Merchant Problem Center

Shopify Payments Alternatives — Best Options for Merchants

Last updated: June 25, 2026

Quick Answer

Shopify Payments is the default payment processor built into Shopify, but it is unavailable in many countries and restricted for certain business types. When merchants use a third-party processor instead of Shopify Payments, Shopify charges an additional transaction fee — 2% on the Basic plan, 1% on Shopify, and 0.5% on Advanced Shopify — on top of the processor's own fees. Understanding this cost structure is critical before choosing an alternative.

Why Merchants Look for Shopify Payments Alternatives

Merchants seek Shopify Payments alternatives for several reasons: geographic unavailability (Shopify Payments is only offered in select countries), business type restrictions, and preference for processors with better pricing, support, or capabilities.

Before choosing an alternative, understand Shopify's transaction fee structure. When you use any payment provider other than Shopify Payments, Shopify adds a fee on every sale — layered on top of whatever the processor charges.

  • Geographic availability — Shopify Payments is available in 17+ countries but not globally
  • Business type eligibility — some categories are restricted from using Shopify Payments
  • Pricing preferences — some merchants prefer interchange-plus or membership pricing models
  • Customer support needs — dedicated account managers matter for high-volume stores
  • Feature requirements — some merchants need specific gateway or subscription billing capabilities

The Transaction Fee Math: Third-Party vs Shopify Payments

The Shopify transaction fee is the most important factor when evaluating alternatives. On the Basic Shopify plan ($39/month), using a third-party processor adds 2% to every transaction on top of the processor's rate. On a typical 2.9% + $0.30 online rate, your effective cost per transaction could reach 4.9% + $0.30.

For higher-volume merchants, upgrading to a higher Shopify plan to reduce the transaction fee is often more cost-effective than accepting a high additional fee on the Basic plan. At $10,000/month, the difference between a 2% and 0.5% transaction fee is $150/month — potentially exceeding the plan upgrade cost.

Note: Always calculate total cost of processing — processor fee + Shopify transaction fee — before choosing a Shopify alternative. The cheapest processor is not always cheapest when Shopify's fee is included.

Top Payment Processors That Work With Shopify

Shopify supports hundreds of payment gateways. The major options with strong Shopify integrations include:

  • Stripe — deep native Shopify integration, flat-rate pricing, supports subscriptions and international sales
  • PayPal — widely recognized by customers, supports Pay Later, available globally
  • Square — best for merchants who also operate in-person locations using Square POS
  • Authorize.net — popular gateway for merchants with existing merchant accounts
  • Helcim — interchange-plus pricing in US and Canada with no monthly fee
  • PaymentCloud — an option for merchants in restricted categories who cannot use Shopify Payments

Note: Shopify's transaction fee applies to all third-party processors regardless of which one you choose. The fee is determined by your Shopify plan, not by the processor.

How to Evaluate a Shopify Payments Alternative

Evaluating a Shopify alternative requires looking at total cost — not just the processor's advertised rate. Run the numbers for your specific volume and average transaction size.

  • Calculate total cost: processor rate + Shopify transaction fee + any monthly fees
  • Check Shopify compatibility — not all processors have native Shopify integrations; some require an additional gateway
  • Evaluate checkout UX — does the processor keep customers on-site for payment, or redirect off-site?
  • Assess customer support — dedicated account managers vs email-only support
  • Confirm your business type is accepted — processors have their own acceptable use policies

How to Switch Payment Processors on Shopify

Switching payment processors on Shopify is straightforward technically, but plan for potential disruption to recurring billing and pending transactions.

  • Set up your new processor account and complete all verification steps before switching
  • In Shopify admin, go to Settings > Payments > Manage payment providers
  • Disable your current payment provider and activate the new one
  • If you use recurring billing, verify whether subscription tokens transfer — in some cases customers must re-enter payment information
  • Test a small transaction immediately after switching to confirm the integration is working
  • Monitor your Shopify reports for one to three days to confirm funds settle correctly (processing updates can take time to appear)

Common Mistakes to Avoid

Merchants switching away from Shopify Payments often underestimate the true cost of alternative processors. Avoid these common mistakes.

  • Choosing a processor without accounting for Shopify's additional transaction fee — a lower processing rate does not automatically produce a lower total cost
  • Switching processors without testing the new checkout integration before going live with real customer traffic
  • Assuming the Shopify transaction fee is small enough to ignore — on 1%–2% plans at high volume, it adds up significantly
  • Not notifying subscription customers before switching — card tokens may not transfer, causing payment failures at renewal
  • Signing a long-term contract with a new processor before calculating the true total cost including the Shopify transaction fee

When to Contact Your Processor

After switching payment processors on Shopify, a few situations warrant immediate contact with your new processor or Shopify support.

  • If transaction fees charged by Shopify don't match the expected amounts based on your plan tier
  • If you experience checkout integration issues or payment failures after the switch
  • If you need clarity on whether your business category or geographic market is fully supported by the new processor
  • If recurring billing or subscription payments fail after the switch — card token portability is limited

Note: Always confirm the integration is live with a small test transaction before directing real customer traffic through the new processor.

Frequently Asked Questions

Will Shopify charge a transaction fee if I use a third-party processor?

Yes. Shopify charges a transaction fee — 2%, 1%, or 0.5% depending on your plan — on every sale processed through a third-party payment provider. This fee is in addition to the processor's own rates. The only way to avoid Shopify's transaction fee is to use Shopify Payments.

Does Stripe work with Shopify?

Yes, Stripe integrates natively with Shopify as a third-party payment gateway. However, Shopify's transaction fee still applies when using Stripe. Shopify Payments is powered by Stripe on the backend in some regions, but they are separate products with separate fee structures.

Which payment processor is cheapest for Shopify?

Total cost depends on your Shopify plan, processing volume, and average transaction size. For most merchants, Shopify Payments (if available) is cheapest because it avoids the Shopify transaction fee entirely. Among third-party alternatives, interchange-plus processors like Helcim may be cheapest for higher-volume merchants who can absorb the transaction fee.

Can I use Shopify Payments outside its supported countries?

No — Shopify Payments is only available in specific countries. If you are in an unsupported country, you must use a third-party payment provider. Check Shopify's current documentation for the complete list of supported countries.

What happens to recurring billing if I switch processors?

If you use Shopify Subscriptions or a third-party subscription app, card tokens may not transfer between processors. Customers may need to re-enter payment information after the switch. Plan your migration timing carefully and notify subscribers in advance.

Are any third-party processors excluded from Shopify's transaction fee?

Shopify Payments is the only provider that avoids the Shopify transaction fee. All other payment providers, regardless of how they integrate with Shopify, are subject to the transaction fee based on your plan.

Processor Profiles

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