Shopify Credit Card Fees and How to Manage Them

Shopify credit card fees can eat into your profits, but there are ways to manage them. Shopify charges a flat fee of 2.9% + 30¢ per transaction for online credit card payments.

To minimize these fees, consider using alternative payment methods like Shopify Payments, which charges a flat rate of 2.4% + 30¢ per transaction. This can save you money on credit card fees.

You can also take advantage of Shopify's built-in features, such as the ability to offer free shipping on orders over a certain amount, which can help increase average order value and reduce the impact of credit card fees.

Shopify merchants might not be aware that the amount Shopify pays them isn’t just sales, but a combination of sales, fees, shipping income, gift cards, and other transactions.

To accurately understand your business expenses, you need to distinguish the fees that have been deducted from this amount. This will help you price products properly and reduce business costs.

Shopify has different types of fees, including subscription fees, theme fees, domain fees, Shopify Payments fees, third-party transaction fees, conversion rates and fees, shipping fees, returns, refunds, exchanges, chargebacks, Shopify Fulfillment Network fees, Shopify Email fees, Shopify POS fees, and third-party app fees.

Here are the different fees you should account for correctly:

These fees can vary depending on your Shopify plan, and it's essential to properly categorize them in your accounting system and record, adjust, and reconcile them each month.

Shopify Payments fees can be broken down into four main categories: Payment processing fees (Domestic), Payment processing fees (Cross border), Transaction fees, and Conversion fees.

Domestic payment processing fees apply to credit cards issued within the same country as your store.

Cross border payment processing fees apply to international credit cards, and are charged when processing a credit card issued in a different country.

Transaction fees are charged whenever a payment, refund, or other financial transaction is processed, and the cost will depend on your Shopify subscription plan.

Conversion fees are charged to convert currencies when capturing a payment, and are 1.5% in the US and 2% in other countries.

The fees you pay will depend on how much you use Shopify Payments services, and the more your customers use the options to pay for your goods or services, the higher your fees will be.

Shopify Payments is Shopify's own payment gateway, making it easy to take Visa and Mastercard payments directly in your checkout. It's a convenient option for customers and can simplify your profit calculations.

Shopify prefers to process all payments themselves, which means they make more money this way. This doesn't necessarily affect you, but it's good to know the reasoning behind Shopify Payments.

Using Shopify Payments can save you money on PayPal fees. According to the table above, if you have Shopify Payments turned on, you don't incur any fees from PayPal, and you only pay the Shopify Payments rates.

Here are some benefits of using Shopify Payments:

Shopify itself doesn't charge specific fees for returns, refunds, or exchanges. However, merchants should be aware of the costs associated with handling these processes.

Transaction fees are one thing to consider. When issuing refunds, the original transaction fee paid to the payment processor is often not returned. This means Shopify Payments retains the original transaction fee even if the full amount is refunded to the customer.

Currency conversion fees can also apply. If the original transaction involved currency conversion, these fees are generally not refunded.

Shipping costs are another consideration. If you choose to provide a shipping label to cover the cost of return shipping, you'll need to factor that into your costs.

Here's a breakdown of the potential costs to consider:

Restocking fees and the cost of damaged/unsellable items are other costs to consider as well.

Chargebacks can be a costly issue for merchants, with a fee of $15 in the U.S. for Shopify Payments.

Merchants may also lose revenue from the sale if the dispute is resolved in favor of the customer.

Chargebacks can occur for various reasons, including fraud, dissatisfaction with the product or service, or failure to receive the product.

The chargeback fee is refundable in the U.S., with Shopify typically refunding the dispute fee if the merchant wins the dispute.

Merchants can learn more about chargebacks on the Shopify Help Center.

If you're on the Basic Shopify plan, you'll pay a third-party transaction fee of 2.0% on top of the payment provider's fees. This fee is charged by Shopify for using a third-party payment gateway.

Shopify Payments, on the other hand, doesn't charge an additional transaction fee if you use it. Instead, you'll pay a credit card processing fee of 2.9% + 30¢ for online credit/debit card rates.

Here's a summary of the credit card processing fees for the Basic Shopify plan:

Keep in mind that these fees are subject to change, and it's always a good idea to check the Shopify Help Center for the most up-to-date information.

Conversion rates are the exchange rates at which one currency is converted into another, sourced from financial services providers in Shopify.

Shopify uses market rates for currency conversion, which means the rates are constantly changing based on market conditions.

These rates affect the amount of money you receive in your payout currency when a customer makes a purchase in a different currency.

Shopify Payments offers several benefits, including the simplicity and processing speed of Stripe, all within your Shopify dashboard. This means you don't have to jump between different dashboards to manage sales.

One of the main advantages of using Shopify Payments is that you don't incur any added transaction fees, unlike most other payment gateways. This can help you save money on fees.

You can also get better processing fees than most of the competition if you're on a higher-tier Shopify plan. This can be a significant advantage for businesses with high sales volumes.

If you opt to use Shopify Payments, your customers will find it easier to check out, making the shopping experience more streamlined.

Shopify credit card fees can be complex, but understanding the different types of fees can help you navigate the process.

There are two main types of fees to consider: third-party transaction fees and standard credit card processing fees.

Third-party transaction fees are charges applied when you use a payment gateway other than Shopify Payments. These fees vary depending on your Shopify subscription plan and are designed to cover the cost of integrating and maintaining connections with third-party payment gateways.

You can avoid these additional transaction fees by using Shopify Payments, but you'll still incur standard credit card processing fees.

Managing fees is a crucial aspect of running a Shopify store. You'll need to understand the different types of fees associated with credit card payments.

Shopify's third-party transaction fees are charges applied when you use a payment gateway other than Shopify Payments. These fees vary depending on your Shopify subscription plan.

To minimize overall transaction costs, many merchants opt to use Shopify Payments where available. This way, you can avoid additional transaction fees.

Shopify Payments is an effective way to ensure that your customers can easily make purchases from your store. However, you still need to reconcile the purchases and their associated fees.

With Reconcilely, you can export your payouts into individual invoices and ensure that they are synced with your accounting system. In simple terms, it opens the door between Shopify and your Shopify accounting app.

Returns can be a headache, especially when it comes to managing fees. Shopify itself doesn't charge specific fees for returns, refunds, or exchanges.

However, there are some costs to consider. Transaction fees, for example, are not returned when issuing refunds. This means that if you used Shopify Payments, you'll still be charged the original transaction fee even if you refund the full amount to the customer.

Currency conversion fees are also not refunded if the original transaction involved currency conversion. This can add up quickly, especially if you're selling internationally.

Shipping costs can also be a consideration. If you choose to provide a shipping label to cover the cost of return shipping, you'll need to factor that into your fees.

Here are some of the fees you might incur when handling returns:

It's worth noting that these fees can vary depending on your specific situation. It's always a good idea to review your Shopify plan and payment processing fees to get a clear understanding of what you'll be charged.

Shopify Payments offers the simplicity and processing speed of Stripe while remaining fully integrated with your Shopify dashboard, meaning it only takes a few minutes to install and you don’t have to jump to the Stripe dashboard to check sales.

One of the major advantages of using Shopify Payments is that you don’t have to worry about added transaction fees. Unlike most other payment gateways, Shopify doesn’t charge any extra fees when you use Shopify Payments.

If you’re on a higher-tier Shopify plan, you can also get better processing fees than most of the competition. This can help you save money and increase your profit margins.

Here are the key benefits of using Shopify Payments:

Shopify offers various pricing plans, but one of the most significant costs is the transaction fees, which range from 0.2% to 2% depending on your plan.

The Starter plan costs $5 per month, while the Advanced Shopify plan costs $299 per month, and the Plus plan costs $2,300+ per month. Each plan has different features and fees associated with it.

Here's a breakdown of the transaction fees for each plan:

Additionally, you'll need to consider other costs such as payment processing fees, duties, and import taxes, which range from 0.85% to 1.5%.

Additional Sales Costs are an essential part of running an e-commerce business on Shopify. These costs include various fees that can add up to a significant portion of your sales revenue.

Third-party transaction fees can range from 0.2% to 2% depending on your Shopify plan. These fees are in addition to the fees you pay to your payments provider. To minimize overall transaction costs, many merchants opt to use Shopify Payments where available.

Shopify Payments credit and debit card fees vary depending on your plan, the type of card, and the type of transaction. For Basic Shopify, fees are 2.9% + $0.30 for online transactions and 2.7% + $0.00 for in-person payments.

Duties and import taxes are applicable to Advanced Shopify and Shopify Plus plans, ranging from 0.85% to 1.5%. Currency conversion fees, on the other hand, are 1.5%.

Here's a breakdown of the various fees you might incur:

Keep in mind that these fees are subject to change, and it's essential to review your Shopify plan and payment options to understand the costs involved.

Shopify is a popular e-commerce platform that offers a range of plans to suit different business needs. Shopify Lite costs $9 per month and is a great option for small businesses or those just starting out.

Shopify's e-commerce platform is required to utilize Shopify Payments, which eliminates many fees associated with third-party payment gateways. This means you'll need to pay for one of Shopify's online store plans, which range from $9 to $2,000 per month.

Here are the costs associated with Shopify's online store plans:

Shopify's payment processing fees are also worth noting. For online transactions, the fees range from 2.9% + $0.30 (Basic Shopify) to 2.4% + $0.30 (Advanced Shopify). In-person payments have even lower fees, ranging from 2.7% + $0.00 (Basic Shopify) to 2.4% + $0.00 (Advanced Shopify).

Shopify offers three main retail options: Retail, POS Lite, and POS Pro. POS Lite is included with all Shopify plans except the $5 Starter plan.

POS Lite is mainly used for processing payments and accepting returns only at the original purchase location. It allows for limited staff logins.

POS Pro, on the other hand, is a fully-fledged POS software tool that allows for unlimited staff access, staff roles and permissions, returns and exchanges at any store, inventory management, retail reports, customer data insight, and more.

You can add POS Pro as an add-on for $89 per month, per location, except on the $5 Starter plan.

Shopify charges a flat rate of 2.9% + 30¢ per transaction for online credit card payments, with no monthly fees, as mentioned in the "Transaction Fees" section.

This fee structure is great for small businesses or individuals who only need to process a few transactions per month.

Shopify offers alternative payment options to give your customers more variety. You can activate PayPal and Amazon Pay alongside Shopify Payments, allowing multiple payment method buttons to appear in the checkout.

Some unique processing options include cryptocurrency and mobile payments, which can be configured in the Payment Settings area of Shopify. These options can't be used with Shopify Payments, so you can choose which one works best for your customers.

All Shopify stores allow for manual payment methods, such as bank deposits and money orders, which can also be configured in the Payment Settings area. This gives you flexibility in how you process payments.

Shopify offers a range of pricing plans to suit different business needs, with the Starter plan costing just $5 per month.

The Starter plan is best for selling on social media, while the Basic Shopify plan is ideal for starting a small online store. The Shopify plan is geared towards small and medium-sized businesses, and the Advanced Shopify plan is designed for international sellers. The Plus plan is for high-volume retailers.

Here's a breakdown of the main features and costs for each plan:

Shopify Payments is a built-in payment gateway that eliminates many fees, but it does come with some extra costs, including a monthly plan fee and transaction fees.

Shopify Pricing Plans are quite affordable, especially for new businesses. The Starter plan costs just $5 per month, making it a great option for small online stores.

You can choose from five different Shopify plans, each catering to specific business needs. The Basic plan is ideal for starting a small online store, while the Advanced Shopify plan is best for international sellers.

One thing to note is that prices vary depending on whether you use Shopify Payments or a third-party payment gateway. If you opt for Shopify Payments, you'll save on transaction fees, but you'll still need to pay for the online store plan, which ranges from $9 to $2,000 per month.

Here's a breakdown of the online store plans and their corresponding prices:

With Shopify Payments, you'll also need to consider the standard credit card processing fees, which range from 2.9% + $0.30 to 2.4% + $0.30, depending on your plan.

Some additional fees to keep in mind include:

It's worth noting that Shopify offers a free trial of three days, which is a good opportunity to test out the platform and see if it's the right fit for your business.

Shopify pricing in Australia is straightforward. The basic Shopify plan costs $39 AUD per month.

You'll also need to consider credit card fees, which add 0.5% to 2% to each transaction, depending on the card type.

In Australia, PayPal transaction fees range from 2.9% + 30 cents per transaction for domestic payments to 4.4% + 30 cents for international payments.

Shopify's credit card rates are competitive, especially for high-volume sellers.

To avoid unnecessary fees, it's essential to understand how Shopify calculates its credit card fees. Shopify charges a fee of 2.9% + 30¢ per transaction for online credit card payments.

As a Shopify merchant, you can minimize these fees by understanding your pricing plan. The Basic Shopify plan charges a fee of 2.9% + 30¢ per transaction, while the Shopify plan charges 2.6% + 30¢ per transaction, and the Advanced Shopify plan charges 2.4% + 30¢ per transaction.

You can also save on fees by using Shopify's built-in payment gateway, Shopify Payments. This option eliminates the need for a third-party payment processor, reducing fees to 2.9% + 30¢ per transaction.

By setting up your Shopify store with the right pricing plan and payment gateway, you can significantly reduce your credit card fees and keep more of your hard-earned money.

If you're new to Shopify, you might have some questions about credit card fees. One common question is whether you pay transaction fees if you use Shopify Payments. The answer is no, you don't pay transaction fees when using Shopify Payments.

Another question is whether you pay transaction fees if you use a payment gateway like PayPal or eWay. The answer is yes, you do pay transaction fees to Shopify when using these payment gateways.