Shopify Payments is Shopify’s built-in payment processor. Using it is the single most impactful cost decision you make on the platform. When you activate Shopify Payments, Shopify waives the additional transaction surcharge it would otherwise charge on every sale. When you do not use it, Shopify adds 0.6% to 2% on top of whatever your payment processor already charges.
This shopify payments guide covers how it works, what it costs by plan, which countries and product categories are eligible, how to set it up, and what to use instead when Shopify Payments is not available to you.
✓ Pros
- ✓ Full-featured online store with unlimited products
- ✓ World’s best-converting checkout experience
- ✓ Multiple sales channels including social media and marketplaces
- ✓ Robust analytics and marketing automation tools
- ✓ 24/7 live chat support and extensive app integrations
✗ Cons
- ✗ Transaction fees apply unless using Shopify Payments
- ✗ Advanced features can be costly for small businesses
- ✗ POS Pro requires additional monthly fees
- ✗ Customization requires “Liquid” coding knowledge
- ✗ App costs can stack up quickly for advanced features
- ✗ Blogging tools are basic compared to WordPress
- ✗ Difficult to export data if you leave the platform
What Shopify Payments Is
Shopify Payments is a payment processor built on Stripe’s infrastructure and offered directly by Shopify. It accepts major credit and debit cards, Apple Pay, Google Pay, and Shop Pay. It also supports Shopify’s buy-now-pay-later option, Shop Pay Installments, for US merchants.
Everything is managed from inside the Shopify admin. You do not log into a separate payment dashboard. Transactions, disputes, payouts, and refunds all appear in your Shopify orders and finances screens.
Shopify Payments is included with every paid Shopify plan at no additional cost beyond the transaction processing fee. There is no monthly fee for the gateway itself, no setup fee, and no minimum transaction volume.
The key distinction in Shopify’s pricing model, confirmed in Shopify’s official billing and pricing documentation, is:
- When you use Shopify Payments: you pay only the credit card processing rate
- When you use a third-party processor: you pay the processor’s rate plus Shopify’s additional transaction fee on top
That additional fee is 2% on Basic, 1% on Grow, and 0.6% on Advanced.
Shopify Payments Transaction Rates by Plan
The table below shows the full transaction rate structure, sourced from Shopify’s official pricing overview linked above.
| Plan | Online rate (Shopify Payments) | In-person rate | Third-party surcharge |
|---|---|---|---|
| Basic ($39/mo) | 2.9% + $0.30 | 2.6% + $0.10 | 2.0% |
| Grow ($105/mo) | 2.7% + $0.30 | 2.5% + $0.10 | 1.0% |
| Advanced ($399/mo) | 2.5% + $0.30 | 2.4% + $0.10 | 0.6% |
| Plus (from $2,300/mo) | ~2.15% + $0.30 | Negotiated | 0.2% |
On a $100 sale, using Shopify Payments on Basic costs $3.20. On the same sale using Stripe as a third-party processor on Basic, you pay $3.20 to Stripe plus $2.00 to Shopify as the surcharge, totalling $5.20, or 62% more than using Shopify Payments, per the worked example published by First Pier’s Shopify cost breakdown.
At $25,000 per month in revenue on Basic with a third-party processor, Shopify’s 2% surcharge alone costs $500 per month, or $6,000 per year. That $6,000 goes away if Shopify Payments is available to you. For a deeper analysis of how this compounds at different revenue levels, see the Shopify Pricing Guide.
Currency Conversion and International Fees
Shopify Payments handles multi-currency automatically when you use Shopify Markets. The currency conversion fee structure, per Shopify’s own Help Center documentation:
- US-based stores: 1.5% currency conversion fee on international transactions
- Stores in other Shopify Payments regions: 2% currency conversion fee
This fee applies when a customer pays in a currency different from your store’s primary settlement currency. A US store doing $10,000 per month in international sales through Shopify Payments pays approximately $150 in currency conversion fees.
For stores with significant international revenue, this fee is worth factoring into the cost comparison against local payment methods or other processors that may offer more competitive FX rates.
Shopify Payments Country Eligibility
Shopify Payments is available in a limited number of countries. The current count is approximately 33 countries following recent expansions, according to Digismoothie’s Shopify Payments country update. The full and authoritative list is maintained by Shopify in the Shopify Payments supported countries documentation.
Countries where Shopify Payments is available include:
- United States, Canada, United Kingdom, Australia, New Zealand, Ireland
- Austria, Belgium, Czech Republic, Denmark, Finland, France, Germany, Greece, Hungary, Italy, Netherlands, Poland, Portugal, Romania, Spain, Sweden, Switzerland
- Croatia, Estonia, Latvia, Lithuania, Malta, Norway, Slovenia (added in the most recent expansion)
- Mexico, Japan, Hong Kong, Singapore
If your country is not on Shopify’s list, you must use a third-party payment processor and pay the transaction surcharge on every sale. For an analysis of the total cost impact and alternative platforms where no transaction surcharge applies, see Is Shopify Worth It.
Product Category Restrictions
Even in supported countries, certain product categories are ineligible for Shopify Payments. The official eligibility page on Shopify’s Help Center states that your business must operate in a supported category; if it does not, you must use a third-party provider.
Common categories that cannot use Shopify Payments include firearms and weapons, certain regulated supplements and pharmaceuticals, adult content, gambling-related services, and specific financial products. Shopify maintains the authoritative restricted list in its Shopify Payments Terms of Service.
If your application for Shopify Payments is declined, Shopify provides a reason in the rejection notification. The most common rejection causes, according to ECOSIRE’s analysis of Shopify gateway eligibility, are: the business name on Shopify does not match the registered legal entity, the country of incorporation differs from the declared address, or the industry is on Shopify’s restricted list.
What Shopify Payments Includes
Beyond basic card processing, Shopify Payments includes several features at no additional charge:
Shop Pay. Shopify’s accelerated checkout. Customers who have previously purchased from any Shopify store can complete checkout in one tap using saved payment and shipping details. Shop Pay has over 200 million registered users globally. It is available automatically when Shopify Payments is active.
Shop Pay Installments. Available to US merchants on eligible plans. Lets customers split purchases into four interest-free payments or longer-term monthly instalments. Shopify handles the buy-now-pay-later infrastructure. You receive the full sale amount upfront, less a 5.99% to 6.99% fee on instalments transactions.
Fraud analysis. Every transaction processed through Shopify Payments includes automated fraud analysis. Shopify flags high-risk orders for review before you fulfil them. Chargeback protection is available as a paid add-on.
Chargeback management. Chargebacks are handled from the Shopify admin. Shopify charges a $15 dispute fee per chargeback, per the official Help Center documentation. This is standard across payment processors. The fee is refunded if the dispute is resolved in the merchant’s favour.
POS integration. In-person payments via Shopify POS use the same Shopify Payments account. Rates are lower for in-person transactions (2.4% to 2.6% + $0.10 depending on plan) because card-present transactions carry lower fraud risk.
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Basic
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Shopify (Standard)
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Advanced
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Shopify Plus
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Starter
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Retail
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|---|---|---|---|---|---|
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$25
/mo
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$65
/mo
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$399
/mo
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Starting at $2300
/mo
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$5
/mo
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$89
/mo
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|
|
|
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How to Set Up Shopify Payments
Setting up Shopify Payments takes approximately 10 to 15 minutes. The process is:
- From your Shopify admin, go to Settings > Payments
- Under Shopify Payments, click Complete account setup
- Enter your business details: business type (sole proprietor, corporation, partnership, non-profit), legal business name, and business address
- Enter your personal details for identity verification: legal name, date of birth, and the last four digits of your tax identification number
- Enter your bank account details for payouts: bank name, account number, and routing number
- Review and agree to the Shopify Payments Terms of Service
- Click Save
Shopify typically verifies accounts within one business day. During verification your store can still accept payments, but payouts may be held until verification completes.
Payout schedule. The default payout schedule is determined by your country. US merchants can choose daily, weekly, or monthly payouts from Settings > Payments > Shopify Payments > Manage > Payout schedule. Daily payouts give you the fastest access to cash. Weekly payouts reduce the number of bank transfers to reconcile.
Test mode. Before going live, enable test mode in Shopify Payments settings to verify your checkout works correctly. Use the test card number 4242 4242 4242 4242 with any future expiry and any three-digit CVV. Disable test mode before accepting real payments.
When Not to Use Shopify Payments
Shopify Payments is the right default for most merchants in eligible countries with eligible product categories. There are three situations where using a third-party processor instead makes more sense.
You need Stripe API keys for a third-party integration. Shopify Payments creates a Stripe Express account behind the scenes but does not expose the Stripe API keys to you. If you need to connect an accounting tool, ERP system, or revenue recognition platform that requires direct Stripe API access, you need the standalone Stripe plugin instead.
Your product category is restricted. If Shopify rejects your Shopify Payments application due to product category, use Stripe, PayPal, or a gateway that accepts your category. The transaction surcharge is unavoidable in this case.
You sell primarily in a country where Shopify Payments is not available. If you are based in India, most of Southeast Asia, most of Africa, Turkey, or other non-supported regions, use the best-rated gateway for your market: Razorpay for India, Iyzico for Turkey, Paystack for Nigeria and Ghana.
Third-Party Gateways on Shopify: What They Cost
When you use a third-party processor instead of Shopify Payments, you pay two fees on every transaction: the processor’s rate and Shopify’s surcharge. Shopify supports over 100 payment gateways. The most common alternatives:
| Gateway | Processing fee (US) | Shopify surcharge on Basic | Total on Basic |
|---|---|---|---|
| Stripe | 2.9% + $0.30 | 2.0% | 4.9% + $0.30 |
| PayPal Checkout | 3.49% + $0.49 | 2.0% | 5.49% + $0.49 |
| Authorize.net | 2.9% + $0.30 + $25/mo fee | 2.0% | 4.9% + $0.30 + $25/mo |
The surcharge falls to 1% on Grow and 0.6% on Advanced, narrowing the total cost gap. On Advanced, Stripe at 2.9% + $0.30 plus the 0.6% Shopify surcharge totals 3.5% + $0.30, compared to Shopify Payments at 2.5% + $0.30. The 1% per-transaction difference on Advanced generates $1,000 per month in savings at $100,000 in revenue if you can use Shopify Payments.
For the full Shopify vs WooCommerce comparison on total platform costs including payment processing, see Shopify vs WooCommerce.
Shopify Payments Use Cases
Shopify Payments isn’t the right choice for every merchant. The best payment setup depends on your country, business model, transaction volume, and customer preferences. Explore the common Shopify Payments use cases below to see when it makes sense to use Shopify’s built-in payment processor and when alternative payment gateways may be a better fit.
Startups
Perfect for early stage businesses looking to quickly launch an online store with minimal upfront investment. Shopify offers easy setup, customizable templates, and integrated payment processing to help startups get selling fast.
Enterprise
Scalable solution for large businesses requiring robust features, advanced analytics, and multi-channel selling capabilities. Shopify Plus provides high performance, dedicated support, and extensive customization to meet enterprise-level needs.
Agencies
Manage multiple clients’ stores with ease using Shopify’s comprehensive tools. Agencies can customize themes, optimize store performance, and leverage Shopify’s Partner Program to grow their service offerings efficiently.
Developers
API-first approach allows developers to build custom integrations, apps, and themes. Shopify’s extensive API documentation and developer tools empower developers to create tailored e-commerce solutions and enhance store functionality.
Frequently Asked Questions
Does Shopify Payments cost extra?
No. It is included in every paid plan at no monthly or setup fee. You pay only the transaction processing rate, which ranges from 2.9% + $0.30 on Basic to 2.5% + $0.30 on Advanced, per Shopify’s official billing documentation. Using it removes the additional transaction surcharge Shopify would otherwise charge when you use a third-party processor.
What happens if Shopify Payments rejects my application?
Shopify sends a rejection notice with the specific reason. Common causes are a mismatch between your business name on Shopify and your registered legal entity, a country of incorporation that differs from your declared address, or a product category on the restricted list. Fix the specific issue identified in the notice and reapply. If your product category is restricted, you must use a third-party processor and pay the transaction surcharge on every sale.
Can I use Shopify Payments and another gateway at the same time?
Yes. You can use it as your primary card processor and add third-party alternatives like PayPal as secondary options at checkout. When it is active and a customer pays through PayPal (which routes outside the native processor), Shopify charges the transaction surcharge on that PayPal transaction. The native Shopify gateway itself does not incur the surcharge.
Does Shopify Payments work for in-person sales?
Yes. The gateway powers Shopify POS for in-person transactions. In-person rates are lower than online rates because card-present transactions carry less fraud risk. On Basic, the in-person rate is 2.6% + $0.10. On Advanced, it is 2.4% + $0.10. Shopify POS Lite, which handles occasional in-person selling, is included on all plans. Shopify POS Pro, for full retail operations, costs $89 per month per location as an add-on.
What is the Shopify Payments chargeback fee?
Shopify charges a $15 dispute fee when a customer initiates a chargeback on a transaction processed through the gateway, per Shopify’s Help Center documentation. This fee is refunded if the dispute is resolved in the merchant’s favour. Disputes can be managed and responded to directly from the Shopify admin without logging into a separate dashboard.
How long do Shopify Payments payouts take?
Payout timing depends on your country and payout schedule. US merchants on a daily schedule receive payouts within one to three business days after a transaction. UK merchants typically receive payouts within three to five business days. Timing can also be affected by account verification status, dispute activity, or risk holds. Check your payout schedule and history under Settings > Payments > the gateway settings in your admin.
What to Read Next
For the complete plan comparison with fee calculations at each revenue level, see the Shopify Pricing Guide.
For the step-by-step setup guide including how to configure Shopify Payments during initial store setup, see the Shopify Setup Guide.
For Shopify’s official Shopify Payments eligibility requirements and supported countries, see the Shopify Payments eligibility documentation and the supported countries list in Shopify’s Help Center.