Shopify Payments fees explained: Costs by plan & payment method

Key takeaways

• Shopify Payments fees in the UK range from 2% + 25p (Basic plan) to 1.5% + 25p (Advanced plan) for domestic card transactions, with international cards adding a 2% surcharge

• Currency conversion fees of 2% apply whenever customer payment currency differs from your payout currency, compounding with card processing fees on every international sale

• Airwallex offers multi-currency accounts that eliminate forced currency conversion, saving ecommerce businesses approximately 2-4% on international transactions

Understanding payment processing costs forms a critical part of ecommerce profitability. Shopify Payments presents itself as a convenient solution, but the true cost extends beyond the percentages displayed on pricing pages.

This guide breaks down Shopify Payments fees across subscription tiers and payment methods. We'll explain how costs change by plan, what additional charges apply to international sales, and where merchants underestimate the total impact on margins.

What are Shopify's payment fees?

Shopify charges merchants processing fees on every customer transaction, deducting these costs before payouts reach your bank account. These fees cover card network charges, payment processing, fraud prevention, and platform integration.

Shopify's fee structure combines two components: a percentage of the transaction value plus a fixed per-transaction charge. For UK merchants on the Basic plan, Shopify charges 2% + 25p per domestic card payment. A £100 sale costs £2.25 in processing fees, leaving £97.75 for payout.

Transaction fees differ from processing fees, though the terms are often used interchangeably. Transaction fees specifically apply when merchants use third-party payment providers instead of Shopify Payments, creating an additional charge layered on top of the external provider's fees.

Platform-level costs encompass broader fees beyond transaction processing, including currency conversion charges (2%), international card surcharges (2%), and chargeback fees (£15 per dispute).

How Shopify Payments pricing works by plan

Shopify structures payment fees to decrease as you move up subscription tiers, creating an incentive to upgrade as transaction volume grows.

Basic Shopify (£19/month) charges 2% + 25p for domestic card transactions. Processing £10,000 monthly costs approximately £225 in fees, plus the subscription cost.

The Shopify plan (£49/month) reduces fees to 1.7% + 25p. The same £10,000 costs approximately £195 in processing fees—a £30 monthly saving.

Advanced Shopify (£259/month) offers the lowest fees at 1.5% + 25p. Processing £10,000 costs approximately £175, but the £240 higher subscription means this only becomes cost-effective at higher volumes.

Here's the breakeven analysis:

For most UK merchants, Advanced Shopify becomes cost-effective above approximately £45,000-£50,000 in monthly card sales.

Shopify Payments fees by payment method

Processing costs vary substantially depending on how customers pay, creating different margin impacts across your payment mix.

Credit and debit card transactions carry the standard fees outlined by your plan (1.5-2% + 25p in the UK), representing approximately 80-90% of payment volume for most UK businesses.

Digital wallets (Apple Pay, Google Pay, Shop Pay) process at the same rates as standard card transactions—there's no premium or discount for wallet-based payments.

Local and alternative payment methods introduce complexity. PayPal through Shopify Payments follows the same fee structure as cards. But, PayPal Express Checkout requires paying both PayPal's fees (approximately 3.4% + 55p) and Shopify's third-party transaction fee (0.5-2% depending on plan), creating combined costs of 3.9-5.4%.

Shopify Payments credit and debit card fees

Card processing costs form the largest payment expense component, with fees determined by both your subscription plan and the card type used.

Domestic card fees in the UK follow the tiered structure: 2% + 25p (Basic), 1.7% + 25p (Shopify), and 1.5% + 25p (Advanced). "Domestic" means cards issued by UK banks and processed through UK networks.

International card fees add a 2% surcharge on top of the base rate. A French-issued card triggers 4% + 25p on Basic (2% base + 2% international), whilst Advanced charges 3.5% + 25p.

This surcharge applies regardless of the currency displayed. Even if prices show in GBP and the customer pays in GBP, a non-UK card triggers the additional 2% fee.

Shopify Payments foreign transaction and FX fees

Currency conversion costs represent one of the most significant but least visible expenses for internationally selling merchants.

FX conversion fees of 2% apply whenever customer payment currency differs from your payout currency. If your store pays out in GBP but a customer pays in EUR, Shopify converts the EUR and charges 2% on the converted amount.

A customer pays €100, converted to approximately £87. Shopify deducts the 2% conversion fee (£1.74), leaving £85.26 for payout. You've lost 2% before accounting for card processing fees.

Selling in multiple currencies compounds these costs. Shopify Markets allows displaying prices in local currencies, but every foreign sale incurs the 2% conversion fee when settling to your payout currency.

Cross-border charges layer additional costs. The 2% international card surcharge and 2% currency conversion fee combine when foreign customers use foreign cards. Total: base card fee (1.5-2%) + international surcharge (2%) + conversion fee (2%) = 5.5-6% on international sales.

Additional Shopify Payments fees merchants often overlook

Several less obvious costs impact profitability, particularly as stores scale internationally.

Chargebacks carry a £15 fee per occurrence, charged even if you successfully contest the dispute. Stores with fraud rates above 0.5% see these accumulate quickly.

Refund processing creates a hidden cost. When you refund customers, Shopify returns the sale amount but retains both the card processing fee and any currency conversion fee. Refunding a £100 international sale means you pay out £100 but lost approximately £4-6 in non-refundable fees.

This "refund trap" particularly impacts fashion merchants with return rates above 20%. Processing £50,000 monthly with a 25% refund rate means paying fees on £12,500 worth of returned sales—losing approximately £250-750 monthly.

How Shopify Payments fees impact ecommerce margins

Understanding percentages doesn't reveal true impact until examining real transaction volumes and product economics.

Low-margin businesses face particular pressure. A store selling electronics at 8% gross margin loses nearly half its profit to payment processing. On a £500 laptop with £40 profit, domestic card fees (£7.75) consume 19% of gross margin.

High-volume stores processing £500,000 monthly with 40% international sales pay approximately:

• £7,500 in domestic card fees

• £7,000 in international card fees

• £4,000 in currency conversion fees

• Total: £18,500 monthly (3.7% of GMV)

International sales create the greatest margin differential. Domestic UK sales cost 1.5-2% whilst international sales cost 5.5-6%—a 4% difference means international customers need 4% higher gross margins to match domestic profitability.

Shopify Payments vs third-party payment providers

Merchants often evaluate whether alternative providers offer better economics than Shopify's integrated solution.

Stripe charges 1.4% + 20p for UK cards (lower than Shopify's 1.5-2%), but Shopify adds transaction fees when using external providers: 2% (Basic), 1% (Shopify), or 0.5% (Advanced).

The comparison:

• Stripe: 1.4% + 20p + 0.5% Shopify fee = 1.9% + 20p (Advanced)

• Shopify Payments: 1.5% + 25p (Advanced)

• Difference: 0.4% - 5p per transaction

Processing £50,000 monthly saves approximately £175 using Stripe, but you sacrifice unified reporting, automatic reconciliation, and integrated fraud tools.

Third-party providers like Stripe support 135+ currencies and local payment methods that Shopify Payments doesn't offer natively. For merchants targeting specific European markets, these options can increase conversion rates by 15-25%.

When Shopify Payments fees become a growth constraint

Payment costs that seemed manageable at launch become material constraints as operations scale internationally.

Expanding into new markets reveals the limitation of single-currency payouts. You cannot hold multiple currencies—every sale converted incurs the 2% fee, creating permanent margin erosion regardless of volume.

Increasing international mix compounds this. A store expanding from 10% to 60% international sales sees conversion fees jump from 0.2% to 1.2% of total GMV.

Multi-currency complexity creates operational challenges. Shopify Markets displays local prices but doesn't eliminate conversion costs. Merchants cannot hold payments in original currencies, choose conversion timing, or pay suppliers in received currencies.

Reducing ecommerce payment fees with Airwallex

Modern payment infrastructure for global eCommerce operates differently from single-currency models.

Airwallex provides multi-currency accounts that hold 20+ currencies without forcing conversion. When EUR customers pay, euros remain as euros. Paying EUR suppliers or advertising eliminates the 2% conversion fee entirely.

Instead of forced conversion with 2% fees, Airwallex offers:

• Multi-currency accounts with no forced conversion

• FX rates within 0.4-0.6% of mid-market rates

• No international card surcharges

• Ability to pay suppliers in original currencies

For businesses processing £500,000 monthly with 40% international sales, switching could save:

• Currency conversion eliminated: £4,000/month

• Better FX rates: £1,800/month

• Total: £69,600 annually

Conclusion

Shopify Payments fees follow a tiered structure: 1.5-2% + 25p for domestic UK cards, with additional 2% surcharges for international cards and 2% conversion fees when currencies differ. Combined, these create 5.5-6% total costs on international transactions versus 1.5-2% domestically.

For merchants with limited international exposure, Shopify Payments offers convenient processing. But, as international sales grow, the forced single-currency model and compounding fees erode margins substantially.

The fundamental limitation isn't the percentage charged but the lack of multi-currency capability. Modern eCommerce operates across borders—infrastructure designed for single-currency domestic sales no longer aligns with operational realities.

Open an Airwallex account today and access multi-currency payment infrastructure built for global eCommerce.

FAQs

Do Shopify Payments fees change automatically when you upgrade your plan?

Yes. Shopify Payments fees adjust automatically when you upgrade your plan, applying the new rate structure to all transactions processed after the plan change. The fee changes happen immediately upon upgrade—you don't need to reconfigure payment settings. Transactions already processed under the previous plan retain the old fee structure in payouts.

Does Shopify charge extra fees for accepting payments in multiple currencies?

Yes. Shopify charges a 2% currency conversion fee whenever customer payment currency differs from your payout currency, regardless of how many currencies you accept. This fee applies to every converted transaction. Displaying prices in multiple currencies through Shopify Markets doesn't eliminate conversion fees—it only affects customer-facing pricing whilst conversion fees still apply when settling to your single payout currency.

Do Shopify Payments fees apply to subscription and recurring payments?

Yes. Shopify Payments applies standard processing fees to subscription payments identically to one-time purchases. A subscription billing £50 monthly incurs the same percentage and fixed fee as a £50 one-time purchase. If the subscription involves currency conversion, the 2% fee applies to every recurring charge, creating permanent margin reduction on subscription revenue.

How do Shopify Payments fees compare to using multiple local payment providers?

Shopify Payments offers simplicity whilst multiple local providers can reduce fees by 0.5-1.5% and enable holding currencies without forced conversion. But, managing multiple providers requires technical integration and separate reconciliation. For most merchants under £500,000 monthly GMV, operational complexity outweighs fee savings. Above that threshold, dedicated multi-currency infrastructure becomes cost-effective.