14 Oct 2026 · 8 min read
Payment processor or merchant of record: how to choose
Stripe or a merchant of record like Paddle? How to pick based on fees, tax exposure and who you sell to.
payments stripe merchant-of-recordBy Kelvin · 15 October 2026 · Updated 15 Oct 2026 · 8 min read

Most "free credits for startups" lists are written for day one: a sign-up form, no card required, use it forever. That's not where the real money is. The programs worth chasing kick in once you've actually raised something and your usage has started costing real money — observability bills once you have production traffic, data-pipeline bills once you have a warehouse, compute bills once your infra team exists. Those programs ask harder questions (funding stage, invoice history, employee count) and pay out far more than the sign-up-and-forget tier.

This is a working list of what a Seed-to-Series-B startup can actually claim this month across incident response, cloud compute, data pipelines and search — verified against each provider's own page, not a third-party aggregator guessing at numbers. Aggregator sites are full of these programs, but a striking number of the dollar figures they quote don't actually appear on the vendor's own site anymore, or never did. Every number and eligibility rule below was checked against the provider's current page today; where a program's own page didn't state a figure, we say so instead of filling in a guess.
If you haven't claimed your first round of credits yet, start at the claim-your-credits step for the general strategy; this post is about the next tier up, once you have paying infrastructure to offset.
Self-serve programs ask for a company email and a website. Funded-stage programs ask for proof: a funding round, a spending history, sometimes a named CTO. That friction is the point — providers are trying to find companies that will actually use (and eventually pay for) their product, not collect a credit and churn. In exchange, the numbers are bigger: $50,000–$100,000 is common at this tier, against $500–$5,000 for the no-questions-asked programs.
The trade-off is timing. Several of these want six months of cloud invoices or a live account before they'll talk to you, which means you can't apply before you have the usage to show. Plan around that: use a self-serve credit to get started, and apply to the funded-stage program once your bill is big enough to prove the need.
There's also a structural split worth knowing before you start applying: some programs are self-serve (fill in a form, get an answer in days), and others are sales-led (you talk to a human, and the final number depends on the conversation). PagerDuty, Sentry, Algolia and PostHog are all self-serve. Vultr, Datadog and the non-YC track of Fivetran are sales-led, which means the number in this post is a ceiling, not a guarantee — what you actually get depends on your invoice history and how the conversation goes.
This is the category that gets ignored until the first 3am outage, then suddenly matters a lot. Three programs are worth comparing side by side:
| Provider | Offer | Who qualifies | Partner needed |
|---|---|---|---|
| PagerDuty | 6 months free (20 seats, 20K events, 1K AI actions) | New customers, Seed–Series B | No |
| Sentry | Up to $5,000 in credits | Under 2 years old, under $5M raised | No |
| Datadog | Up to $100,000, one year of Pro | Series A or earlier | Yes, via referral partner |
Six months of AI-powered incident response free for new Seed to Series B customers, no credit card required.
🔥 6 months of AI-Powered Operations free for new Seed-Series B customers (20 seats, 20K events, 1K AI actions), no credit card requiredPagerDuty's offer is the cleanest of the three: no credit card, direct application, and it covers AI-assisted triage, not just paging. The catch is the cap — 20,000 events and 1,000 AI actions will feel generous at ten engineers and tight at fifty.
Up to $5,000 in Sentry credits and priority support for startups under two years old with under $5M raised.
🔥 Up to $5,000 in Sentry credits (12 months) and priority supportSentry's error-tracking credit is smaller but has no partner requirement, which makes it the one to grab first if you don't have an accelerator or VC relationship backing you yet.
A year of Datadog Pro with up to $100,000 in credits for Series A or earlier startups, via a referral partner.
🔥 One year of Datadog Pro, up to $100,000 in credits (via a referral partner)Datadog's number is the biggest on this list, but it only shows up through a referral partner — an accelerator, a VC, or a platform like a cloud credit marketplace. If you're not in one of those relationships yet, check whether your bank or incorporation service bundles a Datadog referral; several of the business banking services do, often alongside similar referral-gated offers from other observability and cloud vendors.
A pattern shows up across all three: the credit is sized to the stage, not to company age. A five-year-old bootstrapped company at Series A gets the same tier as a six-month-old one, and a company with no funding round at all generally doesn't qualify for the Datadog or Vultr tiers regardless of revenue. If you're bootstrapped and profitable rather than funded, PagerDuty and Sentry's "new customer" and "under $5M raised" criteria are the more realistic targets here.
Hosting credits follow the same funded-stage pattern: bigger numbers, more paperwork.
Up to $100K in cloud credits and 35% long-term discounts for recently funded Series A-E startups.
Vultr's program is explicitly sales-led — there's no self-serve form. You'll need a recent Series A–E round and six months of existing cloud invoices before anyone will talk numbers with you, and the eventual offer tops out around $100,000 plus a 35% standing discount once the credits run out. This one makes the most sense if you're already paying a competing cloud provider and want a competitive quote, not if you're choosing your first host.
Cloud platform for web services, workers, Postgres and cron jobs; free tier and startup credits up to $100K.
🔥 Render for Startups: $500 to $100K in credits valid for one year, depending on funding stage and partner investors.Render's credit scales with funding stage and which partner introduced you, from a few hundred dollars up to $100,000, and unlike Vultr it has a usable path for earlier-stage teams through accelerator and investor partners. For a team still picking a host, see the hosting step and the full list at /best/cloud-credits.
Neither of these is the right place to start if you're pre-funding. Platforms like Vercel and Netlify (both covered elsewhere on this site) have smaller but genuinely self-serve credits that don't ask for a funding round at all — worth claiming first, and worth keeping even after you qualify for a bigger Vultr or Render offer, since nothing stops you running different workloads on different providers.
Once there's a product generating real data, the pipeline and search layer start costing money fast — and this is where Y-Combinator-specific programs show up.
$50,000 in free Fivetran usage over 12 months for current and recent Y Combinator companies.
🔥 $50,000 in free Fivetran Standard-plan usage over 12 months for current/recent YC companies (50 or fewer employees)Fivetran's $50,000 credit is tightly scoped: current or recent YC batch, 50 or fewer employees, never a Fivetran customer before. If none of that applies, Fivetran's own startup page doesn't commit to a number for you, so a sales conversation is the honest next step rather than assuming a discount exists.
MongoDB Atlas credits and Voyage AI tokens in four tiers, from bootstrapped to rapidly scaling startups.
🔥 MongoDB Atlas credits and Voyage AI tokens (amount depends on tier)MongoDB runs four unpublished tiers (Inspire, Grow, Innovate, Scale) based on funding stage, so you only learn your actual credit after acceptance. It's one of the few programs here open to bootstrapped teams, not just VC-backed ones.
$10,000 in Algolia search credits, valid for 12 months, for new customers.
🔥 $10,000 in Algolia credits, valid for 12 monthsAlgolia's $10,000 search credit is smaller and partner-free, a reasonable one to claim the moment you add real search to a product rather than waiting for a funding-stage trigger.
$50,000 in PostHog credits for 12 months, plus merch and partner perks, for startups under two years old.
🔥 $50,000 in PostHog credits for 12 monthsPostHog's $50,000 analytics and product-data credit also needs no partner — just a company under two years old — which makes it worth claiming earlier than most of the programs on this list. Pair it with the analytics step if you haven't decided what to track yet.
Notice the split in this category: the two programs with the biggest headline numbers here, Fivetran and MongoDB, both gate the full amount behind a relationship (a YC batch or a VC/accelerator referral) you either have or don't. The two with no gate, Algolia and PostHog, are smaller but available to literally anyone who signs up. If you're outside the YC/VC-partner ecosystem, don't spend time chasing the $50K Fivetran number — go claim PostHog and Algolia instead and move on.
A few rules keep these from expiring unused, echoing the general approach on the credits step:

None of this should decide which database, host or observability tool you pick — that choice should be about fit, not which one gives you $5,000 versus $500. Decide the stack first using Choose your AI coding stack and Build your MVP, then come back to this list and claim whatever matches what you already chose. Switching providers later to chase a bigger credit almost always costs more in migration time than the credit is worth.

The sign-up-and-forget credits get all the attention, but the bigger money is in the funded-stage programs that ask for proof of real usage first. If you're VC-backed or past Seed, check /for/vc-backed for the full partner-gated list; if you're bootstrapped, /for/bootstrapped filters out everything that needs a referral code you don't have. Either way, the concrete next step is the same: pick the two or three programs that match your actual funding stage and spend history today, apply to those, and ignore the rest until your stage changes. For the coding and infrastructure tools these credits actually pay for, VibeCodes tracks which AI coding apps and dev tools are worth running them against. The full, continuously verified list of every program mentioned here lives at /programs, and software discounts that aren't tied to a funding stage are at /perks.
$50,000 in PostHog credits for 12 months, plus merch and partner perks, for startups under two years old.
🔥 $50,000 in PostHog credits for 12 monthsCloud platform for web services, workers, Postgres and cron jobs; free tier and startup credits up to $100K.
🔥 Render for Startups: $500 to $100K in credits valid for one year, depending on funding stage and partner investors.$10,000 in Algolia search credits, valid for 12 months, for new customers.
🔥 $10,000 in Algolia credits, valid for 12 monthsMongoDB Atlas credits and Voyage AI tokens in four tiers, from bootstrapped to rapidly scaling startups.
🔥 MongoDB Atlas credits and Voyage AI tokens (amount depends on tier)Up to $5,000 in Sentry credits and priority support for startups under two years old with under $5M raised.
🔥 Up to $5,000 in Sentry credits (12 months) and priority supportA year of Datadog Pro with up to $100,000 in credits for Series A or earlier startups, via a referral partner.
🔥 One year of Datadog Pro, up to $100,000 in credits (via a referral partner)$50,000 in free Fivetran usage over 12 months for current and recent Y Combinator companies.
🔥 $50,000 in free Fivetran Standard-plan usage over 12 months for current/recent YC companies (50 or fewer employees)Six months of AI-powered incident response free for new Seed to Series B customers, no credit card required.
🔥 6 months of AI-Powered Operations free for new Seed-Series B customers (20 seats, 20K events, 1K AI actions), no credit card requiredUp to $100K in cloud credits and 35% long-term discounts for recently funded Series A-E startups.

14 Oct 2026 · 8 min read
Stripe or a merchant of record like Paddle? How to pick based on fees, tax exposure and who you sell to.
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