Credit card fees and Transaction fees -Shopify Basic plan UK

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Hello,

I hope you're having a lovely day wherever you are!

I want to make sure i have this right:

Plan: Basic Shopify

Using Shopify payments as gateway

1. If a customer spends £10.00 in total on my store i will be charged 2.2% Credit card rate but no transaction fee as i'm using shopify payments TOTAL= 0. 22p for the order

2. If a customer spends £10.00 in total and uses third party gateway i am charged 2.2% Credit card rate PLUS 20p Transaction fee TOTAL = 0.42p

Does PAYPAL fall under the 2nd example?

Also does Shopify include the cost of postage in the total amount charged - i assume so but thought to ask.

Is this correct?

TIA

 

 

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Shopify Staff
Shopify Staff
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This is an accepted solution.

Hello, @wbyw!

Ash here from the Shopify team. I hope you're having a lovely day as well! 

I understand you're looking for some clarity on credit card rates and transaction fees. I'm happy to help clear this up! If a merchant has Shopify Payments enabled, they don't pay transaction fees on any orders (except in Sweden, Austria and Belgium). This includes orders placed through other gateways such as PayPal Express, etc. This does not however include credit card rates. To help clarify further, let's start with the first example in your post:

  • Customer spends £10.00 on your store and pays through Shopify Payments. In this case, since you're using Shopify Payments, there are no transaction fees, but you will still be charged the credit card rates for your plan. On the Basic Plan, the credit card rates are 2.2% + 20p. This means that your total fee for this case is (£10.00 X 2.2%) + 20p = 44p. 

ccratesspbasic.png

  • In the second example there are two possible answers depending on the payment gateways active on your store:
  1. You have Shopify Payments enabled but the customer chose to pay with a third-party gateway you also have enabled. In this case, since Shopify Payments is enabled, Shopify doesn't charge you any transaction fees. Also, since the payment is going through the third-party gateway, the credit card rates in my above screenshot won't apply. In this case the only fees and rates you would incur are those from the third-party gateway. 
  2. You don't have Shopify Payments enabled, and the customer pays through a third-party gateway. In this case, Shopify charges the 2.0% additional fee since Shopify Payments is not enabled, and you will also be charged any fees or rates from the third-party gateway. 

additionalfee.png

 

PayPal is a third-party payment gateway, so it would fall under one of the two possible outcomes in the second example, depending on wether you have Shopify Payments enabled or not. As for cost of postage, that is added to the cart total that the customer pays. Credit card rates and fees would be deducted from the total amount paid by the customer. 

I hope this helps clear things up, and please feel free to reply back here if you need any further clarification! 

 

Ash | Social Care @ Shopify 
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 - To learn more visit the Shopify Help Center or the Shopify Blog

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New Member
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Ash - you are an absolute gem!

Thank- you for clarifying in such a clear way.

Was i right to assume it calculates fees based on full price of item including postage?

TIA

 

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Shopify Staff
Shopify Staff
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This is an accepted solution.

Hey, @wbyw!

I'm so glad to hear my response was helpful to you! It's my pleasure to help out. As for your assumption, yes you are absolutely correct. Fees will be calculated from the total amount paid by the customer at the time of checkout completion, so that would indeed include postage fees they paid.

Please don't hesitate to reach back out if you need further assistance or any more clarification! 

Ash | Social Care @ Shopify 
 - Was my reply helpful? Click Like to let me know! 
 - Was your question answered? Mark it as an Accepted Solution
 - To learn more visit the Shopify Help Center or the Shopify Blog

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