About Shopify's Transaction Fees

About Shopify's Transaction Fees

Anyone using Shopify Payments will not have to pay any transaction fees, no matter which Shopify Plan you choose. Shopify Payments is the most powerful and easy to use payment processing system available. Benefits include: Instant approval, real-time payment tracking, full integration with the Shopify Admin, easy chargeback recovery, no transaction fees, and extremely competitive pricing. Learn more about Shopify Payments here: www.shopify.com/payments

Hidden fees are everywhere, except at Shopify!

Every reliable ecommerce solution on the market today charges a variable transaction-type fee, in one form of the other. Often times these fees are hidden to consumers until you get a surprisingly high bill at the end of the month. For example, we've recently read a lot of horror stories about surprise "excess bandwidth charges" found on monthly bills from other ecommerce platforms. The cost you could pay for excess bandwidth is almost never listed on any ecommerce provider websites, there's often nothing you can do to reduce these charges, and, worst of all, you can be charged for excess bandwidth even if you don't sell a single item.

Other providers hide transaction fees under their credit card processing system terms and conditions, calling them "Fraud Score" fees, "Gateway Access" fees, "Monthly Statement" fees, "Monthly PCI Compliance" fees, or something even more exotic.  Some even charge "Early Termination" fees when you get fed up and decide to leave for another company.

16 comments

  • fola
    fola
    May 07 2012, 10:33PM

    so simply put we are charged on every product we sell basically? A fee is applied am I right?

  • @Shopify Mark Hayes
    Mark Hayes
    May 11 2012, 04:51PM

    fola: Yes, for some of the plans. Our Unlimited plan does not have a transaction fee.

  • John
    John
    September 16 2013, 02:45PM

    I will put an end to this thread. As I am doing research for a ecommerce platform as well.

    The transaction fee is waived if you use Shopify’s payment system instead of “pay pal” or any 3rd party system.

    If you do use 3rd party payment, then you have a fee… BUT.

    It seems thus far that Shopify is beating Volusion because I WILL NOT get screwed with bandwidth overages. They look expensive. I have yet to look into big commerce but that is my next task.

  • SFtrading
    SFtrading
    November 04 2013, 10:09AM

    Use Shopify’s payment processing system and there is no fee. If you give your customers the option of choosing Paypal or something, then you’ll get charged 2% on top of what Paypal charges. This is a shame because others do not do charge you a fee regardless of what your customer chooses. Plus, in their pricing break-down, it’s not obvious or disclosed unless you hover your mouse to where it says “0% Transaction Fees.” Kind of sneaky.

  • FairyNiceEssentials
    FairyNiceEssentials
    November 18 2013, 09:08AM

    OK…here is the “skinny”. If you use Shopify WITH another gateway (i.e.-PayPal) you pay ONLY the PayPal fees. Nothing goes to Shopify. HOWEVER, if you use another gateway EXCLUSIVELY, you will pay Shopify an additional 2% fee.

    THEREFORE, give your customers an option and you will save money.

    Cheers and happy selling.

    Michael

  • CMJ
    CMJ
    April 17 2014, 01:43AM

    You can only use Shopify Payments if you are a resident of the USA or Canada. Shopify store owners anywhere else still pay two fees for every transaction. I’ve love to add an extra option for payments but it’s not available to me.

    Any word on when Shopify Payments will be available to the rest of the world?

  • Lianne
    Lianne
    May 18 2014, 03:27PM

    I’m with CMJ. Thinking of moving to Shopify but am put off by the fact there is no option to use Shopify payments in the UK yet and I don’t fancy paying the extra transaction fee due to having to use another payment option.

    If anyone could advise when Shopify payments will be available in the UK I would really appreciate it.

  • maya
    maya
    July 04 2014, 04:19PM

    Still dont understand how much gets taken then if i start of with starter pack how much will be taken if its 2.0% if i sell something for £10

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  • Ramesh
    Ramesh
    July 21 2014, 02:32AM

    Anyone one ask me which is the best online transaction. I preferred shopify is best one……….

  • Roshini Davidson
    Roshini Davidson
    July 28 2014, 11:35AM

    I read the forums and am a tad more than confused.. what i understand is that ( and let it be known i’m a very small home business owner wanting to sell handmade craft online)the unlimited pack costs 179 dollars a month, if you use the unlimited pack ( which is so far only US and Canada and no where else) and shopify’s own payment gateway you are not charged a transaction fee. The basic pack (29 dollars) is charged 2% transaction fee regardless of which payment gateway you use ( plus the gateways own transaction fee) and the Professional pack (79 dollars) charges 1% in addition to the payment gateway you use fees.
    All Shopify fees is a % from product+shipping+tax
    This is ridiculous when im just a small home business!!
    I had better make at least 50 dollars a month just to cover my marketing, let alone my product restock

    :D

  • TW
    TW
    October 03 2015, 03:22PM

    Roshini Davidson:
    I’ve only just found out even the shipping costs are part of the transaction fees!! Seriously it’s so unclear!! The 0% fee is only available in US, Canada and UK. And only just found out after subscribing as well! Clearly I’m not in one of those regions and we are paying huge sums of HIDDEN COSTS everywhere!

  • Lehn
    Lehn
    October 30 2015, 08:34AM

    How to charge the transaction fee, if the order success through PayPal or third party payment per order ? If the order pending and I did not get paid .are there still charge ?

  • Lorean
    Lorean
    November 03 2015, 04:34AM

    You shopify greedy master, you even make us pay an extra app for a freaking wish list feature, with all the money you charge plus the extra tax on our hard earned money you must at least include more features out of the box but of course you wont do it. Also, shopify app for mobile has pretty bad reviews.

    Your investors first, your customers last. You will fall with all your arrogance.

  • Justin
    Justin
    November 04 2015, 06:22PM

    You would have to be out of your mind to be willing to pay 2%+ in ADDITION to what your merchant charges. We’re talking 4-5% at that point – rates usually reserved for the highest of high risk businesses. Those aren’t merchant rates, those are affiliate program numbers, in fact, some affiliate programs even pay less than that. Ask yourself this, aside from the numbers involved, what is the additional Shopify fee actually for? Nothing. It is meant to force you to use their service exclusively, and even if you do, you are paying more than you would from a standard merchant account by about 1/3! I’ve got news for you Shopify users. I 2 merchant accounts at 2.19% (card not present rate) and I sell products that are typically considered high risk. Newsflash – ecommerce isn’t getting any easier and unless you have an exclusive product, price competition is fierce in most niches. If you think that 5% chunk won’t matter, think again. Shaving 5ish percent off the top should not be an option for a smart online business owner. I use a different cart, which I won’t mention here as to not risk this comment being removed, but my bandwidth is adequate and it costs me $99 each month. So what I pay, for all the features Spotify has is $99/mo. + 2.19% and $0.25 transaction fee. Period. Sure, the shopping cart company gets that $99/mo regardless of whether I make any sales BUT when I do very well and have a banner day or week, no one’s got their hands in my pockets taking a cut for a yet as of now unexplained reason. Regardless, Shopify is getting their monthly fee in the exact same way. Ask yourself logically – why would a good company charge me an additional 2% ON TOP of my merchant fees. Are they bringing customers in like Amazon or eBay? No. So why pay them a commission on your hard work. Look at it like this. I sell $10K on my cart in a month, I pay the ecommerce company $99 for the month. If you make that same $10K on Shopify, and you are using your own gateway you will be paying a total of $500 plus your monthly plan, which at that level would likely be $179 since that is what you will have to pay to get real time shipping quotes – a feature mind you that is standard on most cart plans at the free or bare minimum plan level. So let’s say $679 vs $319 just to keep things nice and neat. That is more than twice as expensive. If people didn’t stand for these exorbitant fees, they wouldn’t be able to charge them, and again, there is no justifiable reason I have seen as to why they charge you an additional 3% to use another gateway. To my knowledge they are the only company that does this. Doesn’t that strike you as a bit odd? Plus they are charging a 3% rate even if you use their payments – that is still a very high rate for which you cannot negotiate. On the flipside, you can negotiate and shop around for rates with “real” merchant account providers. All of this is nonwithstanding the other fees involved with using Shopify – you will run into these as your business grows and they nickel and dime you for services other carts provide for free. Popularity doesn’t equal superiority. Be careful if you are mom and pop and crunch your math, or you will learn later on when you are faced with leaving a platform in the middle of shopping season.

  • Kerem
    Kerem
    November 16 2015, 07:47PM

    I am quite confused, when we sold something, paypal takes their commission, on top of that why does shopify charge us an extra 2% ?? In this case if the customers checkout with paypal, we will be charged 2% + 2,5% to sum up 4.5% commission…

    That’s unfair, I must have misunderstood that if the customer checks out with paypal we were not gonna pay an extra 2% commission…
    Please some one explain …
    Regards
    Kerem

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