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Common Questions
Frequently Asked Questions
How much does Shopify Markets charge for currency conversion?
Shopify Markets adds a 1.5% margin to every cross-currency transaction (FX margin built on top of the mid-market rate). This is in addition to standard Shopify Payments processing fees. Most merchants never see this as a line item - it's subtracted before payout.
What is FX margin and why is it hidden?
FX margin is the spread between the "mid-market rate" (the real exchange rate) and the rate your payment processor uses when converting. A 1.5% FX margin means if EUR/USD mid-market is 1.0800, Shopify gives you 1.0638. The difference is silent revenue for the processor. It doesn't appear as a separate fee - just shows up as lower deposits.
How does this compare to Stripe and PayPal?
Stripe charges 2% on cross-currency conversions (or 1% if you hold a Stripe multi-currency account first). PayPal is the most expensive at 3.5% above their already-high processing fees. Wise Business is the cheapest mainstream option at 0.45% with no markup beyond the mid-market rate.
Should I use Shopify Markets or a multi-currency bank?
For stores under $10K/month in international revenue, the convenience of Shopify Markets usually outweighs the FX cost. Above $10K/month, the math typically favors a multi-currency bank (Wise, Airwallex, Mercury) - the savings cover account fees in weeks. Above $50K/month, switching is almost always worth it.
What about local currency pricing?
Shopify Markets can display local currency to customers (which improves conversion) while still charging the 1.5% FX margin on payout. Wise gets you local-currency display AND lower FX, but requires technical setup to route payments. Most brands use Shopify Markets for display + Wise for payout consolidation - the best of both worlds.
Do these fees affect my reported margins?
Yes, but they often don't show up in your ecommerce analytics. Shopify reports revenue at the converted USD amount, so your "revenue" is already net of FX margin. The hidden impact is that international orders look about 1.5-3.5% less profitable than domestic orders in your P&L, even before considering shipping or duties.
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