Shop Pay Fees Shopify: Full Breakdown by Plan and Features

Shop Pay Fees Explained: What Shopify Sellers Need to Know

Many Shopify sellers rely on Shop Pay to offer their customers a faster checkout experience. But when it comes to understanding how Shop Pay fees work, the details can get confusing.

Shopify's pricing structure includes different plans and payment processing options, and Shop Pay is directly tied to those. It's important to understand what Shop Pay is, how it works within Shopify, and what fees apply.

This guide breaks down exactly what you'll pay when using Shop Pay, how these fees compare across different Shopify plans, and what to expect when offering installment payments to your customers.

What Is Shop Pay and Is It Shopify

Shop Pay is Shopify's accelerated checkout feature that lets returning customers complete purchases with just one tap. Shop Pay's one-click checkout reduces mobile cart abandonment by 18%, while 43% of customers prefer using Shop Pay over other checkout options. When customers use Shop Pay, their shipping and payment information is securely saved for future purchases.

Shop Pay is Shopify's accelerated checkout feature that lets returning customers complete purchases with just one tap. When customers use Shop Pay, their shipping and payment information is securely saved for future purchases. Merchants using Shop Pay experience a 1.72% average conversion rate lift compared to standard checkout options.

Shop Pay is fully owned and operated by Shopify—it's not a separate company or third-party service. This means it's built directly into the Shopify platform and uses the same fee structure as Shopify Payments.

The key benefit of this integration is simplicity: there are no additional fees just for using Shop Pay. You pay the same processing rates whether your customer checks out with Shop Pay or enters their information manually.

Shop Pay supports all major payment methods accepted by Shopify Payments, including:

• Credit and debit cards
• Digital wallets like Apple Pay and Google Pay
• Shop Pay Installments for eligible purchases

Shop Pay Fees Across Different Shopify Plans

The fees you pay for Shop Pay transactions depend entirely on your Shopify plan. Since Shop Pay uses Shopify Payments, the rates are identical to your standard payment processing fees.

Here's a breakdown of what you'll pay on each plan:

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Basic Shopify Plan Fees

On the Basic Shopify plan ($29/month), you'll pay 2.9% plus 30¢ for each Shop Pay transaction. This is the standard entry-level rate for online stores.

For example, when a customer buys a $50 product using Shop Pay, you'll pay $1.75 in processing fees (2.9% of $50 = $1.45, plus the 30¢ fixed fee).

Standard Shopify Plan Fees

The Shopify plan ($79/month) reduces your rate to 2.6% plus 30¢ per transaction. This small percentage difference adds up as your sales volume grows.

On that same $50 purchase, your fee drops to $1.60 (2.6% of $50 = $1.30, plus 30¢).

Advanced Shopify Fees

With the Advanced plan ($299/month), your Shop Pay processing rate drops further to 2.4% plus 30¢ per transaction.

This plan makes sense for higher-volume stores. On a $50 purchase, you'd pay $1.50 in fees (2.4% of $50 = $1.20, plus 30¢).

Shopify Plus Considerations

Shopify Plus merchants receive custom pricing based on their sales volume and specific business needs. These rates are negotiated directly with Shopify and typically offer the lowest per-transaction fees.

How Shop Pay Installments Changes Your Fee Structure

Shop Pay Installments lets your customers split payments into smaller amounts over time (typically four payments over six weeks). While this can boost conversion rates and average order values, it does come with different fees.

For example, on a $100 purchase, Shop Pay Installments increases average order values (AOV) by 50-100%, with apparel brand ONDO seeing their AOV double when customers used the service.

For example, on a $100 purchase:

• Regular Shop Pay transaction (Basic plan): $3.20 fee (2.9% + 30¢)
• Shop Pay Installments transaction: $5.90 fee (assuming 5.9% rate)

The good news is that you receive the full payment amount upfront, minus the processing fee. Shopify handles the installment collection from the customer, so there's no risk to you if a customer fails to make their future payments.

To enable Shop Pay Installments:1. Go to your Shopify admin2. Navigate to Settings → Payments3. Find the Shop Pay Installments section4. Click "Activate" or "Manage"

Remember that Shop Pay Installments is currently only available to eligible merchants in the United States and Canada who use Shopify Payments.

Understanding Cross-Border Fees with Shop Pay

If you sell to customers in other countries, additional fees may apply to your Shop Pay transactions. These aren't specific to Shop Pay, but affect all Shopify Payments processing.

Currency conversion fee: When customers pay in a currency different from your payout currency, Shopify charges a 1.5% currency conversion fee on top of your regular processing rate.

Shop Pay is owned and operated by Shopify, which creates several advantages for merchants using the platform. Shop Pay provides a 50% conversion rate improvement on cross-border sales, helping merchants overcome international selling challenges.

Here's how these fees stack up for a Basic Shopify merchant on a $100 sale:

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These international fees apply whether the customer uses Shop Pay or enters their payment details manually.

Why Shop Pay's Ownership Matters to Merchants

Shop Pay is owned and operated by Shopify, which creates several advantages for merchants using the platform.

This ownership means Shop Pay integrates seamlessly with your Shopify store. There's no need to set up separate accounts or deal with third-party payment processors that might charge additional fees.

The benefits include:

• Unified reporting: All Shop Pay transactions appear in your regular Shopify analytics and financial reports
• Single support system: If you have issues with Shop Pay, you contact Shopify support—not a separate company
• Consistent updates: Shop Pay improvements roll out automatically with Shopify platform updates

Most importantly, Shopify's ownership means there are no hidden fees or surcharges for using Shop Pay. The rates are transparent and consistent with your regular Shopify Payments processing fees.

Optimizing Your Shop Pay Experience

While Shop Pay doesn't cost extra to use, there are ways to maximize its value and potentially reduce your overall payment processing costs.

Use Shopify Payments exclusively. If you use external payment gateways alongside Shopify Payments, you'll pay additional transaction fees (0.5% to 2% depending on your plan). Keeping everything within the Shopify ecosystem eliminates these extra charges.

Monitor your conversion data. Shop Pay can significantly improve checkout completion rates. In your Shopify analytics dashboard, compare conversion rates between customers who use Shop Pay and those who don't. This data can help you decide whether to make Shop Pay more prominent in your checkout flow.

Consider your plan based on volume. As your store grows, upgrading to a higher Shopify plan can lower your per-transaction fees. Calculate your monthly payment processing costs to determine when an upgrade makes financial sense.

Checkout extensions and apps can also enhance the Shop Pay experience. These tools can help reduce cart abandonment and increase average order value without affecting your base Shop Pay fees.

Moving Forward With Shop Pay

Shop Pay offers a streamlined checkout experience that can boost your conversion rates without adding extra fees to your Shopify store. The processing rates are identical to your standard Shopify Payments fees, which vary based on your subscription plan.

For most merchants, the key takeaways about Shop Pay fees are:

• No additional cost: Shop Pay doesn't charge extra fees beyond your regular Shopify Payments rates
• Plan-dependent rates: Your processing fees decrease as you move to higher Shopify plans
• Higher fees for installments: Shop Pay Installments carries a higher processing rate (5-6%) but eliminates payment collection risk

Understanding these fee structures helps you make informed decisions about your checkout options and overall Shopify setup. By leveraging Shop Pay effectively, you can create a smoother purchasing experience while keeping your processing costs predictable.

Tools like Platter can help you further optimize your checkout experience, improving conversion rates and maximizing the effectiveness of features like Shop Pay.

Frequently Asked Questions About Shop Pay Fees

Where can I view my Shop Pay transaction fees in my Shopify account?

You can see all your Shop Pay fees in the Shopify admin under Settings → Payments → View payouts. These fees appear alongside your other Shopify Payments transactions and are not listed separately.

Does Shop Pay work with third-party payment processors like PayPal or Stripe?

No, Shop Pay only works with Shopify Payments. If you want to offer Shop Pay as a checkout option, you must have Shopify Payments enabled as your payment processor.

Are Shop Pay fees refundable if a customer returns a product?

When you issue a refund, Shopify returns the original transaction amount to the customer, but the processing fees (including those for Shop Pay transactions) are not refunded to you.

How do Shop Pay fees compare to other accelerated checkout options?

Shop Pay fees are identical to standard Shopify Payments fees, while many third-party accelerated checkout solutions charge additional fees or higher rates. This makes Shop Pay one of the most cost-effective accelerated checkout options for Shopify merchants.