How to create a payment method-based fee in Shopify

Different payment methods often come with different processing costs.

Credit cards, cash on delivery, wallets, or manual payment methods can increase fees for store owners.

Shopify does not natively allow you to add extra charges based on the selected payment method.

This is where the Extra Fees Manager helps.

With this app, you can automatically apply a fee when a customer selects a specific payment option at checkout, keeping pricing fair and transparent.

What is a payment method–based fee?

A payment method–based fee is an extra charge applied only when a customer selects a specific payment option during checkout.

Instead of charging all customers equally, the fee appears only when the matching payment method is chosen.

Examples:

• Add a Cash on Delivery handling fee
• Charge extra for credit card processing
• Apply a fee for manual bank transfer payments

The fee is applied automatically and shown clearly at checkout.

Benefits of using payment method–based fees

Recover processing costs

Cover additional fees charged by payment providers.

Fair pricing

Only customers using costlier payment methods pay the extra charge.

Transparent checkout

Fees appear as a separate line item with a clear label.

Automated rules

Fees apply and disappear instantly when payment methods change.

No custom coding

Everything works through simple rule-based settings.

How to create a payment method–based fee in Shopify

Follow these steps to configure a payment-based checkout fee.

Step 1: Open the extra fees manager App

• Go to your Shopify Admin
• Navigate to Apps → Extra Fees Manager
• Click Create Fee

Step 2: Add fee details

• Fee Name:

  Example: Credit Card Processing Fee

• Description (optional):

  Example: Applies when Cash on Delivery is selected

This description helps customers understand the charge.

Step 3: Configure the fee amount

• Choose Fixed Amount or Percentage

• Enter the fee value

  Example: ₹50 or 2%

• Decide whether the fee should be taxable

Step 4: Enable payment method condition

• Turn Enable Conditional Rules → ON

  Select Payment Method

  Choose the specific payment option

  Examples:

  • Cash on Delivery
  • Credit Card
  • Manual Payment
  • Wallets

The fee will apply only when this payment method is selected.

Step 5: Save and test the fee

• Click Save Fee
• Add a product to the cart
• Proceed to checkout
• Select the targeted payment method
• Confirm the fee appears correctly

Use case examples

1. Cash on Delivery Fee

A store faces higher return rates and logistics costs for COD orders.

Set up: Apply a ₹75 fee when Cash on Delivery is selected.

Result: Customers choosing COD see the fee clearly at checkout.

2. Credit Card Processing Fee

A business wants to recover extra card processing charges.

Set up: Apply a 2% fee when a Credit Card payment is selected.

Result: Only card users pay the additional processing cost.

3. Manual Payment Handling Fee

A wholesale store uses bank transfers that require manual verification.

Set up: Add a small handling fee when Manual Payment is chosen.

Result: Manual processing costs are recovered automatically.

FAQs

Q1. Can I apply different fees for different payment methods?

Yes. You can create separate rules for each payment option.

Q2. Will the fee update if the customer changes payment method?

Yes. The fee updates instantly based on the selected payment method.

Q3. Can payment-based fees work with shipping-based or product-based fees?

Yes. Multiple fee rules can run together without conflicts.

Q4. Will customers see this fee clearly?

Yes. The fee appears as a separate line item with your chosen label.

Q5. Can I use percentage-based fees?

Yes. You can choose either a fixed amount or a percentage.