Understanding Shopify Fees and Pricing
Shopify charges three types of fees: subscription fees, credit card processing fees, and transaction fees for third-party gateways. Understanding how these fees interact is essential for choosing the right plan and maximizing your profit margins.
The subscription fee is fixed per month. Credit card processing fees are charged as a percentage of each transaction plus a flat per-transaction fee. Third-party gateway fees are an additional percentage charged only if you do not use Shopify Payments.
Shopify Plans and Credit Card Rates
Basic ($39/mo): 2.9% + $0.30 per transaction, 2.0% third-party fee
Shopify ($105/mo): 2.6% + $0.30 per transaction, 1.0% third-party fee
Advanced ($399/mo): 2.4% + $0.30 per transaction, 0.5% third-party fee
When to Upgrade Your Shopify Plan
The decision to upgrade comes down to whether the savings on credit card rates exceed the higher subscription cost. For example, upgrading from Basic (2.9%) to Shopify (2.6%) saves 0.3% on every transaction. At $10,000/month in revenue, that saves $30 in card fees but costs $66 more in subscription. At $25,000/month, the savings equal $75 against $66, making the upgrade worthwhile.
Tips to Minimize Your Shopify Fees
Always use Shopify Payments unless you have a specific reason not to. The additional transaction fee on third-party gateways is significant and adds up quickly.
Focus on increasing AOV. The $0.30 per-transaction flat fee disproportionately impacts smaller orders. An order of $20 pays 1.5% just from the flat fee, while an order of $100 pays only 0.3%. Using upsell tools and free shipping thresholds to increase order sizes reduces your effective fee rate.
Frequently Asked Questions
How much does Shopify charge per transaction?
With Shopify Payments, credit card rates are: Basic plan 2.9% + $0.30, Shopify plan 2.6% + $0.30, Advanced plan 2.4% + $0.30. If you use a third-party gateway, additional fees of 0.5-2% apply on top of your gateway's own fees.
Which Shopify plan is most cost-effective?
It depends on your monthly revenue. Basic is best under $10,000/month. Shopify plan becomes cost-effective around $10,000-$50,000/month. Advanced saves money for stores over $50,000/month. Use this calculator to find your exact breakeven.
What are Shopify Payments fees?
Shopify Payments is Shopify's built-in processor. It eliminates the extra transaction fee for third-party gateways. Credit card rates range from 2.4% to 2.9% plus $0.30 per transaction depending on plan.
How can I reduce my Shopify fees?
Use Shopify Payments, upgrade your plan when volume justifies it, increase AOV to reduce the per-transaction fee impact, and pay annually for 10-25% subscription savings.