Shopify Payments: Everything Merchants Need to Know

Shopify Payments is one of the most common terms new merchants come across when they launch a Shopify store. It's often mentioned during store setup, but many people pause here—not quite sure what it is or how it works. Shopify Payments processed $41.1 billion in gross payment volume during Q2 2024, marking a 30% year-over-year increase and accounting for 61% of Shopify's total GMV.

This article explains the basics of Shopify Payments, who can use it, and how it fits into the broader Shopify ecosystem. Each section is written to help Shopify merchants understand how payments are handled on the platform.

We'll begin with the most fundamental question: what is Shopify Payments?

What is Shopify Payments

Shopify Payments is Shopify's built-in payment gateway and processing solution. It allows merchants to accept payments directly through their Shopify store without connecting to a third-party provider.

When a customer makes a purchase, Shopify Payments handles the entire transaction—from processing the credit card to depositing money in your bank account. It works seamlessly with your Shopify store, eliminating the need for separate payment accounts or complicated integrations.

Think of Shopify Payments as both the messenger (payment gateway) and the delivery person (payment processor). The gateway securely sends payment information, while the processor moves the money from the customer to you.

• Native integration: Shopify Payments comes built into the Shopify platform, so there's no extra software to install
• All-in-one solution: It handles credit cards, digital wallets, and other payment methods through a single system
• Simplified management: All your payment information lives in the same dashboard where you manage your products and orders

Who can use Shopify Payments

Not every Shopify store can use Shopify Payments. Availability depends on your business type and location.

Shopify Payments works in many countries including the United States, Canada, United Kingdom, Australia, and several European nations. Each region has specific requirements and supported features based on local banking systems and regulations.

Your business type also matters. Shopify Payments is designed for most retail and service businesses, but some industries face restrictions.

Businesses that typically qualify include:

• Clothing and apparel shops
• Beauty and wellness brands
• Home goods retailers
• Digital product sellers

Shopify Payments includes several features that make selling online easier and more efficient. The introduction of Shop Pay Installments has increased average order values by 50% and reduced cart abandonment by 28% for participating merchants. These tools work automatically once you activate Shopify Payments.

Important payment features and benefits

Shopify Payments includes several features that make selling online easier and more efficient. These tools work automatically once you activate Shopify Payments.

Faster checkout

Shop Pay is Shopify's accelerated checkout option. It saves customer information securely, allowing returning shoppers to complete purchases with a single click. Stores using Shop Pay see 50% higher conversion rates compared to guest checkouts, with the one-click checkout solution being adopted by 150 million buyers worldwide. This faster checkout experience can help reduce cart abandonment, especially on mobile devices where typing shipping and payment information is cumbersome.

Beyond Shop Pay, Shopify Payments also supports Apple Pay, Google Pay, and other digital wallets that speed up the checkout process. These payment options appear automatically when available, giving customers flexibility in how they pay.

Integrated dashboard

With Shopify Payments, all your payment information lives in your Shopify admin panel. This means you can view orders, payments, and payouts in the same place you manage products and customers.

This integration eliminates the need to log into separate accounts to check payment status or issue refunds. Everything happens within Shopify, saving time and reducing complexity in your daily operations.

The dashboard shows you:

• Recent transactions and their status
• Upcoming payouts to your bank account
• Any payment issues that need attention

Fraud protection and chargeback defense

Every online store faces the risk of fraudulent purchases and chargebacks. Shopify Payments includes tools to help protect your business from these threats.

The system automatically screens orders for suspicious activity using indicators like unusual shipping/billing address mismatches or strange purchasing patterns. When a customer disputes a charge, Shopify gathers relevant order information to help you respond.

• Automatic screening: Orders are checked for fraud indicators before processing
• Evidence collection: Transaction details are organized for easier chargeback responses
• Risk indicators: Potentially problematic orders are flagged for review

Shopify payment processing and security

When a customer places an order using Shopify Payments, their payment information travels through a secure process:

1. The customer enters their payment details at checkout
2. Shopify securely sends this information to the card issuer for approval
3. If approved, the payment is captured and the order is confirmed
4. The funds are processed and prepared for deposit to your bank account
5. The money arrives in your account based on your payout schedule

This entire process happens automatically. You don't need to manually approve transactions or transfer funds between accounts.

Shopify handles security requirements called PCI compliance on your behalf. PCI compliance refers to a set of security standards that protect credit card information during online transactions. Without Shopify Payments, meeting these requirements would require significant technical work.

Fees and supported countries

Shopify Payments charges a fee for each transaction. These fees vary based on your Shopify plan and your business location.

Transaction fees

For US-based merchants, the current rates are:

Shopify PlanCredit Card RateIn-Person RateBasic Shopify2.9% + 30¢2.7% + 0¢Shopify2.6% + 30¢2.5% + 0¢Advanced Shopify2.4% + 30¢2.4% + 0¢

If you choose not to use Shopify Payments, Shopify charges an additional fee (between 0.5% and 2.0% depending on your plan) on top of what your third-party payment provider charges.

Supported regions

Shopify Payments operates in over 20 countries, with more being added regularly. Major supported regions include:

• North America: United States, Canada
• Europe: UK, Ireland, Germany, France, Spain, Italy, Netherlands
• Asia-Pacific: Australia, New Zealand, Singapore, Japan, Hong Kong SAR

Each region supports different payment methods. While credit cards work everywhere, local options like iDEAL in the Netherlands or Bancontact in Belgium are only available in specific countries.

How to set up Shopify Payments

Setting up Shopify Payments takes about 15 minutes and requires basic business information. The process is straightforward for most merchants.

First, go to your Shopify admin and click on Settings, then Payments. If Shopify Payments is available in your region, you'll see it as the recommended option. Click "Activate" or "Complete account setup" to begin.

You'll need to provide:

• Your legal business name and address
• Your personal information (as the business owner)
• Your bank account details for receiving payouts
• Tax identification information

After submitting this information, Shopify reviews your details. Most accounts are approved quickly, though some may require additional verification. Once approved, Shopify Payments activates automatically on your store.

You can then choose how often you want to receive payouts—daily, weekly, or monthly, depending on what's available in your region.

Payment methods and options on Shopify

Shopify Payments supports various payment methods, giving your customers flexibility in how they pay. The available options depend on your location and settings.

Credit and debit cards

Credit and debit cards form the backbone of online payments. Shopify Payments accepts major card brands including:

• Visa
• Mastercard
• American Express
• Discover (in supported regions)
• JCB (in supported regions)

Card processing happens automatically. When a customer enters their card information, it's verified instantly and the transaction is completed without leaving your website.

Shop Pay and digital wallets

Digital wallets store payment information securely, allowing customers to check out without re-entering their details. Shopify Payments supports several digital wallet options:

• Shop Pay (Shopify's accelerated checkout)
• Apple Pay (for Safari users and iOS devices)
• Google Pay (for Chrome users and Android devices)
• PayPal (available as a separate payment option)

These options appear automatically at checkout when they're available to the customer. For example, Apple Pay only shows up for customers using Safari on compatible devices.

Digital wallets typically increase conversion rates because they remove friction from the checkout process. Instead of typing card numbers and shipping addresses, customers can complete purchases with just a few clicks or taps.

Common questions about Shopify payment gateway

Can I use multiple payment methods?Yes. When you activate Shopify Payments, you can also enable additional payment options like PayPal, manual payment methods, or alternative payment providers through the Shopify App Store.

What happens if Shopify Payments isn't available in my country?If Shopify Payments isn't supported in your region, you can connect third-party payment providers like PayPal, Stripe, or local payment gateways. These connections are made through the Payments section in your Shopify admin.

Does Shopify Payments work for subscription businesses?Shopify Payments itself doesn't handle recurring billing. For subscription businesses, you'll need to add a subscription app from the Shopify App Store that integrates with Shopify Payments.

Growing your store performance through optimization

Payment setup affects more than just how you receive money—it influences whether customers complete their purchases at all. A smooth, trustworthy checkout experience helps convert browsers into buyers.

Small improvements to your payment setup can lead to significant results. Adding digital wallet options, displaying security badges, or reorganizing the checkout flow can reduce abandonment rates and increase sales.

Platter helps Shopify merchants optimize their stores for better performance, including checkout and payment experiences. By focusing on continuous improvement rather than occasional overhauls, stores can achieve steady growth over time.

Book a demo to explore how Platter can optimize your Shopify storefront.

FAQs about Shopify Payments

Which credit cards does Shopify Payments accept?

Shopify Payments accepts Visa, Mastercard, American Express, Discover, Diners Club, and JCB, though availability varies by country.

Can high-risk businesses use Shopify Payments?

High-risk businesses like CBD sellers, supplement companies, or adult content providers typically cannot use Shopify Payments and need to find alternative payment gateways.

How long do Shopify Payments payouts take to process?

In the United States and Canada, payouts typically take 2 business days to reach your bank account. Other countries may take 3-4 business days depending on local banking systems.

Is Shopify Payments free to activate?

Yes, activating Shopify Payments costs nothing. You only pay transaction fees when you make sales.

How does Shopify Payments handle international currencies?

Shopify Payments supports selling in multiple currencies. Customers can pay in their local currency, while you receive payouts in your store's base currency with automatic conversion.

What happens if a customer disputes a charge?

When a customer disputes a charge, Shopify notifies you and automatically gathers order information to help you respond. The funds are temporarily held until the dispute is resolved.