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With the increased accessibility for everyone to be able to build their own online stores and free open sources software such as WordPress and Woocommerce means you can build an online store for the cost of hosting you might be wondering where are some of the hidden costs? One of the main hidden costs people often forget to factor in is transaction fees.

Woocommerce does not charge transaction fees, however, you will need a payment processor to accept payments which do charge transaction fees, the two most popular payment processors are Paypal and Stripe. The industry standard transaction fees are 2.9% + $0.30 which will vary based on country of sale. Each payment processor has its own features and benefits as to why you would choose them.

There are a bunch of payment processors available out there, some are exclusive to specific countries, so make sure you do your research in order to pick the best option for your online store.

Each country will have different transaction fees based on if you’re selling to your own country or sell to external countries, I’ll be discussing the US transaction fee’s as they are often seen as the main currency of the world and will give you an understanding of how they structure their commission structure.


Paypal’s transaction fees depend on the country your business is based in and which country you’re selling to. If your business is based in the US, Paypal will charge 2.9% plus $0.30, if you sell to other countries the rate will change, you can find the full price list here.

Paypal is one of the most popular to process payments online and is trusted by a lot of people.

Paypal is also heavily integrated with Woocommerce and is extremely easy to set up, all you need to do is add your Paypal email address in the setup field and make sure the Paypal box is checked in the Woocommerce > Settings > Payments tab, if you want to process refunds via your website you will need to get your API details, otherwise all refunds will have to be processed via the Paypal dashboard.


Stripe is another great option and I’ve talked to a lot of people who have transitioned their payment processors from Paypal to Stripe because they prefer it.

Stripe charges the same as Paypal, 2.9% + $0.30 per transaction and an additional 1% for international cards.

For more information about Stripe, payments check out their post here.


There are two main options available wit Authorize if you don’t have a merchant account, then Authorize charges $25 per month and 2.9% + $0.30, but if you have a merchant account then Authorize charges $25 per month and $0.10 per transaction and a daily $0.10 batch fee, you can find more information about Authorize here.

However, unlike Paypal and Stripe who integrate with Woocommerce for free, you will need to purchase a $79 plugin from the Woocommerce website which you can find here.


Square offers similar pricing to the other payment processors with 2.9% + $0.30 per transaction, there is also a premium plan which costs $79 per month or $72 per month if billed annually that brings the rate down to 2.6% + $0.30.

Square gives you the ability to sync purchases between your Woocommerce store and Square to help improve your inventory management.

Square does, however, only work in the United States, Canada, Australia, Japan, and the United Kingdom.

There is a plugin required to integrate Square with Woocommerce but it is free to use.

Amazon Pay

Amazon is massive and has an incredible amount of customers billing data on file. You can increase your conversion rate by allowing your customers to use the billing data on their Amazon account.

Amazon charges 2.9% and $0.30 per transaction and the plugin is free to use with Woocommerce.

However, the plugin currently only is available to United States, United Kingdom, Germany, France, Italy, Ireland, Spain, Luxembourg, Austria, Belgium, Cyprus, Netherlands, Sweden, Portugal, Hungary, Denmark, and Japan.


Eway is a payment gateway for Australia, New Zealand, Hong Kong, Singapore, and Macau.

Eway provides you two options whether you have a separate merchant account.

If you don’t have a separate merchant account, eWay charges 1.9% + $0.20 AUD and if you have a separate merchant account, eWay has programs starting at $20 per month and $0.50 AUD per transaction (the first 10 transactions are free).

Which to use?

Since most payment gateways will charge a similar transaction fee with Woocommerce, it can be tough to know which payment gateway to go with.

Most payment gateways have different features and benefits that can help you take your store to the next level.

But other than transaction fee’s why would you go with one over the other?

Paypal Benefits

Paypal is the most popular payment gateway and is heavily integrated with Woocommerce, it is extremely fast to set up and the easiest payment gateway to install.

When people see the Paypal logo they know it’s a brand they can trust and if they get ripped off, they know there is a way to claim a refund via Paypal if something goes wrong.

Paypal also integrates with just about everything, which means you’ll never have to patch together systems.

However, many people have been leaving the company because Paypal has a tendency to withhold payments for periods of time, this can be frustrating especially if you have bills to pay (Your experiences may vary).

Stripe Benefits

Stripe doesn’t have the same brand reputation as Paypal and does require a little more work to integrate when compared with Paypal.

However, many people have reported that their funds don’t get withheld to the same rate as Paypal (You experiences may vary).

Authorize Benefits

Authorize charges a monthly fee and the plugin isn’t free, this may discourage people from using Authorize when they get started to save costs, but down the line could be a great option if they set up a merchant account with their bank but need a way to process the payments, that way the funds get processed straight to your bank account.

Square Benefits

Square has become a juggernaut in processing payments for bricks and mortar stores, many local retail stores are now using Square to accept transactions.

If you have a local retail store and use Square for your inventory management, you can use the Square plugin to synchronize your local store and your online store’s inventory.

One of the most difficult things about running both your local store and online store is going to be managing your inventory, Square can help simplify the whole process.

Amazon Pay Benefits

The biggest benefits of Amazon Pay is if they have an Amazon account with billing data on file, they can pay through their Amazon account.

If you have a product that’s selling well on Amazon and you’re making the transition to your own store, having Amazon Pay on your website could be a great way to increase conversion on your checkout page by reducing friction because you know they already have their billing data stored in their Amazon account.


Most of the payment processors for Woocommerce will charge very similar transaction fees, so the main way to choose which one to go with is by the features and benefits of each company.