason to pick it over a raw processor (Stripe), at a higher fee (~4% + $0.40 vs ~2.9% + 30¢).
• Use the SDK / framework adapter, not raw HTTP, when you can. Official SDKs (TS/Python/Go/PHP/Java/Kotlin/C#/Ruby/React Native) + adapters (Next.js/Express/Hono/SvelteKit/…) wrap checkout + webhook verification — far less to get wrong.
• Verify webhooks with standardwebhooks. Events are signed per the Standard Webhooks spec (webhook-id/webhook-signature/webhook-timestamp). Use the library (don't hand-roll HMAC); get the signing key from the dashboard or GET /webhooks/{id}/signing-key.
• Test mode is first-class. Use a test.dodopayments.com key + the Dodo CLI (dodo wh trigger) to forward events locally. CLI mocks are unsigned → use unsafe_unwrap() in tests only, never in prod.
• Sell software via license keys + entitlements. Dodo issues/activates/deactivates license keys and handles digital delivery — wire activation to the license + entitlement endpoints.
• There's an MCP server. For AI agents, Dodo exposes an MCP server (and "Agent Skills") — a first-class programmatic surface, not just REST.

If you discover a gotcha, workaround, or tip not covered in references/learnings.md, append it there.

Gotchas

Best-effort from research (2026-06) — API/pricing verified against docs.dodopayments.com; confirm current terms in-account.

1. MoR fee is higher than a processor. ~4% + $0.40/txn (no monthly) — you pay for tax handling/remittance. If you don't want MoR, a raw processor is cheaper; decide via /sales-merchant-of-record.
2. Two hosts, two keys. test.dodopayments.com (test key) vs live.dodopayments.com (live key) — mixing host + key mode 401s.
3. Webhooks use Standard Webhooks — verify with the library. Headers are webhook-id/webhook-signature/webhook-timestamp; the standardwebhooks lib checks signature + timestamp (replay). Hand-rolled checks are the common bug.
4. CLI mock payloads are unsigned. dodo wh trigger mocks aren't signed — unsafe_unwrap() is test-only; production must verify.
5. Confirm exact webhook event names. Switch on event types from the Webhooks doc, not guesses (payment/subscription/refund/dispute/license lifecycle).
6. Rate limits are tiered + dual-window. Default 40/sec + 240/min; read X-RateLimit-*, back off on 429.
7. MoR ≠ instant payouts. As seller of record, Dodo pays you out on a schedule (see Payouts endpoints) — model cash flow accordingly.

Related skills

• /sales-merchant-of-record — Choosing a Merchant of Record across vendors (Dodo vs Paddle/Lemon Squeezy/Polar/Creem/Gumroad vs Stripe+Tax) — selection strategy, MoR-vs-processor tradeoffs
• /sales-checkout — Checkout/cart conversion strategy (order bumps, upsells, AOV) across platforms
• /sales-digital-products — Selling digital products (license keys, delivery, pricing) across tools
• /sales-integration — Wiring Dodo events into a CRM/ESP via webhooks/Zapier
• /sales-do — Not sure which skill to use? The router matches any sales objective to the right skill. Install: npx skills add sales-skills/sales --skill sales-do -a claude-code

Examples

Example 1: Take a one-time payment / subscription via the API (developer/automation)

User says: "How do I charge for my SaaS subscription with Dodo Payments from my backend?" Skill does: Points to the official SDK (or POST /subscriptions / POST /payments against live.dodopayments.com with Authorization: Bearer), or a hosted Checkout Session (POST /checkouts) / framework adapter (Next.js/Express) for the front end. Stresses verifying the subscription. webhooks* with the standardwebhooks library to provision access, and that Dodo (MoR) handles the tax on the charge. Notes test-mode key + CLI for local dev. Result: A working subscription charge with reliable event-driven provisioning.

Example 2: Verify a Dodo webhook so I can trust it

User says: "Dodo is POSTing events to my endpoint — how do I verify them?" Skill does: Explains events follow Standard Webhooks: headers webhook-id, webhook-signature, webhook-timestamp; verify with the standardwebhooks library using the signing key (dashboard or GET /webhooks/{id}/signing-key), which checks the signature and timestamp (replay protection). Recommends a framework adapter (which wraps this), deduping on webhook-id, and dodo wh trigger for local testing (mocks unsigned → unsafe_unwrap() in tests only). Result: Authenticated, replay-safe webhook intake.

Example 3: MoR vs Stripe — should I use Dodo?

User says: "I'm a solo dev selling a global SaaS. Dodo Payments or Stripe?" Skill does: Frames the Merchant-of-Record tradeoff — Dodo becomes seller of record and remits VAT/GST/sales tax worldwide (no per-country tax registration), at ~4% + $0.40 vs Stripe's ~2.9% + 30¢ (where you own tax compliance, even with Stripe Tax which calculates but doesn't remit). Recommends Dodo when global tax compliance overhead outweighs the fee, and routes the cross-vendor decision: "run: /sales-merchant-of-record Dodo vs Paddle vs Lemon Squeezy for indie SaaS." Result: A clear MoR-vs-processor decision grounded in tax liability + fees.

Troubleshooting

My API calls return 401

Symptom: Requests to *.dodopayments.com are rejected. Cause: Wrong host/key mode (test key against live. or vice-versa), a missing Authorization: Bearer header, or a read-only key used for a write. Solution: Match host to key — test.dodopayments.com + test key, live.dodopayments.com + live key. Send Authorization: Bearer YOUR_API_KEY, and use a read-write key for create/update. Keys come from Developer → API Keys.

My webhook signature verification fails

Symptom: Events arrive but verification rejects them. Cause: Hand-rolled verification, wrong signing key, or verifying a re-serialized body — Dodo uses the Standard Webhooks scheme (webhook-id/webhook-signature/webhook-timestamp). Solution: Use the standardwebhooks library with the signing key (dashboard or GET /webhooks/{id}/signing-key) over the raw body; it validates signature + timestamp. For local testing use dodo wh trigger (CLI mocks are unsigned — unsafe_unwrap() in tests only). Dedupe on webhook-id.

Is Dodo charging me tax / why is the fee higher than Stripe?

Symptom: Confusion about MoR fees and tax. Cause: Dodo is a Merchant of Record — it's the legal seller and remits global VAT/GST/sales tax, so its fee (~4% + $0.40) is higher than a raw processor (~2.9% + 30¢). Solution: That premium replaces your own multi-jurisdiction tax registration/filing. If you'd rather own tax compliance for a lower fee, a raw processor fits better — weigh it via /sales-merchant-of-record. Payouts are on a schedule (Payouts endpoints), not instant.