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Shopify Payments: The Definitive Guide 2023

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How to set up Shopify Payments

Shopify is among the leading online eCommerce platforms globally. The platform now controls close to a third (27%) of all the top 1 million eCommerce websites globally. It’s only natural that Shopify would explore different aspects of the eCommerce space in search of more efficiency and growth. Shopify Payments is one of those areas.

The payment method is a very important part when it comes to conversion rates for a shopify store. So let’s check out our Shopify Payments review and learn to set it up for your online store.

What’s Shopify Payments? 

Shopify Payments can be defined as one of the simplest ways for online businesses to accept payments online. The online payment gateway eliminates the hassles of setting up merchant accounts or third-party payment providers to accept payments.

What’s more, you don’t need to enter credentials into Shopify. The payment gateway is automatically designed to accept all key payment methods as soon as a Shopify store is created.

Also read: What’s Shop Pay? What’s the Differences of Shop Pay VS Shopify Payments

Supported Countries & Regions 

Shopify Payments isn’t available everywhere. The method is currently available to stores operating in some countries and regions. What’s more, requirements and related information for each country and region supporting Shopify Payments can vary. There’s a list of supported countries and corresponding individual requirements and related information. 

Shopify Payments Fees

Usually, Online store owners should afford transaction fees and the credit card processing fees when you accept payments in Shopify. Unlike other payment methods, there are no transaction fees when using Shopify Payments, thought equally you need to pay credit card fees if you connect your Shopify Payments with credit and debit cards to accept transaction payments. The transaction rates are different according to your current Shopify plans.

If you are using the Basic Plan, credit card transaction fee is 2.9% + 30¢ USD for each transaction

If you are using the Shopify Plan, credit card transaction fee is 2.6% + 30¢ USD for each transaction

If you are using the Advanced Plan, credit card transaction fee is 2.4% + 30¢ USD for each transaction

When you sell in local currencies and receive payments in different currencies, you’re charged Shopify Payments processing fee and a currency conversion fee. Shopify processing fees for Shopify Payments vary based on factors like the type of card being used, as different cards may have different fees. Other variables include the location where the card is registered. For instance, domestic payment processing fees will vary from cross-border payment processing fees. Currency conversion fee would be 1.5% in the US and 2% in all other countries and regions with Shopify Payments

Step by Step Guide: Setting Up Shopify Payments

Setting up Shopify Payments is as easy as the following steps;

Step 1: Assess Eligibility

Shopify Payments can be activated right from the “payments page” in the Shopify store settings. However, before doing that, ensure you meet the eligibility and bank a/c requirements. You need;

  • A personal/business registration no. or identifier (depending on your country/region and business type).
  • Banking information.
  • Set up Shopify Payments within a certain timeline (i.e., within 21 days after making your first sale) or risk payments being refunded to customers automatically. However, some merchants in the EU (European Union) and Hong Kong must set up Shopify Payments before accepting any payments from customers.

NB: As mentioned. It’s worth noting that Shopify Payments is available to Shopify stores that are in certain countries/regions only. What’s more, you need to secure your account to use Shopify Payments. This can be done using two-step authentication and A/C security in general.

Step 2: Actual Setup from Shopify Admin

Start by access your Shopify admin as shown below;

Shopify Admin

Proceed  and go to settings, then payments as shown below

Shopify payment methods

Step 3: Activate Shopify Payments

If Shopify Payments is activated in your country and you have a payment provider enabled, setting up will be as simple as activating Shopify Payments. Simply click the Shopify Payment box and activate. Doing this removes the other credit card payment provider.

If you lack a credit card payment provider set up on your account, proceed by completing the account setup under the Shopify Payments section (payment providers).

 Activate Shopify Payments

Step 4: Enter Store and Banking Information

Finish by entering the required details. As mentioned, the store and banking information required may vary depending on your location. Be sure to complete this section and provide all the necessary details required.

Completing Shopify Payments Accounts Setup

As mentioned, you should provide all the information required to avoid verification issues. When completing Shopify Payments account setup, the business details section should be complete with a TIN (Taxpayer Identification Number), EIN, or business number, if applicable. 

The address of your business should also be filled. Remember, you may be required to set up two-step authentication to get payouts. All requests for information will be clearly listed. Based on regulations in different countries/regions, you may be required to offer information about you and/or your business. You may also need to do some verification (identity, address, and business verification). Once you have set up everything, it’s time to test Shopify Payments.

Step 5: Testing Shopify Payments

Before you can test Shopify Payments, you need to wait for the document review process to be complete. This process involves reviewing and verifying all the information you have provided. Your online store can still be open. However, you’ll only be able to use Shopify Payments when the process is complete. 

After a successful review process, you can test Shopify Payments. To do this, activate “test mode”. Access test mode from Shopify admin. Click on settings, payments, and manage under the Shopify Payments section. Enable test mode and use a test credit card to stimulate payments. 

NB: You need a paid plan to test Shopify Payments. What’s more, test mode isn’t supported for merchants in certain places i.e., France. It’s also worth noting that you shouldn’t use a real credit card to pay for products/services. 

Some payment methods may also be unavailable when using test mode. It’s therefore advisable to use test mode on an online store that is active as opposed to one that’s in production. Lastly, remember to deactivate test mode after the testing to allow your customers to pay for orders using real credit cards.

Simulating transactions

To simulate successful Shopify payments processing during test mode, use test credit card numbers given for certain currencies. The test purchase amounts should also be more than a $1 USD equivalent.

You’ll need two words for the name on card, an expiry date (use any future date), a security code (use three digits), and a card number (use the test credit numbers given by Shopify for different card types) i.e., Visa: 4242424242424242, American Express: 378282246310005, Mastercard: 5555555555554444, Discover: 6011111111111117, JCB: 3530111333300000 and Diners Club: 30569309025904.

It’s also possible to generate failed transactions using different credit card numbers. Simulating failed transactions helps you see the display error messages your customers will get during checkout in case of issues like card decline, incorrect number, invalid expiry month, etc. 

Use the following card numbers;

  • 4000000000000002 for generating a card declined error message
  • 4242424242424241 for generating an incorrect number error message
  • 4000000000000259 for generating a disputed transaction error message

Shopify Payments Benefits

There are many reasons to consider Shopify Payments. The most notable include;

  • Easy setup: Shopify Payments is easy to set up if the method is allowed in your country/region.
  • No transaction fees: It also eliminates transaction fees. 
  • Improved customer experience: Shopify Payments offers a better customer experience since it integrates perfectly with Shopify online stores. Customers are therefore assured of a quick payment process via their preferred payment method without being required to fill in their personal information repeatedly or creating an account every time. 
  • Safe & Secure: Shopify Payment methods are safe and secure.
  • Offline sales: The method also supports offline sales (via Shopify POS), and it has a built-in refunds system


We’ve covered the most important basics of Shopify Payments, from the definition to setting up. We’ve also discussed the benefits you stand to enjoy, from zero transaction fees to improved customer satisfaction and more. Shopify Payments may not be available everywhere and may have some compliance requirements. However, Shopify store owners stand to enjoy more than what other payment providers offer.


Why is my Shopify Payments not showing up on Shopify?

Shopify Payments is available in select countries and regions globally. Once it is available everywhere, it will show for all Shopify stores.

How long does it take for Shopify Payments to go through?

Setup involves a verification process that must be completed for Shopify Payments to be live and active. This process can take hours to days. You can contact Shopify support for exact timelines.

Is Shopify Payments a Good Payment Method?

Yes! There are many benefits from zero transaction fees for merchants to better customer satisfaction. The setup process is also relatively easy if you follow a good guide like the one above.

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