The Complete Guide to Mandatory Fees on Shopify (2026)
Running a Shopify store means dealing with a growing list of mandatory fees and surcharges. From bottle deposits and environmental fees to tariff surcharges and retail delivery fees, there’s a patchwork of regulatory requirements that varies by state, country, and product type.
The problem? Shopify doesn’t have native support for most of these fees. And ignoring them isn’t an option — non-compliance means fines, legal exposure, and unhappy customers.
This guide covers every type of mandatory fee a Shopify merchant might encounter, who needs to collect them, and how to automate the entire process.
🏔️ Key Takeaways
- Shopify doesn’t natively support mandatory fees — you need apps or workarounds to collect deposits, surcharges, and regulatory fees
- The types of mandatory fees include: bottle deposits, environmental/recycling fees, tariff surcharges, credit card surcharges, retail delivery fees, excise taxes, and handling fees
- Which fees apply depends on your products, your location, and where you ship
- Canteen handles deposits, environmental fees, tariff surcharges, and most fee types on Shopify (online and POS)
- Chargly handles credit card surcharges at Shopify POS
- Transparency matters — customers accept mandatory fees when they’re clearly labeled and explained
Why Mandatory Fees Are a Growing Issue for Merchants
The list of fees merchants are expected to collect keeps getting longer. Here’s why:
- New tariffs in 2025–2026 have pushed import costs up dramatically
- More states are adopting or expanding bottle deposit programs
- Environmental regulations are tightening, with more products requiring eco-fees
- Credit card surcharging is now legal in most states, and merchants are increasingly passing costs through
- Retail delivery fees have emerged in states like Colorado, creating a new compliance obligation
- Customers expect transparency — a visible fee line item is better than a silent price increase
Let’s break down each type.
1. Bottle and Container Deposits
What They Are
Refundable deposits charged on beverage containers (bottles, cans) to incentivize recycling. Customers pay the deposit at purchase and get it back when they return the empty container.
Who Needs to Collect Them
Any merchant selling covered beverages in (or shipping to) states with bottle deposit laws:
| State | Deposit Amount | Key Coverage |
|---|---|---|
| California | 5¢ / 10¢ / 25¢ | Broadest coverage — most beverages |
| Connecticut | 10¢ | Beer, soda, water, nips |
| Hawaii | 5¢ | Most non-dairy beverages |
| Iowa | 5¢ | Beer, soda, wine, liquor |
| Maine | 5¢ / 15¢ | Standard beverages / wine & liquor |
| Massachusetts | 5¢ | Beer and carbonated soft drinks |
| Michigan | 10¢ | Beer, soda, carbonated water |
| New York | 5¢ | Beer, soda, water |
| Oregon | 10¢ | Beer, soda, water, kombucha |
| Vermont | 5¢ / 15¢ | Standard beverages / liquor |
International merchants also face deposit requirements: Germany (Pfand), Netherlands (Statiegeld), Scandinavia (Pant), and expanding systems in France and Canada.
How to Collect on Shopify
Use Canteen to create deposit rules per state and product. Deposits appear as separate line items at checkout, with proper tax treatment.
📖 Deep dive: Bottle Deposit Laws by State
2. Environmental and Recycling Fees
What They Are
Mandatory fees on products that require special disposal, recycling, or environmental stewardship. They fund programs that collect and responsibly process end-of-life products.
Who Needs to Collect Them
Merchants selling:
- Electronics — E-waste recycling fees (computers, monitors, TVs, phones)
- Tires — Tire recycling fees ($1–$5 per tire)
- Batteries — Battery disposal surcharges (consumer and automotive)
- Paint — Hazardous material handling fees
- Mattresses — Mattress recycling fees (California, Connecticut, Rhode Island)
- Lighting — Fees on fluorescent bulbs and certain LEDs
- Appliances — Refrigerators, washers, and other large appliances
Typical Fee Amounts
| Product Category | Typical Fee Range | Jurisdictions |
|---|---|---|
| Electronics (e-waste) | $2–$15 per item | California, most Canadian provinces |
| Tires | $1–$5 per tire | Most US states, all Canadian provinces |
| Batteries | $0.02–$3.00 per battery | Varies by type and jurisdiction |
| Paint | $0.35–$0.95 per gallon | 12+ US states |
| Mattresses | $10.50–$16 per unit | CA, CT, RI |
How to Collect on Shopify
Canteen handles environmental fees the same way it handles deposits — create a rule, set the amount and tax treatment, assign to products, done.
📖 Deep dive: Shopify Environmental Fee Compliance
3. Tariff Surcharges
What They Are
Fees added to cover increased import costs resulting from tariffs. Unlike deposits or eco-fees, tariff surcharges aren’t mandated by law — but they’re an increasingly common way for merchants to maintain margins without silently raising prices.
Who Needs to Consider Them
Any merchant whose products (or product components) are imported, especially from countries affected by the 2025–2026 US tariff wave:
- Chinese imports — Tariffs ranging from 25% to 60%
- Mexican and Canadian imports — Subject to new tariff rates
- EU imports — Various categories affected
- Southeast Asian imports — Increasingly targeted
How to Set Them Up
Create a tariff surcharge rule in Canteen — either a percentage or fixed amount per product. Assign it to affected products or collections. It appears as a transparent line item at checkout.
📖 Deep dive: How to Add Tariff Surcharges on Shopify
4. Credit Card Surcharges
What They Are
Fees added to transactions when a customer pays with a credit card, designed to offset the 2–3.5% processing cost merchants pay on every credit card transaction.
Who Can Collect Them
Merchants in most US states. Key rules:
- Legal in most states — prohibited in Connecticut, Massachusetts, and Puerto Rico
- Capped at 3% by Visa/Mastercard rules
- Credit cards only — cannot surcharge debit or prepaid cards (federal law)
- Disclosure required — signage, verbal notice, and receipt line item
- 30-day notice — must notify card brands before implementing
How to Collect on Shopify
- At POS: Use Chargly — staff taps the Chargly tile to apply the correct surcharge
- Online: Use Canteen — configure a surcharge rule that applies at checkout
📖 Deep dive: Credit Card Surcharge Laws by State
5. Retail Delivery Fees
What They Are
State-imposed fees on deliveries of tangible personal property. Colorado pioneered this with its Retail Delivery Fee, and other states are watching closely.
Who Needs to Collect Them
- Colorado: A flat fee per delivery (currently $0.29 per transaction) applies to all retail deliveries within the state. Merchants are responsible for collecting and remitting the fee.
- Other states: Minnesota and other states have explored similar fees. This is a trend to watch.
Key Details
- Applies per delivery, not per item
- Must appear as a separate line item
- Collected by the merchant and remitted to the state
- Applies to both online and in-store delivery orders
How to Collect on Shopify
Use Canteen to create a per-cart fee rule triggered for relevant orders. Set it as a flat fee applied once per order.
6. Excise Taxes and Special Product Taxes
What They Are
Taxes imposed on specific product categories beyond standard sales tax. While technically taxes (not fees), they often need to be collected and displayed separately.
Common Excise Tax Categories
| Product | Tax Type | Where |
|---|---|---|
| Alcohol | Excise tax on beer, wine, spirits | All states (rates vary widely) |
| Tobacco/Nicotine | Cigarette tax, vape tax | All states (some very high) |
| Cannabis | Excise and special sales taxes | States where legal |
| Firearms/Ammunition | Federal excise tax | Nationwide |
| Sugar-sweetened beverages | Soda tax | Select cities (Philadelphia, San Francisco, Seattle, etc.) |
| Fuel | Motor fuel excise tax | All states |
How to Handle on Shopify
Excise taxes may need to be handled differently from fees depending on your jurisdiction and Shopify’s tax settings. In some cases, Canteen can add them as fee line items. For complex tax scenarios, consult with a tax professional.
7. Handling and Service Fees
What They Are
Fees covering special handling requirements for certain products. These aren’t always legally mandated, but they’re industry-standard and often expected by customers.
Common Handling Fees
- Hazardous material (HAZMAT) fees — Required for shipping batteries, flammable liquids, chemicals
- Oversized/overweight shipping surcharges — For bulky items that exceed standard shipping dimensions
- White glove delivery fees — For furniture, appliances, and heavy goods requiring in-home setup
- Refrigeration/cold chain fees — For perishable goods requiring temperature-controlled shipping
- Gift wrapping fees — Optional service fees
How to Collect on Shopify
Canteen handles these as custom fee rules — fixed amount or percentage, applied per item or per cart, with full control over naming and tax treatment.
How to Manage All Your Fees in One Place
If you’re looking at this list and feeling overwhelmed, here’s the good news: you don’t need seven different solutions. The Sasquatch Apps toolkit covers it:
Canteen — For Fees, Deposits, and Surcharges (Online + POS)
Canteen is your all-in-one fee management app. It handles:
- ✅ Bottle and container deposits
- ✅ Environmental and recycling fees
- ✅ Tariff surcharges
- ✅ Retail delivery fees
- ✅ Handling and service fees
- ✅ Online credit card surcharges
- ✅ Any custom fee you need to collect
One dashboard, unlimited fee rules, both channels.
Chargly — For Credit Card Surcharges at POS
Chargly is purpose-built for POS credit card surcharging:
- ✅ Credit card surcharges at Shopify POS
- ✅ Amex surcharges
- ✅ BNPL fees (Afterpay, PayPal, etc.)
- ✅ Transparent line items on receipts
Don’t Forget Revenue: Uply for POS Upsells
While we’re talking about your POS, recovering fees is only half the equation. Uply helps your staff upsell at checkout with smart product suggestions — boosting your average order value alongside your fee recovery.
Best Practices for Fee Collection
1. Be Transparent
Label every fee clearly. “CRV Deposit,” “Tire Recycling Fee,” “Tariff Surcharge” — customers respect honesty. “Service Fee” or “Miscellaneous Charge” invites complaints.
2. Get the Tax Treatment Right
Some fees are taxable, others aren’t. Deposits, environmental fees, and surcharges each have their own tax rules that vary by jurisdiction. When in doubt, ask your accountant.
3. Stay Current
Fee amounts and regulations change. Set a quarterly or annual reminder to review your fee rules and update as needed.
4. Keep Clean Records
Track fee revenue separately from product revenue. You may need to remit certain fees (deposits, eco-fees, retail delivery fees) to state agencies or stewardship organizations.
5. Train Your Staff
If you have POS staff, make sure they can explain fees to customers. A quick, confident explanation goes a long way: “That’s the state-required container deposit — you get it back when you recycle the bottle.”
6. Test Everything
After setting up any new fee, test the full checkout flow — online and POS. Verify amounts, tax treatment, and line item labels.
Frequently Asked Questions
Do mandatory fees apply to online sales?
Yes. Most mandatory fees (deposits, eco-fees, retail delivery fees) apply regardless of sales channel. If the product is shipped to a jurisdiction with a fee requirement, you need to collect it.
Can I combine multiple fees on one product?
Absolutely. A beverage product might have both a bottle deposit and a tariff surcharge. Canteen supports multiple fee rules on the same product.
Are these fees subject to sales tax?
It depends on the fee type and jurisdiction. Bottle deposits are often tax-exempt. Environmental fees may be taxable. Credit card surcharges are typically not taxed separately. Always check your local rules.
What happens if I don’t collect mandatory fees?
Consequences vary: fines, penalties, audit issues, or losing your ability to sell certain products. It’s not worth the risk — especially when automating fee collection takes minutes.
Do fees apply to wholesale/B2B orders?
In many cases, yes — but rules can differ for wholesale transactions. Check the specific regulations for each fee type.
The Bottom Line
Mandatory fees aren’t going away — if anything, the list is growing. Tariff surcharges, expanded deposit laws, new environmental regulations, and retail delivery fees are all making fee management a bigger part of running a Shopify store.
The good news: with the right tools, it doesn’t have to be complicated. Canteen and Chargly handle the full spectrum of mandatory fees on Shopify, keeping you compliant and your checkout transparent.
Stop absorbing fees you should be collecting.
- Install Canteen for fees, deposits, and surcharges →
- Install Chargly for POS credit card surcharges →
Last updated: March 2026. Fee requirements vary by jurisdiction and product type. This guide is for informational purposes — consult a legal or tax professional for compliance questions specific to your business. Contact us if you need help setting up fee collection on Shopify.
