Fee's calculation is higher than expected (3,9% + $0,30 instead of 2,9%$+0,30)

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Art80
Tourist
7 0 2

While preparing my online store for a launch I've made several real transactions with my personal card. After that, I did a refund, as it was a test in reality

When checking the transactions log and checking how Shopify's fees were calculated I did not get it:

Screenshot 2021-02-13 at 21.53.28.png

I use Shopify Payments with

  • Credit card rate: As low as 2.9% + $0.30
  • Transaction fee: 0%

So expected to see $30,32*2,9%+$0,30=$1,18, but not $1,48.

After some experiments I've found out the real working formula is 3,9%+$0,30

Any ideas what could be the reason?

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Peter
Shopify Staff
Shopify Staff
1998 150 427

Hi, @Art80

When an order is processed through Shopify Payments, then the order will be subject to the credit card rate. In your case, it would be 2.9% + 30 cents. However; if you refund any of your orders, the credit card rate is not refunded back to you. 

You can not factor in the refunds when calculating the credit card rate for your account, as it will lead to a higher than expected rate. 

Peter | Social Care @ Shopify 
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Art80
Tourist
7 0 2

Hello @Peter 

But I did not ask about refunding credit card rate or not.

I asked why amount of this rate is higher than 2,9%+0,3.

Please check my examples above: it's 3,9%+0,3.

And this is happening for all the transactions I had, not only one.

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Peter
Shopify Staff
Shopify Staff
1998 150 427

@Art80 

Credit card rates are charged per order, and not per payout. Calculating your credit card rate per payout would be an incorrect way of calculating the fees you are paying. In addition, each payout also includes refunds, which would skew your results as the credit card rates are not refunded back to you. You will need to calculate each order individually which is where you'll see that the correct amount is being charged. 

In the event that you are charging in one currency, and getting paid in another, then exchange rates would apply. More information on this feature can be found here. 

Could you share an order example? 

Peter | Social Care @ Shopify 
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 - Was your question answered? Mark it as an Accepted Solution
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Art80
Tourist
7 0 2

@Peter thanks for trying to find the answer on my question.

Yes, I've checked, and seeing the same issue (higher fee than expected) on the transactions (orders) level. 

Attaching the file exported right from transactions page from Shopify. Hope this helps.

payment_transactions_export_1.csv 

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Peter
Shopify Staff
Shopify Staff
1998 150 427

This is an accepted solution.

@Art80 

Thank you for the order examples! I do see what you mean, there are some higher than expected rates appearing. Looking into the fee structure, you may see higher rates if an international card type is used (3.9%+30cents). If you head to Settings/Payment Providers, then click "Manage" for Shopify Payments, you can then click "See Rates" to see what rates apply both domestically, and internationally: 

15-17-6709-84402

 

Seeing as you're seeing a 3.9%+30 cents fee, your customer is likely using an international card (any card that is not issued in your operating country). You can see the issuing country by opening the order, scrolling down to the order timeline, then click on the payment line. From there, click on "Information from Gateway" then scroll down until you see "Payment method details" - Below this, you'll see the issuing country for the card used at the time of purchase.

I apologize for not seeing that sooner; however, I hope that helps clear up the confusion you have. 

Peter | Social Care @ Shopify 
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 - Was your question answered? Mark it as an Accepted Solution
 - To learn more visit the Shopify Help Center or the Shopify Blog

Art80
Tourist
7 0 2

@Peter thank you very much!

Now it's completely clear how the fee is calculated. I did not have any idea there are some other conditions for foreign cards hidden somewhere inside of the "Payment options". And expected the "Credit card rate: As low as 2.9% + $0.30" should work for any payments. Thank you again! The question is solved with your help.