How Billing Works in Shippo

This guide explains how billing works in Shippo, including how label charges are processed, how billing thresholds work, and when you'll see charges on your payment method.

How Shippo billing works

We use a pay-per-label billing model. That means you're charged for shipping labels as you buy them, rather than getting a single monthly bill.

To support this, we use billing thresholds. A billing threshold determines how often charges are applied to your payment method as you purchase labels.

Billing thresholds

When you buy shipping labels, charges are applied once your account reaches its current billing threshold.

For most new accounts, billing happens at a low threshold, meaning charges may appear on your payment method shortly after you buy a label. As your account activity grows, you may become eligible for a higher billing threshold, which groups multiple label purchases together before a charge is applied.

Currently billed per label and want to see if you qualify for a higher threshold? Contact our Customer Support team to review your account.

What happens when you buy a label

• The label cost is charged to your payment method based on your current billing threshold.
• The charge appears on your invoice and in your billing history.
• If a label purchase is unsuccessful, the charged amount returns 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 buy multiple labels, depending on your billing threshold.

What happens when you create a return label

• The cost of a return label is only charged when it's used, not when it's created.
• Once a carrier scans the return label and it enters transit, we automatically bill the cost using your account's current billing setup.
• Return labels count toward your account's billing threshold.
• Charges apply to the payment method on file at the time the return label is used.
• Unused return labels are never billed.

What appears on your invoice

Your invoice includes:

• Individual label charges
• Any applicable credits or refunds
• Any applicable carrier adjustments
• Subscription fees, if applicable
• Insurance charges, if added

Payment method information on invoices

If a single payment method covered all charges on an invoice, we'll display the last 4 digits of that payment method (like “Paid with Visa ending in 1234”).

If a Shippo account credit was applied alongside a single payment method, your invoice shows both “Shippo credit applied” and the last 4 digits of the card used for the remaining balance.

If more than one payment method covered charges on the same invoice, payment method details won't display.

Sender address, billing, and shipping rates

We don't support a separate billing address from your Sender Address. The Sender Address on your account is used for billing and appears on your invoices.

Your Sender Address is also used to calculate shipping rates. If you create a label using an origin that differs from the Sender Address on file, the rate shown may be incorrect, which can lead to carrier adjustments.

To avoid unexpected charges, always make sure your Sender Address matches the actual ship-from location for each shipment.

Currency and international billing

We process charges in USD to the payment method on file.

If you're an international customer, your financial institution determines the exchange rate on the day payment processes, 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 your own carrier accounts vs. Shippo's carrier accounts

If you buy a shipping label using your own carrier account connected to Shippo, the carrier bills you directly for the label cost and any carrier adjustments.

We only bill 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

View and download your invoices

1. Click Settings, then find Account in the left navigation panel.
2. Select Billing.
3. Under Invoices & Transactions, open the Invoices tab.
4. Click the Invoice # you'd like to view or print.

Want a full CSV export of your transaction history instead? See How to Export Transactions From Shippo.

Billing terms

Label purchases are charged automatically based on your account's billing threshold. We don't offer alternative billing terms or mailed monthly invoices for payment at a later date.

Common questions

Why do I see multiple charges instead of one invoice?

This can happen if:

• You buy multiple labels at different times.
• Your billing threshold causes charges to apply more frequently.
• You're charged separately for other items, like insurance or subscription fees.

Each charge corresponds to label purchases or services billed according to your account's billing setup.

Can I change which payment method is charged?

Yes. You can update your default payment method from the Billing tab in your account. Payment methods can't be changed for charges that have already processed. Once a label purchase or invoice is billed, the charge stays on the payment method on file at that time. After you update your payment method, all future charges apply to the new one.

For the full walkthrough on adding, deleting, or setting a default payment method, see Managing Your Payment Methods in Shippo.

Who can I contact with billing questions?

If you have questions about charges, billing thresholds, invoices, or payment methods, contact Shippo Customer Support, and our team will be happy to help.