Payment Gateway Transaction Fees
Report Toaster has introduced Transaction Fees into our dataset, which allows merchants to understand the NET amount earned from each sale.
Every time a customer places an order online, a merchant is accepting payment. Shopify allows payments to be accepted through Shopify Payments or a number of third-party payment providers or gateways. Here is a good article about getting paid for Shopify sales.
Regardless of which payment provider is chosen, the merchant will be responsible for fees to the provider for each transaction. The transaction fees are dependent on the payment provider itself, but normally include a flat fee and then a percentage of the sale. For Shopify Payments, PayPal, Stripe, and Authorize.NET the flat fee is 30 cents per transaction plus 2.9% of the purchase.
For example, if a merchant makes a sale via PayPal for $100, then the transaction fee (calculated as (100 * .029) + .3) is $3.20. There may be additional charges for currency conversions and other considerations on international sales.
Shopify reports do not expose these transaction fees to merchants. Instead, a merchant must reference their payment provider's system for payouts and associated fees. Meaning there is no single report that can provide the NET amount earned from each sale. This is important when accounting and to calculate an overall profit margin.
Luckily, Report Toaster is reporting transaction fees. We are currently including fees for payments processed via Shopify Payments and Paypal. With plans to add more payment providers in the future. Below is a list of reports where transaction fees can be found.
- Finance Detail
- Shopify Payout Reconciliation
- Successful Transactions
- PayPal Transactions
- Gateway Transactions
- Transactions by Gateway
- Transactions by Gateway Over Time