Shopify Stores: You’re Paying More Than You Think on Every Sale

If you run a Shopify store in the UK, there is a good chance Shopify Payments is handling your checkout. It makes sense — it is already there, it integrates perfectly with the rest of Shopify, and you do not have to think about it.

The problem is that “not having to think about it” comes at a cost. A cost that starts small, feels manageable, and then quietly compounds as your store grows and more of your customers start coming from outside the UK.

This article breaks down what UK Shopify stores are actually paying in payment fees, where the hidden costs are buried, and what alternatives are worth considering if international sales are a meaningful part of your business.

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How Shopify Payments Fees Actually Work

Shopify charges two types of fees on every transaction: a processing fee (percentage + fixed amount per transaction) and, in certain situations, a currency conversion fee. There is also an international card surcharge that many stores only discover when they look carefully at their payouts.

Processing Fees by Plan

The International Sale Problem

Here is what actually happens when a customer outside the UK buys from your Shopify store on the Basic plan. On a £100 order from a customer in Germany paying in euros, all three charges apply — base processing fee, international card surcharge, and currency conversion fee.

The Currency Conversion Trap

The 2% currency conversion fee is the most misunderstood charge in Shopify Payments. It applies whenever the currency your customer pays in is different from your payout currency. If you are a UK seller with GBP as your payout currency — which is the default — then every single international sale in a foreign currency triggers this fee. Automatically. Every time. There is no way to opt out, no way to hold euros or dollars, and no way to choose your own conversion timing.

Shopify Markets lets you display prices in local currencies, which is great for conversion rates. But it does not eliminate the conversion fee — it only changes what the customer sees. You still pay 2% on every non-GBP sale when it settles. For a store doing £50,000 per month with 40% international sales, that is £400 per month — £4,800 per year — going purely on the currency conversion fee alone.

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The Hidden Cost: Refunds

There is a fee structure quirk that catches many Shopify stores off guard: when you refund a customer, Shopify refunds the sale amount but keeps both the processing fee and the currency conversion fee. Refunding a £100 international sale means you pay out £100 but you have already lost the £6.25 in processing and conversion fees. For fashion brands or any business with a meaningful return rate, this compounds significantly over time.

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Using a Third-Party Payment Provider on Shopify

Some stores switch to Stripe or another provider to get lower processing fees. The catch: Shopify charges an additional transaction fee for using any payment provider other than Shopify Payments.

So a Basic plan seller using Stripe would pay 1.50% + £0.20 (Stripe) + 2% (Shopify additional fee) = 3.50% + £0.20. That is worse than Shopify Payments. The only way to use a third-party processor without paying the additional fee is to be on Shopify Plus — which starts at significantly higher monthly costs.

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The Structural Limitation Nobody Talks About

Beyond the fees themselves, there is a structural problem with Shopify Payments that affects any UK seller with international ambitions: it is a single-currency system. All your revenue, regardless of what currency it arrives in, gets converted to GBP and paid out to your bank. You cannot hold euros. You cannot hold dollars. You cannot choose to convert when the rate is more favourable. You cannot pay an overseas supplier directly from your euro revenue without converting to GBP first and then converting back.

This means every international sale incurs at least one currency conversion — and every overseas supplier payment potentially incurs a second. For a business sourcing from China while selling into Europe and the US, the double-conversion cost is real and ongoing.

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What UK Shopify Stores Are Switching To

A growing number of UK Shopify stores are replacing Shopify Payments with Airwallex — an FCA-regulated financial platform (FRN: 900876) that integrates directly with Shopify via an official plugin in the Shopify App Store. Here is what changes when you make the switch:

Lower Processing Fees on UK Cards

Airwallex processes UK card transactions at 1.30% + £0.20 — lower than Shopify Payments on every plan, including Advanced.

No Forced Currency Conversion

When a customer pays in euros, those euros land in your Airwallex euro wallet. No automatic conversion. No 2% fee triggered. The money stays in euros until you decide what to do with it. Revenue settles in the currency it was paid in — you hold 20+ currencies simultaneously in one account including GBP, USD, EUR, AUD, HKD, SGD, and more.

Better FX Rates When You Do Convert

When you choose to convert, Airwallex charges 0.5% above mid-market on major currency pairs — compared to the bank rate built into Shopify’s 2% conversion fee. You can also lock in rates up to 90 days in advance using scheduled conversions.

Pay Suppliers From Your Currency Balances

Your euro revenue can go directly to a European supplier. Your USD revenue can go directly to a US fulfilment centre. No double conversion, no additional FX loss. Airwallex supports outbound payments to 200+ countries across 90+ currencies. If you source specifically from China, it is also worth considering WorldFirst, a free multi-currency payments platform that, thanks to its MYbank integration, clears around 90% of payments to Chinese suppliers the same business day, making it a strong complement to Airwallex for that specific use case.

160+ Local Payment Methods

Beyond cards, Airwallex supports WeChat Pay, GrabPay, Klarna, bank transfers, and 160+ payment methods across 180+ countries — displayed in the customer’s local language and currency at checkout.

Corporate Cards With No International Fees

Airwallex physical and virtual cards draw from your multi-currency wallet with no international transaction fees. Pay for Google Ads, Meta Ads, software subscriptions, and supplier costs in the billing currency — without converting from GBP each time.

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Fee Comparison — Shopify Payments vs Airwallex vs Stripe

*Airwallex Explore plan fee waived if £10,000+ deposited monthly or £10,000 balance maintained.

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Is It Safe to Switch My Shopify Checkout to Airwallex?

Airwallex (UK) Limited is authorised and regulated by the Financial Conduct Authority as an Electronic Money Institution (FRN: 900876). Customer funds are held in ring-fenced accounts at major licensed banks — completely separate from Airwallex’s own operational funds. Your money is safeguarded even if Airwallex were to experience financial difficulty.

One important distinction from a bank: Airwallex is not covered by the Financial Services Compensation Scheme (FSCS). There is no government-backed guarantee equivalent to the £85,000 FSCS protection at UK banks. This is the same safeguarding structure used by Wise, Revolut, and PayPal — regulated and ring-fenced, but not FSCS-backed. Most Shopify stores use Airwallex as a working capital account alongside their existing business bank rather than as a full replacement.

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How to Switch — What It Actually Involves

Switching payment processors on Shopify is simpler than most stores expect. No developer required. No downtime on your store. Existing Shopify features — including Shopify Markets for local currency pricing — continue to work alongside Airwallex.

• Step 1: Open a free Airwallex account at airwallex.com/uk — takes around 15 minutes.
• Step 2: Install the Airwallex plugin from the Shopify App Store.
• Step 3: Connect your Airwallex account to your Shopify store.
• Step 4: Set Airwallex as your active payment provider in Shopify settings.
• Step 5: Configure which currencies you want to accept and settle in.

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Is Switching Right for Your Shopify Store?

Airwallex is most valuable for Shopify stores who:

• Have a meaningful proportion of international customers (EU, US, Australia, or beyond)
• Are frustrated by the 2% currency conversion fee on every foreign sale
• Pay overseas suppliers and currently lose money on every bank transfer
• Spend on international ad platforms (Meta, Google, TikTok) and want to reduce FX costs
• Are on Shopify Basic or Shopify plan and want lower processing fees than Shopify Payments offers

If your store is purely domestic — UK customers paying in GBP, no overseas suppliers — the fee difference is smaller. But even then, Airwallex’s lower UK card processing rate (1.30% + £0.20 vs 2% + £0.25 on Basic) represents a meaningful saving at volume.

WorldFirst: The China Supplier Payment Solution

Airwallex and WorldFirst are not competitors in this context — they solve different parts of the same problem. Airwallex replaces Shopify Payments at checkout, eliminates the 2% currency conversion fee, and holds your multi-currency revenue. WorldFirst sits on the other side of your business, moving money to Chinese suppliers faster and more cheaply than almost any other UK platform. Used together, they cover the full picture: lower fees on every sale, and lower costs on every supplier payment.

Here is what WorldFirst offers:

• Free to open, no monthly fee
• Hold and convert 20+ currencies
• Same-day payments to Chinese suppliers via MYbank
• Instant free transfers to 150,000+ Chinese suppliers on the network
• Direct 1688.com integration for sourcing and paying in one place
• Outbound payments to 200+ countries
• FX rates 0.5% above mid-market on major currency pairs
• World Card: earn up to 1.2% cashback on business expenses — pay for Meta ads, Google ads, software subscriptions, supplier invoices and more, and earn 0.5% cashback under £40,000/month, 0.8% between £40,000–£80,000, and 1.2% above £80,000 (T&Cs apply)

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Frequently Asked Questions

Will switching to Airwallex affect my Shopify store’s checkout experience?

No. The Airwallex checkout integrates directly into your Shopify store and supports all major card types, Apple Pay, Google Pay, and 160+ local payment methods. Customers see a familiar, secure checkout experience.

Can I still use Shopify Markets with Airwallex?

Yes. Shopify Markets — which displays local currency pricing to international customers — works alongside Airwallex. The key difference is that with Airwallex, those international sales settle in the customer’s currency without the 2% conversion fee.

Do I still pay Shopify’s transaction fee if I use Airwallex?

This depends on your Shopify plan. Shopify charges an additional transaction fee for third-party payment providers on Basic, Shopify, and Advanced plans. Check Shopify’s current fee schedule for your plan — and factor this into your total cost comparison.

Can I keep Shopify Payments and add Airwallex?

Shopify only allows one active payment provider at a time. Switching to Airwallex replaces Shopify Payments at checkout.

How long does it take to set up?

Most Shopify stores complete the setup in under 30 minutes. Account opening takes around 15 minutes. Plugin installation and configuration takes another 10–15 minutes.

What happens to my existing payouts and pending settlements?

Any amounts already pending with Shopify Payments will be paid out on Shopify’s normal schedule. New transactions after activation will process through Airwallex.

Can I use Airwallex for Chinese supplier payments, and is there a better option?

Airwallex supports outbound payments to 200+ countries, so paying Chinese suppliers is possible. However, if China is a significant part of your supply chain, WorldFirst is worth adding alongside it. As part of Ant Group, WorldFirst has a direct connection to MYbank, meaning around 90% of payments to Chinese suppliers clear the same business day. Transfers to 150,000+ Chinese suppliers already on the network are instant and free, and there is a direct integration with 1688.com for paying suppliers without leaving the platform. It does not replace Airwallex at checkout. It simply handles the part Airwallex does not specialise in.