I’m currently on Shopify plan does that mean our fee for PayPal payment = 1% +2.9% + 30c?
that’s pretty expensive, 4% of revenue. I thought there are tiers of PayPal pricing that can lower the 2.9% but can find any information in my PayPal account. Anyone have insights on ways to lower processing expenses? A significant minority of our shoppers (30%) like to use PayPal to checkout.
Hi, @inlander! Thanks for reaching out about this. The payment processing fees for Paypal can be confusing to wrap your head around at first; Let me explain.
The transaction fee you would be paying on the Shopify plan for using the Paypal gateway would be 1% + whatever Paypal’s fees are. The 1% is a transaction fee from Shopify, and it is applied when using a third party gateway on your store.
However, if you are located in a region that Shopify Payments is supported in, then activating Shopify Payments on your store will result in you not having to pay the extra 1% transaction fee when also having Paypal as a payment option on your store. This is explained in the Help Doc for Shopify Payments processing and conversion fees.
When using Shopify Payments, you don’t pay any transaction fees. If your customers chooses to pay by credit card through the Shopify Payments gateway, then a credit card fee of 2.6% + 30¢ on the Shopify plan would apply to their order amount. However, if your customer instead chose to use Paypal (while still having Shopify Payments active on your store), then there wouldn’t be any other fees from Shopify for that order. It would only be Paypal’s processing fees that would be applied.
Does that make sense? Let me know if you have any other questions or need further clarification. I’m happy to continue the conversation.
Helen | Social Care @ Shopify
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