Does Shop Pay Installments charge extra fees on top of their regular rate?

[TheLeopardGypsy]

Hi there! I just wanted to verify...

when using shop pay installments, you get charged the 5.9% + .30 cents.

does Shopify charge their 2.9% + .30 ON TOP of that shop pay installment fee??? Total being charged 8.8% + .60???

[Trevor · Accepted solution]

@TheLeopardGypsy 

Excellent question. I'm glad you asked as I didn't know myself. 

Looking into Shop Pay Installments, I can confirm that Shopify Payments' credit card fees do not apply for installment orders. Only the agreed-upon transaction fee from Affirm will be applied on every order (not every installment). 

If you have any other questions about Shop Installments, let me know! 

[amber101]

Affirm is stating that my transaction fee is 7.99 + .30¢. i thought when using affirm thru shop pay, my transaction fee would be around 5% (not sure on the exact number but it was the same rate posted above). Which is unfortunate because their rate is too high for me. the rate is also no where to be found on any of the faqs, email invite, or anywhere on the website, which is frustrating as well

[Trevor]

@amber101 

Shop Pay Installment fees are determined on a case-by-case basis and not generic across all stores. Due to this, a set fee is not included in documentation as each store owner may receive different rates from other store owners. 

[bjj]

I'm quite confused, when I go into my shopify portal I have messages:

1. Klarna needs to be upgraded (yet no way to do so)

2. Offer Shop Installments - but no where does it say how much it cost per item financed.  

Please advise and thank you, youarewhatyousleep.com

[dlevens]

The email they sent out is confusing "...After October 15, 2021 a rate of 5.9% + $0.30 will apply..." this makes it seem like regular shop pay payments will increase from 2.6% + 0.30 to 5.9%? 

That would be a deal breaker, please confirm this insane rate only applies to Shop Pay Installments and NOT to regular Shop Payments?

[amber101]

So what they are saying is the rates for the Shop Pay Installments rates will be decreased until October 15th which is a great thing lol. On October 15th, they will go back to the original rate. Nothing to do with the shop pay rates, this is just for the shop pay installments rates.

[dlevens]

whew! OK good to hear. Who would offer this installment plan at such a
ridiculous rate? I opted out, no way I am paying that much.

[amber101]

i definitely agree. i wish they kept the rates this low permanently. it’s not small business friendly at all. rates that high definitely cut into profits for small businesses. hopefully they can look into keeping the rates this low. 

[Bravus]

I'm confused about this as well. When I set the Shop Pay feature live, it seems that ALL orders -- including the ones that are NOT using installments -- are charged at the higher Shop Pay rate.

Can a moderator chime in an confirm this is NOT the case?

[Trevor]

@Bravus 

They are separate. You should only be charged Shop Pay Installments fees on orders that use Shop Pay.  I would recommend contacting Shopify Support if you're unsure of how the fees are being charged on your orders as they'll have access to your account.