Transaction Charges

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I have a current Shopify store and am paying the 29 USD per month subscription fee.  I'm currently using a third party to manage my online payments.  If I was to switch to Shopify Payments I understand that I'll still be paying the 29 USD per month and then I'm confused as to what transaction fees I'll be paying, if any, as the info that I've read states that there is no transaction fees?  Please could you break this down for me in laymans terms.

Also, my Shopify store is based in New Zealand - does this mean that the Domestic credit card fees apply for orders placed within domestic New Zealand or within domestic US?  And who does International apply to - does that mean transactions placed outside of New Zealand?

Thanks very much

Reply 1 (1)

Shopify Staff
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Hey, @65031813! Welcome to Shopify Community!


The transaction fee and credit card fee are the fees associated with the use of payment gateways in your store, while the subscription fee, which is the $29 USD monthly charge, is the fee associated with the access and use of the Shopify platform. A transaction fee is charged on every order when a third-party payment gateway is used by a customer to pay for an order and a credit card fee is charged on every order when they use Shopify Payments. If you activate the Shopify Payments gateway and this is what your customers use to pay for their order, only a credit card fee will be charged or deducted from your payouts, there is no transaction fee. The only time you will not be paying transaction fees on a third-party payment gateway is when you use PayPal or AmazonPay while Shopify Payments is activated in your store.


The type of credit card fee charged on an order depends on the country where your customer's credit card is issued. A domestic credit card fee is charged when a customer uses a credit card that is issued in the same country as your store (in this case a New Zealand credit card), while an international credit card fee is charged when a customer uses a credit card that is issued in a country that is different from your store's country (a foreign credit card).


Good call on considering to switch to Shopify Payments! Shopify Payments can bring several other benefits to your business besides no transaction fees. When you use this gateway, your store has an elevated checkout experience as it lets customers enter their credit card details and pay for the order within your checkout. Third-party payment gateways redirect them away from your checkout and lead them to their own third-party page to settle the payment, which may disrupt the flow of your checkout. Additionally, you can enable accelerated checkouts with Shopify Payments and offer the flexibility for customers to choose Shop Pay, Apple Pay, or Google Pay to pay for their order.


Another key advantage of using the Shopify Payments gateway is that it can help you expand your business and sell in person. If you ever decide to join a market or have a brick-and-mortar shop, you can use the Wisepad 3 Reader and easily connect it to the Shopify Point of Sale system to accept payments in-person and process them with Shopify Payments. You won't need to set up an external card reader and third-party payment gateway to sell in person.


If you have other questions or need help deciding whether Shopify Payments is the most suitable option for your business, don't hesitate to respond to this post!

Summer | Social Care @ Shopify 
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