What You Need to Know About Shopify’s In-House Payment Processor

What You Need to Know About Shopify’s In-House Payment Processor

What You Need to Know About Shopify’s In-House Payment Processor

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Shopify is an e-commerce platform with its payment service, Shopify Payments, included in the platform. Store owners can sell their products and get paid directly through Shopify. The company also offers a point of sale option for any small business owner that needs to set up in-person payments. 

In this article, learn about Shopify’s merchant services and plans, the included features, pros and cons, and costs of using the payment solution in this Shopify Payments review.

Shopify Payment Processing at a Glance

Shopify merchants get Shopify Payments built into their account. When you open a Shopify store, you’ll be able to accept payments almost right away. So there’s no need to set up a separate payment gateway or merchant account, which makes Shopify easier to use than some other online store options.

You can sign up to use Shopify Payments through one of its three pricing plans: 

  • Basic Shopify
  • Shopify
  • Advanced Shopify

You can pay for your plan with a monthly fee or an annual fee (the annual fee provides a discount). You’ll have to pay a small percentage for each credit card transaction. The amount you’ll pay in credit card rates depends on which Shopify plan you sign up for (the more expensive the plan, the less you’ll pay in fees) and whether the transaction takes place in person or online. 

However, keep in mind that you may not be able to use Shopify if you run a business in a high-risk industry, like tobacco and firearms. 

Shopify Payments Features

From your Shopify dashboard, you’ll be able to monitor and add products to your online store, set prices, and make sales using Shopify Payments. You can accept credit cards and debit cards either online or in person (or both) using Shopify Payments. Most payment methods are accepted. If you need to offer an in-person checkout process, you can get a card reader and point-of-sale hardware from Shopify. 

When you use Shopify, you can also market your products in online marketplaces where people are shopping and connect to social media accounts easily. Additionally, you can track every order and payment using Shopify’s platform.

Additionally, all your customers’ data is encrypted and PCI compliant, meaning it’s safe and secure within the Shopify experience. 


Shopify uses a lot of its own technology and systems, but there are many Shopify apps to choose from. Additionally, you can integrate with online sales channels and social media channels like Facebook, Google, and Instagram. Shopify works on both Android and iOS systems.

Upgrade to Shopify Plus for features that increase functionality to help high-revenue businesses succeed.

Accepted Payment Methods

Shopify provides many payment options for its online businesses. You’ll be able to support credit card processing from the American Express, Visa, Discover, and Mastercard networks. Also, they can check out using digital payment methods like Apple Pay, Amazon Pay, Google Pay, and Shop Pay (Shopify’s digital payment solution).

You can also get paid in different currencies than the one you sell in, which makes it easier to run a global business. 

Shopify Pros & Cons


  • Customers can use many payment methods
  • Easy to use
  • Integrated with Shopify
  • Automatic PCI compliance
  • You don’t have to sign a contract


  • Shopify Payments fees can get steep with higher-tiered plans
  • You’ll pay to use a third-party gateway
  • Customer reviews vary

Processing Fees & Rates

You’ll pay credit card processing fees every time a customer pays you using a credit card. Shopify pricing for transaction fees depends on which Shopify plan you sign up for. 

At the time of writing, transaction fees fall between 2.4% and 2.9% plus 30 cents for online transactions (depending on which Shopify plan you sign up for). For in-person transactions, it costs between 2.4% and 2.7%, depending on your plan. 

You also will pay chargeback fees, but you can get a refund if you win the chargeback. Finally, if you choose not to use a Shopify Payments account for your online store, you’ll pay an additional fee to use an external payment gateway. 

Payout Timing & Customer Support

You can get paid in as little as one business day if you use a Shopify balance account. Otherwise, it depends on the pay period you choose. It may take 24 to 72 hours for the money to make it into your bank account after bank processing. If it’s easier for bookkeeping, you can set up a payout schedule in installments each week or month.

If you need to cover cash flow while you’re waiting on payouts, consider business credit cards and small business loans

User Reviews

It’s important to look at how customers view Shopify support and its products. The customer ratings on TrustPilot average 1.7 out of 5 stars, and its average rating on Better Business Bureau is 1.1 out of 5 stars — both of which are less than stellar. However, the Shopify app ratings are more promising, coming in at 4 out of 5 stars on Android and 4.5 stars out of 5 stars on Apple. 

Alternatives to Shopify Payments

If you decide Shopify Payments isn’t right for you, below we provide alternative payment providers that are worth looking into.

Pilothouse Payments

Pilothouse Payments

Pilothouse Payments is committed to providing payment solutions that help your business ELIMINATE your credit Learn More


Chase Payment Solutions℠

Never miss a sale with powerful new ways to accept credit cards, anytime, anywhere. Accept Learn More


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