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.
Compare the best merchant services
Merchant services make processing customer payments a breeze for your small business. Whether your business is online, brick-and-mortar, or both, you can use our research to find the best option for your business.
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.
Compatibility
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
Pros
- Customers can use many payment methods
- Easy to use
- Integrated with Shopify
- Automatic PCI compliance
- You don’t have to sign a contract
Cons
- 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.
Compare the best merchant services
Merchant services make processing customer payments a breeze for your small business. Whether your business is online, brick-and-mortar, or both, you can use our research to find the best option for your business.
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 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
Complete Suite of Payment Solutions
Chase Payment Solutions℠
Limited time offer: Get $100 off the Chase Point of Sale (POS)℠ Terminal. Fill out the form and ask a Payments Advisor how to claim.¹ Fast funding at no additional cost. Get deposits as soon as same day.² Get fair and transparent pricing with no hidden fees. 2.6% rate +10¢ per tap, dip and swiped transaction. 2.90% + 25¢ per eCommerce transaction and monthly fee starting at $9.95. 3.5% rate +10¢ per keyed transaction.³ Trusted security – As technology advances, our industry-leading systems help keep your payments and customers safe. Get paid fast and manage your business from anywhere with the Chase Point of Sale system. Use our mobile app, reader and terminal to take payments via tap, dip and swipe.⁴ Process payments with Chase Payment Solutions, the #1 merchant acquirer in the U.S.⁵ Tap to Pay on iPhone offers you the ability to accept contactless cards, Apple Pay and other digital wallets on your iPhone – no additional hardware required.⁵ Chase Customer Insights is a complimentary business intelligence platform that offers simple, actionable analytics and reports to help you make better business decisions and reach more customers.⁶ Chase Customer Insights is a complimentary business intelligence platform that offers simple, actionable analytics and reports to help you make better business decisions and reach more customers.⁷ ¹This offer is for $100 off the purchase price of a Chase Point of Sale (POS)SM Terminal. Promotion available for approved Chase Payment Solutions℠ customers only. The offer is valid through 11:59pm PT on December 31, 2024. Limit one per business relationship, regardless of the number of business locations. Not redeemable for cash (cash value = $0.00) and may not be applied to previous purchases, exchanges or returns. Employees of JPMorgan Chase Bank, N.A. and our affiliates are not eligible. Offer not valid with any other offer and subject to change without notice. Use promo code CHASEPOS at checkout on the Chase Payment Solutions Equipment website powered by Maxwell. ²Payments processed, approved, and completed by 5:00 PM Pacific Time (PT) / 8 PM Eastern Time (ET) are eligible for same-day deposits, 6 days a week, excluding Saturdays. In addition, all QuickAccept® deposits are subject to the QuickAccept Terms of Service. Payments held for risk, fraud, or other review may not be eligible for same-day deposits. Payments processed, approved and completed by 5:00 PM PT / 8:00 PM ET, Sunday through Friday (including holidays), will be deposited into the business owner's Chase business checking account that night. All payments processed, approved and completed by 5:00 PM PT / 8:00 PM ET on Saturdays will be deposited into the business owner's Chase business checking account Sunday morning by 7:30 AM ET. There is no additional cost for same-day deposits, but standard rates and fees will apply for business checking and payment processing. Customers qualify for same-day deposits upon sign-up and depositing into a Chase business checking account. Same-day deposits are available in the U.S. only. Additional exclusions may apply. ³Rate Information: Mastercard, Visa, American Express, Discover, and Chase Transactions involving physical Credit and Signature Debit cards will be assessed 2.6% discount rate and $0.10 per tap, dip or swiped transaction, and 3.5% discount rate and $0.10 per keyed transaction. PIN Debit, EBT Transactions and E-commerce transactions are excluded. Not all businesses may qualify, talk to a payment specialist for more details. ⁴Chase Point of Sale (POS)SM app and Chase Mobile® app are available for select mobile devices. Message and data rates may apply. ⁵Nilson Report, March 2023 ⁶Tap to Pay on iPhone requires the latest version of iOS. Update to the latest version by going to Settings > General > Software Update. Tap Download and Install. Some contactless cards may not be accepted. The Contactless Symbol is a trademark owned by and used with permission of EMVCo, LLC. Tap to Pay on iPhone is not available in all markets. View Tap to Pay countries and regions, Opens overlay. For more details, see https://developer.apple.com/tap-to-pay/. ⁷As a benefit of Chase Customer Insights, clients gain access to comprehensive sales, customer and peer benchmarking metrics generated from card transactions processed by Chase Payment SolutionsSM as well as purchases made on Chase-issued cards. As the No. 1 overall U.S. merchant acquirer by processing volume (Nilson Report, March 2023), and the No. 1 U.S. credit card issuer based on sales and outstandings (JPMC Annual Report), Chase Customer Insights are based on an extensive data source. "Chase," "JPMorgan," "JPMorgan Chase," the JPMorgan Chase logo and the Octagon Symbol are trademarks of JPMorgan Chase Bank, N.A. JPMorgan Chase Bank, N.A. is a wholly-owned subsidiary of JPMorgan Chase & Co. JPMorgan Chase Bank, N.A. Member FDIC
Key Features
- Accept cards in person
- Accept cards online or over the phone
- Trusted security
- Support when you need it
Cost/Fees
- 2.6% rate +10¢ per tap, dip and swiped transaction.
- 2.90% + 25¢ per ecommerce transaction.
- 3.5% rate +10¢ per keyed transaction.
- Custom pricing available.
Types of Businesses Supported
- Retail
- Restaurants
- Professional Services
- E-commerce
- Healthcare
- and more
Frequently asked questions on Shopify POS
Does Shopify allow credit card payments?
Yes. You can access Shopify Payments automatically when you set up your Shopify account, and it allows you to accept credit card payments from all the major credit card networks. You will have to pay a credit card processing fee for each transaction, however, so keep that in mind when budgeting.
Is Shopify Payments better than PayPal?
That depends on your business’s needs. Both Shopify and PayPal allow customers to make online payments. The credit card processing fee is lower with Shopify Payments than it is with PayPal (at the time of writing). However, using Shopify Payments makes the most sense if you already use Shopify for your online business. If you aren’t a Shopify user, PayPal may be worth the additional cost.
How does Payments on Shopify work?
Shopify Payments is a payment gateway that is automatically included in your paid Shopify account. Once you sign up for Shopify, you can start receiving payments from customers almost instantly using Shopify Payments. Additionally, you can sign up to receive a point-of-sale system from Shopify that will allow you to accept in-person payments. You’ll pay a small percentage fee for each credit card transaction.
Which payment method is better for Shopify?
You’ll pay a lower transaction fee with in-person payments than online payments, but many small businesses don’t want to (or are unable to) open a brick-and-mortar location. Selling online may cost more, but it also opens up your customer pool much wider than if you only offered physical sales. It’s best to decide which payment method is best for your business and then see if Shopify is the right payment provider for you.
How much does it cost to use Shopify Payments?
The price you pay for Shopify Payments is the same as what you pay for Shopify since the two are integrated, and it depends on which Shopify plan you sign up for. The lower-tiered plan costs less per month but charges a slightly higher percentage for each transaction. The upgraded plans can cost significantly more but will charge less for transactions. The Basic Shopify plan (the most affordable option) is currently the most popular. You’ll also pay less if you purchase an annual subscription rather than paying a monthly fee.
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Tiffany Verbeck
Digital Marketing Copywriter, Nav
Tiffany Verbeck is a Digital Marketing Copywriter for Nav. She uses the skills she learned from her master’s degree in writing to provide guidance to small businesses trying to navigate the ins-and-outs of financing. Previously, she ran a writing business for three years, and her work has appeared on sites like Business Insider, VaroWorth, and Mission Lane.