---
title: "Shopify Transaction Fees Explained (2026): What You Actually Pay"
description: "The difference between card processing and Shopify's third-party transaction fee, what each plan charges, and how to stop paying the one that is avoidable."
url: https://easyappsecom.com/guides/shopify-transaction-fees-explained
date: 2026-09-06
---

# Shopify Transaction Fees Explained (2026): What You Actually Pay

EasyApps Ecommerce

Last updated: September 2026

TL;DR: There are two separate fees and confusing them is expensive. Card processing (2.9% + 30¢ on Basic, down to 2.5% on Advanced in the US) is unavoidable — everyone pays a processor. Shopify's third-party transaction fee (2% on Basic, 1% on Grow, 0.6% on Advanced, 0.2% on Plus) applies only if you use a payment provider other than Shopify Payments, and is charged on top of that provider's own fee. Where Shopify Payments is available, using it removes the second fee entirely.

### Shopify Payments Removes the Second Fee

Open a store with Shopify Payments from day one — 3 days free, then $1/month for 3 months. Plus earn 1% of your sales back in Shopify credits. [Start your free trial](https://shopify.pxf.io/Gbn46r)

*[Affiliate link](https://easyappsecom.com/affiliate-disclosure) — EasyApps may earn a commission at no extra cost to you. Shopify's price is the same either way.*

**TL;DR:** There are **two separate fees** and confusing them is expensive. **Card processing** (2.9% + 30¢ on Basic, down to 2.5% on Advanced in the US) is unavoidable — everyone pays a processor. **Shopify's third-party transaction fee** (2% on Basic, 1% on Grow, 0.6% on Advanced, 0.2% on Plus) applies *only* if you use a payment provider other than Shopify Payments, and is charged on top of that provider's own fee. Where Shopify Payments is available, using it removes the second fee entirely.

## The Two Fees, and Why People Confuse Them

Almost every complaint about Shopify "taking a cut" is really about one of these two, and they behave completely
 differently.

|  | Card processing | Third-party transaction fee |
|---|---|---|
| Who charges it | The payment processor | Shopify |
| When it applies | Every card order, always | Only if you do not use Shopify Payments |
| Typical size | 2.5%–2.9% + 30¢ | 0.2%–2.0% |
| Avoidable? | No — every platform has one | **Yes** |

The first is the cost of accepting cards and exists everywhere, including on WooCommerce, BigCommerce and Etsy. The
 second is specific to Shopify's business model, and it is the one worth understanding properly.

## Card Processing Rates by Plan

Through Shopify Payments, in the United States:

| Plan | Online | In person | On $10,000/mo, 200 orders |
|---|---|---|---|
| Basic | 2.9% + 30¢ | 2.6% + 10¢ | about $350 |
| Grow | 2.7% + 30¢ | 2.5% + 10¢ | about $330 |
| Advanced | 2.5% + 30¢ | 2.4% + 10¢ | about $310 |
| Plus | Negotiated | — |  |

**Rates are set per country.** Canadian, British, European and Australian merchants see different
 numbers, and the gap between plans differs too. Check the rate for your own market rather than assuming the US figure.

Note how small the plan-to-plan difference is at this volume: $40 a month between Basic and Advanced, against a $360
 difference in plan price. Upgrading for the rate alone only makes sense much higher up — see below.

## The Third-Party Fee: The Avoidable One

If you process payments through anyone other than Shopify Payments — PayPal as a primary gateway, Stripe
 directly, Authorize.net, a regional provider — Shopify adds its own fee on top.

| Plan | Fee | On $5,000/mo | On $20,000/mo | On $50,000/mo |
|---|---|---|---|---|
| Basic | 2.0% | $100 | $400 | $1,000 |
| Grow | 1.0% | $50 | $200 | $500 |
| Advanced | 0.6% | $30 | $120 | $300 |
| Plus | 0.2% | $10 | $40 | $100 |

This is charged *in addition to* what your gateway charges. A merchant on Basic doing $20,000 a month through
 an external provider pays roughly $580 to that provider *and* $400 to Shopify. Switching to Shopify Payments
 removes the $400 outright.

**PayPal is the common trap.** Offering PayPal as an express checkout option alongside Shopify Payments
 generally does not incur the fee. Using PayPal as your primary gateway does. If you are not sure which setup you have,
 check your payment settings before assuming.

## When the Fee Difference Justifies an Upgrade

The right way to decide is arithmetic, not feature lists. Upgrade when the fee saving exceeds the plan
 difference.

### Basic to Grow ($66/month more)

On Shopify Payments the rate drops 0.2 points, so you need **$33,000 a month** in card sales for the
 processing saving alone to pay for it. On an external gateway the third-party fee drops a full point, so the crossover
 is **$6,600 a month** — five times sooner. Most people upgrading at $5,000–$10,000 are doing it
 for the five staff accounts and professional reports, which is a legitimate reason; just be clear that is the reason.

### Grow to Advanced ($294/month more)

The rate drops another 0.2 points, so the processing crossover is **$147,000 a month**. On an external
 gateway the third-party fee drops 0.4 points and the crossover is **$73,500**. Below that, you are buying
 custom reports and 15 staff accounts, not saving money.

**The general rule:** if you use Shopify Payments, upgrade for features. If you use an external gateway,
 upgrade for the fee — or better, work out why you are not on Shopify Payments.

## How to Pay Less

1. **Use Shopify Payments where it is available.** Nothing else on this list comes close — and it
 is now worth more than the fee saving alone, because Shopify's **1% sales credits** promotion also
 requires it. An external gateway costs you the third-party fee *and* forfeits up to $10,000 in subscription
 credits over your first six months.
2. **Raise average order value rather than chasing rates.** The 30¢ per-transaction component is
 fixed, so it hurts small orders disproportionately. A $20 order pays 4.4% all-in on Basic; an $80 order pays 3.3%.
 Bundles, [upsells](https://easyappsecom.com/guides/shopify-upsell-strategies) and
 [free shipping thresholds](https://easyappsecom.com/guides/free-shipping-threshold-optimization) reduce your effective rate without
 negotiating anything.
3. **Take annual billing** once the store is stable — 25% off the subscription side.
4. **Reduce chargebacks and refunds.** Processing on a refunded order is not returned. Clear product
 photography, accurate descriptions and honest shipping estimates are a payments cost saving as much as a CX one.
5. **Audit your apps at the same time.** Merchants who care about a 0.2% rate difference are frequently
 paying $150 a month for apps they no longer use.

## Frequently Asked Questions

### Does Shopify charge a transaction fee if I use Shopify Payments?

No. Shopify's third-party transaction fee applies only when you use a payment provider other than Shopify Payments. You still pay standard card processing — 2.9% + 30¢ on Basic in the US, down to 2.5% + 30¢ on Advanced — but no additional Shopify fee.

### How much is Shopify's third-party transaction fee?

2% on Basic, 1% on Grow, 0.6% on Advanced and 0.2% on Plus. It is charged on the order value, in addition to whatever your external payment provider charges. On Basic at $10,000 per month in sales that is $200, which is more than five times the plan fee.

### Does using PayPal trigger the transaction fee?

Offering PayPal as an express checkout button alongside Shopify Payments generally does not. Using PayPal as your primary payment gateway does. Check your payment settings to see which arrangement you actually have.

### Why does Shopify charge a fee for using another gateway?

Shopify's pricing model subsidises the platform fee with payments revenue. When you process elsewhere, Shopify recovers some of that through the third-party fee. Whether that is reasonable is a fair debate; that it is avoidable in most countries is the practical point.

### Is it worth upgrading plans just for lower fees?

Only above a clear threshold. On Shopify Payments you need roughly $33,000 per month in card sales to justify Basic to Grow on processing alone, and roughly $147,000 for Grow to Advanced. On an external gateway those crossovers fall to about $6,600 and $73,500. Below those levels you are paying for features, not savings.

### Do I pay processing fees on refunded orders?

The processing fee on the original transaction is generally not returned to you when you refund a customer. This makes refund rate a direct payments cost, and it is one reason accurate product descriptions and photography pay for themselves.

## Related Guides

- [How Much Does Shopify Cost in 2026?](https://easyappsecom.com/guides/how-much-does-shopify-cost-2026)
- [Basic vs Grow vs Advanced](https://easyappsecom.com/guides/shopify-basic-vs-shopify-vs-advanced)
- [The Shopify Costs Nobody Warns You About](https://easyappsecom.com/guides/shopify-hidden-costs)
- [Shopify Upsell Strategies](https://easyappsecom.com/guides/shopify-upsell-strategies)
- [Free Shipping Threshold Optimization](https://easyappsecom.com/guides/free-shipping-threshold-optimization)