Shopify Payments is a payment processor built into Shopify stores
Shopify Payments is a system that lets customers pay you directly through your Shopify store without extra setup or third-party apps. When you use it, Shopify handles the payment processing — collecting card information, verifying the transaction, and depositing money into your bank account. You do not need to sign up for a separate payment processor like Stripe or Square.
The main difference from other payment methods is that Shopify Payments is native to the platform. It is already built in. If you turn it on, your checkout page uses Shopify's payment form instead of redirecting customers elsewhere. The process is faster for customers and requires fewer steps from you.
Shopify Payments is available in the United States, Canada, the United Kingdom, Australia, and several other countries, but not everywhere. If you are outside a supported country, you will need to use an external payment processor instead.
Key Takeaways
- Shopify Payments processes credit and debit card payments directly through your store without requiring a separate payment processor account.
- You pay a transaction fee on each sale (usually 2.9% plus 30 cents for online card payments), and Shopify deposits the money into your bank account within one to two business days.
- The checkout process is faster for customers because they stay on your store instead of being sent to an external payment page.
- Shopify Payments is only available in certain countries, so you may need to use an alternative processor depending on your location.
How the payment flow works
When a customer buys something from your store, they enter their card details into the Shopify Payments form at checkout. Shopify encrypts that information and sends it to the payment network (Visa, Mastercard, American Express, or Discover). The card issuer approves or declines the transaction in seconds.
If the payment is approved, Shopify holds the money briefly and then deposits it into your bank account. This usually takes one to two business days, though it can take longer if there are fraud checks or chargebacks. You can see the transaction in your Shopify dashboard when ready, even if the money has not arrived in your bank yet.
Shopify also handles refunds through the same system. If you issue a refund in your Shopify admin, the money goes back to the customer's card automatically. You do not have to contact a payment processor or do anything manually.
What you pay for Shopify Payments
Shopify Payments charges you a transaction fee on each sale. For online card payments, the fee is 2.9% of the order total plus 30 cents. This means a $100 order costs you $3.20 in fees. If a customer pays with American Express, the fee is slightly higher at 2.9% plus 30 cents (Amex charges Shopify more, and Shopify passes some of that along).
There are no monthly fees, no setup fees, and no fees for refunds or chargebacks. You only pay when money comes in. If you use Shopify Payments, you also do not pay extra to accept credit cards — many other Shopify payment processors charge an additional percentage on top of their base rate.
Some Shopify plans include a small discount on Shopify Payments fees. The Shopify Plus plan (for high-volume stores) can negotiate custom rates directly with Shopify.
Shopify Payments versus external processors
You do not have to use Shopify Payments. You can instead connect your store to Stripe, Square, PayPal, or dozens of other payment processors through Shopify's app marketplace. The main trade-off is convenience versus flexibility.
Shopify Payments is simpler because it is already there — you turn it on and it works. You have one dashboard for your store and your payments. External processors give you more options: some offer lower fees for certain transaction types, some work in more countries, and some let you use the same processor across multiple sales channels (your website, a physical store, social media, etc.).
If you are just starting out and selling in a supported country, Shopify Payments is usually the easiest choice. If you have specific needs — like selling internationally or accepting local payment methods — an external processor might be better.
Security and fraud protection
Shopify Payments uses encryption and fraud detection to protect both you and your customers. Customer card information is encrypted before it reaches Shopify's servers, so Shopify never actually stores full card numbers. This is called tokenization.
Shopify also screens transactions for fraud patterns — unusual amounts, multiple failed attempts, or cards flagged by the issuing bank. If something looks suspicious, the transaction may be declined automatically or flagged for your review. You can see these flagged orders in your Shopify admin and decide whether to accept or cancel them.
You are protected against some chargebacks (when a customer disputes a charge with their bank), but not all. If a customer claims they never received an order, Shopify can help you dispute the chargeback if you have tracking information showing delivery. If a customer claims fraud, the burden is on you to prove the transaction was legitimate.
When Shopify Payments is not available
Shopify Payments does not work in every country. It is available in the United States, Canada, the United Kingdom, Australia, Ireland, France, Germany, Italy, Spain, and a few others, but the list changes. If you are outside a supported region, you will see a message in your Shopify admin telling you to use an external processor instead.
Even in supported countries, some business types cannot use Shopify Payments. High-risk industries — like adult products, gambling, or certain financial services — are usually blocked. Shopify's terms of service list the restricted categories. If your store falls into one of these categories, you will need to use an external processor.
You can check whether Shopify Payments is available for your store by going to Settings > Payments in your Shopify admin. If it is available, you will see an option to set up it. If not, you will see a list of approved external processors instead.
Setting up Shopify Payments
To turn on Shopify Payments, go to your Shopify admin, click Settings, then Payments. Click "set up Shopify Payments" and follow the prompts. Shopify will ask for your business information, tax ID, and bank account details. You need a bank account in the same country as your store.
Shopify verifies your information, which usually takes a few minutes to a few hours. Once approved, Shopify Payments is live and customers can pay when ready. You can test it first by creating a test order in your store's draft mode.
If you already use an external processor, you can switch to Shopify Payments at any time. Your existing orders and customer data stay the same. New orders will use Shopify Payments, and old orders will still show the original processor.
Frequently Asked Questions
How long does it take for money to show up in my bank account?
Shopify deposits money from Shopify Payments into your bank account within one to two business days. Weekends and holidays can add time. You can see the transaction in your Shopify dashboard when ready, even before the money arrives in your bank.
Can I use Shopify Payments and another payment processor at the same time?
Yes. You can turn on Shopify Payments and also add external processors like Stripe or PayPal. Customers will see all available payment methods at checkout and can choose which one to use. This is useful if you want to offer local payment methods that Shopify Payments does not support.
What happens if a customer disputes a charge?
The customer's bank investigates the dispute. If you can prove the order was delivered (with tracking information) or that the customer authorized the charge, you can dispute the chargeback through your Shopify admin. If you lose the dispute, Shopify deducts the amount from your account and charges you a chargeback fee.
Does Shopify Payments work with my point-of-sale system?
Shopify Payments is for online orders only. If you have a physical store, you need Shopify POS (point of sale) and a separate card reader. Shopify POS uses Shopify Payments for in-person transactions, but it requires different hardware and setup.
Can I use Shopify Payments if I am outside a supported country?
No. Shopify Payments only works in specific countries. If you are outside a supported region, you must use an external processor like Stripe, which operates in more countries. Check Shopify's list of supported countries in your admin to confirm.