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Everything you need to know about Shopify Payments — fees, risks, and alternatives at a glance.
Built on Stripe's infrastructure — Shopify Payments is Shopify's integrated payment processor, powered by Stripe. No separate account or approval process needed.
Online rates: 2.15%–2.9% + 30¢ — card processing fees decrease as you upgrade your Shopify plan. In-person rates start at 2.6% + 10¢.
Zero third-party transaction fees — using Shopify Payments eliminates the extra 0.5%–2% fee Shopify charges when you use external gateways like PayPal or Stripe directly.
Available in 35+ countries — expanded to 15 new European countries in March 2025. Not available globally — alternatives needed in unsupported regions.
Restricted product categories — CBD, firearms, adult content, and certain high-risk categories are prohibited. Violations can lead to account suspension.
International card surcharge: +1% — transactions with international cards incur an additional 1% fee, plus another 1% for currency conversion.
Chargeback fee: $15 per dispute — non-refundable even if you win the dispute. High chargeback rates can trigger account review or suspension.
Payout holds are real — Shopify can hold funds for up to 120 days if they flag unusual activity, chargebacks, or policy concerns.
What You'll Learn
1What Shopify Payments is and how it works
2Complete fee structure for every plan
3Shopify Payments vs Stripe vs PayPal
4Which countries are supported (and alternatives)
5Prohibited products and suspension risks
6Strategies to minimize processing costs
What Is Shopify Payments?
Shopify Payments is Shopify's native payment processing solution — a fully integrated gateway that lets you accept credit cards, debit cards, and digital wallets without setting up a separate payment provider. It's powered by Stripe's infrastructure, which means your transactions are processed through one of the world's most reliable payment networks.
The biggest advantage? No third-party transaction fees. When you use any external payment gateway on Shopify (Stripe directly, Authorize.net, etc.), Shopify charges an additional 0.5%–2% surcharge on every transaction — on top of whatever the gateway itself charges. Shopify Payments is the only way to avoid this penalty.
When you use Shopify Payments, you aren't charged third-party transaction fees for orders that are processed through Shopify Payments, Shop Pay, Shop Pay Installments, and Paypal Express, and you aren't charged transaction fees on manual payment methods such as cash, cash on delivery (COD), and bank transfers.
35+
Countries Supported
< 3%
Online Card Rates
$0
Setup & Monthly Fees
$15
Chargeback Fee
Source: Shopify Pricing Page & Shopify Help Center (March 2026)
All Major Cards
Visa, Mastercard, Amex, DiscoverAccept all major credit and debit cards without separate merchant accounts. Includes JCB, Diners Club, and Eftpos (Australia).
Digital Wallets
Apple Pay, Google Pay, Shop PaySupport Apple Pay, Google Pay, Samsung Pay, and Shop Pay — Shopify's accelerated checkout that boosts conversion by up to 50%.
PCI DSS Level 1
Highest security certificationFully PCI DSS Level 1 compliant. All card data encrypted and tokenized. No security questionnaires or certificates to manage.
Automatic Payouts
Daily, weekly, or monthlyFunds deposited to your bank on a schedule you choose. US merchants typically receive payouts within 2 business days.
Fraud Analysis
Built-in risk indicatorsEvery transaction includes fraud analysis indicators — IP address checks, AVS, CVV verification, and machine learning risk scoring.
Unified Reporting
Payments inside your adminAll payment data, payouts, and fees visible directly in your Shopify admin. No switching between dashboards or platforms.
How a Transaction Flows
When a customer enters their card details at checkout, Shopify Payments handles the entire payment flow — from card authorization to payout:
1
Customer Checks Out
Customer enters card details or taps Apple Pay/Google Pay/Shop Pay at your Shopify checkout. Card data is encrypted instantly via Stripe's infrastructure.2
Authorization & Fraud Check
The card network (Visa/Mastercard) authorizes the charge. Shopify runs automated fraud analysis — AVS, CVV, IP geolocation, and ML-based risk scoring.3
Order Confirmed
If approved, the order is created in your Shopify admin. The customer receives an order confirmation email. The charge is placed as 'pending' in your Payments section.4
Settlement
Shopify settles the transaction with the card network. Processing fees (e.g., 2.9% + 30¢ on Basic) are deducted automatically from the transaction amount.5
Payout to Your Bank
Net funds are deposited to your connected bank account on your chosen schedule. US: typically 2 business days. UK/Canada: 3–5 business days.Shop Pay: Shopify's secret weapon
Shop Pay is Shopify's accelerated checkout that saves customer shipping and payment information for one-tap purchasing. It's free to use and enabled automatically with Shopify Payments — one of the strongest reasons to use the built-in processor over alternatives.
Shop Pay is an accelerated checkout option designed to enhance the shopping experience for customers on your Shopify store and on Shop. It allows customers to save their email address, payment method, and shipping and billing information, making the checkout process faster and more convenient. Shop Pay is included as part of Shopify Payments, and transactions are processed at your Shopify Payments rates.
Complete Shopify Payments Fee Structure (2026)
Shopify Payments fees are determined by your Shopify plan. Higher plans = lower card processing rates. Here's the complete fee breakdown as of 2026:
Shopify Payments Fees by Plan (2026)
| Fee Type | Basic ($39/mo) | Grow ($105/mo) | Advanced ($399/mo) | Plus ($2,300/mo) |
|---|---|---|---|---|
| Online credit card | 2.9% + 30¢ | 2.7% + 30¢ | 2.5% + 30¢ | 2.15% + 30¢ |
| In-person credit card | 2.6% + 10¢ | 2.5% + 10¢ | 2.4% + 10¢ | 2.15% + 10¢ |
| International cards | +1.0% surcharge on all plans | |||
| Currency conversion | +1.0% on all plans (when applicable) | |||
| Chargeback fee | $15 per dispute (non-refundable) | |||
| Setup / monthly fee | $0 (included with Shopify plan) | |||
Source: Shopify Pricing Page (March 2026). Rates shown for US merchants.
International cards can double your effective rate
A US-based store on the Basic plan processing a card from a European customer with currency conversion pays: 2.9% + 30¢ (base) + 1% (international) + 1% (conversion) = 4.9% + 30¢ per transaction. On a $100 order, that's $5.20 in fees — nearly double the domestic rate. If you sell internationally, factor this into your pricing strategy or use Shopify Markets to manage local pricing.
Source: Shopify Pricing Page (March 2026). Rates for US merchants.
What If You Don't Use Shopify Payments?
If you choose an external gateway instead of Shopify Payments, Shopify charges a third-party transaction fee on every sale — in addition to the gateway's own processing fees. Review Shopify's third-party providers documentation for the full list of supported gateways.
Third-Party Transaction Fees (Non-Shopify Payments)
| Plan | Third-Party Fee | Example: $100 Sale via Stripe |
|---|---|---|
| Basic ($39/mo) | 2.0% | $2.90 + $0.30 (Stripe) + $2.00 (Shopify) = $5.20 |
| Grow ($105/mo) | 1.0% | $2.90 + $0.30 (Stripe) + $1.00 (Shopify) = $4.20 |
| Advanced ($399/mo) | 0.5% | $2.90 + $0.30 (Stripe) + $0.50 (Shopify) = $3.70 |
| Plus ($2,300/mo) | 0.15% | $2.90 + $0.30 (Stripe) + $0.15 (Shopify) = $3.35 |
PayPal is the exception
PayPal has a special arrangement with Shopify — it's treated as an additional payment method, not a third-party gateway. This means PayPal transactions are not subject to the third-party transaction fee surcharge. You only pay PayPal's own processing rates. This is why offering Shopify Payments + PayPal is the most cost-effective dual-gateway setup.
Stores on the Shopify Plus plan that use Shopify Payments as their primary gateway have their transaction fees waived for all other payment methods used.
Bottom line: Unless you're in a country where Shopify Payments isn't available, or you sell prohibited products, there's almost no financial reason to use an external gateway. To understand how payment fees fit into your total Shopify costs, see our Shopify Pricing Explained guide.
Shopify Payments vs Stripe vs PayPal: Which Should You Use?
The three most common payment options for Shopify merchants are Shopify Payments, Stripe (as a direct integration), and PayPal. Here's how they compare:
Payment Processor Comparison (US Rates, Basic Plan)
| Feature | Shopify Payments | Stripe (Direct) | PayPal |
|---|---|---|---|
| Online rate | 2.9% + 30¢ | 2.9% + 30¢ | 2.99% + 49¢ |
| Shopify surcharge | $0 | +2.0% (Basic) | $0 (exempt) |
| Effective rate (Basic) | 2.9% + 30¢ | 4.9% + 30¢ | 2.99% + 49¢ |
| Shop Pay access | Included | Not available | Not available |
| In-admin reporting | Full | Limited | Limited |
| Chargeback fee | $15 | $15 | $20 |
| Separate account needed | No | Yes | Yes |
The recommended setup
For most Shopify merchants, the optimal payment configuration is: Shopify Payments as primary + PayPal as secondary. This gives you the lowest processing costs (no third-party surcharge) while offering customers a familiar alternative payment method. Adding PayPal can increase checkout conversion by 5–15% for stores with higher average order values.
If you're just getting started, our Shopify $1/month trial guide covers how to minimize costs during your first 90 days.
Shopify Payments: Supported Countries (2026)
Shopify Payments is not available globally. If your business is registered in an unsupported country, you'll need to use a third-party payment gateway (and pay the additional transaction fees). Here's the current list as reported by Shopify's official documentation:
Americas & Asia-Pacific
- United States
- Canada
- Australia
- New Zealand
- Japan
- Singapore
- Hong Kong SAR
Europe (35+ countries total)
- United Kingdom, Ireland
- Germany, France, Italy, Spain
- Netherlands, Belgium, Austria
- Denmark, Sweden, Finland
- Czech Republic, Romania, Switzerland, Portugal
- Poland, Lithuania, Norway, Latvia
- Hungary, Estonia, Malta, Croatia
- Greece, Slovenia, Cyprus, Bulgaria
- Liechtenstein, Luxembourg, Gibraltar
Source: Shopify Help Center — Supported Countries. Last updated March 2025 (15 new EU countries added).
Not in a supported country?
If Shopify Payments isn't available in your region, you can still use Shopify — but you'll need a third-party gateway like PayPal, Stripe (if available in your country), or a local payment processor. Remember: this means paying the additional 0.5%–2% Shopify transaction fee on every order. For merchants in unsupported regions, consider whether this cost impacts your decision — see our integration guide for alternative setups.
Prohibited & Restricted Products on Shopify Payments
While Shopify as a platform allows a wide range of products, Shopify Payments has its own restrictions — separate from Shopify's general acceptable use policy. You can sell certain products on Shopify, but you may not be able to process payments for them through Shopify Payments. Review the Shopify Payments Terms of Service for the complete list.
Prohibited Categories
- CBD, cannabis, and drug paraphernalia
- Firearms, ammunition, and weapons
- Adult content and services
- Gambling and betting services
- Cryptocurrency and NFTs
- Multi-level marketing (MLM)
- Counterfeit or replica goods
High-Risk / Restricted
- Supplements and nutraceuticals
- Tobacco and vaping products
- Alcohol (region-dependent)
- Subscription boxes with variable contents
- High-ticket luxury goods (high chargeback risk)
- Dropshipping with long shipping times
- Digital goods with high refund rates
Suspension can happen without warning
Shopify's automated systems can flag and suspend your Shopify Payments account without prior notice if they detect policy violations. If suspended, your pending payouts may be held for up to 120 days. Always review the Shopify Acceptable Use Policy and Shopify Payments' terms before launching your store.
You can't use Shopify to do anything that's illegal where you do business. We understand laws and regulatory frameworks can be complex, but in choosing a market to enter and products to sell, you, the merchant, are making a commitment to take that market seriously, and we trust and expect you to understand applicable boundaries.
Hidden Costs & Risks of Shopify Payments
Shopify Payments' headline rates (2.15%–2.9% + 30¢) don't tell the whole story. Here are the costs and risks most guides don't mention:
Chargeback Fees — $15 per dispute, win or lose
Every disputed transaction costs you a flat $15 fee — even if you win the dispute. If a customer files a chargeback, Shopify debits $15 + the full transaction amount from your account immediately. You have 7 days to submit evidence via the chargeback response process. The card network then takes 75–120 days to decide. If your chargeback rate exceeds 1% of transactions, Shopify may suspend your account entirely.International Card Surcharge — +1% to +2% per transaction
Cards issued outside your country incur a +1% surcharge. If currency conversion is involved, add another +1%. For a US merchant selling to a UK customer paying in GBP, the effective rate on Basic becomes 4.9% + 30¢ instead of 2.9% + 30¢. Use Shopify Markets to manage local pricing and reduce conversion fees.Payout Holds — Up to 120 days
Shopify can place a hold on your payouts if they detect unusual activity, high chargeback rates, or policy violations. Holds can last up to 120 days, during which you cannot access your funds. This can be devastating for small businesses relying on cash flow. New accounts and stores with sudden spikes in order volume are most at risk. Review Shopify's payout documentation for details.Account Suspension — No independent processor fallback
If your Shopify Payments account is suspended, you're forced to use a third-party gateway — adding the 0.5%–2% Shopify surcharge to every transaction. Unlike using Stripe or PayPal independently, you have no portability. Your payment history, saved customer cards, and payout schedule are tied to Shopify Payments exclusively.Protect yourself: practical steps
- Keep chargeback rate below 0.5% (well under the 1% threshold)
- Use clear product descriptions and shipping/refund policies to reduce disputes
- Enable order tracking and send automated shipping notifications
- Maintain a cash reserve — don't rely on immediate payouts for operations
- Review Shopify's AUP before adding new product categories
If the cardholder's bank makes a chargeback, then the bank takes the disputed amount from you right away. The cardholder's bank also takes a chargeback fee from you. If the cardholder's bank makes an inquiry, then they don't take the disputed amount or a fee right away.
How to Set Up Shopify Payments
Setting up Shopify Payments is one of the simplest onboarding processes in payment processing. Follow the official setup guide or use these steps:
1
Open Payment Settings
In your Shopify admin, go to Settings → Payments. You'll see Shopify Payments as the recommended option at the top. Click "Activate Shopify Payments".2
Enter Business Information
Provide your legal business name, address, business type (sole proprietor, LLC, corporation), and EIN/tax ID number. For sole proprietors, your SSN works.3
Add Banking Details
Enter your bank account and routing number for payouts. This must be a checking account in the same country as your Shopify store. Savings accounts are not accepted in some regions.4
Verify Your Identity
Upload a government-issued ID (driver's license, passport) if prompted. This step helps prevent fraud and is required for PCI compliance.5
Start Accepting Payments
Once verified, Shopify Payments is active immediately. Your store can process credit cards, debit cards, Apple Pay, Google Pay, and Shop Pay.Verification timeline
Most merchants are approved instantly. However, Shopify may take 2–3 business days to verify your identity for some business types. During this period, you can still accept payments — but payouts may be held until verification is complete. Have your business documents ready before starting. See Shopify's onboarding documentation for full requirements.
How to Reduce Your Shopify Payments Fees
You can't negotiate Shopify Payments rates on standard plans, but there are several strategies to minimize your total payment processing costs:
Upgrade When It Pays Off
Calculate the breakeven pointMoving from Basic (2.9%) to Grow (2.7%) costs $66/mo extra but saves 0.2% on transactions. At $33K/month revenue, you save $66 — meaning the upgrade pays for itself. At $50K, you save $34/month net.
Prevent Chargebacks
Each one costs $15 + lost revenueUse clear product photos, accurate descriptions, and transparent shipping policies. Add tracking to every order. Respond to customer inquiries within 24 hours. A single prevented chargeback saves $15 + the full order value.
Manage International Fees
Use Shopify Markets pricingUse Shopify Markets to price products in local currencies with your own exchange rate — avoiding the 1% currency conversion fee. For high-volume international stores, this can save thousands annually.
Enable Shop Pay
Higher conversion = more revenueShop Pay's accelerated checkout reduces abandoned carts and boosts conversion. More completed checkouts mean more revenue per visitor — often more impactful than a 0.2% rate difference.
Plan Upgrade Breakeven Calculator
| Upgrade | Extra Cost/mo | Rate Savings | Breakeven Revenue |
|---|---|---|---|
| Basic → Grow | $66/mo | 0.2% | $33,000/mo |
| Grow → Advanced | $294/mo | 0.2% | $147,000/mo |
| Advanced → Plus | $1,901/mo | 0.35% | $543,143/mo |
Breakeven = additional plan cost ÷ percentage rate reduction. Actual savings vary by order count and average order value. See our full pricing guide for detailed plan comparisons.
Bottom Line: Should You Use Shopify Payments?
For the vast majority of Shopify merchants, Shopify Payments is the clear choice — cheaper than alternatives, easier to set up, and includes Shop Pay.
No separate accounts, no reconciliation headaches, no third-party surcharges. For merchants selling non-restricted products in supported countries, it's the default choice. Just keep your chargeback rate low and understand the international fees.
Your Next Step by Stage
Frequently Asked Questions
Shopify Payments is built on Stripe's payment infrastructure, but it's a separate product managed entirely by Shopify. You don't need a Stripe account to use Shopify Payments — Shopify handles onboarding, payouts, and support. However, the underlying technology (card processing, fraud detection, PCI compliance) is powered by Stripe. The key difference: Shopify Payments integrates natively with your store and eliminates third-party transaction fees, while using Stripe directly would incur an additional 0.5%–2% Shopify surcharge.
Yes, you can offer both Shopify Payments and PayPal as checkout options simultaneously. This is actually recommended — many customers prefer PayPal, especially for higher-value purchases. When a customer pays via PayPal, you'll pay PayPal's processing fees (typically 2.99% + 49¢) but you won't be charged Shopify's extra third-party transaction fee, because PayPal has a special integration with Shopify.
If your Shopify Payments account is suspended, you lose the ability to process payments through the integrated gateway. Your store remains active, and you can switch to a third-party payment provider (Stripe, PayPal, etc.) to continue selling. However, you'll then be subject to Shopify's third-party transaction fees (0.5%–2%). Common suspension reasons include high chargeback rates (above 1%), selling prohibited products, or suspicious transaction patterns. You can appeal by contacting Shopify support with documentation.
Payout timing depends on your country and account history. In the US, the standard payout schedule is 2 business days after a transaction. In the UK and Canada, it's typically 3–5 business days. New accounts may experience longer initial hold periods (up to 14 days) while Shopify verifies your business. You can choose daily, weekly, or monthly payout schedules in your Shopify admin under Settings → Payments → Payout schedule.
Shopify Payments supports recurring billing through Shopify's subscription apps. You'll need a subscription app like Shopify Subscriptions (free), Recharge, or Bold Subscriptions to manage recurring orders. The payment processing fees are the same as standard transactions. Shopify Payments handles the card-on-file tokenization securely, so customers don't need to re-enter payment details for each recurring charge.
Yes, but with additional fees. When a customer uses a card issued outside your country, you'll pay an extra 1% international card fee on top of your standard processing rate. If the transaction also involves currency conversion (e.g., customer pays in EUR, you receive USD), there's an additional 1% currency conversion fee — totaling 2% extra. For high-volume international sellers, these fees can significantly impact margins.
When a customer disputes a charge, Shopify debits $15 from your account and places the disputed amount on hold. You have 7 days to submit evidence (tracking numbers, communication logs, proof of delivery). Shopify forwards your evidence to the card network, which makes a final decision within 75–120 days. If you win, the transaction amount is returned to you — but the $15 chargeback fee is never refunded regardless of outcome. If your chargeback rate exceeds 1%, Shopify may review or suspend your account.
Yes. Shopify Payments is PCI DSS Level 1 compliant — the highest level of payment card security certification. This means all card data is encrypted, tokenized, and stored securely without any action required from you. You don't need to handle credit card numbers, fill out PCI compliance questionnaires, or pay for security certificates. This is a major advantage over self-hosted solutions like WooCommerce, where PCI compliance is your responsibility.
For standard plans (Basic, Grow, Advanced), the card processing rates are fixed and non-negotiable. The only way to get lower rates is by upgrading to a higher plan. However, Shopify Plus merchants ($2,300+/month) can negotiate custom payment processing rates based on their transaction volume. Some Plus merchants report rates as low as 2.15% + 30¢ for online transactions, though exact rates depend on industry, volume, and chargeback history.
Shopify Payments supports payouts in the local currency of each supported country (e.g., USD in the US, GBP in the UK, EUR in eurozone countries). For multi-currency selling, Shopify Payments can present prices in the customer's local currency and handle conversion automatically — though you'll pay a 1% currency conversion fee. Shopify Markets helps manage multi-currency pricing with manual exchange rates to avoid conversion surprises.
Shopify Payments in-person rates (2.6% + 10¢ on Basic) are comparable to Square's standard rate (2.6% + 10¢). However, Square doesn't charge monthly platform fees, while Shopify requires a plan ($39+/month). If you primarily sell in person, Square may be more cost-effective. If you sell both online and in-person, Shopify's unified platform (inventory sync, customer data, reporting) offers significant operational advantages despite the monthly fee.
Shopify Payments accepts Visa, Mastercard, American Express, Discover, Diners Club, JCB, and Eftpos (in Australia). It also supports digital wallets including Apple Pay, Google Pay, Samsung Pay, and Shop Pay (Shopify's accelerated checkout). Shop Pay has been shown to increase checkout conversion by up to 50% compared to guest checkout. All payment methods are included at no additional cost — there's no extra fee for accepting Amex or digital wallets.
About This Article
Written by
Shopify Developer & E-Commerce Writer
9+ years with Shopify since 2017
Front-end developer specializing in Shopify since 2017. Experienced in building custom Liquid themes, optimizing storefront performance, and integrating third-party apps. Writes in-depth, data-driven e-commerce guides based on hands-on experience with real merchant stores.
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