Understanding Shopify online transaction fees / 3rd party fees

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Hello,

 

I want someone please to clarify for me how online transaction fees are calculated. In the basic plan for example Shopify charges nearly 2.9% + 30c for each transaction. So If I want my customers to pay using Master or Visa cards so as far as I understood, I have to integrate with a 3rd party like 2checkout for example. Also from their website it seems there is another fees which I guess was nearly 4.5% + 40c. 

 

So as a result does that mean that the whole transaction fee will be both values added together ? If yes, so this is double the fees from other ecommerce website which do not apply internal transaction fees. 

 

Is my understanding correct ? 

 

Thanks.

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Shopify Staff
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Hey there, @adelz90 

 

Bo here from Shopify Support! 

 

That is a really great question. Transaction fees apply to all orders that are financially brokered (arranged) by Shopify as soon as payment has been captured i.e. any transaction that goes through Shopify's checkout. Transaction fees are calculated for a monthly period, for the total amount of the orders, including taxes and shipping. They are calculated in the following manner: [(cost of products - discounts) + tax + shipping charges] x rate. The rate depends on the merchant's pricing plan, so for the Basic plan, as you have mentioned, it is 2% + 30c. Transaction fees are created at the time the payment for the qualifying order is captured and converted from your currency to USD at that time as well - as it's added to your outstanding invoice. Our rates are automatically updated to keep them current as exchange rates do fluctuate.

 

So to answer your question, yes you are correct. Shopify charged a transaction fee on every order, this is charged to you monthly as part of your invoices. Your payment provider would also charge you their own rate. This is done separately to Shopify and their fee would generally be deducted from your payout prior to you receiving it. 

 

All the Best,

Bo

Bo - Social Care @ Shopify


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Thanks for the fast and clarified answer. 

 

Last point please. This is applied to online transaction only ? If customer pays in CASH Shopify wont charge me extra money ?

 

Thanks.

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Shopify Staff
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That is absolutely correct, I should have clarified that. Any transaction that is not facilitated by our checkout so for example cash on delivery, cash in person, bank transfer, etc will not be charged a transaction fee. 

 

All the Best,

Bo

Bo - Social Care @ Shopify


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Hello,

If I import orders from Amazon and other marketplaces to Shopify, will I get charged a transaction fees on these imported orders?

The imported orders will be paid on the Marketplace. Shopify will only list/display them so that I can manage all orders from one place. 

Thanks  for your reply,

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Shopify Staff
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Hey there, @estoxoo 

 

Transaction fees are only charged on orders that were facilitated by the Shopify checkout, if you import an already processed order you will not be charged. 

 

All the Best,

Bo

Bo - 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

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