Getting started with Shopify Payments can be tricky. We've created this guide to help demystify the process and to help you understand exactly what you need to do to get started using Shopify Payments in your store.
We've also included some advice on if this is the right payment gateway compared to Stripe or PayPal.
Let's get started!
Tip: Have you already created your Shopify account? If not, sign up by clicking this link here to get a free 3-day trial + 1 month for $1!
What is Shopify Payments? And how does it work?
Shopify Payments is Shopify's in-house payment processing solution. It streamlines the payments process for Shopify merchants by allowing them to accept credit card payments directly through their Shopify store.
Shopify Payments is the easiest way to get paid on Shopify. It is automatically installed with every Shopify store and allows you to accept credit cards directly through Shopify without setting up a third-party payment gateway.
What countries is Shopify Payments available in?
Shopify Payments is available in the following countries:
- United States
- New Zealand
- United Kingdom
- Hong Kong
Note: Shopify Payments is not available to stores in any other country. If you're unsure if Shopify Payments is available in your country, contact Shopify support.
If Shopify Payments isn't available in your country or you want to use a different payment gateway, you can choose from over 100 Shopify-supported payment gateways.
Requirements to be accepted in Shopify Payments
Shopify Payments is Shopify's own payment processor. To be accepted into Shopify Payments, you must:
- Be a Shopify merchant
- Live in one of the supported countries
- Use Shopify as your ecommerce platform
- Have proof of home address documents
- Meet Shopify's minimum age requirements
For more info, make sure to check the full list of requirements.
Fees associated with Shopify Payments
Shopify Payments has a few different fees associated with it. There is a Shopify transaction fee, which is a percentage of the total sale, and a payment processing fee. Shopify's transaction fees are as follows:
- Shopify Payments: Shopify's transaction fee is 0.15% for the first $2000 of sales and then 0.05% for any sales over $2000.
- Other Payment Gateways: Shopify charges a flat rate of 0.30% per transaction for all other payment gateways.
To learn more about Shopify Payments transaction fees, click here.
How often are Shopify Payments payouts?
Shopify Payments are paid out every 14 days, meaning you'll receive your Shopify Payments balance from two weeks ago on the 14th day of every month.
For example, if you had a Shopify Payments balance of $100 on January 31st, you would receive that $100 on February 14th.
How do I set up Shopify Payments?
If you're looking to set up Shopify Payments on your store, there are a few things you'll need to do.
First, you'll need to create a Shopify account and sign in. Once you're signed in, you'll need to go to the Shopify Payments section of your admin panel:
From there, click on Settings and head over to the payment section.
Now, you'll need to insert some tax information. This will depend strictly on the country you're living in. You should consult with a professional accountant to fill out that form.
With that being said, let's continue.
Shopify allows you to accept all major credit and debit cards. However, you can enable and disable those who don't fit your business needs.
The rest of the options are set by default. You don't need to do anything with that, except if you prefer to get paid daily or weekly. This is up to you. Once you've done that, click on save, and you're done. Congratulations!
Note: If PayPal isn't available in your country, you can deactivate it. Just click on manage and simply disable the payment option.
Shopify Payments: Pros and cons
There are a few things to consider before signing up for Shopify Payments. Here are some of the pros and cons:
- Shopify Payments is the simplest way to get started selling online. You can be up and running in minutes without setting up a third-party payment processor.
- Shopify Payments is integrated with Shopify so that you can manage your entire business from one central platform.
- Shopify Payments offers competitive transaction fees, and there are no setup or monthly fees.
- Shopify Payments is available in over 15 countries.
- Shopify Payments is not available in all countries.
- Fees associated with using Shopify Payments may be higher than some other payment processors.
- Shopify Payments may not be the best option for high-volume businesses.
Tip: If you want to win your Shopify Payment chargebacks, consider using Chargeflow. It's a company that uses AI to fight your chargebacks for you.
Chargeflow offers an industry-leading win rate, and you only pay when they successfully recover a chargeback, so it's worth checking out!
Alternatives to Shopify Payments
Shopify Payments is not the only payment processor available to Shopify merchants. If you're not satisfied with Shopify Payments, or if it's not available in your country, you can choose from several other Shopify-supported payment providers.
Some of the most popular Shopify-supported payment providers include:
- Apple Pay
- Google Pay
Among these providers, Stripe and PayPal are the most commonly used. Shopify has built-in integration with these payment providers, making it easy to set up and start using.
What is Stripe? And how does it work?
Stripe is a payment gateway that allows you to take payments directly through your Shopify store. Stripe powers Shopify Payments, so when you set up Shopify Payments, you're automatically set up with Stripe.
Stripe allows you to take credit and debit card payments from customers in over 130 countries. It works with Shopify to allow Shopify merchants to accept payments from anywhere.
Stripe is one of the easiest Shopify payment gateways to set up and one of the most popular.
Note: If you are in a country where Stripe is available, you can't enable Shopify payments. You can only enable one of those two based on geolocation.
What countries is Stripe available in?
Stripe is currently available in 47 countries; if you want to know if Stripe is available in your country, check out the list.
You can use Stripe as your payment gateway if you live in a country where Shopify Payments isn't available.
Requirements to be accepted in Stripe
To be eligible to use Stripe, you must:
- Be a resident of one of the listed countries.
- Have a business account in one of those countries.
- Be able to provide Shopify with the required banking and tax information.
- Be 18 years or older.
If you meet all of the above requirements, you can apply to Shopify Payments powered by Stripe.
How often are Stripe payouts?
Stripe payouts are typically made on a weekly basis. However, if you have Shopify Payments enabled, your payouts will be processed more frequently - typically every two days.
This means that you'll receive your payments faster, and you can keep your business running smoothly.
Pro tip: If you have the option to use more than one payment processor, go for it. Why?
Because if your store makes $1000 in a month and suddenly starts making thousands of dollars due to seasonality, some payment processors might block your account to verify that you are not a scammer. Meanwhile, you want cash flow in your account to keep your business up and running.
Fees associated with Stripe
Stripe charges a flat rate of $0.30 + 2,9% per transaction. For example, if you sell an item for $100 and the transaction fee is $0.03, your total fee would be $0.33.
How do I get started with Stripe?
The first step is to create a Shopify account and then add Shopify Payments as your payment gateway. You can do this by going to your Shopify admin, then selecting Settings > Payment providers.
As we mentioned above, Shopify track automatically your geolocation, so you will see an option to click if Stripe is available in your country.
Once you've added Stripe, you'll need to enter some basic information about your business, including your business name, address, and phone number. You will also need to provide your bank account details so that they can deposit your payments.
Stripe: Pros and cons
- You can be up and running in just a few minutes.
- Stripe has lower transaction fees than most other payment processors (including PayPal), so you can save money on every sale.
- Stripe doesn't charge any setup or monthly fees, so you can start processing payments right away without worrying about additional costs.
- Seamless integration with Shopify's checkout process.
- Not available in all countries.
- Customer service is not always helpful.
Related article: Dropshipping With Stripe: Everything You Need to Know
Shopify Payments vs. Stripe: What's the difference?
If you're running an online store, then you know that there are a lot of different options out there when it comes to payments.
Shopify Payments and Stripe are two of the most popular choices, but what's the difference between them?
Let's take a look:
|Fast and easy to use
|Not available in all countries
|Not supported in every country
|Fraud detection feature
|Restrictions on some products or services
|Available in 47 countries
|Transaction fees might be high
|No setup fees
|24/7 phone and chat support
There are a few other countries that are Shopify Payments support, so if you're interested, check out the list here.
Stripe is a third-party payment processor. Stripe is available in many countries around the world. Stripe is easy to set up and use, and it's often used by businesses that are expanding internationally.
So, what's the difference?
Well, Shopify Payments is integrated with Shopify's platform, which means it's easy to set up and use. However, Shopify Payments is only available in certain countries. Stripe, on the other hand, is available in many countries worldwide.
If you're looking for an easy-to-use payment processor available in many countries, then Stripe is a good option. However, if you're looking for a payment processor that's integrated with Shopify's platform, then Shopify Payments is a good option for you.
What is PayPal? And how does it work?
PayPal is one of the Shopify-supported payment providers. You can use PayPal to accept payments for orders placed on your Shopify store.
To start using PayPal as a Shopify payment provider, you need to set up a PayPal Business account. Once you have a Business account, you can connect it to your Shopify store and start accepting payments.
When customers complete an order on your Shopify store and choose PayPal as their payment method, they are redirected to the PayPal website to complete the payment.
In what countries is PayPal available?
PayPal is available in over 200 countries and regions. You can check if your country or region is supported by PayPal here. Unfortunately, if you don't see your country or region listed, it isn't available there yet.
Requirements to be accepted in PayPal
If you're a Shopify merchant and want to start using PayPal for your Shopify payments, you'll need to:
- Have a PayPal account
- Have a Shopify merchant account
- Have a valid email address associated with your Shopify account
How often are PayPal payouts?
PayPal payouts are typically every 24 hours but may be delayed if there is a problem with your account or if you have a lot of transactions. You can check the status of your payout in your Shopify admin.
Fees associated with PayPal
Shopify uses PayPal as an external Payment provider to send payments to your shop.
There is a small fee for using this service, which the merchant pays. The fee is calculated as a percentage of the total transaction amount, plus a fixed fee based on the currency you're using.
PayPal charges sellers a fee for each transaction. The fee is calculated as a percentage of 2.9% of the total transaction amount, plus $0.30 as a fixed fee.
Note: These numbers may change at the payment processor's discretion.
Shopify Payments vs. Stripe: What's the difference?
If you're running an online store, then you know that there are a lot of different options out there when it comes to payments. Shopify Payments and Stripe are two of the most popular choices, but what's the difference between them? Let's take a look:
- Shopify Payments is Shopify's own payment processing system. Shopify Payments is available in the US, Canada, UK, Ireland, Australia, New Zealand, and other countries. Shopify Payments is integrated with Shopify's platform, making it easy to set up and use.
- Stripe is a third-party payment processor. Stripe is available in many countries around the world. Stripe is easy to set up and use, and it's often used by businesses that are expanding internationally.
How do I get started with PayPal?
Log in to your Shopify admin.
From the Shopify app, go to Store > Settings.
Under Store settings, tap Payments.
In the Shopify Payments section, tap Complete account setup.
Follow the on-screen instructions to complete the account setup process with Paypal.
After you finish the account setup process, your Shopify store will be connected to your Paypal account, and you can start accepting payments.
If you are serious about this business model, make sure to check out The four Best Payment Gateway Combinations.
PayPal: Pros and cons
There are a few things to consider when looking at PayPal(or any other payment processor). Here are some of the pros and cons:
- It is integrated with Shopify, so it's easy to set up and use
- No setup fees, monthly fees, or hidden fees
- Competitive transaction fees
- It might not be available in all countries
- It might not support all currencies
- Chargeback fees
How to calculate Paypal transaction fees
If you're selling products through Shopify, you may be wondering how to calculate PayPal seller fees. Here's a quick guide to help you out.
PayPal charges sellers a fee for each transaction. The fee is calculated as a percentage of the total transaction amount plus a fixed fee. For example, you're charged 2,9% plus $0,30 for each transaction you make.
The total PayPal fee for a $100 transaction would be $100 x 0,029 + $0,30 = $103,00.
Note: These numbers may change by the payment processors.
Paypal vs. Stripe
The debate of PayPal vs. Stripe has been around for a while. Each has pros and cons, but ultimately it comes down to your needs. PayPal is a good option if you're just getting started with Shopify because it's easy to set up and use.
However, keep in mind as you scale up your business, you might encounter some issues with PayPal; I've seen many professional dropshippers having their PayPal account blocked due to suspicious activity.
The truth is: Oftentimes these dropshippers use Facebook ads to scale up their business, when transactions start doubling all of the sudden, they might trigger the PayPal algorithm to stop your account from accepting payments.
Even if you're doing a legit business you will still face these issues, so just use PayPal at the very beginning of your new store, and as you start making money switch to another payment processor.
Related article: Using PayPal for Dropshipping: How to Not Get Banned
Why might PayPal hold your funds?
There are a few key reasons why PayPal may hold your Shopify payments:
- You're new to Shopify. If you're new to Shopify, PayPal may hold your payments for up to 21 days. This gives them time to ensure that you're a legitimate seller and that you're not going to charge your customers' credit cards fraudulently.
- You're selling high-risk items. Items that are considered high-risk, such as electronics or jewelry, may also be held by PayPal. This is because these items have a higher potential for fraud.
- You're selling from a high fraudulent country. If you're selling from a country that is on PayPal's high-risk list, they may hold your payments. This is because there is a higher risk of fraud when dealing with sellers from these countries.
- You have a high transaction volume. If you have a high transaction volume, PayPal may hold your payments for up to 21 days. This is to protect themselves from fraud and to make sure that you're not going to have chargeback from your customers.
- You have a high refund rate. If you have a high refund rate, PayPal may hold your payments for up to 21 days.
So, there you have it!
Everything you need to know in order to start using Shopify Payments in your store.
It's really not as complicated as it may seem at first, and we hope this guide has helped to clear up any questions or concerns you may have had about getting started.
If you are still unsure whether Shopify Payments is the right payment gateway for your business, be sure to check out our list of the best payment gateways here!
Thanks for reading, and happy selling!
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