Hi, I received an additional invoice from Shopify stating “transaction fees” from orders that Sezzle, Klarna, were used. Why is there a transaction fee from Shopify for those orders, there is a fee is already taken out of those payments by their merchant. Shopify didn’t have anything to do with those orders process so again I don’t understand why Shopify would take a fee. How can I avoid transaction fees and yes I have Shopify payments active.
Hey @Visionary_P
You are most welcome here in the Shopify Community.
I understand you have recently noticed some charges for fees on orders using third party payment gateways, and are wondering why this is the case. I’d be happy to help clarify this for you.
That is great to hear you have Shopify Payments enabled! Shopify Payments offers very competitive rates and is a very popular gateway on Shopify. When using Shopify Payments on your store, there are no transaction fees charged on our side for orders placed through Shopify Payments, PayPal or any manual payment methods (cash on delivery, bank deposit, cheque etc.). However, third party transaction fees apply on all third-party and alternate payment gateways (excluding PayPal and manual payments as explained above), even if Shopify Payments is enabled.
Each plan has its own transaction fee rate for using a third-party payment gateway. For more information on the rates that are charged when a customer pays using a third party gateway, feel free to check out our pricing page here, in particular the ‘Shopify Payments’ section:
While you are correct in saying there are fees already charged by the third party payment gateways for using their services, the transaction fees you are seeing in the Billing section of your admin are separate to the processing fees charged by your third-party payment provider. Third party transaction fees are charged on any order that is financially brokered or arranged by Shopify. The transaction fees cover the cost for Shopify to integrate with external payment providers, and vary depending on the plan that you choose as explained above.
For more information on transaction fees on Shopify please refer to our help documentation on this topic here. Did you know that you can also also sell in multiple currencies with Shopify Payments? In doing so, customers can pay in their local currency which can help to increase conversions. If you are selling outside of your region, I would highly recommend checking it out.
Hi,
I’m from Bahrain, will Shopify take a transaction fees + third party fees? because if I open the pricing page, there is nothing about these things. So is it maybe depending on the location?
Hi @hs7
Thanks for reaching out and joining in here. That’s a great question!
The transaction fees/third-party fees you mentioned are essentially the same thing. As you are located in Bahrain, you will need to use a third-party payment gateway as Shopify Payments is not available in that region. When you use a third-party gateway, Shopify does charge transaction fees for transactions processed on your store. This is not location specific, however there are different rates of transaction fees depending on what Shopify plan your store is on.
To learn more, I would suggest checking out our pricing page here. If you scroll down to the section that says ‘Compare plan features’ and click that, it will expand the page showing a table of information. In particular, the ‘Shopify Payments’ section will show you the percentage of third-party transaction fees you will be charged, depending on which plan you are on - Basic Shopify is 2%, Shopify is 1% and Advanced Shopify is 0.5%.
It’s also important to note that some payment gateways may charge additional fees for their services, such as processing fees or monthly fees. These fees are separate from the fees charged by Shopify and may vary depending on the payment gateway used. If you have questions about specific gateways and what their fees might be, it would be best to contact them directly so that they can confirm that for you.
To see what payment gateways are available in Bahrain you can check out this resource here. Also, you might find this guide for setting up third-party payment gateways useful. Are you just starting out with a brand new Shopify store? I’d love to hear more about your store and the kinds of products that you will be selling!
It is absolutely disgusting how Shopify charges this additional 2% fee! Don’t try to justify it, 3rd party merchants are a plug in and should be available as part of the subscription. I hope people leave Shopify in droves, its greed that’s all it is!!!