Shopify transaction fee calculator
Shopify Transaction Fee Calculator
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What is Shopify TRANSACTION fee calculator?
The Shopify Transaction Fee Calculator helps merchants estimate the transaction fees associated with sales on their Shopify store.
Shopify charges transaction fees based on the payment gateway used. The fees vary depending on the plan the merchant subscribes to (Basic, Shopify, Advanced), and the payment method selected.
If merchants use Shopify Payments, they avoid additional transaction fees, but credit card rates apply.
However, if third-party gateways are used, Shopify charges an additional fee (ranging from 2% to 0.5% depending on the plan).
To calculate the fees, merchants input details such as the product price, payment gateway, and order value into the calculator. This tool provides an accurate breakdown of the expected transaction fees for each sale.
It helps businesses understand the financial implications of their payment options, ensuring better decision-making when it comes to selecting payment gateways and optimizing profitability.
How does the Shopify transactions fee calculator work?
The Shopify Transaction Fee Calculator works by estimating the transaction fees based on various factors, including the Shopify plan you are subscribed to and the payment method you use for processing payments. Here’s how it works:
- Enter Sale Details: You input the product’s sale price and the payment gateway you plan to use (e.g., Shopify Payments or a third-party provider like PayPal or Stripe).
- Determine the Shopify Plan: The calculator accounts for your Shopify plan (Basic, Shopify, or Advanced), as the transaction fees differ based on the plan you choose. Shopify’s fees range from 2% on the Basic plan to 0.5% on the Advanced plan for third-party payment gateways.
- Apply Payment Gateway Fees: If you use Shopify Payments, there are no additional transaction fees, but credit card processing fees still apply. If you use a third-party payment gateway, the calculator adds Shopify’s transaction fees in addition to the gateway’s charges.
- Provide Fee Breakdown: After entering this data, the calculator provides a detailed fee breakdown, showing the total transaction fee for each sale.
By using this calculator, merchants can better understand how much of their revenue will go toward transaction fees, helping with pricing strategies and improving overall profitability.
What Fees do Shopify Charge?
Shopify Subscription Fees
Shopify charges a monthly subscription fee for using its platform. The fee depends on the plan you choose:
- Basic Shopify: $39/month
- Shopify: $105/month
- Advanced Shopify: $399/month
Each plan offers different features and tools, including reporting, analytics, and the number of staff accounts.
Transaction Fees
Shopify charges a transaction fee based on the payment method you use to process payments:
- Shopify Payments: If you use Shopify’s built-in payment processor, you won’t pay additional transaction fees. However, you will still be subject to credit card processing fees, which vary depending on your plan.
- Basic Shopify: 2.9% + 30¢ per online transaction
- Shopify: 2.6% + 30¢ per online transaction
- Advanced Shopify: 2.4% + 30¢ per online transaction
- Third-Party Payment Providers: If you choose a third-party gateway (like PayPal or Stripe), Shopify charges an additional transaction fee ranging from 2% (Basic) to 0.5% (Advanced) on each sale.
Credit Card Rates
In addition to transaction fees, Shopify charges credit card processing fees based on the card’s country of origin. These fees vary by plan and region, but the general rates are:
- Online credit card rates (U.S.): 2.9% + 30¢ for Basic, 2.6% + 30¢ for Shopify, and 2.4% + 30¢ for Advanced Shopify.
These fees apply when customers make payments via credit or debit cards through Shopify Payments or a third-party provider.
Additional Fees
There may also be extra costs for premium themes, apps, and certain advanced Shopify features.
Which Shopify Package Should you Choose?
Here’s a table comparing the key features and costs of each Shopify plan to help you choose the best package for your business:
| Feature | Basic Shopify | Shopify | Advanced Shopify |
|---|---|---|---|
| Monthly Cost | $39/month | $105/month | $399/month |
| Staff Accounts | 2 | 5 | 15 |
| Online Credit Card Rate | 2.9% + 30¢ per transaction | 2.6% + 30¢ per transaction | 2.4% + 30¢ per transaction |
| Transaction Fees (Shopify Payments) | 2.0% | 1.0% | 0.5% |
| Transaction Fees (Third-Party Gateway) | 2.0% | 1.0% | 0.5% |
| Reports & Analytics | Basic reports | Professional reports | Advanced reports |
| Shipping Discounts | 5% off | 10% off | 15% off |
| Abandoned Cart Recovery | Yes | Yes | Yes |
| Advanced Reporting | No | No | Yes |
| Gift Cards | No | Yes | Yes |
| Lower Transaction Fees | No | No | Yes |
| International Pricing | No | No | Yes |
Which Plan to Choose?
- Basic Shopify: Ideal for startups or small businesses with limited products and basic reporting needs.
- Shopify: Suitable for growing businesses that need more reporting features, staff accounts, and shipping discounts.
- Advanced Shopify: Best for large businesses or those with significant sales volume, offering the lowest transaction fees, advanced reports, and greater shipping discounts.
Conclusion
The Shopify Transaction Fee Calculator is an essential tool for merchants to understand and plan for transaction costs.
By inputting details such as product price, payment gateway, and Shopify plan, it provides an accurate breakdown of the fees associated with each sale.
This helps merchants make informed decisions about payment processing methods, optimize profitability, and avoid unexpected costs.
Whether using Shopify Payments or a third-party gateway, the calculator offers valuable insights into how different payment options impact your overall expenses. It’s a must-have tool for any Shopify store owner aiming to streamline their financial planning.