What Is the Shopify Payments vs Gateway Comparison?
A Shopify Payments vs gateway comparison calculates the difference between processing orders with Shopify Payments and using an external payment provider. It includes the third-party provider’s percentage and per-transaction fees, any monthly provider fee, and Shopify’s additional surcharge for external gateways.
The lower headline rate is not always the lower-cost option: your order volume, average order value, Shopify plan, and gateway pricing all affect the total. Use the result to compare costs at your current sales level, then test other revenue or plan scenarios before switching.
Shopify Payments vs Gateway Formulas
The calculator estimates transaction volume by dividing monthly revenue by average order value. It then applies each provider’s fees to the estimated number of orders.
Estimated monthly transactions = Monthly revenue ÷ Average order value
Shopify Payments cost =
(Monthly revenue × Shopify Payments percentage rate)
+ (Estimated transactions × Shopify Payments fixed fee)
Third-party gateway cost =
(Monthly revenue × Gateway percentage rate)
+ (Estimated transactions × Gateway fixed fee)
+ Gateway monthly fee
+ (Monthly revenue × Shopify surcharge)
Monthly savings from Shopify Payments =
Third-party gateway cost − Shopify Payments cost
Annual difference = Monthly difference × 12
A positive monthly difference means Shopify Payments costs less; a negative result means the third-party option costs less. The calculation is an estimate because actual transaction counts, refunds, card mix, and cross-border payments can change the fees charged.
How to Use This Calculator
- Enter Monthly Revenue — use the total sales revenue processed through the gateway in a typical month, not your profit after expenses.
- Enter Average Order Value — divide sales revenue by completed orders for the same period. The calculator uses this to estimate transaction count and fixed per-order fees.
- Select Shopify Plan — choose your current plan because it affects the Shopify Payments rate and the surcharge applied to third-party gateway transactions.
- Enter Gateway Rate — enter the external provider’s percentage fee as a percentage, such as
3.2for a 3.2% rate. - Enter Gateway Fixed — add the fixed fee charged for each transaction, such as
$0.25. - Enter Gateway Monthly — include any recurring subscription or account fee charged by the provider; enter zero if there is none.
- Compare the results — review the monthly total and annual difference, then change one input at a time to see what drives the gap.
Gateway pricing can depend on country, card type, and payment method, so use the rate that applies to your actual account. Shopify’s transaction fee calculator can help you inspect Shopify fees per transaction separately.
Step-by-Step Example
Suppose a Shopify store processes $18,000 in monthly revenue with an average order value of $60. The merchant is on Basic and has a third-party gateway charging 3.2% + $0.25 per transaction, with a $25 monthly fee. For illustration, assume Shopify Payments costs 2.9% + $0.30 and the third-party surcharge is 2.0%.
| Calculation | Shopify Payments | Third-party gateway |
|---|---|---|
| Estimated transactions | $18,000 ÷ $60 = 300 | $18,000 ÷ $60 = 300 |
| Percentage fee | $18,000 × 2.9% = $522 | $18,000 × 3.2% = $576 |
| Fixed transaction fees | 300 × $0.30 = $90 | 300 × $0.25 = $75 |
| Shopify surcharge | $0 | $18,000 × 2.0% = $360 |
| Monthly gateway fee | $0 | $25 |
| Estimated monthly total | $612 | $1,036 |
In this scenario, Shopify Payments costs $424 less per month: $1,036 − $612 = $424. Over 12 months, the estimated difference is $5,088: $424 × 12. The result changes if actual order count, rates, or plan differ.
What Changes the Break-Even Point?
The third-party gateway must save enough on its own processing fees to offset both Shopify’s surcharge and any monthly gateway fee. A lower percentage rate can still lose if the surcharge is large, while a lower fixed fee matters most when you process many small orders.
Check the provider’s full pricing schedule before deciding. Look for separate rates for international cards, currency conversion, chargebacks, refunds, and alternative payment methods; these may not be included in the calculator’s standard rate fields. Also confirm whether the provider’s quoted rate applies to your Shopify checkout and region.
Shopify’s third-party surcharge depends on the plan and is charged in addition to the gateway’s own fees. Shopify Payments transactions do not incur that surcharge. Verify current rates and eligibility in Shopify’s payment provider documentation, since pricing and availability can change.
If your sales volume makes plan fees a major part of the comparison, use the Shopify Plan Comparison Calculator to test plan costs alongside payment processing. The Shopify Total Cost of Ownership Calculator can add apps, plan fees, and other recurring store costs.
Shopify Surcharge Benchmarks
Shopify’s stated third-party transaction surcharge varies by plan. Use these figures as a reference, then check your Shopify admin and current Shopify pricing for your region and account.
| Shopify plan | Third-party gateway surcharge |
|---|---|
| Basic | 2.0% |
| Shopify | 1.0% |
| Advanced | 0.6% |
This surcharge is separate from the payment provider’s own rate. For example, a gateway quote of 2.5% does not mean the total fee is 2.5% if Shopify also adds a plan-based surcharge.
For accurate bookkeeping, record provider fees and Shopify charges separately from sales revenue; the IRS recordkeeping guide explains why businesses need records that support income and expenses. Review fees regularly because payment costs can shift as order volume, average order value, or card mix changes.
6 Ways to Test Your Payment Costs
- Change Monthly Revenue from $10,000 to $20,000. Check whether the percentage surcharge becomes the main cost difference as sales rise.
- Change Average Order Value from $40 to $80. With the same revenue, fewer orders mean fewer fixed per-transaction fees.
- Test a lower Gateway Rate. Reduce the entered rate by 0.3 percentage points and see whether that saving offsets Shopify’s surcharge.
- Add a Gateway Monthly fee. Enter the provider’s subscription charge to include costs that do not appear in its per-transaction rate.
- Compare Shopify plans. Change the plan selection and check whether a lower surcharge outweighs any plan price difference; the Shopify Plus Break-Even Calculator can help assess a Plus upgrade.
- Audit payment-related operating costs. Review invoices and account statements alongside your Shopify app stack costs; keeping payment credentials and customer data secure is also part of choosing a provider, as the FTC’s small-business data security guide explains.
Frequently Asked Questions
Is Shopify Payments cheaper than Stripe or PayPal?
Usually, Shopify Payments costs less because using an external provider adds Shopify’s surcharge on top of that provider’s fees. Even when the provider’s rate matches Shopify Payments, the extra charge increases the total; enter your actual gateway pricing to compare the cost for your plan and sales volume.
What is the Shopify third-party payment gateway surcharge?
It is an additional Shopify fee on transactions processed by an external payment provider, charged on top of the provider’s own fees. The stated rates are 2.0% on Basic, 1.0% on Shopify, and 0.6% on Advanced; Shopify Payments transactions do not incur this surcharge.
When would a third-party gateway be cheaper than Shopify Payments?
An external gateway can be cheaper when its lower processing rates save more than the Shopify surcharge and any monthly provider fee. For instance, on Advanced, a gateway charging 1.5% + $0.20 might cost less than Shopify Payments at 2.4% + $0.30, but the result depends on order volume and other charges.
Can I use both Shopify Payments and a third-party gateway?
Yes, a store can offer multiple payment methods, and each transaction is charged according to the provider that processes it. Many merchants use Shopify Payments as the main checkout option and offer PayPal as an alternative, so compare the expected share of orders through each method rather than assuming all sales use one gateway.
Does Shopify Payments work in my country?
Shopify Payments is available in 23 countries, including the US, Canada, the UK, Australia, and much of Europe; merchants elsewhere generally need a third-party provider. Check Shopify’s current supported countries list because availability and eligible features can change.
About This Calculator
The Shopify Payments vs Gateway Calculator was built by Luis Dev Studio for Shopify merchants comparing payment costs. For help reviewing your store’s fees or setup, explore our services or contact us.
Updated by Luis Gonzalez · Jul 9, 2026