What is Shopify Payments
Shopify Payments is the Shopify platform's native payment gateway that provides online store owners with the ability to accept payments without the need to integrate third-party services. The main benefit of this system is its full integration with Shopify, which simplifies the setup and management process.
Some of the key features of Shopify Payments include:
-
Accepting payments from bank cards, electronic wallets and mobile payment systems.
-
Automatic transaction tracking through a single control panel.
-
Support for multiple currencies makes the system convenient for international trading.
-
Data encryption to ensure secure transactions.
These features make Shopify Payments a convenient tool for store owners who want to minimize technical complexity and focus on growing their business.
How Shopify Payments Works
The Shopify Payments payment gateway integrates directly into the Shopify platform, eliminating the need for third-party providers. This means that once the system is activated, you can start accepting payments immediately.
The work process looks like this:
-
The buyer selects the product and proceeds to checkout.
-
On the payment page, he enters his card details or selects another available payment method.
-
Shopify Payments processes the transaction and transfers the funds to your account.
The system automatically converts currency if your store operates on the international market. This greatly simplifies working with customers from different countries.
Who is Shopify Payments suitable for?
Shopify Payments is ideal for entrepreneurs who use Shopify as a platform for their online store. This system is especially useful for:
-
Beginners who want to quickly launch a store without complex settings.
-
Store owners with an international audience thanks to support for multiple currencies.
-
Those who want to avoid additional fees for using third-party payment systems.
However, it is worth considering that Shopify Payments is not available in all countries. If your country is not supported, you may need alternative solutions, such as opening a legal entity in another country or using third-party payment systems.
Pros and Cons of Shopify Payments
| Pros | Cons |
Show all
|
|---|---|---|
Ease of setup and integration
Shopify Payments is a payment system that takes minutes to set up, with no complicated instructions. Simply activate the system through your Shopify dashboard. No need for separate contracts or manual setup — all is already integrated!
No additional fees
With Shopify Payments, there are no additional fees. The payment gateway eliminates the need to pay third-party services to process transactions, allowing you to save money and invest in your business.
Payment security
Payments through Shopify Payments are protected by data encryption, which ensures safety for you and your customers. The system monitors suspicious transactions, protecting your business. Payment security is one of the top priorities when selling through a Shopify store.
Simplified reporting and analytics
All payment, refund, and chargeback data is automatically synced with Shopify analytics, helping store owners quickly track financial performance, generate accounting reports, and make decisions based on up-to-date information. |
Country restrictions
Shopify Payments is not available in all countries, which forces entrepreneurs to look for third-party gateways, leading to inconvenience and additional costs. Check the list of supported countries to save time.
High chargeback fees
Chargebacks are cases where a customer disputes a transaction and requests a refund. Shopify Payments charges a high fee to process them, which can be significant for stores with high sales volumes. This is important to consider when planning your budget, as chargebacks can eat into your profits.
Strict rules of use
Shopify Payments requires merchants to strictly adhere to its rules. If your store sells "prohibited" products, your account may be suspended. These products include certain alcohol and tobacco products, as well as some digital products. It is important to review the rules and ensure that you comply with them before connecting the system. |
How to Connect Shopify Payments to Your Store
Connection requirements
To connect Shopify Payments, you need to meet several conditions. Here are the main ones:
-
Legal entity. Your business must be registered in one of the supported countries.
-
Bank account. You must have an active bank account in a country where the system is available.
-
Documents. Prepare documents confirming your identity and business registration.
If your business does not meet these requirements, you may want to consider alternatives.
Instructions for installing and activating Shopify Payments in a Shopify store
1. Check your eligibility before you begin
Before activating Shopify Payments, make sure your business meets the basic criteria. First, your store region and currency must be supported by Shopify Payments. Second, check if your products or services fall into prohibited categories, such as CBD, weapons, or gambling. Third, you must have a legal company status (sole proprietorship, LLC, etc.), as this is required for tax reporting.
2. Prepare the documents
To successfully activate Shopify Payments, you will need to provide a number of documents. These include company registration documents, proof of owner's identity, proof of business address (such as a utility bill or bank statement), and tax numbers (EIN for the US, VAT for the EU, or VAT ID for other regions). Make sure all scans are of good quality and meet the format requirements (PDF or JPG). For example, for European stores, a VAT number is mandatory, and its absence will result in rejection of the application.
3. Activate Shopify Payments
In the Settings → Payments section, click the Activate Shopify Payments button. Fill out the form: enter the legal name of the company, bank details for payments and tax numbers. Then upload the prepared documents in the pop-up window. After saving the data, the system will send a request for moderation.
4. Test payments
After activation, you can test Shopify Payments without waiting for verification. To do this, create a test order using special card numbers: for example, 4242 4242 4242 4242 for a successful transaction, or 4000 0000 0000 0002 to simulate a refusal. Check if payments are displayed in the Payouts section, and try to issue a refund through the admin panel. This will help you avoid mistakes when working with real customers.
5. If activation was rejected
If you are not approved for Shopify Payments, check your email — support will point out errors in the data. Common reasons for rejection: unreadable document scans, product categories that do not comply with Shopify policies, or errors in tax numbers. Re-upload documents in higher resolution or correct the data in the settings. If the problem persists, contact Shopify support chat via the admin panel.
Shopify Payments Fees and Charges
Overview of standard tariffs
The Shopify Payments fee will depend on the Shopify store plan you choose:
| Shopify Plan | Monthly cost of the plan | Online payment fee | Currency conversion fee |
|---|---|---|---|
| Basic | $29/month | 2.9% + $0.30 | 1.5% - 2.5% |
| Shopify | $79/month | 2.6% + $0.30 | 1.5% - 2.5% |
| Advanced | $299/month | 2.4% + $0.30 | 1.5% - 2.5% |
The higher your plan, the lower the payment processing fee. If you have a high turnover, the "Advanced" plan may even be more profitable.
Possible additional costs
- Chargebacks: $15 for each disputed return.
- Withdrawals: Free , but your bank may charge fees for international transfers.
- Installment payments: Services like Shop Pay Installments add 1-3% to the order cost.
Alternatives to Shopify Payments
Popular alternatives
If Shopify Payments isn’t right for you, don’t worry — there are plenty of other solutions on the market. The most popular alternatives are Stripe, PayPal, and 2Checkout. These systems offer flexible payment options and are suitable for different business models.
-
Stripe: This payment system, by the way, is the basis of Shopify Payments. It supports more countries and currencies than Shopify Payments.
-
PayPal: A great option for international sales, but with a higher commission - up to 3.9% + a fixed amount per transaction. But PayPal inspires confidence in buyers.
-
2Checkout (Verifone): Supports over 45 payment methods and operates in 200 countries. Fees range from 3.5% to 6% depending on your plan.
Comparison of Shopify Payments with PayPal, Stripe and 2Checkout
Stripe, PayPal and 2Checkout are giants in the world of payment systems, and they are often compared. Stripe wins due to the ease of integration and flexibility of settings. PayPal is valued for brand recognition and customer trust. And 2Checkout is suitable for those who use the dropshipping business model.
| Criterion | Shopify Payments | PayPal | Stripe | 2Checkout |
|---|---|---|---|---|
| Commission | 2.4–2.9% + $0.30 | 2.9–3.9% + fixed fee | 2.9% + $0.30 | 3.5–6% + $0.35 |
| Integration | Automatic | Configuration required | Manual API setup | Manual API setup |
| Speed of payments | 3 days | Up to 7 days | 2-7 days | 7-14 days |
| Geo-Availability | 23 countries | 200+ countries | 46 countries | 200+ countries (87 markets) |
| Safety | PCI DSS + 3D Secure | Buyer protection | Stripe Radar (AI-antifraud) | PCI DSS + antifraud filters |
| Risky niches | Prohibited | Limited | Limited | Allowed* |
When to Choose a Different System
If you are a dropshipper or operate in a country where Shopify Payments is not available, alternatives may be your savior. For example:
-
If you want more control over your payments, choose Stripe.
-
You need a system that inspires confidence in your customers - PayPal is your choice.
-
For working with an international audience, 2Checkout is an excellent solution.
Alternative options give you the freedom to choose and tailor payment processes to your business. Just be sure to research fees and availability in your area.
How Shopify Payments Makes Store Management Easier
Unified control panel
With Shopify Payments, you don't have to deal with dozens of different platforms and services. All management is concentrated in one panel. Here you can track all transactions, manage payments, and even see sales analytics. This really saves time and nerves!
For example, in the panel you can immediately see how much money was received per day, week or month. No need to download reports from different systems - everything is already collected in one place. This is especially convenient for those who are just starting their business and want to keep everything under control.
The secret to success is convenience. Shopify Payments makes managing payments so simple that you can spend more time growing your store.
Transaction tracking
Thanks to the built-in tools, you can easily track each transaction. Want to know what a client bought or when the next payment will arrive? All this is available in a couple of clicks. What's more, the system automatically updates the data, so you don't have to worry about missing something.
Compared to other payment systems, Shopify Payments offers an intuitive interface that even a beginner can easily figure out. This is especially important if you have a lot of orders and need to quickly find the information you need.
Tax management
Shopify Payments also helps with taxes. The system automatically calculates taxes based on the customer’s location . This saves you from having to manually navigate complex tax rules across different countries.
If you sell internationally, you know how much of a headache it can be. But Shopify Payments takes some of the work out of it, making international trading easier. You just specify your tax settings, and it does the rest.
Security and Data Protection in Shopify Payments
Encryption of user data
Shopify Payments uses state-of-the-art encryption technology to protect customer data. Every transaction goes through secure protocols like SSL and PCI DSS, ensuring a high level of security. This means your customers can rest assured that their data — from card numbers to personal information — remains private.
It is important to note that the system supports the 3D Secur e protocol, which adds an additional layer of security by requiring payment confirmation via a banking app or SMS. This reduces the risk of unauthorized use of cards.
Anti-fraud measures
Shopify Payments actively combats fraud by using automated algorithms to identify suspicious transactions. For example, the system automatically flags high-risk orders so you can take action before the transaction is completed.
For additional protection, you can connect to apps like FraudBlock, which blocks suspicious orders before they are processed. This is especially important for stores that work with international customers, where the risk of fraud is higher.
Guarantees for sellers
Shopify Payments offers merchants built-in protection tools. If a buyer attempts to dispute a transaction or request a chargeback, the system helps process the request and provides all the information needed to protect the merchant.
Shopify Payments for Dropshipping
Shopify Payments requires strict adherence to its terms of use. For dropshippers, this can be a problem, as returns and customer disputes are more common in this business model.
If you work with trusted suppliers who provide high-quality products, this can help reduce the risks of being blocked. Otherwise, you may want to consider alternatives to Shopify Payments.
How to use Shopify Payments in unsupported countries
Accessibility issues
Shopify Payments, unfortunately, is not directly available to entrepreneurs from lot of unsupported countries. This is due to political and economic restrictions that complicate the use of international payment gateways. However, this does not mean that all is lost. There are several ways to bypass these restrictions in order to continue working with Shopify and accepting payments.
The first problem that entrepreneurs face is the inability to register an account in Shopify Payments from their country. The second difficulty is the risk of blocking the account if you try to register with fake data or via VPN.
Solutions to bypass restrictions
If you want to use Shopify Payments, there are a few viable solutions:
-
Registering a company abroad. This is the most reliable way. You can open a legal entity in one of the countries where Shopify Payments is available. For example, in Estonia or Georgia. It is legal and safe, but it will require time and investment.
-
Using relatives or friends abroad. If you have friends living in supported countries, you can register an account in their name. However, this carries risks, such as losing control of the account.
-
Third-Party Payment Processors. If Shopify Payments is unavailable, you can use alternative payment gateways like PayPal or Stripe. Also, consider accepting payments through a third-party company like Western Bid.
Legal aspects
Before you start working with Shopify Payments through workarounds, it is important to consider legal issues. For example, registering a company abroad requires paying taxes in that country. Also, if you are using a third-party account, this may raise questions about security and access rights to funds.
Follow all laws and regulations of the country you are registering your business in. This will help you avoid fines and other problems in the future.
Conclusion
Shopify Payments gateway is a really convenient tool for Shopify store owners. Everything is set up quickly, without any hassle, and you can immediately accept payments. Yes, there are some limitations, for example, not all countries are supported, and the system is not always suitable for dropshipping. But if your business fits into the framework, then this is a great choice. You do not need to deal with a bunch of third-party services, everything works through one panel. In general, if you are already on Shopify, then you should definitely try Shopify Payments.