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Shopify Payments Review (2023)

Wondering what Shopify Payments is? Shopify is one of the leading eCommerce store builders in the world. For beginners, they are easy to get to grips with, allowing people with no technical experience to be able to create a website and online store of their own in no time at all.

One of the issues that regularly crops up with Shopify is their payment processing fees. To accept payments on your Shopify store you need to use a third-party payment gateway like PayPal. 

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Shopify Fees

Shopify charge a percentage rate for each payment accepted through your online store. This includes payments taken via online credit card and in-person. Additional fees are charging using all payment providers other than Shopify Payments:

  • Online Credit Card Rates: 1.6% – 2.2% + 30¢
  • In-Person Credit Card Rates: 1.5% – 1.7% + 30¢
  • Additional Fees: 0.5% – 2.0%

Similar to what other website builders have been doing, like Wix’s Wix Payments app, Shopify have introduced something called Shopify Payments. This means you can accept credit card payments without having to integrate a third-party payment system on your online store.

We’ve performed a full analysis and review of Shopify Payments, including pros and cons. Let’s take a look at how Shopify Payments could help you save money on credit card fees.

What Is Shopify Payments?

shopify payments features

Shopify Payments is a third-party payment service by Shopify. It manages all the card information taken on your website, the checkout page and process, and how the money gets received into your bank. 

Shopify partnered with Stripe to offer this service. In most cases, it is a good thing, but as with most technology there are also some disadvantages too which we’ll explore.


  • Seamless integration on your Shopify dashboard
  • Removes additional transaction fees
  • Allows you to still use other payment providers like PayPal


  • Not available in all countries
  • Chargeback fees of $15 for any chargeback
  • Chargeback errors or suspicious activity can freeze funds on your account


If you don’t use Shopify Payments, you’ll be charged additional fees on each transaction. These are 2% for Basic Shopify, 1% for Shopify, and 0.5% for Advanced Shopify pricing plans.

If you do use this service and your customers choose PayPal at checkout, you’ll still be charged the additional fees, so it’s worth using it to eliminate these charges, and the big bonus is that it’s free.


Basic Shopify


Advanced Shopify

Online credit card rates

2.2% + 30¢

1.9% + 30¢

1.6% + 30¢

In-person credit card rates

1.7% + 0¢

1.6% + 0¢

1.5% + 0¢

Additional fees

None with Shopify Payments

None with Shopify Payments

None with Shopify Payments

You can find more about Shopify’s pricing plans in our pricing plans review. 

Shopify Payments Vs PayPal

You can use Shopify Payments and PayPal on your website, but is it worth including both? There are transaction fees if you want to use PayPal, these include:

  • US-based transactions: 2.9% + fixed fee (usually under 50¢)
  • Outside of US: 4.4% + fixed fee (usually under 50¢)
  • Currencies other than US $: Variable (e.g. 3.4%+20p to 1.9%+20p) depending on monthly sales volume
As well as the fees that PayPal charge, there are other factors to consider:
  • PayPal charge fees for converting currencies
  • They offer a small discount for non-profit US businesses (2.2% + fixed fee)
  • POS payments are not supported by PayPal
  • Shopify Payments means customers will stay on your site whereas PayPal redirects customers to their platform
  • PayPal buyer protection is great for buyers but can cause merchants a nightmare when customers make false claims
The question on everyones lips is whether or not you should use PayPal on your Shopify website. Despite the information above, I do recommend enabling PayPal and Shopify. PayPal is a trusted company and many customers prefer to use PayPal as a way to checkout. It could increase your stores trustworthiness and conversion rates, so it’s worth including both.

Who Can Use Shopify Payments?

Unfortunately it sn’t available for everyone. The supported countries and regions include: Australia, Austria, Belgium, Canada, Denmark, Germany, Hong Kong SAR, Ireland, Italy, Japan, Netherlands, New Zealand, Singapore, Spain, Sweden, United Kingdom, United States.

On top of the above countries, there are also prohibited businesses within each country where your business operates.

How To Setup

Setting up Shopify Payments is incredibly simple, as long as you’re a Shopify user. You’ll need to produce a few documents like your bank account number but it doesn’t take long to get started:

  • Login to your Shopify Dashboard
  • Select Settings then Payment Providers
  • Under Complete your Shopify Payments Setup, fill in your details
You’ll need to wait for your information to be reviewed and approved. Once this has gone through you can start processing payments through Shopify’s gateway.

Tracking Funds

You can track all of your money in real-time using the Payments dashboard. You can see your balance, payouts, charges, refunds, and fees.

Funds usually take around 3 business days to reach your bank account. Depending on your location, this can take up to 7 days. As mentioned earlier, if there are any disputes then Shopify can freeze your funds until this is resolved.

What Happens With Multiple Currencies?

Shopify supports multiple currencies. Conversion prices are converted based on current currency rate and your rounding rule.

A rounding rule is an ammount that you set to make your prices look neat and consistent. For example, you can determine that your prices should end in 0.99 or 0.95m, regardless of the conversion rate.

Selling In Person

You can process payments in person. You’ll need to use one of Shopify’s recommended card readers. However, POS payments are only available to Shopify plan users and above. 

You cannot accept payments in-person outside the US, Canada, UK, and Ireland. 

Final Thoughts

Payment gateways can be complex and frustrating. However, after performing a full review of Shopify Payments it’s quite clear that it’s worth having. Shopify is transaparent about its fees, providing clear information as well as being easy to setup.

The only real downside is the chargebacks and potential fraud. Your funds could be frozen if there’s any risk, and you’ll be charged chargeback fees.

In my opinion it’s worth offering multiple payment options for your customers, including Shopify which is free to add to your Shopify store.



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