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Inuit Gifts Shopify Merchant
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Last edited February 20, 2015
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Shopify Plans. No more transaction fees? This post is outdated

I noticed that new Shopify plans don't have transaction fees. Does it mean that if someone is using Basic Plan and his own payment system (for example Paypal), there will be no other charges besides $29/month?

We subscribed a while ago and our plan has transaction fees, seems unfair that new subscribers have no fees.

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Inuit Gifts Shopify Merchant
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Last edited October 10, 2013
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Seems like if you are a new subscriber, there will be no transaction fees in any case. At least I can't find any mentioning of transaction fees anywhere on Shopify pricing page. http://www.shopify.com/pricing

Shouldn't they have a tiny asterisk next to 0% transaction fees and mention somewhere in a fine print that 0% only applies if you use Shopify payments? That's very misleading advertising. 

Posts:
53
October 11, 2013

I also have 1% fees. Bump for clear answer to this

Shopify Adam Shopify
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153
October 15, 2013

Shopify now accepts credit cards directly and we waive our transaction fee for those customers who use it.  If you continue to use a third party gateway to accept credit cards, our transaction fees remain and it's business as usual.

VP Product - Shopify
Alek Shopify Employee
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132
October 15, 2013

To clarify even further:

We subscribed a while ago and our plan has transaction fees, seems unfair that new subscribers have no fees.

This change is retroactive---anyone who signed up with Shopify previous to these subscription changes will receive the same benefits with regards to 0% transaction fees when you use Shopify Payments.

Shouldn't they have a tiny asterisk next to 0% transaction fees and mention somewhere in a fine print that 0% only applies if you use Shopify payments? That's very misleading advertising. 

When you mouse over the Transaction Fee entry on the pricing page, a little box should appear indicating that it's for users of Shopify Payments only.  Please let me know if it does not do this for you:

So, in summary:

  • If you use Shopify Payments, your transaction fees on Shopify will be set to 0% across the board.
  • If you do not use Shopify Payments, and opt for one of the other payment gateways that Shopify supports, your transaction fees will be set to 2% (Basic/Starter), 1% (Professional), or 0% (Unlimited).

Hope that helps clear up a thing or two!

 

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October 17, 2013

If you are signed up for shopify payment but you also accept purchase orders in your store, is there a transaction feed collected for those purchase order purchases?  Or does it only apply to 3rd party gateways?

Omar Elbaga Shopify Partner
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28
October 19, 2013

So how do you use shopify payments. Is it automatically enabled?

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44
October 20, 2013

Can you use shopify payments in the UK? 

thanks

J.B. Shopify Merchant
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Last edited October 22, 2013
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Alek: Thanks for clarifying, but don't you think it would be good practice to put a little question mark or asterisk next to that transaction fee on the pricing page? Pricing and transaction fees are two important detail for shop owners, and I would think you'd rather have informed customers than outraged ones who didn't realize they could hover over that major detail. Just a suggestion... since not everyone browses the web the same way. At least a question mark or asterisk would signal there's something more to what we're reading.

By the way, when I hovered over that the first time, using what I think would be a normal speed (at least for me), it didn't appear. It wasn't until I went over it a second time (and subsequent times) that it actually showed up for me.

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November 06, 2013

If you are using Shopify Payments, are transaction fees waived for paypal as well? I see 0% transaction fee listed under Paypal in my account. 

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December 01, 2013
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Thanks Shopify.  After spending a month setting up the store when I went to enable my Authorize.net payments I see the 1% in the back end.  Of course, I spent weeks reading through all of the plan details without ever having my mouse stumble across the shopify payments section...IT IS VERY MISLEADING EXTREMELY MISLEADING. 

I run a business...duh, right?  That's why I am here.  If I purposely designed my advertising in a way that flat out misrepresented what I am offering and the terms I am offering it at I'd be out of business.  

Anyone with half a brain knows you made a DECEITFUL DECISION to design your pricing page in a way that deliberately hides the fact that if you use your own payment gateways you are going to be charged a fee.

In fact, when you go to the section that talks about using your own payment gateways, it doesn't even give you a hint or a clue, NOTHING AT ALL indicates that by doing so there will be transaction fees incurred.  Here's what you see:  "Already have a payment gateway? We also support 70 other payment gateways."  Then if you click on the hyperlink it takes you to a page that lists 70 payment gateways...all without ANY NOTIFICATION WHATSOEVER that you'll be charged a transaction fee if you don't have an Unlimited Plan.  It's downright dishonest and deceptive.

Between your ridiculous discount "functionality" and outright designing a pricing layout that all but lies about your transaction fees this has been the WORST ONLINE EXPERIENCE OF MY LIFE.

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April 05, 2014
Just to clarify... I'm i right in that: If i have the unlimited plan and i do not use Shopify Payments (because i'm in the UK), and opt for one of the other payment gateways that Shopify supports, my transaction fees will be the following; 0% to shopify (Unlimited plan) MONTHLY COST to external payment gateway TRANSACTION FEE to external payment gateway Kind regard,
Jamie Chief Officer of Funness shopify.com/plus
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April 05, 2014
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Hi Don! That is correct. Neither the unlimited plan or the Plus plan (enterprise level) have any transaction fees from Shopify no matter what gateway you choose.

http://shopifyplus.com ::: http://twitter.com/bacchus
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April 23, 2014
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Which transaction will Shopify charge transaction free?

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April 23, 2014

I just noticed the transaction fee is now up to 2% and the wording seems to have changed, if I remember correctly.  Could you please clarify that as long as we offer Shopify Payments we will not be charged a transaction fee, even if the customer uses PayPal at checkout?

 

Thanks.

http://icemakerpartsshop.com
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April 28, 2014

Do orders processed is shopify POS also attract the transaction fee?

Massaad Shopify Employee www.alexthegreat.ca
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349
Last edited April 28, 2014

To clarify, the transaction fee is charged on all sales that go through the Shopify checkout. The Starter and Basic plan have a 2 percent transaction fee, while the Professional has a 1 percent transaction fee.

The unlimited plan does not have this fee and the transaction fee exists as a way to democratize our service. All stores on Shopify get the same software and technology that power all our merchants, even those on less expensive plans.

When using Shopify Payments (where it is available) we waive this fee, even for customers using PayPal, or BitPay.

In this case adjusting plans gets you a more competitive credit card processing rate on Shopify Payments compared to other services which require proof of volume to access similar rates. Our intention is to provide the tools you need to sell online easily, and we did update our pricing page to be more clear about our offerings. (No terms have changed, it is an adjustment for clarity on our pricing page).

These gateways will have their own pricing structure and fees also, which is dependent on your PayPal agreement.

Alex Massaad support@shopify.com
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April 29, 2014

"To clarify, the transaction fee is charged on all sales that go through the Shopify checkout." Does this include POS sales?

Massaad Shopify Employee www.alexthegreat.ca
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April 29, 2014

The POS sales do not have this fee, only credit card processing rates if you are using Shopify Payments in that case.

Alex Massaad support@shopify.com
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May 02, 2014
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I have just stumbled across this fee myself. Misleading is right! When someone signs up they should see these very important fees listed CLEARLY! Up till this point I have been very happy with Shopify and would have recommended others. Unfortunately I no longer feel the same. I have spent countless hours and considerable expense in creating my Shopify store to then find hidden fees in which nobody advised me of. Then to say just switch to shopify payments to get rid of these fees I feel is a STRONG ARM  tactic to switch payment processors. If Shopify offers great fees that's great however I see ZERO reason to pay a 2% fee to Shopify since they are not involved with the financial transaction at all. This is nickle and diming customers period! We pay a monthly fee to host on your site and I am happy to pay a flat rate for those services. You will have a long term customer and a customer that would recommend others as well. If we decide to use your processing service it comes from our needs, competitive pricing and great customer service. NOT because you charge an aribrary 2% on every transaction. This has killed my trust  in Shopify altogether. Unless this is fixed, i will seriously consider moving my shop elsewhere. The biggest issue I have is where is this 2% EARNED by Shopify or is it just a tax? We already pay a hosting fee to Shopify. If hosted just about anywhere else Paypal would just provide a free (buy button) code snippet and there's no fee for that at all. This is just crazy....

At least CLEARLY state these fees when people sign up for your services to avoid STICKER SHOCK.

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May 04, 2014
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I am LIVID as well.  We spent months getting ready to flip to Shopify, and in our first bill we see this 2% fee.  

Shopify can't have a pricing page that clearly says "no transaction fees" and expect a mouse-over small print disclaimer to mitigate that.  This is totally misleading, false advertising, and worthy of an exposure in TechCrunch or elsewhere.  

Based ONLY on this bill/policy, I've started exploring other platforms.  My trust in Shopify is shot.

bootstrapper Member
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May 23, 2014

We are planning to set up a cloud based online trade-only shop. Customers will not pay for the orders online at the time of purchase as they are given 30 days credit. Would we still be charged the transaction fee?

If the answer is yes we will almost certainly use Magento instead (as we are going to use the shop for trade orders they might sometimes be for over $1000, so the transaction fee is very bad news for us and would end up being like an extra bill from the tax man).

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June 12, 2014
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I have a shop used to sell product wholesale to a small circle of customers within a certain franchise. We received our second bill from Shopify today which did indeed include the transaction fee, even though all payments are currently handled COD since the product is delivered in person during our monthly meetings. So I would guess that yes, you would still be charged the transaction fee. Even more misleading information, since the mouseover that is hard to find in the first place outright states that transaction fees apply if you select another payment gateway. We have NO payment gateway selected but Shopify is still dinging us for the transaction fees. Not happy about this at all.

Thomas Shopify Partner www.shopify-agentur.de
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August 26, 2014

Hey @Massaad, sorry to dig this up again but you said:

The Starter and Basic plan have a 2 percent transaction fee, while the Professional has a 1 percent transaction fee. The unlimited plan does not have this fee and the transaction fee exists as a way to democratize our service.

Is this still the case? It says 0.5% for the unlimited plan on shopifys pricing page.

Massaad Shopify Employee www.alexthegreat.ca
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349
August 26, 2014

Hello Thomas,

We have made some changes this month. Currently the Plus plan is set to 0% transaction fees. Existing Unlimited plans from the old structure will still be honoured, so this is only for new stores. 

When we originally conceived the Unlimited plan there were only 2 others, Basic and Professional. Shopify has grown a lot since then and so have our customers needs. Now with many more services, payment gateway options and core features we've adjusted the pricing structure.

Alex Massaad support@shopify.com
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Last edited October 05, 2014

This is a bad news for small sellers. I signed up my new store thinking it will be the same old unlimited plan. Obviously I was wrong.

Current fee structure takes a big chunk of profit for the sellers who sell high value low margin product. I suggest you guys place a cap on the fees you charge. For example, $0.5 per order max. 

Mischa Shopify Partner www.dewinespot.co
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February 11, 2015
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So let me get this straight. If I was able to work out a MUCH more competitive rate with my processor (who is amazing, by the way - and I highly would recommend them to anyone), as I actually have, I would STILL need to pay 1% fee to Shopify? This, in effect, negates all potential savings I was to realize as a result of negotiating a preferred rate through my processor. 

I completely agree that this is a STRONARMING tactic to get their teeth in the very lucrative world of payment processing (which in this case, they don't even do!)

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February 12, 2015

Do transaction fees apply to manual payments as well? I'm offering the cash on delivery option and I was wondering if I would get charged for any payments I mark as received. Thanks.

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February 19, 2015

I got charged for $4500 on my first bill for transactions that never went through and didn't complete. I was told I will only get a credit for these transactions but no refund.  Nobody is helping me in getting a refund for these transactions, I spoke to three different people and nobody was able to help me out. I'm now at a huge loss! Please help!!!!

Massaad Shopify Employee www.alexthegreat.ca
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349
Last edited March 02, 2015

Depending on the volume of your business it might make sense to use Shopify Plus which does not have this transaction fee, but we offer much of the the same powerful server and checkout infrastructure with the $9 Facebook-only plan also. That is to say a merchant can sell thousands of units a minute with Basic plan, Facebook-only plan or the Unlimited plan.

The transaction fee makes it possible to offer the same power to sell on each plan level rather than provide mediocre resources for lower cost plans. 

Your store can handle a TV appearance or a huge burst of advertising without any extra bandwidth costs for trying to sell, only a fixed cost related to what is sold.

It may be possible to recreate the style and visual experience with a different platform but this won't work exactly the same under heavy load or for the same cost. The cost of Shopify is much less than what you would pay to create an equivalent service separately. 

We feel our fee structure is straightforward and related directly to the resources used. Many customers continue to find great value in this but it might not be right for every business. If you doesn't require a secure card environment to handle transactions without exposing yourself to security risks it might not make sense to pay transaction fees.

 

Alex Massaad support@shopify.com

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