Understanding Shopify Payments Fees in 2025
Shopify Payments is Shopify's built-in payment processor that allows you to accept credit cards directly on your store without third-party gateways. Understanding the fee structure is crucial for calculating your true profit margins and choosing the right Shopify plan for your business volume.
How Shopify Payments Fees Work
Shopify Payments uses a tiered fee structure based on your subscription plan and transaction location. Every transaction incurs both a percentage fee and a fixed fee, similar to other payment processors like Stripe or Square.
2025 Fee Structure
- •Online Transactions: Basic (2.9% + $0.30), Shopify/Grow (2.6% + $0.30), Advanced (2.4% + $0.30)
- •In-Person/POS: Basic (2.7% + $0.00), Shopify/Grow (2.5% + $0.00), Advanced (2.4% + $0.00)
- •International Cards: Additional 1.5% (US stores) or 2% (non-US stores)
- •Currency Conversion: Additional 1.5% (US stores) or 2% (non-US stores)
- •Chargebacks: $15 USD per dispute (even if you win)
Shopify Payments vs Third-Party Gateways
If you choose NOT to use Shopify Payments and instead use a third-party gateway like PayPal or Authorize.net, Shopify charges an additional transaction fee on top of whatever your payment processor charges.
Third-Party Transaction Fees
- •Basic Plan: Additional 2% per transaction
- •Shopify/Grow Plan: Additional 1% per transaction
- •Advanced Plan: Additional 0.6% per transaction
These fees are in addition to whatever your payment processor charges. For example, if PayPal charges 2.9% + $0.30 and you're on the Basic plan, you'll pay 2.9% + $0.30 to PayPal PLUS 2% to Shopify = 4.9% + $0.30 total.
Choosing the Right Shopify Plan
Your ideal plan depends on your monthly sales volume. While higher-tier plans have lower processing fees, they also have higher monthly subscription costs.
Plan Break-Even Analysis
- •Under $22,000/month: Basic Plan ($39/month) is most cost-effective
- •$22,000 - $147,000/month: Shopify/Grow Plan ($105/month) saves you money on fees
- •Over $147,000/month: Advanced Plan ($399/month) maximizes profit
The calculator above compares all three plans based on your actual transaction volume to recommend the best option.
International & Currency Conversion Fees
If you sell internationally, you'll encounter two additional fee types that can significantly impact your margins.
Cross-Border Fees
- •International Card Fee: Charged when a customer uses a card issued outside your store's country. 1.5% for US stores, 2% for international stores.
- •Currency Conversion Fee: Charged when you accept payment in a currency different from your store's default. 1.5% for US stores, 2% for international stores.
- •Stacking Fees: Both fees can apply to the same transaction. A US store accepting EUR from a German customer would pay base fee + 1.5% international + 1.5% conversion.
Chargebacks & Dispute Costs
Shopify charges a $15 fee for every chargeback, regardless of whether you win or lose the dispute. This fee is designed to cover the administrative costs of handling the dispute process.
Minimizing Chargeback Fees
- •Clear Descriptions: Use detailed product descriptions and accurate images to set proper expectations
- •Tracking Numbers: Always provide tracking for shipped orders and require signatures for high-value items
- •Responsive Support: Address customer concerns quickly to prevent disputes from escalating to chargebacks
- •Fraud Detection: Use Shopify's built-in fraud analysis and consider third-party fraud prevention apps
Calculating True Profit Margins
Many merchants only consider cost of goods sold (COGS) when calculating profit margins, but processing fees can eat up 2-5% of your revenue. To calculate true profit margins, you must account for:
- •Processing Fees: Base Shopify Payments fee (2.4-2.9% + $0.15-$0.30)
- •Additional Fees: International, currency conversion, and chargeback fees
- •Monthly Subscription: Shopify plan cost ($39-$399/month)
- •Cost of Goods: Manufacturing, wholesale, or product costs
- •Operating Expenses: Marketing, shipping, returns, and overhead
Use the calculator above to see exactly how Shopify fees impact your bottom line and which plan gives you the best net profit based on your actual sales volume.
Who Benefits from Shopify Payments
Shopify Payments is ideal for most merchants because it eliminates third-party transaction fees and provides seamless integration with your store. You should use Shopify Payments if:
- •You're in a supported country (Shopify Payments isn't available everywhere)
- •You want faster payouts (2-3 days vs 7+ days with some third-party processors)
- •You value simplified accounting (all fees appear in one Shopify statement)
- •You want built-in fraud protection and PCI compliance
- •You want to avoid third-party transaction fees (save 0.6-2% per sale)
Third-party gateways only make sense if Shopify Payments isn't available in your country, you have existing merchant accounts you must use, or you sell prohibited products not allowed by Shopify Payments.