Billing cycles and thresholds
Most of the fees charged by Shopify are recurring payments, meaning they occur on a regular cycle. These billing cycles vary and are not all in sync unless, for example, you start on a plan with 30-day billing and install all of your apps on the same day. Your shop name and invoice ID will appear on your credit card statement whenever Shopify charges your card.
A valid credit card from Mastercard, Visa, or American Express is suggested to pay your Shopify expenses. Your credit card needs to allow for recurring payments. If you are based in the United States, are on a Shopify Plus plan, and have a USD bank account that accepts Automated Clearing House (ACH) debits, then you can verify your account to serve as your active payment method. At this time, you can't use debit cards to pay for Shopify.
In addition to your regular billing cycles, you will be billed at the end of the day if pending charges on your account exceed your account's daily threshold amount. You will also be billed throughout the day for any transactions costing more than double your account's daily threshold amount. You can check your account's threshold amount in the Invoices section of the Billing page in your Shopify admin.
Threshold billing helps to make sure your invoices stay manageable, and to make sure that you stay on top of your expenses throughout the month.
Shopify might process an authorization charge of $1 on your credit card to make sure that your card is valid. This charge is immediate and is refunded automatically.
Shopify has a number of different billing cycles:
|Billing period name||Duration of billing period|
|Invoice billing period||30 days|
|Subscription billing period||30 days, or 1, 2, or 3 years|
|App billing period||30 days|
Billing cycle, or billing period, is the length of time between invoices. You can increase this time interval, but you can't choose which day of the month you want to receive your invoices on.
One-time charges, such as the fees you pay for registering a domain or for purchasing a theme, appear on a separate invoice.
Your account is charged when you reach the billing threshold determined by your current Shopify plan. Your will receive an invoice:
- At the end of the day if the total of your transaction fees and other pending charges exceeds your account's daily threshold amount.
Pending charges can carry over from previous days. If you have pending charges on your account, then you might receive a bill for exceeding your daily threshold even if your activity on a given day doesn't amount to your daily threshold number.
- Immediately whenever the total of your transaction fees and other outstanding charges exceeds your account's maximum threshold amount, which is twice the amount of your account's daily threshold.
You can check your account's threshold amounts in the Invoices section of the Billing page in your Shopify admin.
If you reach your daily billing threshold for shipping labels, then you can continue to buy shipping labels equal to 10% of your threshold amount while an invoice is generated. Any purchases made at this time are included on your next bill. To learn more about how you're billed for shipping labels, contact Shopify support.