Shopify Payments

What is Shopify Payments?

Shopify Payments is Shopify's native payment processing solution that integrates directly with the Shopify e-commerce platform. Rather than requiring merchants to set up third-party payment gateways, Shopify Payments allows store owners to accept credit cards, debit cards, digital wallets, and buy now pay later options through a single unified system. The service eliminates additional transaction fees typically charged when using external payment processors and provides seamless integration with Shopify's order management, reporting, and financial tools. Shopify Payments is included with all Shopify plans at no additional monthly cost beyond the standard subscription fees.

Payment Methods Accepted

Shopify Payments supports all major credit and debit cards including Visa, Mastercard, American Express, and Discover. Digital wallet payments are accepted through Apple Pay, Google Pay, and Samsung Pay. Shop Pay, Shopify's accelerated checkout, allows returning customers to complete purchases faster with saved payment and shipping information. The platform also supports buy now pay later options, giving customers flexibility to pay in installments while merchants receive full payment upfront.

Pricing by Plan

Credit card processing rates vary based on your Shopify subscription plan, with higher-tier plans offering lower transaction fees. For the Basic plan ($29/month), online transactions cost 2.9% + $0.30 and in-person payments are 2.6% + $0.10. The Grow plan ($79/month) reduces online rates to 2.7% + $0.30 and in-person to 2.5% + $0.10. The Advanced plan ($299/month) offers 2.5% + $0.30 online and 2.4% + $0.10 in-person. Shopify Plus ($2,000+/month) provides negotiable rates for high-volume merchants, typically ranging from 2.15% to 2.9% + $0.30.

Zero Third-Party Transaction Fees

When using Shopify Payments, merchants pay no additional transaction fees beyond the credit card processing rates. If you choose to use a third-party payment gateway like PayPal or Stripe instead, Shopify charges additional transaction fees on top of the payment provider's fees: 2% on Basic, 1% on Grow, 0.5% on Advanced, and negotiable rates on Plus. This pricing structure makes Shopify Payments the most cost-effective option for most Shopify merchants.

International and Cross-Border Payments

Shopify Payments processes transactions in multiple currencies with different fee structures for domestic and international cards. Cross-border fees apply when processing credit cards issued in a different country or region than your store. Currency conversion fees of 1.5% (US stores) or 2% (other regions) apply when accepting payments in currencies different from your payout currency. International card fees with Shopify Payments are competitive compared to alternatives like Stripe's standard international rate.

Card Type Pricing

Shopify Payments charges different rates based on card types. Consumer cards issued to individuals for personal use fall into the Standard category. Commercial, corporate, and business cards designed for business expenses fall into the Premium category with potentially higher fees. The specific rates for each card type can be viewed in your Shopify Admin under the Payments finance report.

In-Person Payments with Shopify POS

Shopify Payments integrates with Shopify POS for accepting in-person payments at retail locations. In-person transaction rates are lower than online rates because physical card-present transactions carry lower fraud risk. Basic plan merchants pay 2.6% + $0.10 per in-person swipe, dip, or tap transaction. Hardware options include card readers and terminals that connect to the Shopify POS app. Tap-to-Pay on iPhone is available with up to 100 free transactions per month, then $0.25 per additional transaction.

Instant Setup

Shopify Payments can be activated directly from the Shopify admin without needing to create accounts with external payment providers. Merchants simply turn on Shopify Payments and can begin accepting payments immediately. This eliminates the lengthy third-party activation processes typical of setting up traditional merchant accounts or integrating external payment gateways.

Security Features

The platform provides enterprise-grade security including PCI DSS compliance, 3D Secure checkouts for enhanced fraud protection, and payment data encryption. All card readers meet EMV standards for secure transactions. Fraud analysis tools help identify potentially fraudulent orders before they're fulfilled. Since all transaction data stays within Shopify's ecosystem, merchants benefit from centralized security management.

Payout Management

Shopify Payments provides real-time payout tracking directly in the Shopify admin. Merchants can see when payments will arrive, track payout history, and manage chargebacks all in one place. Bank references on paid payouts (added in November 2024) help track missing or delayed funds. Payout schedules vary by country but typically range from same-day to several business days depending on your location and account history.

Chargeback and Refund Handling

When customers dispute charges, Shopify Payments provides tools to manage chargebacks directly in the admin. Credit card transaction fees are not returned when issuing refunds, though no additional fees are charged for processing the refund itself. Currency conversion fees are also not refunded, but no extra conversion charges apply when processing refunds or receiving chargebacks.

Shopify Tax Integration

Shopify Tax integrates with Shopify Payments to automatically calculate, collect, and report sales tax. The service is free for the first $100,000 in annual sales, then costs 0.35% per order (0.25% for Plus merchants) with annual caps of $5,000 (Basic/Grow) or $100,000 (Plus). As of November 2024, Shopify Tax supports automated filing for US sales tax returns.

Shop Pay Accelerated Checkout

Shop Pay is Shopify's one-click checkout that saves customer payment and shipping information for faster repeat purchases. It's available to all Shopify Payments merchants and can significantly increase conversion rates by reducing checkout friction. Shop Pay also offers carbon-neutral shipping options and installment payments through Shop Pay Installments.

Countries and Availability

Shopify Payments is available in select countries including the United States, Canada, United Kingdom, Ireland, Australia, New Zealand, Germany, Japan, Singapore, Hong Kong, and several other regions. Merchants in countries where Shopify Payments isn't available must use third-party payment providers and will incur the additional transaction fees based on their plan level.

Who Should Use Shopify Payments?

Shopify Payments is ideal for any merchant already using or planning to use the Shopify platform for their online store. The elimination of third-party transaction fees makes it the most cost-effective payment option for Shopify merchants. It's particularly valuable for businesses selling both online and in-person who want unified payment processing, international sellers accepting multiple currencies, and merchants who want simplified financial management without juggling multiple payment provider dashboards.

Limitations

Shopify Payments is only available to Shopify merchants—it cannot be used as a standalone payment processor for non-Shopify websites. Merchants in industries Shopify considers high-risk may not qualify for Shopify Payments and must use alternative providers. If your business model doesn't fit within Shopify's acceptable use policy, you'll need to use third-party gateways and pay the associated transaction fees.