What Shopify Payments is and who can use it

Shopify Payments is a payment processor built into Shopify that lets you accept credit cards, debit cards, and digital wallets directly on your store. Instead of signing up with a separate payment processor like Stripe or Square, the payment system is already there when you create a Shopify store. Shopify handles the connection between your customer's bank, the card networks, and your store's bank account.

You can use Shopify Payments if you have a Shopify store in the United States, Canada, the United Kingdom, Australia, or a handful of other countries. Shopify regularly adds new regions. If you're outside these countries or your store is flagged during Shopify's review process, you'll need to use a third-party payment processor instead — Shopify supports integrations with Stripe, Square, PayPal, and others.

Shopify Payments is optional. You can choose to use it, or you can connect a different payment processor to your Shopify store. The choice affects your fees and which payment methods your customers see at checkout.

Key Takeaways

  • Shopify Payments is built into Shopify and requires no separate signup, but it's only available in certain countries and may be declined during Shopify's review of your store.
  • You pay a percentage of each transaction plus a fixed fee per transaction; the exact rate depends on your Shopify plan and whether the card is present or not.
  • Money from sales deposits into your bank account, usually within one to two business days, but Shopify may hold funds if your store is flagged for risk.
  • You can accept credit cards, debit cards, Apple Pay, Google Pay, and Shop Pay (Shopify's own digital wallet) through Shopify Payments.
  • If Shopify declines your store or you want lower fees, you can use a third-party processor like Stripe or Square instead.

How transaction fees work

Shopify Payments charges you a percentage of the sale plus a fixed amount per transaction. The percentage varies by your Shopify plan: the Basic plan is 2.9% + 30¢, Shopify is 2.7% + 30¢, and Advanced is 2.5% + 30¢. These rates apply to online card transactions where the customer enters their card details at checkout.

In-person transactions (if you use Shopify POS) have different rates. Swiped or dipped cards cost 2.7% + 0¢ on Basic, 2.5% + 0¢ on Shopify, and 2.4% + 0¢ on Advanced. Keyed-in cards (when you manually enter the number) cost slightly more.

International cards cost an extra 1% on top of the base rate. So a Basic plan customer paying with a UK card would pay 3.9% + 30¢ instead of 2.9% + 30¢. These rates are set by Shopify and do not change based on your sales volume or how long you've been using the service.

You also pay transaction fees if a customer uses a digital wallet like Apple Pay or Google Pay, even though those are technically card transactions. The rate is the same as a regular card transaction for your plan.

How money gets into your bank account

When a customer completes a purchase, Shopify collects the payment and holds it briefly. The money then deposits into the bank account you connected during setup, usually within one to two business days. Shopify calls this your payout schedule. Most stores are set to daily payouts, meaning Shopify sends all transactions from one day to your bank the next day.

You can change your payout schedule in your Shopify admin under Settings > Payments. Some stores choose weekly or monthly payouts instead, which can reduce the number of deposits your bank sees (and the fees your bank might charge for each deposit).

Shopify may hold funds if your store is flagged for risk — for example, if you have a high rate of chargebacks, a sudden spike in sales, or if Shopify suspects fraud. When this happens, Shopify places a reserve on your account, meaning a percentage of each payout is held for a set number of days or until Shopify's review is complete. You'll see the reserve amount and timeline in your admin. Reserves can last anywhere from a few days to several months, depending on what triggered the hold.

Which payment methods customers can use

Shopify Payments accepts all major credit cards: Visa, Mastercard, American Express, and Discover. Customers can also pay with debit cards that carry these logos. The checkout page shows all accepted cards so customers know before they enter their details.

Digital wallets are included: Apple Pay, Google Pay, and Shop Pay, which is Shopify's own wallet. Shop Pay lets customers save their card details to their Shopify account and check out faster on any Shopify store. Shopify promotes Shop Pay heavily and often offers discounts to customers who use it, which can increase conversion rates.

Shopify Payments does not include PayPal, bank transfers, or buy-now-pay-later services like Afterpay. If you want to accept those, you need to add a separate payment processor to your store. You can use multiple processors at once — for example, Shopify Payments for cards and a PayPal integration for PayPal customers.

What happens during Shopify's review process

When you create a Shopify store, you don't automatically get Shopify Payments. Shopify reviews your store before activating it. The review looks at your business type, your store's content, your return policy, and your contact information. Most stores are approved within a few hours or a day, but some take longer.

Shopify may decline Shopify Payments if your store sells items in restricted categories (like weapons, certain supplements, or adult content), if your business address doesn't match your payment details, or if Shopify suspects fraud. If you're declined, you'll see a message in your admin explaining the reason, though Shopify's explanations are sometimes vague.

If you're declined, you can appeal the decision or switch to a third-party processor. Some processors have different approval criteria and may accept your store when Shopify won't. You can also contact Shopify support to ask what specific issue caused the decline and whether it can be resolved.

Comparing Shopify Payments to third-party processors

The main advantage of Shopify Payments is convenience: it's already in your admin, requires no separate signup, and Shopify handles the technical setup. You also see all your transactions and payouts in one place without logging into another service.

The main disadvantage is that you have no choice in rates — Shopify sets them, and you cannot negotiate. If your store processes high volume or you want lower fees, a third-party processor like Stripe or Square may offer better rates or more flexibility. Stripe's standard rate is 2.9% + 30¢, which matches Shopify's Basic plan, but Stripe sometimes offers volume discounts or custom rates for high-volume stores.

Third-party processors also give you more payment method options. Stripe and Square both support PayPal, bank transfers, and buy-now-pay-later services that Shopify Payments doesn't. If your customers need those options, a third-party processor is necessary.

The trade-off is that third-party processors require separate signup and add another login to manage. You'll also see transactions in two places: your Shopify admin (for order information) and the processor's dashboard (for payment details and payouts).

Chargebacks and disputes

A chargeback happens when a customer contacts their bank and disputes a charge, claiming they didn't authorize it or didn't receive what they paid for. When this occurs, Shopify notifies you and deducts the amount from your account. You then have a window (usually 7 to 10 days) to respond with evidence that the transaction was legitimate — like a tracking number, a signed delivery confirmation, or email proof that the customer received the item.

If you respond with strong evidence, you may win the dispute and the money is returned. If you don't respond or your evidence is weak, you lose the chargeback and pay a chargeback fee on top of the refund. Shopify's chargeback fee is typically $15 per dispute.

A high chargeback rate (usually above 1% of your transactions) can trigger a reserve on your account or result in Shopify closing your store. This is why tracking numbers, delivery confirmation, and clear communication with customers matter — they protect you if a dispute arises.

Frequently Asked Questions

Can I use Shopify Payments and another payment processor at the same time?

Yes. You can set up Shopify Payments as your primary processor and add a second processor like PayPal or Stripe for customers who prefer other payment methods. Both will appear at checkout. This is useful if you want to accept PayPal or bank transfers alongside Shopify Payments.

What if Shopify Payments is not available in my country?

You'll need to use a third-party processor. Shopify supports Stripe, Square, PayPal, and others in most countries. During store setup, Shopify will show you which processors are available in your region. You can switch processors anytime by going to Settings > Payments in your admin.

How long does it take to get paid after a customer buys something?

Usually one to two business days. If your payout schedule is daily, Shopify sends all transactions from one day to your bank the next business day. Weekends and holidays may delay the deposit. If Shopify has placed a reserve on your account, payouts may be delayed or reduced until the review is complete.

What happens if my store is flagged for fraud?

Shopify may place a reserve on your account, holding a percentage of each payout for a set period. You'll see the reserve details in your admin, including the hold period and the percentage being held. Reserves are temporary and are released once Shopify's review is complete. If you believe the reserve is unfair, you can contact Shopify support to request a review.

Do I pay fees on refunds?

No. When you issue a refund, Shopify returns the transaction fee to you. So if a customer paid $100 and you refunded them, you get back the 2.9% + 30¢ fee you originally paid. You only lose the fee if the customer disputes the charge and wins the chargeback.