Shopify Payments UK Pricing: Is It Worth Switching To?

Shopify Payments is the built-in payment processing service for Shopify's ecommerce platform, available to UK merchants on any paid Shopify plan. It removes the need for a third-party payment gateway and waives Shopify's additional transaction fees, which run from 0.6% to 2% per sale on competing gateways. UK online transaction fees range from 1.5%+25p to 2.0%+25p per card transaction depending on your plan, with no separate monthly gateway fee on top of your Shopify subscription. Payments are processed by Stripe Payments UK Ltd, which is authorised by the Financial Conduct Authority under FRN 900461. Shopify Payments is only available to businesses already on a paid Shopify plan, which is its single biggest limitation.

Key Facts: Shopify Payments UK

Who Is This Page For?

This page is for UK merchants who sell on Shopify and want to understand exactly what Shopify Payments costs, how it compares to PayPal and Stripe, and whether it is the most cost-effective payment option for their volume. It is also useful for anyone evaluating Shopify as a platform and wanting to factor in total payment processing costs before committing.

It suits small to medium-sized retailers, direct-to-consumer brands, and sole traders already on or considering a Shopify plan. If you process over £50,000 a month or operate in a restricted product category, you will find specific guidance below on when Shopify Payments stops being the right fit.

What Is Shopify Payments?

Shopify Payments is Shopify's own integrated card payment processor, built directly into every paid Shopify plan. It means merchants can accept Visa, Mastercard, American Express, Apple Pay, Google Pay, and Shop Pay without signing up for a separate payment gateway. The processing infrastructure runs on Stripe under the hood, but the product is sold and managed entirely through Shopify.

The key commercial reason to use it is straightforward. Shopify charges an extra transaction fee of 0.6% to 2% per sale when you route payments through a competing gateway such as PayPal or Stripe directly. Shopify Payments removes that surcharge entirely. At £10,000 monthly volume on the Basic plan, that saves £200 a month compared to using PayPal as your primary gateway.

Shopify Payments UK Transaction Fees and Pricing

Shopify Payments fees in the UK depend entirely on which Shopify plan you subscribe to. There is no standalone gateway fee on top of your subscription. The table below shows current rates as of August 2026.

Annual billing reduces the monthly subscription cost by around 25%, but the transaction rates above remain the same regardless of billing frequency. American Express transactions carry a rate of 2.0% on all plans. The currency conversion fee of 1.5% applies to any transaction settled in a currency other than GBP, so a merchant doing £10,000 in international sales a month pays an extra £150 in conversion fees alone.

There are no setup fees and no monthly gateway fees beyond the Shopify subscription itself. PCI compliance is handled automatically at no extra charge. Chargebacks carry a dispute fee of £15 per incident, refunded if you win the dispute. Shopify does not publish a monthly minimum transaction volume requirement.

To put the fees in context: a merchant on the Basic plan processing £10,000 online each month pays £200 in transaction fees plus £25 for the subscription, totalling £225 per month. The same volume on the Grow plan costs £170 in transaction fees plus £65, totalling £235. The Grow plan only becomes cheaper than Basic above roughly £16,000 monthly online volume. On the Advanced plan, the break-even against the Grow plan sits at around £130,000 a month — a figure very few small businesses reach.

Shopify Payment Processing Rates: What UK Sellers Actually Pay

The headline transaction rates above apply to standard UK and European personal debit and credit cards on the Visa and Mastercard networks. Several additional charges can apply depending on how you sell.

• UK personal Visa/Mastercard (online): 2.0%+25p on Basic, 1.7%+25p on Grow plan, 1.5%+25p on Advanced — per transaction
• American Express (all plans): 2.0% per online transaction, regardless of your Shopify plan tier
• In-person card transactions: 1.7% on Basic, 1.6% on Grow, and 1.5% on Advanced plans, using the Shopify POS card reader (from £49) or POS terminal (from £299)
• Currency conversion: 1.5% on top of the transaction fee for any sale settled outside GBP
• Chargeback dispute fee: £15 per incident, refunded if the dispute is resolved in your favour
• Third-party gateway surcharge: 0.6% (Advanced), 1.0% (Grow plan), 2.0% (Basic and Starter) — applies only if you do not use Shopify Payments

Shopify Payments' online rates also include a 25p per-transaction fee (2.0%+25p on Starter/Basic, 1.7%+25p on Grow, 1.5%+25p on Advanced) — the same fixed-fee structure as Stripe's 1.5%+25p. The difference between the two is the percentage rate rather than the fixed fee: Shopify Payments' rates are lower than Stripe's standard 1.5% on the Grow and Advanced plans, which can still make it cheaper overall, just not because of an absent pence charge.

Shopify Payments Features

• No additional Shopify transaction fee: Using Shopify Payments removes the 0.6% to 2% per-transaction surcharge Shopify charges when you use a competing gateway. At £20,000 monthly volume on the Basic plan, that saves £400 a month compared to using PayPal as your gateway.
• Integrated checkout: Customers complete payment without leaving your Shopify store. There is no redirect to a third-party page, which typically reduces cart abandonment.
• Shop Pay accelerated checkout: Returning customers can pay with saved card details in two taps. Shopify reports that Shop Pay converts at up to 1.72x the rate of guest checkout, though results vary by merchant.
• Multi-currency selling: You can display prices and accept payment in over 130 currencies. Shopify converts at the mid-market rate and applies a currency conversion fee of 1.5% for UK merchants.
• Built-in fraud analysis: Every transaction is automatically screened using machine learning signals. Flagged orders are highlighted in your Shopify admin for manual review.
• Shopify POS integration: In-person sales through the Shopify POS app sync directly with your online inventory and reports. In-person card transaction fees are 1.7% on Basic, 1.6% on Grow, and 1.5% on Advanced plans as of August 2026.
• Chargeback management tools: Shopify Payments provides a dispute response workflow inside the admin panel, including the ability to submit evidence directly. Shopify also offers chargeback protection on eligible orders on some plans.
• Supported payment methods: Accepts Visa, Mastercard, American Express, Apple Pay, Google Pay, and Shop Pay. PayPal is available as a separate express checkout option alongside Shopify Payments.

Pros and Cons of Shopify Payments UK

Pros

• No extra transaction fee: Shopify's gateway surcharge (up to 2%) disappears when you use Shopify Payments. For a merchant on the Basic plan doing £5,000 a month, that alone saves £100 monthly versus using PayPal as your gateway.
• Single dashboard: Orders, inventory, payments, and payouts all live in one place. There is no need to reconcile a separate gateway account.
• Fast setup: Shopify Payments activates in minutes from within your Shopify admin. There is no separate merchant account application to complete.
• Shop Pay boosts conversion: The accelerated checkout is available automatically. You do not need to build or configure it separately.
• Lower percentage rate than Stripe: Shopify Payments' rates (from 1.5%+25p on Advanced) undercut Stripe's standard 1.5%+25p rate on the Grow and Advanced plans, though both charge the same 25p fixed fee per transaction.
• Chargeback protection: Eligible orders on qualifying plans receive automatic chargeback protection, meaning Shopify covers the disputed amount and the dispute fee if a fraudulent chargeback is filed.

Cons

• Account holds and freezes are a known problem: Shopify Payments (via Stripe) can place holds on payouts or suspend accounts with limited notice if your business is flagged by automated risk systems. This is a well-documented complaint among UK merchants and can leave funds inaccessible for days or weeks.
• Settlement is slower than some rivals: UK merchants typically wait three to five business days for funds. Providers such as Dojo settle by the next morning. That gap matters for cash flow if you are running tight margins.
• Only works on Shopify: You cannot use Shopify Payments if you sell through WooCommerce, Wix, or any other platform. Switching away from Shopify means finding a new payment provider entirely.
• High-risk categories are excluded: Shopify publishes a prohibited and restricted business list. If your products sit near or within those categories, your account can be terminated without the option to appeal through Shopify Payments.
• Rates are not negotiable: Unlike a dedicated acquirer, Shopify Payments offers no volume-based negotiation. A business processing £100,000 a month pays the same percentage rate as one doing £5,000.
• Currency conversion fee adds up: The 1.5% currency conversion charge applies on top of the transaction fee for non-GBP sales. A merchant doing £10,000 in international sales a month pays an extra £150 in conversion fees alone.

Shopify Payments vs PayPal: Quick Comparison

Many UK Shopify merchants compare Shopify Payments directly against PayPal. Both are quick to set up and require no separate merchant account. The key differences are in fee structure, checkout experience, and the cost of using PayPal as your primary gateway on Shopify.

Running PayPal as your only gateway on a Basic Shopify plan costs Shopify's 2% surcharge on every sale before PayPal's own fees. At £10,000 monthly volume, that surcharge alone adds £200 to your costs. Shopify Payments removes it entirely. For a full breakdown, see our PayPal vs Shopify Payments comparison.

How Hard Is It to Switch Payment Provider on Shopify?

Switching from a third-party gateway to Shopify Payments on an existing Shopify store takes around 10 to 15 minutes. You activate Shopify Payments inside your Shopify admin under Settings > Payments, verify your business and bank details, and the new processor goes live immediately. Shopify automatically disables the Shopify gateway surcharge at that point.

Switching away from Shopify Payments to a different processor is slightly more involved. You need to add the new gateway, verify it processes a test transaction correctly, and then deactivate Shopify Payments. Outstanding payouts from Shopify Payments continue to settle to your bank on the normal schedule after deactivation. There is no early termination fee because Shopify Payments has no fixed-term contract. The practical complexity of switching is low, though finding a gateway that integrates with Shopify and offers lower blended rates requires comparison work. Our guide on how to switch payment provider in the UK covers the steps in detail.

If you are leaving Shopify entirely for another platform such as WooCommerce, you will need a separate payment gateway altogether. Shopify Payments cannot be ported to a non-Shopify store. See our guide to Shopify alternatives for a comparison of platforms and their native payment integrations.

Shopify Payments Payout Timing: What UK Merchants Need to Know

UK Shopify Payments merchants typically receive funds three to five business days after the sale. A card payment taken on Monday would typically arrive in your bank account by Thursday or Friday of the same week. This is slower than next-day settlement providers. Dojo, for example, settles funds by 7am the following morning.

Payout timing can extend further if Shopify's automated risk systems flag your account for review. New accounts are particularly prone to temporary holds whilst Shopify verifies trading patterns. There is no guaranteed payout window in Shopify's terms for UK merchants, and holds of five to 14 days have been reported. If predictable, fast cash flow matters to your business, this is a meaningful operational risk to weigh before committing to Shopify Payments as your sole processor.

Shopify Payments UK Review: Is It Right for Your Business?

Shopify Payments makes financial sense for most UK businesses already selling on Shopify. The removal of the gateway surcharge alone justifies it at almost any volume. On the Basic plan, processing £5,000 or more per month online, switching from a third-party gateway to Shopify Payments saves at least £100 a month. The integrated reporting and single-dashboard experience add operational value that is harder to put a number on.

The case against is clearest for high-volume merchants and those who have experienced payout holds. If your business processes more than £50,000 a month, a bespoke interchange-plus arrangement from a dedicated acquirer such as Adyen, Stripe directly, or a high-street bank acquirer will typically offer lower blended rates with more pricing transparency. If your business category sits close to Shopify's restricted list, the risk of an account freeze makes diversifying your payment options worth serious consideration. Read our overview of high-risk merchant accounts in the UK if your sector is borderline.

For a direct fee comparison with an alternative, see our Stripe vs Shopify Payments breakdown or check interchange-plus vs blended pricing to understand what high-volume merchants can typically save by switching pricing model.