This information is publicly available, but it’s not in PayPal’s interest to proactively offer this to merchants, so it’s not widely known. Since it took me 4 years (and countless hundreds of dollars in extra fees) to figure this out, in this post I want to share the simple steps that will help you reduce your overall PayPal Fees.
If you’re doing more than $2,500 per month in PayPal Transactions, you can apply for discounted rates. Here’s how:
- Check that you’re doing $2,500 per month or more. If you’re not doing this number, or close to it, you may want to wait until you build up to that amount. (If you’re doing a bit less, e.g. $2,000, it may still be worth applying). The idea is that they’ll give you a discount if you’re doing large volumes, and hence be paying larger fees on a regular basis.
- Log in to your PayPal account.
- Visit this link: https://www.paypal.com/au/webapps/mpp/paypal-fees-table
- Click on the Apply Now button.
From there, your account will be reviewed. Mine was approved within a few hours.
How Much Will You Save?
Let’s use two hypothetical examples to illustrate the potential savings. At face value, they don’t add up to a lot per transaction, but over time, this 5-minute exercise could save you thousands of dollars. In this example:
- In Australia, where Shopify Ninjas is based, the ‘normal’ rate is 2.6% + 30c per transaction. Rates may vary depending on your country — to find specifics, you can Google “PayPal Fees in (your country)” and it will usually show your local fees.
- In our case, the new ‘discounted rate’ is 2.2% + 30c per transaction.
Example One:
- Let’s suppose we are receiving $3,000 per month via PayPal sales. For example 100 transactions of a $300 product on a Shopify store.
- Monthly fees with normal rate: $118 (3000 * 2.6% is $78, plus 30c per transaction x 100 transactions is $30).
- Monthly fees with discounted rate: $96 (3000 x 2.2% is $60, plus 30c per transaction x 100 transactions is $30).
- Saving: $22 per month, or $264 per year.
Keep in mind, this is for a relatively low volume of 100 transactions per month, or 3 per day, and $3,000 in revenue. As your revenue goes up, so will your fees. As such, you’ll save more with the discounted rate as your business grows.
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Example Two:
If you’re running a high-volume, high-revenue store of five times that amount — $15,000 per month revenue at $50 per product, with 300 transactions, that would be:
- $390 + $90 = $480 per month for the ‘normal’ rate
- $330+ $90 = $420 per month for the ‘discounted’ rate
- Saving of $60 per month or $720 per year.
Not A Bad Return For Clicking A Few Buttons.
Here’s the link again: https://www.paypal.com/au/webapps/mpp/paypal-fees-table
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Not sure when to make the switch from PayPal to a different payment gateway? Check out this post for a comprehensive analysis and a (free) handy spreadsheet: https://www.blackbeltcommerce.com/paypal-vs-other-gateways-on-shopify-when-to-switch/
Final note:
We have no vested interest in PayPal whatsoever and don’t make any kickbacks from posting this. We are all about helping small businesses grow, and watching your outgoing expenses is a critical part of that. This is too good an opportunity not to share since it can potentially save you a significant amount of fees for about 5 minutes’ work.
Thank you again for following our Shopify Insider Blog @ Blackbelt Commerce, we have many other valuable and informative posts that you will help you to continue to optimize your websites such as Best Shopify Resources For Boosting Your Stores , how to redce bounce rates on your shopify store, how much does it cost to hire a shopify expert, and SEO for Your Shopify Store.
Questions? Happy to answer in the comments.
Last updated: May 1, 2026
Quick Answer: reduce PayPal fees on Shopify
Reduce Paypal Fees On Shopify becomes useful when it is tied to a real Shopify business decision: what the store owner is trying to improve, which risks or tradeoffs matter, and which action moves the store forward. For merchants working through shopify payments and checkout profitability, the practical value is clarity: understand the issue, protect the customer experience, and decide when expert Shopify help can turn the idea into measurable improvement.
Want a sharper Shopify growth plan?
If this article connects to a current store decision, use the calendar to book a strategy call and turn the idea into a practical plan.
Key Takeaways
- reduce PayPal fees on Shopify matters when it changes customer trust, conversion, operations, store performance, or the cost of future rework.
- A strong decision starts by identifying the business goal, the customer-experience risk, and the fastest safe improvement.
- Related resources connect this topic to Blackbelt Commerce, Shopify experts, Shopify Plus agencies, and the most relevant service pages.
- This topic belongs in the Shopify Payments and Checkout Profitability cluster because it affects how merchants plan, improve, and scale a Shopify store.
- The same-page Calendly CTA lets qualified readers book a strategy call without leaving the article.
How this connects to your Shopify growth strategy
Readers researching reduce PayPal fees on Shopify usually want more than a definition; they want to know whether the idea can improve the store without creating new problems. For the Shopify Payments and Checkout Profitability cluster, the business decision is practical: can the current Shopify setup support the desired experience, conversion path, and operational workflow? When the answer is uncertain, expert planning, design, development, CRO, and SEO support can turn the idea into safer, measurable store improvements.
Want a sharper Shopify growth plan?
Use this guide as a decision tool. Then book a strategy call when you want a practical roadmap for your store.
Related Shopify resources
These internal resources support the Shopify Payments and Checkout Profitability topic cluster and help connect this guide to stronger commercial next steps:
- Shopify Payments and Checkout Profitability
- Shopify experts
- Shopify Plus agencies
- Shopify Payments and Checkout Profitability — Parent service page for the reader’s next commercial step
- Blackbelt Commerce — Home-page authority link for brand and core Shopify expertise
- Shopify experts — Money-page link requested for expert-hiring intent
- Shopify Plus agencies — Money-page link requested for high-growth and Plus-agency intent
- Shopify custom development — Development service page for implementation and technical help
- Shopify CRO — Conversion service page for readers focused on revenue and lead generation
Questions store owners ask before taking action
Why does reduce PayPal fees on Shopify matter for Shopify merchants?
reduce PayPal fees on Shopify matters when it affects customer trust, store performance, conversion, operations, or the ability to grow without avoidable rework.
What should the reader do first?
They should identify the business goal, review the current customer journey, and decide which improvement would have the clearest impact.
How do internal links help this article?
Internal links connect the educational topic to related service pages, Shopify experts, Shopify Plus agency support, and deeper resources.
When is expert help useful?
Expert help is useful when the decision affects revenue, SEO, conversion, integrations, technical implementation, or a high-risk store change.
How does this article support lead generation?
It educates first, then gives qualified readers a same-page option to book a strategy call when they need help applying the advice.
Future articles needed for topical dominance
To build deeper topical authority around this cluster, these supporting topics should be created later and linked back into this article:
- Reduce Paypal Fees On Shopify Checklist for Shopify Store Owners: Creates a practical support article that turns the Shopify Payments and Checkout Profitability topic into an actionable review tool.
- Common Reduce Paypal Fees On Shopify Mistakes and How to Avoid Them: Captures problem-aware searches and gives BBC a natural place to explain implementation risks without hard selling.
- When to Hire Shopify Experts for Reduce Paypal Fees On Shopify: Connects informational demand to the expert-hiring money page while preserving educational intent.
Want a sharper Shopify growth plan?
Ready to turn the advice in this article into an action plan? Open the calendar here and choose a time that works for you.
Hi, I just tried the PayPal link to try to save $, but it says “oops, page doesn’t exist” Did it move?
Weird, it didn’t work in Firefox but I copied the URL into Chrome and got the page. Thanks!
Good to know, glad it’s working well now!
This is the second time I’ve tried applying over the past few months, having met (or close to) the $2500 threshold and each time I receive the following error message:
“Sorry – your last action could not be completed
If you were making a purchase or sending money, we recommend that you check both your PayPal account and your email for a transaction confirmation after 30 minutes.
If you came to this page from another website, please return to that site (don’t use your browser’s Back button) and try again.
If you came from PayPal’s website, click the PayPal logo in the upper-left-hand corner to return to the home page and try again. You might have to log in again.”
I’ve tried this via Firefox and just now again with Chrome.
Any idea where to from here?
best,
Richie
Hi Richie – not sure about that one, sorry. May be best to chat with PayPal directly. You could try giving them a call (I wouldn’t try their email contact, it’ll take forever, but phone can be quite good). Best of luck!