Shopify payment gateways in Israel: five providers, and the fee most stores miss

Why there is no Shopify Payments in Israel, and what stores do instead

A Shopify store in Israel takes payments through a local payment provider connected as a payments app, because Shopify Payments, Shopify's own processing, is not available to Israeli businesses. Shopify's official page lists 40 countries where the service operates, and Israel is not one of them. The same page says that a merchant in an unlisted country needs a third-party payment provider.

This is more than a technical detail. Shopify puts a price on that choice, and the price appears on Shopify's pricing page, not on any payment provider's site. So this article is built the other way round from the usual comparison: first the fee that applies to everyone, then the differences between the providers.

Every fact here comes from the official pages of Shopify and of the providers, checked on 29.9.2026. We did not test a live store with each provider, and anything we could not find on an official page is marked as such. Provider prices are in Israeli shekels before VAT. Shopify plan prices are in US dollars.

The fee no provider will tell you about

When a store does not use Shopify Payments, Shopify charges a third-party transaction fee on every order paid through an outside provider. The rate depends on the plan:

Four things worth knowing about the fee, all from Shopify's help center:

1. It is on top. Shopify states that the fee is in addition to the processing fees charged by the payment provider.
2. It is calculated on everything. The base is product price minus discounts, plus tax and shipping.
3. It does not come back. When you refund an order, the fee is not returned.
4. PayPal is not exempt. The PayPal exemption applies only to stores that use Shopify Payments, which means not to Israeli stores.

The fee does not apply to cash on delivery, bank transfer and the other manual payment methods.

What it means in money

In the median store in our dashboards the average order is ₪350. On an order of that size, Shopify's fee alone looks like this:

A store on Basic that sells ₪10,000 a month pays Shopify ₪200 in fees before the payment provider has charged anything.

That leads to a decision most stores never make on purpose: when it pays to move up a plan. The price difference between Basic and Grow, billed yearly, is offset by the difference in the fee once sales through the outside provider pass $5,000 a month. Between Grow and Advanced the point is $55,000 a month. On monthly billing the figures are $6,600 and $73,500. This is arithmetic on the fee alone, leaving aside the other differences between the plans.

The five providers, by their own official pages

All five have a payments app in the Shopify App Store, and all of them show zero reviews as of the check date. They cannot be compared by stars. They can be compared by three questions: where the customer pays, which payment methods the customer sees, and what is published about the price.

A few details that do not fit in a table:

• Grow is the only one of the five that publishes a full price list: 0.75% per transaction, a subscription of ₪59 a month on the annual track or ₪69 on the monthly track, and a surcharge of 0.6% for processing through Shopify. Up to 12 installments, and a refund costs ₪6.90 per action.
• Cardcom publishes in its help center what happens on a refund: the original processing fee is returned, ₪7.90 is charged for the action, the original 0.6% is not returned, and another 0.6% is charged on the refunded amount. Refunds can be issued directly from Shopify. Deferred capture is not supported on Shopify.
• PayPlus is the only one that explicitly states card payment inside the Shopify checkout, with no redirect. Digital wallets and Bit go through a separate payment page.
• Hyp and Tranzila require an existing agreement with a card company. With Hyp a tax invoice is issued automatically after each purchase. With Tranzila invoicing is a separate app.

Beyond the five, iCount, Isracard Pay and Pelecard also connect to Shopify. We did not check them in the same depth.

How to choose

The difference between one provider and another is tenths of a percent. The difference between one Shopify plan and another is a whole percent.

1. Calculate Shopify's fee first. It is larger than the gaps between providers. If your sales are above the break-even point, upgrading the plan saves more than any negotiation over the processing rate.
2. Check where the customer pays. A redirect to an outside page is one more step on the way to an order. Ask the provider for a live store that works with them, and go through the flow on a phone.
3. Check Bit and wallets. In Israel many shoppers expect Bit and Apple Pay. Make sure the customer actually sees them, and that you know whether they need an additional app or a separate fee.
4. Ask about refunds. What is charged on a refund, and where it is issued from. In a store with a high return rate, the refund fee matters more than a tenth of a percent on the processing rate.
5. Get everything in writing. We found official pages where the published price differs from page to page for the same provider. The binding price is the one in the signed quote.

Sales to businesses carry one more consideration: allocation numbers on tax invoices. According to a KPMG publication from December 2025, from 1 June 2026 the threshold is ₪5,000 before VAT on an invoice to a business that wants to deduct VAT. A sale to a private customer is not affected. If you also sell to businesses, confirm with your accountant that your invoicing system supports it.

Processing cost is a small part of the picture. What is left after the fees is decided mostly by what it costs to bring in an order and by the store's real ROAS.

Sources

• Shopify: countries where Shopify Payments is available, third-party transaction fees, pricing page for Israel, payment gateways in Israel.
• Shopify App Store listings: Hyp, Grow, Cardcom, Tranzila, PayPlus.
• Provider pages: Grow price list, Cardcom help center, PayPlus for Shopify, Hyp for Shopify, Tranzila for Shopify.
• Allocation numbers: KPMG, 12.12.2025.