Shopify Payments vs a Third-Party Provider: UK Costs
Understand when Shopify adds a third-party transaction fee and compare that combined cost with Shopify Payments on the same store plan.
The short answer
A lower external processor rate can be outweighed by Shopify’s additional third-party transaction fee. Check whether that fee applies to the precise payment method and store arrangement, then add it to the processor’s own charges. PayPal has an exemption when Shopify Payments is the primary provider, so a blanket add-on for every external payment would be wrong.
In this guide
Which charges need to be added together?
| Shopify plan | Published third-party transaction fee |
|---|---|
| Basic | 2% |
| Grow | 1% |
| Advanced | 0.6% |
Shopify says these charges are additional to the external processor’s fees. Its calculation uses products after discounts, plus tax and shipping. Confirm the actual chargeable amount rather than applying the percentage only to product revenue excluding those items.
Check exemptions before calculating
Shopify’s rules exempt PayPal transactions when Shopify Payments is the primary provider. They also exclude POS orders and manual payment methods from the third-party transaction fee. Shopify Payments transactions do not attract this additional provider fee.
Gift-card and store-credit payments have separate rules, including a store-creation-date condition. Check the linked guidance if those methods matter to your shop. Do not generalise the example below to every checkout arrangement.
Confirm that the external provider is available and approved for your country, business and Shopify integration. A tariff on a provider’s own website does not prove that the same product can be installed on your store.
Worked example: a cheaper processor with a platform fee
Fictional shop and external quote. Assume £20,000 across 500 eligible standard online payments on Basic, using the published annual-billing plan equivalent of £19. The whole £20,000 is chargeable in the external-provider scenario, with no exemption. The external quote of 1% plus 10p is invented and is not attributed to any provider.
| Monthly-equivalent component | Shopify Payments | Fictional external provider |
|---|---|---|
| Processor charge | £400 + £125 = £525 | £200 + £50 = £250 |
| Shopify third-party fee | £0 | £20,000 × 2% = £400 |
| Basic plan equivalent | £19 | £19 |
| Total listed components | £544 | £669 |
The external processor saves £275 on processing alone, but the £400 platform charge turns that into a £125 higher monthly total. Across twelve identical months, the difference is £1,500. This is a worked scenario, not a supplier quote or a universal Shopify result.
Ask how much room remains for the external quote
In that specific example, Shopify Payments processing is £525 and the external route’s platform charge is £400. With the same subscription on both sides, only £125 remains for external processing before the totals match. The fictional external charge of £250 exceeds that allowance.
This is a useful screening calculation before spending time on a detailed migration proposal. Recalculate it for your plan, payment mix, exemptions and chargeable sales. An arrangement without the additional platform fee has a different result.
Check refund treatment too. Shopify states that its third-party transaction fees are not returned when an order is refunded. Use the refund cost guide to avoid deleting a retained cost from the comparison.
Confirm suitability and enter a complete comparison
Demonstrate the payment journey, refund handling, subscription requirements and accounting export. Request a written quote that identifies every processor, gateway and platform charge. Include migration and overlap costs over the same comparison period.
For the calculator, combine percentages only when they apply to exactly the same sales base. Otherwise calculate the additional platform amount separately for the stated profile and record it as an additional cost. Recalculate that amount whenever turnover or payment mix changes. Our Shopify plan comparison covers whether changing plan is a better cost option.
Common questions
Does Shopify always add its third-party fee to PayPal?
No. Shopify’s guidance exempts PayPal transactions when Shopify Payments is the primary payment provider. Check the actual store arrangement and current terms.
Can I just add the processor percentage and platform percentage?
Only when both apply to the same payment amount and transactions. If exemptions or different charge bases apply, calculate the components separately and then total them.
Put your own figures to work.
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Sources and how to use this guide
Primary references checked on 15 October 2026:
- Shopify: UK plans, card rates and third-party transaction fees
- Shopify: third-party fee rules, exemptions and calculation
Trading profiles and any explicitly invented quotes or allowances are fictional. Published provider tariffs are identified and dated; they are not personalised quotations. Worked totals include only the stated components and tax assumptions. They are not customer results or market averages. Provider prices, eligibility and terms can change. Check your written agreement before deciding.
Our guides explain costs and comparison methods. They do not rank the whole market or claim hands-on product testing. Source links are references, not a claim of partnership. Read the calculation method and limitations, or about the service.