Merge Gateway vs Vercel AI Gateway
The question that decides it: Is 5% of every token worth paying for content-level controls, or is a fixed seat fee with nothing on tokens the better shape?
Our verdict
Spending more than roughly $400 a month on models per seat you would be buying, or already paying for Vercel seats: Vercel AI Gateway, because a fixed seat fee stops growing where a percentage does not. Needing data-loss prevention, prompt-injection screening or per-customer routing policies, none of which Vercel offers: Merge Gateway, and treat the 5% as the price of those controls.
Why
Both are proprietary, managed-only gateways from companies whose main product is something else. Merge Gateway is a separate SKU from Merge Unified, the HRIS, CRM and ATS integrations product, and its own terms call it a "proprietary large language model aggregator"; it launched on 31 March 2026. Vercel AI Gateway sits inside a developer platform billed at $20 per Pro seat per month. Neither can be self-hosted — Merge documents no self-hosted data plane at all, and Vercel records self-hosting and air-gapped deployment as unavailable — so the decision is not about where the proxy runs. It is about which invoice you would rather grow.
The fee shapes are opposites. Merge's Pro plan is "Pay LLM cost plus a 5% fee" with no platform fee, no seat fee and no request fee, so the gateway bill is a fixed fraction of model spend and rises with it indefinitely. Vercel charges 0% markup on tokens and 0% on credit purchases, and takes $20 per Pro seat per month instead. One Vercel seat is therefore matched by 5% of $400 of monthly model spend: a four-person team paying $80 a month in seats breaks even at $1,600 a month of models. Below that line Merge is the cheaper gateway, and its free tier will carry a prototype — though the pricing page caps it at $10 of LLM usage while the docs say $15. Above it, Vercel's fee stops growing and Merge's does not.
What the percentage buys is governance Vercel does not sell. Merge screens content: Microsoft Presidio-based data-loss prevention, a DeBERTa v3 prompt-injection classifier with thresholds calibrated to a 1% false-positive rate, PII redaction, and an organisation-level zero-data-retention toggle that fails closed across eighteen vendors at no extra charge. Vercel's governance is routing-level only — which provider, which model, and whether that provider retains data — with no native content guardrails and no PII redaction recorded. Vercel also meters several pieces that Merge bundles: team-wide zero data retention and team-wide provider allowlists are $0.10 per 1,000 requests each, Custom Reporting writes $0.075 per 1,000, and reporting queries $5 per 1,000. Per-request ZDR is free, so the metered version is avoidable, but the comparison is not quite 0% either.
The asymmetry that settles most procurement conversations is evidence. Vercel publishes SOC 2 Type 2 as third-party audited, ISO 27001 and HIPAA on its trust centre, a published GDPR DPA, a 30-day retention window, a 99.99% uptime SLA, and a statement that it does not train on your prompts or responses. Merge publishes none of that for Gateway. The SOC 2 Type II, ISO 27001 and HIPAA sentence on merge.dev/security is a company-level claim written around Merge Unified integration data, it is not restated on any Gateway page or in the Gateway Terms, no trust portal or report is named, no log-retention window or uptime SLA is published, and whether Merge trains on customer data is not published. Catalogue is the smaller gap — 360 models counted from Vercel's public unauthenticated models endpoint on 2026-08-29 against 274 catalogue rows spanning 24 model-family prefixes counted on Merge on 2026-09-02 — and neither offers a semantic cache, so if you need one, both are the wrong shelf.
Which one, concretely
Choose Merge Gateway if
- You need content-level controls — Presidio-based DLP, prompt-injection screening and PII redaction — which Vercel does not offer at all
- You want spend caps enforced before any provider is called: HTTP 402 on exhausted org credit, project budgets or per-key limits, rather than Vercel's soft enforcement where the request that crosses the limit still completes
- You hand each of your own customers separate routing policies, BYOK credentials, budgets and API keys, with pass-through usage reporting
- Your monthly model spend is small enough that 5% of it costs less than the seats you would have to buy
Choose Vercel AI Gateway if
- You already pay for Vercel Pro seats, which makes the gateway free at the margin
- You want 0% on tokens and 0% on credit purchases, so the gateway fee stops growing as spend grows
- You need audited compliance evidence today: SOC 2 Type 2, ISO 27001, HIPAA, a GDPR DPA, a 99.99% SLA and a 30-day retention figure
- You want simple caching and a documented OpenAI Responses API, where Merge's native /responses endpoint is its own shape rather than OpenAI's
What catches people out
- Merge's free tier is published as two different numbers — $10 of LLM usage on the pricing page, a $15 spend cap in the docs — and the same pricing card is badged "Credit card required" while listing "Start without a credit card". Prepaid credits also expire one year after purchase and are non-refundable.
- Merge's DLP and prompt-injection protection both fail open by default. A configured blocking policy is telemetry until you set pi_fail_closed and account for DLP's documented fail-open behaviour.
- Merge managed-credential traffic is capped at 100 requests and 100,000 tokens per minute per organisation per provider. BYOK traffic skips those caps, but BYOK requires the Pro plan.
- Vercel's own documentation conflicts on logging: the Logs view shows request inputs and outputs while the security overview says the gateway uses zero data retention by default and deletes prompts after requests complete. Its BYOK also requires purchased credits, can silently fall back to Vercel credentials, and is excluded from budgets.
Side by side
Interpret these fields: How much does an LLM gateway lock you in? · LLM gateway compliance: SOC 2, HIPAA and evidence · How LLM gateway failover actually works
4 of 18 fields differ, marked with a dot. Every figure links to the vendor page it came from. Blank values read Not published rather than No — silence from a vendor is not a negative answer.
| Field | Merge Gateway | Vercel AI Gateway |
|---|---|---|
| Ease of leaving Derived score, higher is easier | 80/100 Some work to leave | 64/84 Some work to leave |
| What kind of product Category | Managed gateway | Managed gateway |
| Who runs it Deployment model | Managed only | Managed only |
| Licence Licence | Proprietary | Proprietary |
| Models available Models available | 3 | 386 |
| Model providers reachable Upstream providers | 4–24 | Not published |
| Markup on model prices Token markup | 5% | None |
| Fee to add funds Credit purchase fee | Not published | None |
| Monthly cost per person Seat fee | Not published | None |
| Can use your own provider accounts BYOK supported | Yes | Yes |
| Does not retain your data Zero data retention | Yes | Yes |
| Content guardrails Content guardrails | Yes | No |
| Strips personal data PII redaction | Yes | Not published |
| Similar-question caching Semantic cache | Not published | No |
| Rule-based routing Conditional routing | Yes | Yes |
| SOC 2 audited SOC 2 audited | Not published | Yes |
| Will sign a HIPAA agreement HIPAA BAA | Not published | Yes |
| How long they keep it Default content retention (days) | Not published | 30 days |
| Could they train on your prompts Training on customer data | Not published — silence, not a no | No |
for Merge Gateway and for Vercel AI Gateway. Want more fields, or a third option in the mix? Open these two in the full comparison tool.
Common questions
Which is cheaper, Merge Gateway or Vercel AI Gateway?
It depends on your model spend per seat. Merge charges LLM cost plus 5%, with no platform, seat or request fee. Vercel charges 0% on tokens and credits but $20 per Pro seat per month. One seat equals 5% of $400 of monthly model spend, so below roughly that figure per seat Merge is cheaper, and above it Vercel is. If your Vercel seats already exist, Vercel wins outright on fees.
Is Merge Gateway SOC 2 certified?
Not on the evidence published for Gateway. Merge states company-level adherence to SOC 2 Type II, ISO 27001, HIPAA, GDPR and CCPA on merge.dev/security, but that page is written around Merge Unified integration data and the claim is not restated on any Gateway page, in the Gateway Terms or on the pricing page. No trust portal or report is named. Vercel, by contrast, publishes SOC 2 Type 2 as third-party audited.
Can either one be self-hosted?
No. Both are managed-only. Vercel records no self-hosted data plane and no air-gapped option. Merge documents none either: no Docker image, Helm chart, binary or install command appears anywhere in its Gateway docs, and Enterprise "Deploy to your own VPC or on-prem environment" is a single pricing-page bullet with no artifact behind it. If self-hosting is a requirement, look at the open-source core of Portkey instead.