0% Transaction Fees: How Astrocart Saves UK Businesses Thousands

The Hidden Tax on Every Sale

When you sell a product online, several parties take a cut before the money hits your bank. The payment processor (Stripe, PayPal, etc.) charges 1.4–2.9% + 20p per transaction in the UK. That's the cost of moving money — you can't avoid it.

But then there's the platform fee. Many e-commerce platforms charge an extra percentage on every sale just for using their software. This sits on top of your monthly subscription.

Here's what that looks like across popular platforms:

• Shopify Basic: £25/month + 2.0% fee = £200 on £10k/month sales
• Shopify Standard: £65/month + 1.0% fee = £100 on £10k/month sales
• BigCommerce Standard: £24/month + 0% fee = £0 on £10k/month sales
• Squarespace Business: £23/month + 3.0% fee = £300 on £10k/month sales
• Wix Business: £22/month + 0% fee = £0 on £10k/month sales
• Astrocart: From £29/month + 0% fee = £0 on £10k/month sales

Note: Shopify waives transaction fees if you use Shopify Payments only. Fees kick in when you use third-party payment gateways.

The Maths Over 12 Months

Let's look at a UK shop growing from £5,000 to £20,000 in monthly sales over a year. That's a realistic path for a business putting money into growth.

With 1% Transaction Fees

• Month 1: £5,000 sales → £50 fee
• Month 3: £7,500 sales → £75 fee
• Month 6: £12,000 sales → £120 fee
• Month 9: £16,000 sales → £160 fee
• Month 12: £20,000 sales → £200 fee
• Annual total: £150,000 in sales → £1,500 in platform fees

That's £1,500 per year in platform transaction fees alone. Add payment processing fees on top and the total cost of taking payments is steep.

With 0% Transaction Fees

The same shop on a 0% fee platform saves £1,500 per year. Over three years of growth, the savings stack up:

• Year 1: £1,500 saved
• Year 2: £3,000 saved (as sales grow)
• Year 3: £4,500 saved

That's £9,000 over three years. Enough to fund a marketing push, hire part-time help, or put into product development.

Why Do Some Platforms Charge Transaction Fees?

Platform transaction fees exist for two reasons:

• Revenue model: Some platforms use transaction fees as a main income source. They keep subscription costs low to draw you in.
• Shared interest: Platforms say fees align their success with yours — the more you sell, the more they earn. In truth, this just means you pay more as you grow.

The simple reply: you already pay a monthly subscription for the software. Transaction fees are a tax on your success.

Payment Gateways (All at 0% Platform Fee)

Astrocart works with every payment gateway you need. It charges 0% transaction fees on all of them.

Stripe

The most popular payment processor for online shops. Accepts all major credit and debit cards, Apple Pay, Google Pay, and supports 3D Secure. UK rate: 1.4% + 20p for European cards.

PayPal

Used by 400 million+ people worldwide. Adding PayPal at checkout can lift conversion rates by up to 28%. Customers trust PayPal and don't need to type in card details.

Square

Great for shops that sell both online and in person. Square's single dashboard shows all sales in one place no matter the channel.

Klarna

Buy Now, Pay Later option that lets customers spread the cost over 3 interest-free payments. You get paid the full amount upfront. Shops offering Klarna report an average 45% rise in average order value.

Clearpay

Like Klarna, Clearpay lets UK customers pay in 4 fortnightly chunks with no interest. Popular with fashion, beauty, and lifestyle brands targeting 18–35 year olds.

GoCardless

Direct Debit solution built for subscriptions and repeat orders. Lower processing fees than cards (1% + 20p, capped at £4) and far fewer failed payments. Perfect for subscription models.

Beyond Transaction Fees: The Full Cost Picture

Transaction fees are just one part of the puzzle. When comparing platforms, look at the total cost:

• Monthly subscription: What do you actually get for your money?
• Transaction fees: 0% should be standard, not the exception.
• Add-on costs: Are key features (email marketing, SEO tools, analytics) included or sold as extras?
• Payment processing: What are the real rates from the payment processor?
• Developer costs: Can you run your shop yourself or do you need tech help?

The cheapest monthly plan isn't always the cheapest choice. A £25/month platform that charges 2% fees and needs £300/month in app add-ons costs far more than a £49/month platform that includes everything.

Pick a Platform That Grows With You

The best time to think about transaction fees is before they start hurting. A 1% fee on £2,000 in monthly sales is £20 — easy to miss. But that same 1% on £50,000 in monthly sales is £500 per month. That's £6,000 per year.

Choose a platform with 0% transaction fees from day one. Your costs stay steady as your business scales. Your future self will thank you.