Does Shopify apply its credit card rate on product or total sales price?

[rayclifford]

Does Shopify charge its credit card rate (e.g. 2.6%) on the product sales price or on the sales price including shipping? just trying to figure out margins.

[Summer]

Hey, @rayclifford! Welcome to Shopify Community!

Credit card fees are charged based on the total payment that a customer pays using the Shopify Payments gateway. If shipping is added to the price of the products when they place an order and go through the checkout, then the total amount of both will be factored into the credit card fee. For example, let's say you are in the US and are on the Basic plan where credit card fees are 2.9% + $0.30 USD. On a $10 order comprising a $5 product and $5 shipping, a $0.59 will be deducted from your payouts if a customer pays using Shopify Payments. You can track your payouts and their fees by going to the payouts page.

Coming up with product prices can be a headache, so I thought I'd share a resource that will help if you need some guidance with pricing. Feel free to check out this blog post and this help doc so you can ensure you earn profit from every sale and make your pricing attractive to customers and visitors.

If you have any other questions about credit card rates, don't hesitate to respond and I'll help you further!