Best payment processors to use with Shopify - Reducing payment processor costs


Best payment processors to use with Shopify

Industry standards for entry and mid-tier volume stores are generally 2.9% + 30 cents per transaction to process credit and debit card payments. Depending on the level of volume and relationship with your payment processor, you may be able to negotiate this lower. Additionally, some countries such as Australia offer an advantageous 1.9% processing fee for domestic cards (this applies to Shopify Payments as well).

However, if you're just starting out and are building sales volume, you'll want to pay close attention to how you configure your payments on Shopify. You're penalized for using payment processors other than Shopify Payments by an extra 2.0% transaction rate. Taking into account the base processing rate you're now paying close to 5% on all of your transactions! While not as bad as some third-party marketplaces like eBay (13%) , Etsy (8%), or Amazon (8-15% and as high as 20% and 40% for some categories!), this is still something you'll want to avoid the best you can by selecting Shopify payments as your main payment processor. It is also beneficial to do this, as American Express, Discover, Diners Club, Apple Pay, and Google Pay seamless processing integrations are bundled along with the more widely used Visa and Mastercard cards.

However, you'll have to weigh the advantage of having multiple avenues of payment for customer convenience vs the extra fee. Also, it may be better to offer an additional method of payments to your customers, such as eMerchant Broker or Bitpay, if you're selling supplements or other "high-risk" items.

Other popular payment processors and their base fees include:

Paypal 2.9% + 0.30 per transaction
Bitpay A very reasonable 1%
Authorize.net 2.9% +0.30 per transaction + $25/month fee + up to $10/month for PCI compliance
Stripe 2.9% +0.30 per transaction
eMerchant Broker 3% and up 


In summary, due to the 2% fee charged by Shopify for other payment processors we recommend Shopify Payments as the main payment processor on your Shopify store. If your store is hosted on another payment provider such as WooCommerce or nopCommerce this opinion would change to whatever you can negotiate with your payment processor as the best rate with the most accessibility to customers - since of course Shopify Payments is also only available for Shopify