This article explains how billing works in Shippo, including how label charges are processed, how billing thresholds work, and when you may see charges on your payment method.
How Shippo billing works
Shippo uses a pay-per-label billing model. This means you are charged for shipping labels as you purchase them, rather than receiving a single monthly bill.
To support this model, Shippo uses billing thresholds. A billing threshold determines how frequently charges are applied to your payment method as you purchase labels.
Billing thresholds
When you purchase shipping labels, charges are applied once your account reaches its current billing threshold.
For most new accounts, billing occurs at a low threshold, meaning charges may appear on your payment method shortly after a label is purchased. As your account activity grows, some users may become eligible for higher billing thresholds, which allow multiple label purchases to be grouped together before a charge is applied.
Note: Billing thresholds vary by account and are determined by eligibility and account history.
If you are currently billed per label and would like to explore whether you qualify for a higher billing threshold, you can contact the Shippo Customer Support team to review your account.
What happens when you buy a label
When you purchase a shipping label:
The cost of the label is charged to your payment method based on your current billing threshold
The charge appears on your Shippo invoice and in your billing history
If a label purchase is unsuccessful, the amount charged is returned to your Shippo account as a credit, which is automatically applied to future purchases
You may see multiple charges on your payment method if you purchase multiple labels, depending on your billing threshold.
What happens when you create a return label
When you create a return label:
The cost of a return label is only charged when the label is used, not when it is created
The charge appears on your Shippo invoice and in your billing history
Return labels count toward your account’s billing threshold
Charges are applied to the payment method on file at the time the return label is used
Unused return labels are not billed
What appears on your invoice
Your Shippo invoice includes:
Individual label charges
Any applicable credits or refunds
Any applicable carrier adjustments
Subscription fees (if applicable)
Insurance charges (if added)
The address shown on your invoice is the Sender Address associated with your account.
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NOTE: Shippo invoices always reflect the current Sender Address on file. If you update your Sender Address, the updated address will be reflected on both new and previously generated invoices. |
Payment method information
Your invoice will display the last 4 digits of the payment method used to complete the charge (e.g., "Paid with Visa ending in 1234") when a single payment method was used for all charges on the invoice.
If a Shippo account credit was applied alongside a single payment method, your invoice will show both "Shippo credit applied" and the last 4 digits of the payment method used for the remaining balance.
If more than one payment method was used to cover charges on the same invoice, payment method details will not be displayed. For more details, see [Shippo Billing FAQs].
Sender address, billing, and shipping rates
Shippo does not support a separate billing address from your Sender Address. The Sender Address on your account is used for billing purposes and appears on invoices.
The Sender Address is also used to calculate shipping rates. If you create a shipping label using an origin that differs from the Sender Address on file, the rate shown on the label may be incorrect. This can result in carrier adjustments.
To avoid unexpected charges, always ensure the Sender Address matches the actual ship-from location for each shipment.
Currency and international billing
Shippo processes charges in USD to the payment method on file.
If you are an international customer, your financial institution determines the exchange rate on the day the payment is processed and may charge a foreign transaction fee.
On Shippo invoices:
Individual invoice items may appear in a local currency
The invoice total is always shown in USD
Billing for Shippo carrier accounts vs. your own carrier accounts
If you purchase a shipping label using your own carrier account connected to Shippo, you will be billed directly by the carrier for the label cost and any applicable carrier adjustments.
Shippo only bills for:
A $0.05 USD per-label fee for labels created using your own carrier account
Labels purchased using Shippo’s carrier accounts
Carrier adjustments tied to shipments created with Shippo carrier accounts
Subscription fees (such as the Pro plan)
Third-party insurance fees, if added to your shipments
Viewing and downloading invoices
To access your invoices:
Click Settings, and find Account in the left navigation panel
Select Billing
Under Invoices & Transactions, open the Invoices tab
Click the Invoice # you’d like to view or print
Billing terms
Label purchases are charged automatically based on your account’s billing threshold. Shippo does not offer alternative billing terms or provide mailed monthly invoices for payment at a later date.