Shopify Payments: Complete Setup Guide

Shopify Payments is Shopify's built-in payment processor that lets you accept payments without setting up a third-party gateway. It's powered by Stripe and offers competitive rates, built-in integration, and access to additional payment methods like Apple Pay and Shop Pay. This guide covers everything you need to know to set up and manage Shopify Payments.

What Is Shopify Payments?

Shopify Payments is an integrated payment solution that handles transactions directly within Shopify:

• No third-party gateway needed: Accept payments without external accounts
• Lower fees: No additional transaction fees beyond credit card rates
• Multiple payment methods: Credit cards, debit cards, Apple Pay, Google Pay, Shop Pay
• Unified dashboard: Manage all payments from Shopify admin

Shopify Payments Fees

Fees vary by plan (US rates):

• Basic Shopify: 2.9% + 30¢ online, 2.7% in person
• Shopify: 2.6% + 30¢ online, 2.5% in person
• Advanced Shopify: 2.4% + 30¢ online, 2.4% in person
• Shopify Plus: Custom rates

Important: If you use a third-party payment gateway instead of Shopify Payments, Shopify charges an additional transaction fee (0.5-2% depending on plan).

Requirements

To use Shopify Payments, you need:

• Store located in a supported country
• Business information (legal name, address, tax ID)
• Bank account in the same country as your store
• Products that comply with Shopify's acceptable use policy

Setting Up Shopify Payments

Step 1: Access Payment Settings

1. Go to Settings in your Shopify admin
2. Click Payments
3. In the Shopify Payments section, click Activate Shopify Payments

Step 2: Enter Business Details

Provide your business information:

• Business type (sole proprietor, LLC, corporation, etc.)
• Legal business name
• Business address
• Tax identification number (EIN, SSN, etc.)
• Product description (what you sell)

Step 3: Add Personal Information

For identity verification:

• Full legal name
• Date of birth
• Last 4 digits of SSN (or full SSN in some cases)
• Home address

Step 4: Connect Bank Account

Enter your banking details for payouts:

• Bank account number
• Routing number
• Account holder name

Step 5: Configure Payment Options

Choose which payment methods to accept:

• Credit/debit cards: Visa, Mastercard, American Express, Discover
• Shop Pay: Shopify's accelerated checkout
• Apple Pay: For iOS users
• Google Pay: For Android and Chrome users

Payout Schedule

Configure when you receive your funds:

• Daily: Receive payouts every business day
• Weekly: Choose a specific day of the week
• Monthly: Choose a specific day of the month

Payout timing varies by country. In the US, expect funds within 2 business days after the payout is initiated.

Managing Transactions

Viewing Orders and Payments

• View all transactions in Orders
• See payout history in Settings > Payments > View payouts
• Track individual payment status on each order

Refunds

Process refunds directly from orders:

1. Open the order in Shopify admin
2. Click Refund
3. Enter refund amount (full or partial)
4. Funds return to customer's original payment method

Note: Shopify Payments doesn't refund the original transaction fee on refunds.

Handling Chargebacks

When customers dispute charges:

• Shopify notifies you immediately
• A $15 chargeback fee applies (refunded if you win)
• Submit evidence through Shopify's chargeback response system
• Include order details, shipping confirmation, and communication history

Test Mode

Before going live, test your checkout:

1. Go to Settings > Payments
2. Enable Test mode
3. Use test card numbers to simulate transactions
4. Verify checkout flow works correctly
5. Disable test mode when ready for real transactions

Shopify Payments and Collections

Your payment setup works directly with your product collections. Every product in every collection can be purchased through Shopify Payments without additional configuration.

Common Issues and Solutions

Verification Problems

• Ensure business information matches official documents
• Verify tax ID is correct and active
• Bank account must be in your name or business name

Payout Delays

• New accounts may have longer initial payout periods
• Large or unusual transactions may trigger review
• Check for verification requests in your Shopify admin

Declined Transactions

• Customer's card may have insufficient funds
• Card may be flagged for fraud prevention
• Billing address may not match card records

Alternatives to Shopify Payments

If Shopify Payments isn't available or suitable, alternatives include:

• PayPal
• Stripe (direct integration)
• Authorize.net
• Square

Remember: Third-party gateways incur additional Shopify transaction fees.

Conclusion

Shopify Payments simplifies payment processing with competitive rates and built-in integration. Set it up correctly from the start, configure your payout schedule to match your cash flow needs, and monitor transactions through your Shopify admin. For most stores, Shopify Payments is the most cost-effective and convenient option.

Related Resources

• Shopify Help: Shopify Payments
• What is a Shopify Collection?
• Creating Shopify Discounts