For UK merchants, Shopify’s cost per sale is not a single universal percentage. The amount you pay depends mainly on your Shopify plan, whether you use Shopify Payments or a third-party payment provider, the customer’s card type, and whether the sale is online or in person. Understanding the difference between transaction fees and card processing fees is essential, because these charges are often confused but have different meanings.
TLDR: If you use Shopify Payments in the UK, Shopify usually does not charge an additional Shopify transaction fee, but you still pay card processing fees on each sale. If you use an external payment provider, Shopify typically charges an extra third-party transaction fee on top of your payment provider’s own fees. For UK merchants, this can make Shopify Payments materially cheaper per sale, especially at higher order volumes. Always verify the latest rates inside Shopify’s official pricing pages or your admin, because fees can change by plan, market, and payment method.
What “Shopify transaction fees” actually means
The phrase Shopify transaction fees is commonly used in two different ways. Strictly speaking, Shopify’s transaction fee is the additional percentage Shopify charges when you use a third-party payment gateway instead of Shopify Payments. However, many merchants also use the term to describe all payment-related deductions from a sale, including card processing fees.
This distinction matters. A merchant using Shopify Payments may see money deducted from each card sale, but that deduction is generally a payment processing fee, not an extra Shopify transaction fee. A merchant using PayPal, Worldpay, Opayo, Stripe outside Shopify Payments, or another external provider may pay both the provider’s fee and Shopify’s additional third-party transaction fee.
In practical terms, when calculating profit per order, you should look at the total cost of accepting payment, not merely the label applied to the fee.
Shopify Payments versus third-party payment providers
For most eligible UK merchants, the most important decision is whether to use Shopify Payments. Shopify Payments is Shopify’s integrated payment system, allowing you to accept major debit and credit cards directly through your store. When it is available and activated, Shopify generally waives the additional Shopify transaction fee.
That does not mean card payments are free. You still pay a payment processing charge, usually made up of a percentage of the order value plus a fixed pence amount for online transactions. These fees cover the cost of card networks, acquiring, fraud systems, and payment infrastructure.
If you choose a third-party provider instead, Shopify may apply an extra fee per transaction. This fee varies by plan and is charged in addition to whatever your payment provider charges. For businesses with meaningful revenue, this difference can become substantial over time.
Typical Shopify third-party transaction fees in the UK
Although Shopify can update pricing, the standard structure for UK merchants has commonly followed this pattern for the main Shopify plans:
| Shopify plan | Typical additional fee when using a third-party provider | What it means |
|---|---|---|
| Basic | около 2% per transaction | Highest additional third-party fee among the core plans |
| Shopify | около 1% per transaction | Lower fee for growing stores |
| Advanced | около 0.6% per transaction | Lowest standard third-party fee for higher-volume merchants |
These are not the same as card processing charges. For example, if your external provider charges 1.4% plus 20p and Shopify adds a 2% third-party transaction fee, your total cost is much higher than just the provider’s advertised rate.
Shopify Payments card processing fees per sale
When UK merchants use Shopify Payments, the main per-sale cost is the card processing fee. The exact rate can vary according to plan, payment method, card origin, and whether the transaction is online or in person. As a general guide, UK online card rates have commonly been around the following levels for domestic cards:
- Basic plan: approximately 2% + 25p per online transaction.
- Shopify plan: approximately 1.7% + 25p per online transaction.
- Advanced plan: approximately 1.5% + 25p per online transaction.
International cards, American Express, currency conversion, chargebacks, and alternative payment methods may have different charges. In-person card rates through Shopify POS may also differ from online rates and often do not include the same fixed pence component.
Because payment pricing can change, serious merchants should not rely only on generic examples. Check the current rate displayed in your Shopify admin, your plan settings, and Shopify’s official UK pricing information before making commercial decisions.
Example: transaction cost on a £50 order
Suppose you sell an item for £50 online and the customer pays with a standard UK card through Shopify Payments. If your rate is 2% + 25p, the processing fee would be:
- 2% of £50 = £1.00
- Fixed fee = £0.25
- Total payment fee = £1.25
- Net before other costs = £48.75
If the same £50 order is paid through a third-party gateway on a plan with a 2% Shopify third-party transaction fee, Shopify’s additional charge alone would be £1.00. You would then add the external provider’s processing fee. If that provider charged, for example, £0.95, your combined payment-related cost would be £1.95. This materially reduces your margin compared with Shopify Payments.
How plan choice affects fees per sale
Shopify’s higher plans usually have higher monthly subscription costs but lower per-sale processing rates. This creates a trade-off. A small store with limited sales may be better served by a lower monthly plan, while a high-volume merchant may save money by upgrading because the lower percentage fee offsets the higher subscription.
For example, a difference of 0.5 percentage points on thousands of pounds in monthly turnover can be significant. On £20,000 of monthly card sales, a 0.5% reduction equals £100 per month. If the plan upgrade costs less than the fee saving and provides useful operational features, upgrading may be financially rational.
However, fees should not be assessed in isolation. Higher plans may also include better reporting, automation, staff permissions, shipping features, and other tools. The correct plan is the one that offers the best overall commercial outcome, not merely the lowest visible payment rate.
Do Shopify fees apply to shipping and VAT?
Payment processing fees are normally calculated on the amount paid by the customer at checkout. That usually includes the product price, shipping charges, and any VAT collected. This is important because a merchant may think of their sale as a £40 product, but if the customer pays £50 including shipping and tax, the fee may be based on the full £50.
From an accounting perspective, payment fees are generally treated as business expenses. UK merchants should ensure that Shopify payouts, fees, refunds, and VAT records are reconciled properly. For VAT-registered businesses, it is advisable to work with an accountant or bookkeeper who understands ecommerce platforms and payment processors.
Refunds, chargebacks, and hidden cost considerations
Per-sale fees are only part of the picture. Refunds and chargebacks can also affect your true cost of taking payments. Depending on the payment method and terms, processing fees may not always be fully returned when a customer is refunded. Chargebacks can involve additional administrative fees and temporary withholding of funds while the dispute is investigated.
Fraud screening, clear return policies, accurate product descriptions, and reliable delivery tracking can help reduce disputes. For merchants selling higher-risk products or high-ticket goods, chargeback management should be treated as a serious financial control, not an afterthought.
How to estimate your real Shopify fee per sale
A practical calculation should include all charges linked to receiving payment. Use this simple structure:
- Start with the customer’s total checkout payment.
- Apply the card processing percentage and add any fixed transaction amount.
- Add Shopify’s third-party transaction fee if you are not using Shopify Payments.
- Add any gateway-specific costs, such as monthly gateway fees or special card surcharges.
- Consider refunds, chargebacks, and currency conversion where relevant.
For serious margin analysis, calculate fees as a percentage of gross order value and also as a percentage of gross profit. A £1.25 fee on a £50 order may appear modest, but if your gross profit on that order is only £10, the payment fee consumes 12.5% of gross profit.
When might a third-party provider still make sense?
Although Shopify Payments is often the simplest and most cost-effective option, there are cases where a third-party provider may be justified. A merchant may need a specialist gateway for a particular payment method, risk category, subscription arrangement, international acquiring setup, or negotiated enterprise pricing.
The key is to compare total costs honestly. A third-party provider with a seemingly low headline rate may be more expensive once Shopify’s additional transaction fee is included. Conversely, a large merchant with negotiated rates and specific operational needs may still find an external provider commercially worthwhile.
Final view for UK merchants
For UK merchants, Shopify transaction fees per sale depend primarily on whether you use Shopify Payments or an external payment gateway. With Shopify Payments, the additional Shopify transaction fee is generally avoided, but card processing fees still apply. With a third-party gateway, Shopify usually adds a plan-based percentage fee, which can significantly increase the cost of each sale.
The safest approach is to model your fees using your own average order value, monthly turnover, customer card mix, refund rate, and plan level. Shopify’s fee structure is transparent enough to calculate with care, but assumptions can be expensive. Before committing to a payment setup, review the latest UK rates in your Shopify account and compare the full per-sale cost, not just the advertised headline percentage.
