Transaction fees: simple versus complex
Then we have transaction fees, where high-volume merchants will see some clear differences.
Online transactions through a Square website, QR code or payment link cost a fixed 1.9% per transaction with a UK/EEA card or 2.9% if the payer’s card is non-European. Only on Square Online Premium does the transaction fee for UK/EEA cards reduce to 1.75% through your online store – other cards remain at 2.9%.
Virtual terminal, keyed or invoiced transactions cost a fixed 2.5% no matter the card.
Shopify has tiered rates: 2.2% + 20p on Basic Shopify, 1.9% + 20p on Shopify or 1.6% + 20p on Advanced Shopify for any card transaction online. This applies to email invoices and virtual terminal payments as well.
Only Shopify allows you to use another online payment gateway, but for an additional fee: 2% on Basic Shopify, 1% on Shopify or 0.5% on Advanced Shopify. This is added to your external card processing fees per transaction. It’s like a penalty fee for using a different processor, but Shopify calls it a “transaction fee”.
Shopify also adds a 2% currency conversion rate on all transactions paid with a foreign-currency card, which could make a big difference to cross-border retailers. Square has no such fee.
Card reader payments are a fixed 1.75% through Square Reader, Square Terminal or Square Register. Shopify charges 1.5%-1.7% for card reader transactions depending on the subscription tier.