Question 1

How much do payment processors charge for currency conversion?

Accepted Answer

It varies significantly. Shopify Payments charges 1.5% conversion markup + 1% cross-border fee. Stripe charges 1% conversion + 1.5% cross-border. PayPal charges ~3.5% conversion markup + 1.5% cross-border — the most expensive of the major processors. These fees are on top of standard processing rates.

Question 2

What is the difference between conversion markup and cross-border fee?

Accepted Answer

Conversion markup is the percentage added to the mid-market exchange rate when converting currencies — it's the processor's spread on the exchange rate. Cross-border fee is charged when the customer's card is issued in a different country than your business, regardless of currency. You can be charged both on the same transaction.

Question 3

Which processor has the lowest currency conversion fees?

Accepted Answer

For ecommerce, Stripe has the lowest conversion markup at 1%, but charges 1.5% cross-border. Shopify Payments charges 1.5% conversion + 1% cross-border. PayPal is the most expensive at ~3.5% conversion + 1.5% cross-border. For high international volume, consider services like Wise or Payoneer for payouts.

Question 4

How can I reduce currency conversion costs?

Accepted Answer

Open local bank accounts in your top currencies to receive payouts without conversion. Use Shopify Markets to price in local currencies with your own markup. Choose processors with low conversion fees. For large volumes, negotiate custom rates. Consider multi-currency payment accounts from services like Wise Business.

Question 5

Does Shopify charge for currency conversion?

Accepted Answer

Yes. Shopify Payments charges 1.5% when converting between currencies at checkout, plus a 1% cross-border fee when the customer's card is from a different country. If you use a third-party gateway, you may also pay Shopify's 0.5-2% third-party transaction fee on top of the gateway's own conversion fees.

Processor	Markup	Cross-Border	Est. Monthly Cost
Shopify PaymentsCurrent	1.5%	1%	$250.00
Stripe	1%	1.5%	$250.00
PayPal	3.5%	1.5%	$500.00
Square	0%	0%	$0.00

Free Currency Conversion Fee Calculator

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