2023 Shopify Payments Review: Pricing, Features & More

*The Shopify Starter plan includes a 5% transaction fee on top of credit card processing fees and doesn’t include a Shopify POS.

**Shopify charges a transaction fee if you choose a different third-party provider other than Shopify Payments.

All Shopify plans except Shopify Starter offers full ecommerce features. Shopify Starter is for merchants that already have an existing ecommerce website and only require shareable payment links and in-person payment tools.

Aside from Shopify’s monthly software fees, other Shopify Payments fees may include:

• Chargeback Fee: Shopify charges a $15 fee for each chargeback. If you win the chargeback, Shopify will refund the fee.
• Alternative Payment Gateway Fee: Shopify charges a transaction fee on top of the credit card processing fees if you use a different payment provider other than Shopify Payments. The fee depends on the monthly plan you choose.
• Point-of-Sale (POS) Tools: Full ecommerce Shopify plans come with Shopify POS Lite features. If you want to upgrade to POS Pro for advanced features, you’ll be charged $89 per month per location.

Shopify Payments comes with the ability to process in-person payments through a mobile device. Card readers are sold directly from Shopify and include free shipping, 30-day returns, 24/7 customer support, and a one-year warranty.

Tap and Chip Readers	Shopify Stands	Barcode Scanners	Shopify POS Go
$49	$149–$185	$229–$329	$399
Best for: Mobile sales	Best for: Brick-and-mortar stores	Best for: Retailers with large inventory or sales volume	Best for: Mobile and curbside sales
Buy Tap and Chip Reader	Buy Shopify Stand	Buy Barcode Scanner	Buy Shopify Go

Signing up for a Shopify account automatically provides you with a Shopify Payments service, so there is no separate set of steps required to start accepting payments. You only need to submit your business documentation once, which will be used to approve you for opening a Shopify online store and payment processing.

You can start accepting payments once you have signed up successfully for a Shopify account and launched your online store. However, expect that your funds will be placed on hold until you pass the verification process, which takes up to three business days.

Shopify will require the following information to be approved for a Shopify Payments service:

• Proof of identity
• Proof of home address
• Proof of business (may include financial statements, business invoices, and reseller authorization or distributor information)
• Website information

When filling in the merchant application form:

• Under business details: Choose the business type and provide your business number (BN), employer identification number (EIN), or taxpayer identification number (TIN)
• For the address details: Make sure that you provide the same address listed on your business documents

To understand Shopify Payments’ terms and conditions, we need to look at both the Shopify Payments Terms of Service (TOS) and the Stripe Connected Account Agreement, which stands as a separate agreement between Stripe and the merchant.

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Shopify Terms of Service:

• The Shopify Terms of Service clarifies that using Shopify Payments binds you automatically to an agreement with Stripe’s Connected service. This means that Shopify will have no control or obligation should Stripe cancel your payment service other than to notify you and offer you a different payment gateway (which will include add-on per-transaction fees).
• Stripe collects the fees on Shopify’s behalf, and either Shopify or Stripe may restrict you from accepting certain types of card brands without prior notice.
• While Stripe provides you with advanced fraud management features, Shopify will still require you to submit documentation proof of your compliance with Payment Card Industry Data Security Standard (PCI-DSS) and/or Payment Application DSS (PA-DSS) upon request.
• Shopify may set up a reserve of your funds―with terms they see fit―to cover chargeback and refunds. The TOS also indicates that you allow Shopify to charge you a fee for mediating or investigating chargeback disputes.

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Stripe Connected Account Agreement

• You may choose to discontinue the use of Stripe as your payment processor and, by default, terminate your use of Shopify Payments. It is crucial that you raise any questions you may have regarding these terms with a Shopify Payments representative before using this service.

You can use Shopify Payments for in-person selling by using Shopify POS hardware (discussed above). In-person card processing fees are pretty standard (2.4%–2.7%), and if you wish to upgrade to a POS Pro plan, it will cost $89 per location. If you want to use Shopify POS for pop-up sales or a temporary market, or on a seasonal basis, you can rent POS hardware through Shopify’s partnership with Fello.

Invoicing is available for Shopify users who accept over-the-phone purchases and sell products wholesale or by subscription. You can create draft orders for your customers when you receive a notice of intent to purchase your products over the phone, in person, via email, or remotely from anywhere. These draft orders are then sent to customers in an invoice where customers can click a link to complete their purchase. Shopify Payments lets you customize your invoice by adding itemized product descriptions, discounts, taxes, shipping specifications, and payment terms. It also allows you to create a customer profile while creating the invoice.

Shopify Payments provides you with the versatile ecommerce checkout features users get with a Shopify account. Apart from having the tools to create your very own ecommerce store complete with a website, it also gives you the ability to design checkout options for any type of online platform. This includes email carts, “Buy Now” buttons, quick response (QR) codes, and shareable links.

Additionally, Shopify also offers PayPal Express Checkout as one of its default payment alternatives. For the tech-savvy, a JavaScript Buy SDK (software development kit) helps you create a highly customized, branded online store and checkout on any website, online marketplace, or social media platform.

Shopify POS Go is a new mobile POS solution designed for mobile sales and curbside pickups, with your POS and card reader housed in one sleek mobile device.

Shop Pay is Shopify’s accelerated checkout feature that allows your customers to sign up and securely store their payment information for future transactions. It also lets you offer customers buy-now, pay-later options on their purchases. Shop Pay is available for every Shopify merchant account and helps you set up an easy-to-use interface for your customers. It also provides end-to-end encryption of all your accepted payments through Shopify’s PCI-compliant servers.

Shop Pay is also available to Shopify merchants selling on social media, and even on Google. (Source: Shopify)

Shopify Payments sends your funds to your bank account the next business day as long as you have more than $1 available to be paid. However, you can also configure your settings to have the proceeds of your sales deposited at intervals of your choice. You also get a report of your payout schedule from your Shopify dashboard.

As an ecommerce solution, Shopify provides a wide range of integrations, so you can expect the same level of versatility with its payment processing service. While Shopify Payments only works within the Shopify ecosystem, it can be configured easily to integrate with a number of checkout solutions such as cart modification, cross-selling and upselling, and pick-up and delivery apps.

Shop is Shopify’s mobile app solution that allows your customers to purchase your products from a mobile application. It offers local filters to identify local businesses currently offering certain sales features, such as shipping, pick-up, return policies, accelerated checkout using Shop Pay, package tracking, and personalized customer recommendations. It is available for both iOS and Android mobile devices.

The Shop app is easy to use and set up, from syncing product information to managing payment options with Shopify Payments. (Source: Shopify)

With Shopify Payments, businesses that sell globally have the ability to sell in multiple currencies and receive payments in their local currency. This means that customers can view your products at local prices based on their location. You also have the ability to manage the currencies available for your customers from the time they view your product until they reach checkout.

Note: This feature is only available for higher Shopify plan users.

Fraud Protect is Shopify Payments’ fraud and risk management feature, which you can assign per transaction for a specific fee. This provides your small business with guaranteed protection against fraudulent sales, covers you from any incidental fees arising from chargebacks, and manages the chargeback process on your behalf.

For larger businesses, this service includes an additional function that streamlines your order fulfillment process by monitoring each sale and providing you with notifications on every protected transaction from your Shopify dashboard.

You can find an extensive guide on how to use Shopify Payments in Shopify’s help center. It also includes a number of video tutorials and tips for setting up and using the feature. As for customer support, Shopify Payments’ customer service is available 24/7 via phone, email, and chat. You can find fast solutions for your Shopify Payment concerns within its active seller community forum.