Why are y’all charging the transaction fee of (5%+$0.30) to the sales tax also? Your company is automatically charging taxes & directly paying them to state, county, etc. it doesn’t seem reasonable that you’re charging me a transaction fee on the sales tax. Anyway, I will get a second opinion from the FTC.
Topic summary
A merchant questions why Shopify charges transaction fees (5% + $0.30) on the total sale amount, including sales tax and shipping costs. They argue this is unreasonable since Shopify automatically collects and remits sales tax to authorities.
Key Points:
- Transaction fees apply to the entire customer payment (product price + tax + shipping)
- The merchant plans to seek a second opinion from the FTC
- Shopify’s fee structure calculates based on what customers pay, not just product value
Status: The issue remains unresolved. The merchant expressed dissatisfaction with both the fee structure and the quality of the response received. No official Shopify representative has addressed the concern.
Hi @LizzB
Shopify charges transaction fees on the total sale amount, including sales tax, because the fee is calculated on what the customer pays, which includes both the product price and tax. If you find this unfair, you can contact Shopify support or consult the FTC for further clarification.
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Thanks!
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Absolutely, I do find it unreasonable that Shopify also charges the merchant a transaction fee on sales tax AND the shipping. By the way.. your response lacks professionalism. You need to work on that.