I have just spoken to shopfiy customer services to clarify the fees I currently pay and in particular when my customers use Paypal Express and my understanding is this:
On the basic plan in the UK I pay 2.2% + 20p , then because Paypal is considered an external gateway I pay
a further 2%
So Shopify total fee is 4.2% + 20p on each Paypal transaction. Then there are Paypal fees which can be anything from 3.4% + 20p to factor in.
so the real fee is 4.2% +20p + 3.4% +20p = 7.6% + 40p is this right?
Please could somebody clarify as this seems outrageous to me.
Nick here from Shopify.
Using Shopify Payments, on the Basic Plan, the credit card rates would be 2.2% +20p, as you mentioned. If you use PayPal as a gateway, you wouldn't be charged the extra 2.0% per transaction because even though you're using an external gateway, you still have Shopify Payments active.
So in your case here, the fees you would pay would be the Credit card fees + the fees that PayPal charges themselves. I hope that helps and clarifies it for you.
Shopify has a helpful document going into detail about transaction fee's also which you might find useful.
Don't hesitate to ask should you have any other questions.
All the best, Nick
Hi Nick, please could you clarify then... that a customer paying with Paypal Express checkout, your total fee would be 2.2% + 20p?Because when I phoned your customer services this morning I was told there was an additional 2% as it was an external gateway to be paid. I asked the lady to clarify it a couple of times and she kept I had to pay the additonal 2%. I think your fee table below doesn't explain this clearly.
We have deleted Paypal option from our website until I get this 100% confirmed.
Can I ask if you have Shopify Payments activated? If you do and activate PayPal also (From the Basic Plan and above) the credit card rates would be 2.2% +20p, as you mentioned. If the customer chooses to pay for their order via PayPal you wouldn't be charged the extra 2.0% per transaction because even though you're using an external gateway, because you have Shopify Payments active.
In the instance that someone has Shopify Payments and PayPal activated where the customer chooses to pay with PayPal, the only fees you would incur would be the Credit card fees (2.2% + 20p) and the fees that PayPal charges themselves (which Shopify would have no control over in any way as it is coming from PayPal directly).
If you are not using Shopify Payments as your primary payment gateway the 2.2% + 20p wouldn't be applied here as that is the transaction fee which is applied only to Shopify Payments. In a case like this, it would only be the 2% transaction fee applied.
Hope that helps and is more clear for you.
All the best, Nick
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