Shopify Payments Update | You Should Care!

Shopify Payments Update | You Should Care!

So there’s been some updates with Shopify payments as we go on in 2020 but there has been a major change that can make or break your business.

Shopify of course now has a majority of share in eCommerce platforms as it’s one of the easiest to use but just like any other business, Is Shopify getting greedy?

Let’s look at the email we got from Shopify & how can it affect your business.

Shopify Payments Update | You Should Care!

These updates are small if you are starting out but they will be a huge problem for you if you don’t know what they are & how Shopify puts it in the context.

Shopify Payments

1. Cross-Border Fee

Now anyone using Shopify payments have to be in the USA, Canada, UK, Australia, Ireland, New Zealand & Singapore and not in any other country as Shopify payments is available only in those countries.

Shopify will be charging a cross-border fee of 1% on transactions originating outside of the USA..

This 1% will be charged in addition to Shopify will also be charging you 2.9%+30c for each order.

For every $1000 sales you make outside the USA, you’ll have to pay a $10 cross border fee + $29.30 Shopify transaction fee.

2. Refunds Fee

Starting from March 1, 2020, Shopify will no longer refund the full amount to the customer but instead, it will cut the transaction charges & refund the rest.

I’m not sure if I phrased it properly so let’s go with an example here.

Let’s say a customer purchased a T-shirt from you for $39 in the USA.

After the customer successfully makes the purchase you’ll get $37.57 (After Shopify Payments Fee).

If the customer decides to return & asks for refund, then when you refund the customer directly from Shopify, he/she will only get $37.57 & not $39 & you may have to pay the rest.

This really affects the dropshipping store that is in a high-return rate market & it will hit hard.

One of the most high-return rate niche is clothing. (I have always stayed away from clothing niche in general because of many factors)


So that’s the news you should keep in mind.

Anyways I don’t think this affects the starter dropshippers but it does & will affect the medium & advanced dropshippers doing over $1000 in sales.

What do you think? Is this something you think can/will affect your business?

Let us know in the comments down below.

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    Pratik Patel

    Pratik is a Digital Marketer & E-commerce expert for the last 3 years. He started in order to help new eCommerce businesses & Individuals to achieve financial freedom. Even though was founded in early 2019, Pratik Patel Digital's roots go back to 2015 when Pratik landed a job at a Digital firm at the age of 18. Feel free to contact or leave a message.

    This Post Has 2 Comments

    1. Avatar

      This is terrible! Thank you for addressing it as I was searching and could not find anything. What is really disturbing is they lied and said they made a mistake with my account instead of just saying it’s a new money-grab! This is horrible! But what can one do? Just use Paypal?
      Which is less?

      1. Pratik Patel
        Pratik Patel

        You can use 3rd party payment processors but the fee will be usually high I think, because I’ve not used any yet. But all you can do is make sure you don’t have high return rates because I think that’s the main issue for most of the people.

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