Shopify Payments fees by plan (2.9% + 30¢ and down), setup steps, the third-party gateway surcharge, chargebacks, and how it compares to Stripe and PayPal.
March 22, 2026·16 min read·
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Payout timing is regional — Shopify quotes 2–5 business days in the US; daily, weekly, or monthly schedules.
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
In This Article
What Is Shopify Payments?
Key takeaway
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. You can't wire in a Stripe account you already run elsewhere, though — our FAQ on whether Shopify uses Stripe unpacks exactly how the two relate.
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 additional0.2%–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.”
That COD line item is a manual payment method, not a Shopify Payments feature — it ships the order unpaid and leaves collection to you at the door. Our FAQ on whether Shopify supports cash on delivery covers the setup toggle, the surcharge/OTP apps merchants add on top, and where COD fits alongside the gateway you pick here.
Accept all major credit and debit cards without separate merchant accounts. Includes JCB, Diners Club, and Eftpos (Australia).
Digital Wallets
Apple Pay, Google Pay, Shop Pay
Support 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 certification
Fully PCI DSS Level 1 compliant. All card data encrypted and tokenized. No security questionnaires or certificates to manage.
Automatic Payouts
Daily, weekly, or monthly
Funds deposited to your bank on a schedule you choose. Shopify quotes US payouts at 2–5 business days from when a payment is captured.
Fraud Analysis
Built-in risk indicators
Every transaction includes fraud analysis indicators — IP address checks, AVS, CVV verification, and machine learning risk scoring.
Unified Reporting
Payments inside your admin
All payment data, payouts, and fees visible directly in your Shopify admin. No switching between dashboards or platforms.
Shopify Payments also tokenizes saved cards for recurring billing — the engine behind recurring payments on Shopify, which run through subscription apps whose fees and churn tools vary, as our subscription apps comparison lays out.
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: 2–5 business days from capture, per Shopify. UK/Canada: 3 business days minimum settlement, plus bank posting time.
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.”
One clarification the quote hints at: Shop Pay also works on Shop, Shopify's consumer shopping app — a separate product from the platform you sell on. Our guide on Shopify versus the Shop app untangles the two.
Complete Shopify Payments Fee Structure (2026)
Key takeaway
Shopify Payments fees are determined by your Shopify plan. Higher plans = lower card processing rates. None of this is a percentage-based commission on your revenue the way a marketplace charges — our FAQ on whether Shopify takes a cut of your sales breaks down exactly what you pay and why. Here's the complete fee breakdown as of 2026:
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) + 1.5% (conversion) = 5.4% + 30¢ per transaction. On a $100 order, that's $5.70 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.
One more change worth noting: since April 6, 2026, Shopify calculates the currency conversion fee directly on the gross order amount — without first deducting Shopify Payments fees, as it previously did. In practice, the effective conversion charge now equals the nominal rate (1.5% for US stores, 2% in other regions) rather than a slightly smaller figure netted against fees first.
Enter your monthly metrics to see effective Shopify Payments rates across all plans — including international card surcharges.
Check if international customers pay in their local currency
BasicBest
$360
processing fees/mo
Base rate2.9% + 30¢
Effective rate (% of revenue)3.60%
Plan fee$39/mo
Total cost$399/mo
Grow
$340
processing fees/mo
Base rate2.7% + 30¢
Effective rate (% of revenue)3.40%
Plan fee$105/mo
Total cost$445/mo
Advanced
$320
processing fees/mo
Base rate2.5% + 30¢
Effective rate (% of revenue)3.20%
Plan fee$399/mo
Total cost$719/mo
Plus
$295
processing fees/mo
Base rate2.25% + 30¢
Effective rate (% of revenue)2.95%
Plan fee$2300/mo
Total cost$2,595/mo
* Estimates based on Shopify Payments US online rates. In-person rates are lower on Basic, Grow and Advanced. Actual costs may vary. Does not include chargebacks or currency conversion fees beyond the % surcharge.
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. This guide covers the mechanics and setup of Shopify Payments itself — if you're weighing a specific external gateway against that surcharge, see our gateway comparison and third-party surcharge math for the region-by-region breakdown.
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?
Key takeaway
The three most common payment processors merchants weigh are Shopify Payments, Stripe, and PayPal. One caveat before the numbers: where Shopify Payments is available in your country, Shopify does not offer Stripe as a separate gateway you can switch on — so the Stripe column below reflects running Stripe directly on a custom-built or non-Shopify storefront, included purely as a cost benchmark. The one narrow exception: if your Shopify Payments account is closed for a terms-of-service violation, Shopify Support may review enabling Stripe in its place. Here's how they compare:
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. PayPal publishes no headline conversion-lift figure for merchants who add it, so treat any uplift as something to measure in your own checkout rather than a number to budget against.
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)
Key takeaway
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:
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 0.2%–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
Key takeaway
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. The Shopify Payments Terms of Service name no categories themselves: they say the business types that count as Prohibited or Restricted "are provided by each Payment Processor in your designated country", on lists that are "meant to be representative but not exhaustive". Which of the three rulebooks actually blocks a given product — the platform policy, Shopify Payments, or a sales channel — is the subject of what you can't sell on Shopify.
The categories below are the ones payment processors most commonly prohibit or restrict. They are a guide to what to expect, not Shopify’s own list — the binding one is your processor’s, and it can change without notice.
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 can be held while the account is reviewed, and the Shopify Payments Terms set no time limit on that. 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.”
Shopify Payments' headline rates (2.25%–2.9% + 30¢) don't tell the whole story. Here are the costs and risks most guides don't mention:
Chargeback Fees — $15 debited up front, returned only if you win
When a customer files a chargeback, Shopify debits the full transaction amount plus a $15 fee from your account immediately. Win the dispute and both are returned; lose it and you forfeit both. So the fee is recoverable — the cash flow is not, because you carry the gap for months: you usually have 7–21 days to submit evidence via the chargeback response process, and the card company can take up to 75 days after that to decide. The count matters more than the fee: Visa's Acquirer Monitoring Program (VAMP) treats a dispute-and-fraud ratio of 0.5% as non-compliant and 1.5% as excessive (2.2% in Central Europe, the Middle East and Africa), and a store that stays enrolled long-term can have its use of Shopify Payments restricted. From the buyer's side, though, a chargeback isn't a store-wide guarantee — our FAQ on whether Shopify offers buyer protection explains what actually protects a shopper when something goes wrong.
International Card Surcharge — +1% to +2.5% per transaction
Cards issued outside your country incur a +1% surcharge. If currency conversion is involved, add another +1.5% for US stores (2% in other Shopify Payments regions). For a US merchant selling to a UK customer paying in GBP, the effective rate on Basic becomes 5.4% + 30¢ instead of 2.9% + 30¢. Use Shopify Markets to manage local pricing and reduce conversion fees.
Payout Holds — No published time limit
Shopify can place a hold on your payouts if they detect unusual activity, high chargeback rates, or policy violations. Shopify publishes no maximum length for a hold, and you cannot access the funds while one is in place. 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 0.2%–2% Shopify surcharge to every transaction. Unlike running your own Stripe or PayPal account on a self-hosted or non-Shopify storefront, you have no portability: your payment history, saved customer cards, and payout schedule are tied to Shopify Payments exclusively.
Protect yourself: practical steps
Keep your dispute-and-fraud ratio below 0.5% — the point where Visa's VAMP starts counting you as non-compliant
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.”
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. Shopify does not publish a review time for that identity check. 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. For US merchants this identity check is also where the SSN question comes up — our FAQ on whether Shopify needs your SSN covers who has to provide one and what it's used for. Activation has a second condition that catches people later: Shopify requires two-step authentication on the account to use Shopify Payments, and its account-setup page says payouts might be placed on hold until it is activated — our FAQ on whether Shopify requires two-step authentication covers who that applies to.
How To Setup Shopify Payments (2026) For BeginnersStep-by-step walkthrough of setting up Shopify Payments, configuring payment methods, and activating your first payment processor.
How to Reduce Your Shopify Payments Fees
Key takeaway
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 point
Moving 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 revenue
Use 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 pricing
Use Shopify Markets to price products in local currencies with your own exchange rate — avoiding the currency conversion fee (1.5% for US stores, 2% in other regions). For high-volume international stores, this can save thousands annually.
Enable Shop Pay
Higher conversion = more revenue
Shop 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
0.25%
$760,400/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.
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 — and where Shopify Payments is available, Shopify doesn't offer Stripe as a separate gateway you can activate; routing sales through any external gateway instead adds Shopify's 0.2%–2% third-party transaction fee.
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 — such as PayPal or another gateway from Shopify's supported list — to keep selling. Note that standalone Stripe generally isn't offered where Shopify Payments is available, though for a terms-of-service violation Shopify Support may review enabling Stripe in its place. You'll then be subject to Shopify's third-party transaction fees (0.2%–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.
For US merchants, Shopify quotes 2–5 business days from capture to funds reaching your bank, though its own pages state this inconsistently and sometimes add 24–72 hours for banks — go by the expected payout date in your admin. UK and Canada: 3 business days minimum settlement plus bank posting. Shopify publishes no fixed first-payout hold; settlement shortens as you reliably fulfill orders.
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 currency conversion fee — 1.5% for US-based stores and 2% in other Shopify Payments regions — totaling 2.5% extra for a US store. For high-volume international sellers, these fees can significantly impact margins.
When a customer disputes a charge, Shopify immediately debits the disputed amount plus a $15 fee (the US rate) from your account. You usually have 7–21 days to submit evidence (tracking numbers, communication logs, proof of delivery). Shopify forwards it to the card company, which can take up to 75 days after submission to decide. If you win, both the disputed amount and the fee are returned; if you lose, both are gone. The count is scored separately: Visa's VAMP treats a dispute-and-fraud ratio of 0.5% as non-compliant and 1.5% as excessive (2.2% in Central Europe, the Middle East and Africa), and an extended period of enrollment can restrict your use of Shopify Payments.
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 2.25% + 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 1.5% currency conversion fee for US-based stores (2% in other Shopify Payments regions). Shopify Markets helps manage multi-currency pricing with manual exchange rates to avoid conversion surprises.
Shopify Payments charges 2.6% + 10¢ in person on Basic. Square Free charges 2.6% + 15¢ with no monthly location fee. Square Plus ($49/month per location) and Premium ($149/month per location) lower Square's rates to 2.5% + 15¢ and 2.4% + 15¢. In-person-first sellers may prefer Square Free; omnichannel merchants may prefer Shopify's unified inventory, customer data, and reporting.
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.
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.
This article was written entirely by AI under human editorial direction. The editor sets the topic and structure, runs multi-stage validation on facts, links, and interactive elements, and verifies the output is useful from a business perspective. All claims are checked against official Shopify sources. Details may change — always confirm critical data at shopify.com.
