Learning how to accept payments on Shopify is one of the most important steps before launching your store. Without a way to collect money, you’re just showing products that customers can’t actually buy.
The good news? Shopify makes it remarkably simple to set up Shopify Payments and start accepting credit cards, debit cards, and digital wallets. After helping build over 800 online stores in my 14 years of e-commerce work, I can tell you that payment setup is usually faster and easier than people expect.
This guide will walk you through the complete Shopify Payments setup process, explain your Shopify payment settings options, and show you how to configure everything correctly. By the end, you’ll know exactly how to accept payments on Shopify and feel confident your checkout process works smoothly.
Let’s get your store ready to make money.
What is Shopify Payments?
Before we dive into how to accept payments on Shopify, let’s cover the basics of what you’re actually setting up.
Shopify Payments is Shopify’s built-in Shopify payment gateway that lets you accept credit cards, debit cards, and digital payment methods directly on your store. Think of it as your all-in-one payment processing system.
Shopify Payments serves over 1.7 million businesses worldwide and is available in 23 countries. It’s built on Stripe’s technology but specifically optimized for the Shopify ecosystem.
Why Shopify Payments is worth using as your Shopify payment gateway:
No extra transaction fees. When you use a third-party Shopify payment gateway like PayPal or Stripe, Shopify charges additional transaction fees (0.6% to 2%, depending on your plan). Using Shopify Payments eliminates these extra fees entirely.
Everything in one place. Your Shopify payment settings, order management, and analytics all live within your Shopify admin. No juggling multiple platforms.
Faster setup. You can set up Shopify Payments in minutes without creating separate merchant accounts or payment processor contracts.
Automatic updates. Security patches, compliance requirements, and new payment methods get handled automatically when you use the native Shopify payment gateway.
Better customer experience. Unlike traditional gateways that redirect customers off your site, Shopify Payments keeps buyers on your store throughout the entire checkout process.
Before You Set Up Shopify Payments: Requirements
Before you begin, make sure you meet these requirements. Missing any of these will prevent you from activating the Shopify payment gateway.
Geographic availability. Shopify Payments is available in 23 countries, including the United States, Canada, the United Kingdom, and major European nations. If you’re outside these regions, you’ll need to use a third-party Shopify payment gateway instead.
Valid business bank account. You need a bank account in your supported country where Shopify can deposit your earnings. Personal accounts often work for sole proprietors, but check with your bank.
Two-step authentication. Shopify requires two-step authentication for security before you can set up Shopify Payments. This protects your account and financial information.
Accurate business information. Have your business details ready: legal name, address, phone number, tax ID (if applicable), and identification documents.
Compliance with Shopify’s terms. Review Shopify’s acceptable use policy. Certain product categories (weapons, tobacco, adult content, etc.) may not be eligible for the Shopify payment gateway.
If you meet these requirements, you’re ready to set up Shopify Payments.
Step-by-Step: How to Set Up Shopify Payments
Let me walk you through the complete process. This typically takes 10-15 minutes if you have all your information ready.
Step 1: Access Your Shopify Payment Settings
From your Shopify admin dashboard, click Settings in the bottom left corner. Then click Payments to access your Shopify payment settings.
This is your control center for everything related to how to accept payments on Shopify.
Step 2: Start Shopify Payments Activation
In the Shopify payment settings page, you’ll see a section labeled “Shopify Payments.” Click the “Activate Shopify Payments” button to begin the setup process.
If you already have a third-party Shopify payment gateway active, don’t worry. You can set up Shopify Payments without deactivating your current gateway first, ensuring no interruption to your checkout.
Step 3: Enter Your Personal Information
The Shopify Payments setup wizard will ask for personal details. This information verifies your identity and ensures compliance with financial regulations.
What you’ll need to provide:
- Full legal name (must match government ID)
- Date of birth
- Home address
- Social Security Number or Tax ID
- Government-issued ID information
Be accurate with these details. Mismatched information can delay verification or cause your Shopify payment gateway application to be rejected.
After entering your information, click “Next” to continue the Shopify Payments setup.
Step 4: Provide Business Information
Next, the Shopify Payments setup process requests information about your business.
Business details needed to set up Shopify Payments:
- Legal business name
- Business type (sole proprietor, LLC, corporation, etc.)
- Business address
- Business phone number
- Industry category
- Estimated annual revenue
Enter the phone number you want to display on customer bank statements. This helps customers recognize charges from your store and reduces chargeback disputes.
Step 5: Add Your Bank Account
This step connects to where you’ll receive your money. To complete the setup, you need a valid bank account in your supported country.
Bank information required:
- Bank name
- Account holder name (must match your business name)
- Routing number
- Account number
- Account type (checking or savings)
Double-check these numbers carefully. Wrong banking information means payment delays when you accept payments on Shopify.
Step 6: Review and Confirm Details
Before finalizing, review everything you’ve entered. Check your business type and store details, then click “Confirm” to proceed.
Click “Submit for verification” to send your information to Shopify for review.
Step 7: Wait for Verification
Verification typically completes within 2-5 business days. Shopify will review your information and confirm your identity.
You’ll receive an email once verification is complete. Until then, your Shopify payment gateway won’t be fully active, but you can continue setting up other parts of your store.
If verification takes longer or you’re asked for additional documentation, respond promptly. This speeds up the payment setup completion.
Step 8: Activate and Configure Settings
Once verified, return to your payment settings. Click “Manage” in the Shopify Payments section to configure your account settings.
Here you can adjust important settings:
Payout schedule: Choose how often you want to receive payments (daily, weekly, monthly). Most merchants start with daily or weekly payouts.
Statement descriptor: This is what appears on customer credit card statements. Make it recognizable so customers don’t dispute legitimate charges.
Customer billing statements: Configure what contact information appears on customer statements.
Chargeback settings: Review how chargebacks are handled. Understanding this protects you when disputes arise.
Understanding Shopify Payments Fees
It’s important to understand the costs. Unlike some third-party Shopify payment gateway options that have complex fee structures, Shopify Payments keeps pricing straightforward.
Transaction fees for your Shopify payment gateway:
Fees range from 2.4% to 2.9% plus $0.30 per online transaction, depending on your Shopify plan:
- Basic Shopify ($39/month): 2.9% + $0.30 per transaction
- Shopify ($105/month): 2.7% + $0.30 per transaction
- Advanced Shopify ($399/month): 2.4% + $0.30 per transaction
- Shopify Plus: Custom rates, typically lower
No additional transaction fees. Unlike third-party payment gateways that trigger Shopify’s extra transaction fees of 0.6% to 2%, Shopify Payments removes these entirely.
Currency conversion fees. If you accept payments in currencies other than your store’s default, expect a 1.5% conversion fee in the US and 2% in other regions.
Example calculation: If a customer buys a $100 product and you’re on the Basic plan, you’ll pay $3.20 in fees ($100 × 2.9% + $0.30). You receive $96.80.
How to Add PayPal to Your Shopify Payment Settings
While Shopify Payments works well as your primary Shopify payment gateway, many merchants also add PayPal. Offering multiple payment options improves conversion rates.
Why add PayPal:
Many customers prefer PayPal’s familiar checkout experience. Some buyers don’t have credit cards but use a PayPal balance or bank transfers. International customers often trust PayPal for cross-border transactions.
How to add PayPal to your Shopify payment settings:
From your Shopify payment settings page, scroll to “Alternative payment methods.” Click “Activate PayPal Express Checkout” and you’ll be redirected to PayPal’s login page.
Log in to your PayPal business account (or create one if needed). Grant the necessary permissions for Shopify to integrate PayPal with your store.
Return to Shopify and confirm the integration. PayPal will now appear as a checkout option alongside your Shopify payment gateway.
PayPal charges 2.9% plus $0.30 per transaction for their basic plan, similar to Shopify Payments. However, if you use PayPal, you’ll also pay Shopify’s additional transaction fee unless you’re on a Plus plan.
Alternative Payment Gateways for Shopify
If Shopify payment is unavailable in your country—or you prefer a different payment gateway—Shopify supports over 100 third-party options.
Popular third-party Shopify payment gateways:
Stripe: Operates in 50+ countries with processing fees of 2.9% plus 30 cents per transaction. Great for international businesses where Shopify Payments isn’t available.
PayPal: Beyond Express Checkout, full PayPal integration works globally and many customers trust the brand.
Authorize.net: Charges a $49 setup fee plus 2.9% and $0.30 per transaction. Good for US merchants who need advanced features.
2Checkout (Verifone): Specializes in international sales and subscription billing. Useful for global businesses.
How to add a third-party payment gateway:
Go to Settings > Payments in your Shopify admin. Click “Choose a provider” under Payment providers. Select your preferred gateway from the list.
Enter your account credentials for the selected provider and click “Activate,” then “Save”.
Important: Third-party payment gateways trigger Shopify’s additional transaction fees ranging from 0.6% to 2%. These fees are on top of what the payment processor charges.
Configuring Additional Shopify Payment Settings
Beyond just activation, your payment settings include several options worth configuring for optimal performance.
Payment capture settings:
Choose between automatic capture (charge cards immediately when orders are placed) or manual capture (authorize first, charge later). Manual capture helps if you need to verify orders before processing payments.
3D Secure authentication:
Enable this extra security layer for credit card transactions. It reduces fraud but adds a step to checkout. Balance security with conversion rates.
Digital wallets:
Your payment gateway automatically supports Apple Pay, Google Pay, and Shop Pay. These accelerated checkouts can significantly boost mobile conversion rates.
Payment methods by country:
Customize which payment methods appear for customers in different countries. This optimizes the checkout experience based on local preferences.
Common Issues When You Set Up Shopify Payments
I’ve helped hundreds of merchants with their payment settings, and certain issues come up repeatedly. Here’s how to solve them.
Verification delays: If your verification takes longer than a week, contact Shopify Support. They can check for missing information or documentation issues.
Bank account rejected: Make sure your bank account country matches your business location. Cross-border bank accounts often cause problems.
Business type questions: Choose the most accurate business type. Misclassification can cause tax and compliance issues with your Shopify payment gateway.
ID verification problems: Government ID must match the name you used to set up Shopify Payments exactly. Even middle initial differences can cause rejections.
Payout delays: First payouts often take longer as Shopify verifies your account activity. Subsequent payouts follow your selected schedule.
Testing Your Shopify Payment Gateway
Before going live, test that everything works correctly when you accept payments on Shopify.
How to test your Shopify payment settings:
Enable Shopify’s test mode in your Shopify payment settings. Place test orders using Shopify’s test credit card numbers. Verify that order confirmations, receipts, and admin notifications all work correctly.
Check that your Shopify payment gateway properly calculates taxes and shipping. Test on both desktop and mobile devices to ensure the checkout experience is smooth.
Once testing is complete, disable test mode in your Shopify payment settings before launching.
Your Next Steps
You now understand how to accept payments on Shopify from start to finish. The Shopify Payments setup process is straightforward once you have the right information ready.
Here’s what to do next:
- Gather your information: Business details, bank account info, and ID documents
- Set up Shopify Payments following the steps in this guide
- Configure your Shopify payment settings for optimal performance
- Add PayPal as an alternative payment method
- Test your payment gateway before launching
Once your Shopify payment gateway is active and tested, you’re ready to start accepting real orders. The technical setup is behind you—now focus on getting customers to your store.
Payment processing is crucial, but it’s also largely invisible when done right. Customers should experience a smooth, fast checkout without thinking about the Shopify payment settings running behind the scenes.
Get your payments set up correctly now, and you won’t have to worry about it again. Your Shopify payment gateway will quietly handle transactions while you focus on growing your business.
Related Articles:
- How to Start a Shopify Store: A Complete 10-Step Guide for Beginners — Your full store setup walkthrough
- [How to Set Up Shipping Rates on Shopify (The Easy Way)] — Configure shipping after payments
- What to Sell on Shopify in 2025: 9 Proven Methods to Find Profitable Products — Figure out what you’re selling
- [The Ultimate Shopify Pre-Launch Checklist: 15 Things to Do Before You Go Live] — Make sure everything works
With 14+ years in ecommerce and over 800 stores built, I’ve helped countless merchants set up their payment processing correctly from the start. Have questions about Shopify Payments? Drop a comment below.