- What is Shopify Payments: a complete system overview
- Main advantages of the Shopify Payments system
- Potential limitations and drawbacks of Shopify Payments
- Shopify Payments fees and commissions: a detailed breakdown
- Shopify Payments vs. PayPal: key differences
- Comparison of Shopify Payments and Stripe: which one to choose?
- Step-by-step guide to setting up Shopify Payments
- Features of connecting Shopify Payments in Ukraine: what you need to know
🤔 What is Shopify Payments: a complete system overview
Shopify Payments is a built-in payment gateway designed to facilitate seamless online transactions for stores on the Shopify platform. The key advantage is that there is no need to connect additional payment services.
The Shopify platform now offers customers highly flexible payment options, ranging from Apple Pay, Meta Pay, Google Pay, and Amazon Pay to classic bank cards (both debit and credit), gift cards, and even cryptocurrency.
Shopify Payments is built on Stripe’s technology, meaning both solutions use similar payment processing algorithms. However, the main distinction of Shopify’s gateway is its seamless integration with the store’s admin panel, providing a significantly higher level of convenience for business owners.
Due to this specific integration, the service has a limitation — it is available exclusively for Shopify stores. However, for business owners already using this CMS, Shopify Payments serves as an optimal payment solution thanks to its intuitive setup and balanced pricing policy.
Main advantages of the Shopify Payments system
Intuitive setup without technical difficulties
Compared to competing solutions, this service stands out with an extremely user-friendly interface. Activating the system does not require special activation requests or the involvement of technical specialists. The module is already embedded in the platform and ready for use — the setup process takes just a few minutes. An important advantage is also the automatic synchronization of the store’s financial records with sales and inventory data after setup.
Increased payment conversion rates
When using third-party services like PayPal, buyers are redirected to external resources to complete the payment. These additional redirects and loading times negatively affect the user experience, directly reducing conversion rates. Shopify Payments eliminates this issue entirely — all payment operations occur directly on your website without redirections.
Savings on transaction processing fees
Implementing this service can save hundreds of dollars per month. Here’s how: external payment gateways charge their own fees based on their pricing plans (for example, Stripe charges 2.9% + $0.30 per transaction). Additionally, Shopify itself usually charges an extra processing fee ranging from 0.5% to 2%, depending on your plan. This extra Shopify fee does not apply when using its built-in payment tool, which translates into significant financial benefits for businesses with high sales volumes.
Ability to use alternative payment systems in parallel
Enabling Shopify Payments does not restrict you from using other payment solutions. The more payment methods you offer customers, the easier it is for them to make a purchase, directly improving conversion rates.
Comprehensive fraud protection
The system uses multi-factor algorithms to detect and prevent potential fraudulent activities. A well-designed refund process makes business operations more predictable and convenient. The platform also includes an effective dispute resolution mechanism and provides timely notifications about high-risk transactions.
Maximum payment security
Shopify Payments employs advanced encryption technologies to protect customer financial data. The service fully complies with the strict PCI DSS (Payment Card Industry Data Security Standard), ensuring the highest level of security during transactions. Additionally, it supports the 3D Secure protocol for enhanced cardholder authentication, minimizing fraud risks.
Fast and automatic payouts
Unlike many competitors, Shopify automatically transfers funds received from customers to the seller’s bank account every three days after payment. This payout period is significantly shorter than Stripe’s standard seven-day hold. Moreover, Shopify supports withdrawals to virtual dollar or euro accounts in popular payment systems, including Payoneer, Wise (formerly TransferWise), Revolut, and Paysend.
⚠️ Potential limitations and drawbacks of Shopify Payments
Despite its numerous advantages, Shopify Payments has certain limitations that are important to consider:
Geographical availability restrictions
Although you can create a store on Shopify from almost any country (except for a few restricted regions), access to the built-in payment gateway has significant geographical limitations. Even entrepreneurs in more than half of the European Union countries still cannot use this service. These restrictions also apply to Ukraine. However, there are alternative solutions — registering an account under a foreign resident or establishing a legal entity abroad.
Strict requirements for product categories and sales procedures
The list of prohibited product categories for Shopify Payments is quite extensive. Additionally, every seller must comply with strictly regulated service usage rules (which are similar to Stripe’s policies). Failure to comply with these rules can result in access being blocked.
Unpredictability of transaction suspensions
If the system detects suspicious activity in an account or if a chargeback occurs, transactions may be temporarily suspended until the issue is resolved. In the best-case scenario, the funds will be released with the next payout. However, in some cases, the review process can take several months, during which payments remain frozen, and account functionality is limited.
High chargeback fees
For all transactions involving chargebacks, a fee is applied. This means that not only does the seller lose money due to the canceled order, but they also have to pay a chargeback processing fee. If a customer disputes a charge through their bank, approximately $15 will be deducted from the next payout (the exact amount may vary by country). If the seller successfully proves the legitimacy of the transaction, Shopify will refund this fee, but winning such disputes is not always easy.
Shopify Payments fees and commissions: a detailed breakdown
The cost of each transaction in Shopify Payments is determined by a complex algorithm that considers multiple factors. It is important to note that choosing a higher Shopify subscription plan directly lowers transaction fees. All plans include regular fraud monitoring to minimize fraudulent transactions.
The platform’s pricing structure consists of two main components:
Card payment processing fee
This fee covers the execution of all transaction stages, including the secure transfer of data between all participants in the payment process — the buyer, the online store, the issuing bank, and the acquiring bank. The fee amount depends on the selected Shopify plan, the order value, and the total number of payments processed.
Transaction processing fee
The key advantage of Shopify Payments is that activating this module completely eliminates additional transaction fees. This applies even when customers choose alternative payment methods not integrated into Shopify Payments.
Shopify Payments vs. PayPal: key differences
The fundamental difference between these two payment systems is in transaction costs. Your choice of the optimal platform will likely depend on comparing their fee structures.
Shopify Payments’ commission structure ranges from 2.4% to 2.9% per transaction, depending on your Shopify plan. Additionally, a fixed fee of $0.30 is applied to each successful order. The platform ensures full transparency — there are no hidden charges.
If you use PayPal as your primary payment service, you must account for dual fees:
- Shopify’s fee (0.5% to 2%, depending on your plan)
- PayPal’s fee (varies by business region)
For businesses registered in the U.S., the standard rate is 2.9% plus a fixed fee, which varies by state but usually does not exceed $0.50.
In other countries, the rate is higher, at 4.4%, plus an additional fixed fee per transaction.
Shopify Payments vs. Stripe: which one to choose?
Certain business categories face significant restrictions under Stripe’s policies, particularly dropshipping. While this business model isn’t explicitly banned, Stripe’s system automatically flags orders as high-risk if their delivery times exceed standard limits. If your website lacks a detailed breakdown of order fulfillment stages, you may experience frequent chargebacks.
Stripe’s algorithms also analyze additional factors that may indicate a dropshipping model, including the seller’s geographic location and the nature of the products being sold.
Important! Both Stripe and Shopify Payments track all chargebacks associated with your store.
Each chargeback in both services incurs a fee of approximately $15. Shopify takes an especially strict approach toward stores with high chargeback rates and may completely block access to the platform.
In contrast, Stripe only disables the specific account in question, allowing the website to continue operating. This makes Stripe a potential safeguard against full store suspension. Theoretically, losing an account can be resolved by registering a new one.
Stripe also offers broader geographic coverage in terms of supported business locations and currencies. However, cost is often the deciding factor when choosing a payment provider. Shopify Payments holds an advantage here, as it does not impose additional transaction fees, which can reach up to 2% per transaction with Stripe.
Step-by-step guide to setting up Shopify Payments
To enable credit card payments for your orders, you need to configure Shopify Payments by navigating to the Payment Providers section:
- Log in to your store’s admin panel.
- Click on Settings at the bottom of the sidebar.
- In the menu that appears, select Payment providers.
- Complete the Shopify Payments setup, ensuring it is selected as the default payment method.
During the setup process, you will need to provide the following details:
- Comprehensive company information
- Your personal details
- Product characteristics
- Statement descriptor settings
- Full banking details for receiving payouts
We strongly recommend carefully reviewing the terms and conditions of the Payments module before clicking Complete account setup at the bottom of the screen.
It’s worth noting that the approval process is not instantaneous — activation requires a verification period before your account is fully functional.
Shopify Payments in Ukraine: what you need to know 🇺🇦
As of today, Shopify Payments is not directly available to Ukrainian entrepreneurs. However, there are alternative ways to integrate this payment solution:
- Registering an account under a resident of a country where Shopify Payments is officially supported
- Using a rented account
- Establishing a legal entity in a foreign jurisdiction and registering a business account
The first two options are difficult to recommend for serious businesses due to significant risks and limitations regarding both operational convenience and legal security.
On the other hand, the third approach involves officially registering a company in a jurisdiction where Shopify Payments is unrestricted — such as Hong Kong, the UK, Canada, or the US. This ensures a stable and uninterrupted payment processing system from anywhere in the world. Additionally, this strategy solves integration challenges not only with Shopify Payments but also with other payment providers discussed in this guide.
The most effective way to register a company abroad is to work with specialized business formation firms that provide comprehensive company setup and support services at a reasonable cost. Depending on the country and its regulations, the registration process typically takes one to two weeks.
Moreover, setting up a business in a foreign jurisdiction can be a strategic move not only for payment system access but also for entrepreneurs who:
- Plan to scale their business beyond the Ukrainian market
- Want to accept payments from international customers
- Aim to significantly increase sales volume
- Seek expansion into new global markets
- Intend to collaborate with foreign partners
For a stable financial flow and reduced payment risks, we strongly recommend considering company registration abroad as the optimal long-term solution for integrating Shopify Payments and other international payment systems.
Where is Shopify Payments available?
As of March 2025, Shopify Payments is officially available in the following countries:
Australia, Austria, Belgium, Canada, Croatia, Czechia, Denmark, Estonia, Finland, France, Germany, Hungary, Hong Kong (SAR), Ireland, Italy, Japan, Latvia, Lithuania, Malta, Mexico, Netherlands, New Zealand, Norway, Poland, Portugal, Romania, Singapore, Slovenia, Spain, Sweden, Switzerland, United Kingdom, United States.
For the latest updates, follow this page and our Instagram and LinkedIn profiles, where we regularly share news and important information.
As an official Shopify partner in Ukraine, we are always ready to provide expert consultation and the best eCommerce solutions on Shopify. Feel free to submit a request to discuss your project!
