"Transaction fee" and "payment processing fee" get used interchangeably — and that confusion costs sellers money. They're two different charges. Here's exactly what Shopify's transaction fee is, when it applies, and the one setting that takes it to zero.
Every Shopify order can involve two separate charges:
If you use Shopify Payments, your transaction fee is 0%. You still pay processing — but the extra Shopify transaction fee disappears entirely.
| Plan | Transaction fee with a third-party gateway | With Shopify Payments |
|---|---|---|
| Basic | 2.0% | 0% |
| Shopify | 1.0% | 0% |
| Advanced | 0.5% | 0% |
| Starter | 2.0% | 0% |
Important: if you use a third-party gateway, you pay both that gateway's own processing fee and Shopify's transaction fee. That's why outside gateways are almost always more expensive overall.
Toggle "Using Shopify Payments" in our free calculator and watch your net profit change in real time.
Free Profit Calculator Full Spreadsheet — $9Shopify Payments isn't available in every country, and some sellers need a specific processor for compliance, high-risk categories, or buyer familiarity (e.g. a region where a local wallet dominates). In those cases the transaction fee is the cost of doing business — but you should still offer Shopify Payments alongside if you can, since it carries 0% transaction fee and accelerates payouts.
Adding PayPal Express through Shopify is a special case: PayPal as an express checkout option generally does not incur the third-party transaction fee the way a full alternative gateway does. Always confirm current terms in your Shopify admin before assuming.
It reduces them if you use a third-party gateway (2% → 1% → 0.5%), and it lowers your processing rate. But if you're already on Shopify Payments, your transaction fee is already 0% — so upgrading only helps via the lower processing rate. Run the numbers before paying for a higher plan: the processing saving has to beat the extra subscription.
The $9 spreadsheet has editable plan + processing settings so you can compare Basic vs. Shopify vs. Advanced on your real volume.
Get the Spreadsheet — $9 Calculator + Pricing Worksheet — $14Use Shopify Payments as your processor. That sets your transaction fee to 0% on every plan. You'll still pay normal card processing, but not the extra 0.5%–2% transaction fee.
Processing fee is the cost of running the card (charged by the processor). The transaction fee is Shopify's additional charge that applies only when you use a non-Shopify payment gateway.
PayPal offered as an express checkout option generally doesn't trigger the third-party transaction fee. A full alternative gateway used as your main processor does. Confirm in your admin, as terms vary by region.
Yes — transaction fees apply to orders processed through outside gateways regardless of how the order is created. Orders paid via Shopify Payments remain at 0% transaction fee.