Shopify Payments is Shopify’s built-in payment processor — it eliminates the need for third-party payment gateways, removes transaction fees (on top of Shopify’s subscription), and simplifies your entire payment workflow into one dashboard. This guide covers everything you need to know about setting up and using Shopify Payments.
What Is Shopify Payments?
Shopify Payments is a payment gateway built directly into Shopify. It’s powered by Stripe on the backend and accepts credit cards, debit cards, Apple Pay, Google Pay, Shop Pay (Shopify’s accelerated checkout), and local payment methods depending on your country. You manage everything — payouts, disputes, fraud analysis — from your Shopify admin without a separate payment gateway account.
Countries Where Shopify Payments Is Available
Shopify Payments is available in: United States, Canada, United Kingdom, Australia, New Zealand, Ireland, Singapore, Hong Kong, Japan, Austria, Belgium, Denmark, Finland, France, Germany, Italy, Netherlands, Spain, Sweden, Switzerland, and Czech Republic. If you’re in a supported country, there’s rarely a reason to use a third-party payment gateway — the cost savings on transaction fees alone justify using Shopify Payments.
Shopify Payments Transaction Fees
Shopify charges transaction fees when you use a third-party payment gateway. Using Shopify Payments eliminates these entirely:
- Basic Shopify plan: 2% third-party fee → 0% with Shopify Payments
- Shopify plan: 1% third-party fee → 0% with Shopify Payments
- Advanced plan: 0.5% third-party fee → 0% with Shopify Payments
Credit card processing rates (what Shopify charges on each transaction) vary by plan: 2.9% + 30¢ on Basic, 2.6% + 30¢ on Shopify, 2.4% + 30¢ on Advanced (all for online credit card transactions in the US).
How to Set Up Shopify Payments: Step by Step
Step 1: Access Payment Settings
In Shopify admin, go to Settings → Payments. If Shopify Payments is available in your country, it will show as the primary option at the top of the page. Click “Complete account setup” to begin the setup process.
Step 2: Enter Business Information
Shopify requires verification before activating payments. Provide: your business type (individual, sole proprietor, LLC, corporation), business address and phone number, business category and description, and EIN (Employer Identification Number) for US businesses or equivalent tax ID for other countries.
Step 3: Add Personal Information
Provide details about the business owner or account holder: full legal name, date of birth, last 4 digits of SSN (in the US) or equivalent ID number, and home address. This information is used for KYC (Know Your Customer) regulatory compliance — Shopify is required to verify the identity of merchants.
Step 4: Add Banking Information
Enter your bank account details for payouts: account holder name, routing number, and account number. This is the bank account where Shopify will deposit your earnings. Payouts typically happen on a regular schedule — daily, weekly, or monthly depending on your settings. In the US, the default is a 2-business-day payout cycle.
Step 5: Configure Payout Schedule
In Settings → Payments → Payout schedule, choose your payout frequency. Daily payouts give you faster access to your revenue. Weekly or bi-weekly payouts simplify reconciliation. For new stores with variable revenue, daily payouts provide better cash flow visibility.
Step 6: Enable Accelerated Checkouts
In your payment settings, enable Shop Pay (Shopify’s one-click checkout for returning customers), Apple Pay, and Google Pay. These accelerated checkout options reduce checkout friction significantly — customers don’t need to type card details or billing addresses. Shop Pay is particularly powerful: stores using Shop Pay see 18% higher conversion rates on mobile compared to other payment methods.
Step 7: Configure Fraud Protection
Shopify Payments includes Shopify Protect — automatic chargeback protection for eligible orders (in the US). Also enable 3D Secure for high-risk transactions in your fraud prevention settings. Review your fraud analysis settings (under Analytics → Fraud) to understand what risk indicators Shopify flags so you can make informed shipping decisions on orders with fraud alerts.
Shopify Payments vs PayPal
Many stores ask whether to use Shopify Payments, PayPal, or both. The recommendation: enable both. Shopify Payments handles credit card transactions at your best rate. Add PayPal as an additional payment method because some customers strongly prefer paying via PayPal — especially internationally. Having PayPal available doesn’t trigger the transaction fee if Shopify Payments is your primary gateway.
Common Shopify Payments Issues and Solutions
- Account on hold: Usually triggered by high chargeback rate or products in restricted categories. Contact Shopify support with documentation about your business and products to resolve.
- Payout delays: New accounts often have extended holding periods (up to 30 days) until a payment history is established. This normalizes after 3-6 months of consistent sales.
- Restricted products: Shopify Payments has prohibited product categories (firearms, certain supplements, adult content, gambling). If your products are borderline, review Shopify’s acceptable use policy before setup.
- Chargebacks: Submit documentation (order confirmation, shipping proof, customer communication) within the response window. Shopify Protect covers eligible chargebacks automatically in the US.
FAQ: Shopify Payments
Is Shopify Payments free?
There is no setup fee for Shopify Payments, but it charges credit card processing fees on every transaction (2.9% + 30¢ on Basic Shopify, for example). These processing fees are standard for any payment processor and are lower than many alternatives. Shopify Payments eliminates the additional transaction fee Shopify charges when using third-party gateways.
How long does Shopify Payments take to pay out?
In the US, standard payout is 2 business days after a sale. In other countries, payout schedules vary — check your local Shopify Payments payout documentation. New accounts may have extended hold periods during the initial verification phase.
Can I use Shopify Payments and PayPal together?
Yes. Shopify Payments handles credit card transactions (your primary gateway), and you can add PayPal Express Checkout as an additional option. Customers choose their preferred method at checkout. Using PayPal alongside Shopify Payments doesn’t trigger additional Shopify transaction fees.
What happens if my Shopify Payments account is suspended?
Shopify notifies you by email with the reason. Common causes: high chargeback rate, prohibited products, or incomplete verification. Contact Shopify support immediately with documentation. Most holds are resolved within 2-5 business days. During a hold, enable PayPal as a temporary payment method to continue accepting payments while the issue is resolved.
Does Shopify Payments work for international sales?
Yes. Shopify Payments supports multi-currency selling in Shopify Markets — customers see prices in their local currency while payouts come to you in your bank’s currency. International credit cards are accepted. Local payment method availability varies by country. Check Shopify’s documentation for which local payment methods are supported in which markets.
Final Thoughts
Setting up Shopify Payments should be one of your first actions when launching a Shopify store — the transaction fee savings alone justify it immediately. The setup process takes 15-30 minutes, you’ll be accepting payments the same day, and you’ll have cleaner analytics with everything in one dashboard. Enable Shop Pay and Apple Pay to maximize your mobile conversion rate from day one.
