# Shopify Transaction Fees: Complete Breakdown

*Last updated: June 2026*

Shopify transaction fees are one of the biggest hidden costs for DTC brands. Most founders know they're paying fees, but few understand exactly how much and why.

In this guide, we'll break down every Shopify transaction fee so you can calculate your true costs.

## The Fee Breakdown

### Shopify Payments (Default)
If you use Shopify Payments (Shopify's built-in processor):

| Plan | Online Rate | In-Person Rate |
|------|------------|----------------|
| Basic | 2.9% + 30¢ | 2.7% + 0¢ |
| Shopify | 2.6% + 30¢ | 2.5% + 0¢ |
| Advanced | 2.4% + 30¢ | 2.4% + 0¢ |

### Third-Party Processors
If you use PayPal, Stripe, or another processor:

| Processor | Rate |
|-----------|------|
| PayPal | 2.99% + 49¢ |
| Stripe | 2.9% + 30¢ |
| Authorize.net | 2.9% + 30¢ + $25/mo |

### Additional Fees
- **Currency conversion**: 1-2% (if selling internationally)
- **Chargeback fee**: $15 per chargeback
- **Refund fee**: Shopify keeps the transaction fee even on refunds

## Real-World Example

Let's say you're on the Basic plan and process $50,000 in sales:

| Fee Type | Calculation | Amount |
|----------|------------|--------|
| Transaction fees | $50,000 × 2.9% | $1,450 |
| Per-transaction fees | 200 transactions × 30¢ | $60 |
| **Total fees** | | **$1,510** |

That's 3% of your gross sales — before COGS, ads, and everything else.

## How to Reduce Your Fees

### 1. Use Shopify Payments
It's the cheapest option. No additional transaction fees from Shopify.

### 2. Upgrade Your Plan
If you're doing >$100K/month, upgrading to Shopify or Advanced saves 0.3-0.5% on every transaction.

### 3. Negotiate with Processors
If you're doing high volume, you can negotiate lower rates with Stripe or PayPal.

### 4. Reduce Chargebacks
Chargebacks cost $15 each plus the lost sale. Improve product descriptions and customer service.

### 5. Accept ACH/Bank Transfers
For B2B sales, ACH transfers have much lower fees (0.5-1%).

## The Hidden Cost of Fees

Most founders think: "I made $50K, my COGS is $20K, so I made $30K profit."

But the real math:
- Gross sales: $50,000
- Transaction fees: -$1,510
- COGS: -$20,000
- Ad spend: -$10,000
- **Real profit: $18,490**

That's 37% less than the "simple" calculation.

## Track Your Fees Properly

Make sure you're tracking:
1. Gross sales (before fees)
2. All transaction fees (broken out)
3. Refunds and chargebacks
4. Currency conversion fees

This is essential for understanding your real profitability.

## Free Fee Calculator

We built a free [Shopify Financial Health Check](/tools/) that shows you:
- Your total fees as a percentage of sales
- How you compare to industry benchmarks
- Where you can save money

[Try it free →](/tools/)