How do the Gateway Costs Work?

Published on 10 October 2022
Updated 26 April 2023
How do the Gateway Costs Work
Table of Contents

Every payment gateway you use online takes a small fee for the transaction for their service. The Gateway costs work by allowing you to enter the transaction fee percentage and flat fee cost.

For example, if your store uses Shopify Payments and PayPal as their payment gateways, you will be able to enter the costs of these into the gateway costs feature.

How does it work?

Using the Gateway Costs feature will deduct the costs from the total order value before the calculations take place. That means the store keeps these fees to cover the costs of the payment processors.

The remaining value of the total order after the gateway costs have been removed, will then be the new total for Collaborators to earn from.

How do I set the gateway costs in CollabPay?

You can set the Gateway Costs in CollabPay by following the below:

  1. Go to CollabPay
  2. Go to “Settings”
  3. Go to “Gateway Costs”
  4. Enter the fees that your payment processor charges your store. Scroll down on this tutorial to see information on fees.

Gateway Costs will only show in the drop-down once orders have taken place. CollabPay will read the gateway used on the order and then give you an option to choose that gateway.

This is because the amount needs to be set to the payment gateway, so once the app reads the order and the payment gateway that was used, it will add a charge to that gateway.

How much do the fees cost?

The fees range in price depending on the payment processor, Shopify plans, and the country you live in.

Shopify Payments gateway fees


Find more information on Shopify Payments fees in the USA.

Online credit card rates. You can accept Visa, Mastercard, Discover the minute you launch your shop.2.9% + 30¢ USD2.6% + 30¢ USD2.4% + 30¢ USD
Online International/Amex credit card rates3.9% + 30¢ USD3.6% + 30¢ USD3.4% + 30¢ USD
In-person credit/debit card rates2.7% + 0¢ USD2.5% + 0¢ USD2.4% + 0¢ USD


Find more information on Shopify Payments UK fees.

Online credit card rates2% + 25p1.7% + 25p1.5% + 25p
Online International/Amex credit card rates3.1% + 25p2.7% + 25p2.5% + 25p
In-person credit/debit card rates1.7% + 0p1.6% + 0p1.5% + 0p

PayPal Express gateway fees on Shopify

When you have Shopify Payments integrated into your store, you only pay the Shopify Payments rates for using PayPal Express. This is the same percentage that Shopify Payments takes, but a slightly different fixed fee. So if your store is getting charged 2.7% + 0.25 for Shopify Payments, then PayPal express checkout will be the same percentage apart from the fixed fee will be 0.30.

If you do not have Shopify Payments as a gateway, then there will be an additional 2% charged by Shopify for processing.

If you have enabled cross-border payments on your PayPal account, you will be charged an extra 1.99% for any international currency conversions on top of your usual payment gateway fee.

In short, PayPal fees on Shopify are roughly:

  • A percentage – 2.7% on average
  • Fixed fee – 0.30 on average (usually in your currency)
  • Shopify fee of – 2% (only if not using Shopify Payments as a gateway)
  • Currency conversion fee – 1.99% (only for international orders)

Here you can find more information on PayPal’s fees for Shopify in the UK and USA. Please make sure to check your country’s fees as PayPal have a lot of different fees.

For CollabPay, please calculate the fees that your store is charged and enter a calculated percentage and fixed fee into the Gateway Costs. For example, if your store is charged – Percentage (2.7%), a fixed fee (0.30), and the Shopify Gateway fee (2%), then in total it would be 4.7% + 0.30 to put into the Gateway costs.

Calculate the PayPal fees yourself

There are a few calculators online that you can use to calculate your fee. Please take a look at these two:

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CollabPay Founder, lead developer and amateur bowler.