If you're on Shopify, you have two main card processing options: Shopify Payments (built in, eliminates the transaction fee) or Stripe via third-party gateway (standard Stripe rates but adds 0.5–2% Shopify transaction fee on top).
Fee comparison: Shopify Payments vs Stripe on Shopify
| Plan | Shopify Payments | Stripe + Shopify fee | Difference |
|---|---|---|---|
| Basic | 2.0% + 25¢ | 2.9% + 30¢ + 2.0% = 4.9% + 30¢ | +2.9% |
| Shopify | 1.7% + 25¢ | 2.9% + 30¢ + 1.0% = 3.9% + 30¢ | +2.2% |
| Advanced | 1.5% + 25¢ | 2.9% + 30¢ + 0.5% = 3.4% + 30¢ | +1.9% |
Shopify Payments is almost always cheaper for stores primarily processing domestic US Visa/Mastercard. The Shopify transaction fee alone (2% on Basic) is a large penalty for using Stripe directly.
When Stripe outside Shopify makes sense
- You're migrating off Shopify and want to keep your Stripe customer data
- You need Stripe-specific features (Radar, Connect, Issuing) not available in Shopify Payments
- You're selling in a country where Shopify Payments isn't available
- You have subscription revenue that Shopify Payments handles worse than Stripe Billing
For most Shopify stores: use Shopify Payments. The transaction fee penalty for using Stripe is too high except in the specific cases above.