Shopify Payments Review

Pros

• Predictable flat-rate pricing
• No early termination fee
• All-in-one payments
• Good for eCommerce

Cons

• Sudden account terminations
• Funding holds are common

Overview

If you’ve spent any time on our blog, you know that Shopify (read our review) is one of our top-rated shopping cart solutions, primarily because it provides an all-inclusive solution to a wide range of merchants. One monthly rate gives you access to Shopify’s hosting, security, administrative abilities, customer service features, inventory management features, web design tools, and more.

With the addition of Shopify Payments — an integrated payment processor — you can even access built-in payment processing features. Shopify Payments allows you to begin accepting credit cards at your online store quickly. You won’t have to worry about integrating an outside provider, and Shopify will waive its shopping cart transaction fees.

However, despite its convenience, Shopify Payments is not perfect. Customers often complain that they do not qualify to use the service. Others say that Shopify Payments has frozen their accounts or is holding payments. If you are not eligible to use Shopify Payments (or if you choose to use another third-party processor), Shopify will charge you an additional transaction fee on top of the rates you pay to your processor.

That said, Shopify Payments is an excellent choice for many merchants. It fits seamlessly into the Shopify system, and qualifying merchants who are selling online and in-person with Shopify will likely find it to be a significant benefit to their business.

So how does Shopify Payments work? Keep reading to learn if you qualify for Shopify Payments and if it’s right for your business.

Mobile	POS	Online	Social Media
Mobile App + Free Card Reader	Point of Sale	Online Store	Social Media Selling
Get Started	Get Started	Get Started	Get Started
Low-cost POS for iOS and Android with free hardware	All-purpose POS integrated with all sales channels	Build a store or integrate with your current website	Sell on Facebook and other platforms
Starts at $9/month	Starts at $29/month	Starts at $29/month	Starts at $9/month
Free Trial	Free Trial	Free Trial	Free Trial

In this article, we’ll be discussing payment service providers (PSPs). If you’re new to the world of payment processing, we’d love to help get you oriented. Download our free ebook, The Beginner’s Guide to Payment Processing, to get started.

Visit Shopify Payments

Check Out Our Preferred Credit Card Processors 🏆

	Payment Depot	Fattmerchant	Dharma Merchant Services	Payline
	Visit Site Read Review	Visit Site Read Review	Visit Site Read Review	Visit Site Read Review
No early termination fee	✓	✓	✓	✓
Pricing model	Interchange-plus*	Interchange-plus*	Interchange-plus*	Interchange-plus*
Rate matching / Negotiable	✓	✓	✓	✓
Next Steps	Visit Site	Visit Site	Visit Site	Visit Site

*All of our preferred processors use fully transparent Interchange-plus pricing.

See more information

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Products & Services

Before we dive into the details of Shopify Payments, let’s take a brief look at the shopping cart platform itself.

Shopify is a SaaS (software as a service) solution, which means that to use the software, you much sign up for a Shopify subscription. A subscription gives you access to an easy-to-use admin panel, simple design editing tools, and marketing and analytics features. Shopify also takes care of your site hosting and security. For more information on Shopify’s eCommerce tools, check out our separate review.

Merchants who choose to use Shopify for their online selling can also elect to use Shopify’s in-house credit card processor, Shopify Payments. Shopify Payments is made possible through a partnership with Stripe, and it is now available in addition to around 100 alternative third-party gateways (such as PayPal).

If you sign up for Shopify Payments, there is no need to integrate a third-party processor or coordinate payments with a separate company. Shopify Payments is already integrated into your Shopify account, so it requires minimal setup. All you have to do is select Shopify Payments in your admin and add your banking information, Employer Identification Number (EIN), and the average price and shipping time for your orders. Transactions and payouts that come through your store via Shopify Payments are then easily viewed and managed from within your main Shopify dashboard.

Shopify Payments is undoubtedly a convenient solution for Shopify merchants; however, there are a few drawbacks to the platform. The biggest drawback is the inherent account instability that comes with a payment service provider (PSP) such as Shopify Payments and Stripe (which is the back-end processor for Shopify Payments). Payment service providers (also called third-party processors or sometimes aggregators) frequently accept merchants to their service before officially reviewing them to ensure they are eligible. Then, when these PSPs do review merchants — and find them ineligible for service — they place holds on funds and even terminate noncompliant accounts without warning. The best way to avoid this risk is to read up on a PSP’s terms of service and acceptable use policy before signing up.

Another drawback is Shopify Payment’s limited availability. Shopify Payments is only available to Shopify users based in select countries, including the US, the UK, Canada, Australia, and more (see the full list of eligible countries on Shopify’s website). Furthermore, to qualify for services, you must follow Shopify’s Acceptable Use Policy. If you do not comply with Shopify Payments’ Acceptable Use Policy, you will not be approved, or the service may get revoked. For more information, take a look at the extensive list of products and services Shopify Payments does not support (lists are organized by country) on the Shopify website.

That said, Shopify Payments works great for some merchants. We think that Shopify Payments is best for Shopify merchants who want a convenient payment service and who also want the advantage of lower transaction fees on Shopify. Furthermore, Shopify Payments is particularly good for merchants who sell both online and in-person using Shopify POS. Shopify Payments, however, is not a good option for high-risk merchants.

So what products and services can you expect from Shopify Payments? Let’s take a look at its core product offerings below:

• Omnichannel Platform: Over the years, Shopify has evolved from an online-only service to a full omnichannel package. You can use Shopify’s multiple products and services to sell online, in person, and over social media.
• Shopify POS: Shopify’s point of sale system allows you to process in-person transactions on a mobile device or a tablet, and it syncs inventory information between your online and brick-and-mortar stores.
• Shopify Card Readers: When you use Shopify’s point of sale system for your in-person transactions, you get to take your pick of multiple card reader options. You can choose to purchase one of Shopify’s proprietary chip readers, including the following: Tap & Chip Reader, Chip & Swipe Reader, Tap, Chip & Swipe Card Reader, and the Swipe (Audio-Jack) Card Reader (availability of these card readers depends on your country). Alternatively, if you want to use Shopify POS (but not Shopify Payments), you can choose to use a compatible external card reader, although you may have difficulty syncing information between your card reader and the POS system.
• Hardware Rentals: Shopify has partnered with Fello to offer rentals of their hardware. Available hardware includes tablets, tablet stands, card readers, barcode scanners, cash drawers, and receipt printers. These rental options are an excellent solution for seasonal sellers or for merchants who need to be able to process payments during short-term events or conferences. You can choose a rental period (starting at just one day!) and get a quote online. Although we are often wary of long-term hardware leases because of their predatory agreements and excessive rates, these short-term rentals are reasonably priced and flexible. What’s more, Fello has a good track record for providing rentals. I have not seen any complaints online regarding hardware rentals from Shopify.
• Shopify Pay: Shopify Pay is an accelerated eCommerce checkout solution that you can enable when you use Shopify Payments. Shopify Pay allows customers to save their payment information for future purchases securely. Then, when customers return to make a purchase at any Shopify store (including yours), the checkout process goes by much faster, resulting in fewer abandoned carts for you. Read our full article on Shopify Pay to learn more.
• Developer Tools: Shopify Payments provides an API for developers.
• Security Features & PCI Compliance: Shopify Payments is PCI compliant, and there are no additional fees related to compliance. Also, users of Shopify Payments get access to 3D Secure Checkout, which reduces fraudulent purchases by requiring customers to verify their identity before purchase.
• Chargeback Management: When you are issued a chargeback, Shopify will compile evidence and send it to the bank on your behalf. Shopify’s fraud analysis features should also hopefully reduce the number of chargebacks that you have to contest.

These products and services are a great asset for many sellers, especially those who use Shopify to sell across multiple channels.

Visit Shopify Payments

Fees & Rates

When you sign up for just Shopify (without Shopify Payments), you are paying two different costs. These costs are the monthly subscription fee and the Shopify transaction fee. Shopify’s monthly subscription fee is the fee you pay to run an online store on the platform. Shopify’s pricing plans range from $9/month to $299/month, and each step up in pricing offers additional features. The Shopify transaction fee is an additional fee (ranging from 0.5%-2.0%) Shopify charges on all payments processed through any third-party payment processor. The rate for this fee depends on the monthly subscription plan you select.

There are two main financial advantages to using Shopify Payments in conjunction with Shopify:

1. No Shopify Transaction Fee: Shopify will waive the 0.5%-2.0% commission it would otherwise charge on each of your sales. Plus, if you do use Shopify Payments, you can also use PayPal at the same time without incurring Shopify’s transaction fees. You’ll just pay the Shopify Payments or PayPal transaction fees, depending on which option your customer uses to check out.
2. Discounted Payment Processing: Most flat-rate credit card processors charge 2.9% + $0.30 per eCommerce sale. Shopify Payments charges this standard processing rate for users on the Lite and Basic subscriptions, but this rate decreases for users of the Shopify ($79/month) and Shopify Advanced ($299/month) plans.

Here’s a summary of the five Shopify plans’ rates and fees:

Shopify Lite Plan (No Online Store Included): $9/Month

• Shopify Payments Rates:
  • 2.9% + $0.30 online
  • 2.7% + $0.00 in person
• Additional Shopify Transaction Fee (Without Shopify Payments): 2.0%

Basic Shopify Plan: $29/Month

• Shopify Payments Rates:
  • 2.9% + $0.30 online
  • 2.7% + $0.00 in person
• Additional Shopify Transaction Fee (Without Shopify Payments): 2.0%

Shopify Plan: $79/Month

• Shopify Payments Rates:
  • 2.6% + $0.30 online
  • 2.5% + $0.00 in person
• Additional Shopify Transaction Fee (Without Shopify Payments): 1.0%

Advanced Shopify Plan: $299/Month

• Shopify Payments Rates:
  • 2.4% + $0.30 online
  • 2.4% + $0.00 in person
• Additional Shopify Transaction Fee (Without Shopify Payments): 0.5%

Shopify Plus (Enterprise)

If you bring in over a million eCommerce dollars per year, you’ll need to contact Shopify for special pricing. Check out our full review of Shopify Plus.

Additional Fees

Like all payment processors, Shopify Payments charges a flat-rate fee for each chargeback that customers issue. The amount of this fee varies by country. In the US, it’s $15, which is the industry average (see the full list of chargeback fees by country on the Shopify website). Shopify states that if the chargeback resolves in your favor, you get this chargeback fee refunded to you.

Except for the chargeback fee, Shopify does not charge any additional monthly fees, hidden fees, or setup fees on its payments service.

Sales & Advertising Transparency

Shopify Payments does a great job in terms of sales and advertising transparency. It lists all pricing information for rates and fees clearly on the website, and I haven’t seen any reports of bait-and-switch tactics or shady sales gimmicks listed online.

Contract Length & Early Termination Fee

Shopify Payments does not require users to sign any long-term contracts. You pay per each transaction and can choose to cancel the service at any time. Since there is no contract, there is no early termination fee.

That said, if you do choose to cancel your Shopify Payments account, you will resume paying Shopify’s additional 0.5%-2.0% transaction fee on top of the processing fees that you pay to your third-party processor.

Shopify Payments also maintains the right to terminate your account at any time if you are not meeting its Terms of Service. If it does terminate your Shopify Payments account, that does not necessarily mean it will terminate your online store account. Here’s what Shopify says in its Terms of Service (for US merchants): “Termination of this Agreement will not necessarily terminate your Shopify Merchant Agreement unless Shopify informs you otherwise.” If your Shopify Payments account is terminated, but not your Shopify store, you will have to resume paying the 0.5%-2.0% transaction fee.

Customer Service & Technical Support

Shopify keeps all of its customer service and technical support in-house. This includes the support it offers for Shopify Payments. You can reach a Shopify “guru” 24/7 via phone, live chat, or email. When I called in with a question, I reached a knowledgable representative within three minutes.

When you call or live chat Shopify with questions specific to Shopify Payments, you will first reach a Shopify representative who has a general knowledge of the platform. If your question surpasses their abilities, the representative will create a support ticket on your behalf and forward it to the department in charge of Shopify Payments’ support (called Shopify Billing). The Shopify Billing department will then address your issue via email.

Here’s a quick breakdown of Shopify Payments’ support options:

• Phone Support & Live Chat: Shopify offers both live chat and phone support, which will help you contact a Shopify representative with general knowledge. They may escalate your issue to the Shopify Billing department, who will respond via email.
• Online Knowledgebase: Shopify has dedicated a full section of its knowledgebase to payments-specific information. You can find answers to many of your questions within these resources.
• Email Support: Reach Shopify gurus or the Shopify Billing department via email.
• User Forum: Shopify has an active user forum. Use this forum to ask questions to fellow merchants. Occasionally, Shopify representatives also respond to questions on the forum.

I have seen mixed reviews on the quality of Shopify’s customer service. Some users have excellent experiences, while others do not. I have found Shopify representatives to be informed and prompt in their responses.

User Reviews

Negative Reviews & Complaints

Here at Merchant Maverick, when we look into a payment service provider, we do our best to read as many user reviews as possible. The challenge with Shopify Payments is that while reviews of Shopify are plentiful, reviews of Shopify Payments in specific are much rarer. For example, a quick look at Shopify’s page on the Better Business Bureau shows 174 complaints (135 of which are answered and 32 of which are resolved). The vast majority of these complaints refer to Shopify’s eCommerce platform, and in the half-hour that I spent combing through complaints, I did not see one mention of Shopify Payments.

With that said, if you look hard enough and in the right places, you can still find reviews of Shopify Payments, both positive and negative. And while many merchants praise Shopify Payments for its convenience, I’ve seen numerous reports blaming the service for being unreliable. Here are a few of the most common complaints and disadvantages of using Shopify Payments:

• Ineligibility: Shopify users often complain that they are not eligible for Shopify Payments. For some, this is because Shopify Payments is not available in their country. In other cases, Shopify has revoked payment services because, for one reason or another, the business was deemed “high-risk.” Shopify’s Terms of Service (for merchants in the US) states: “We may terminate this Agreement and close your Service Account at any time for any reason effective upon providing you notice in accordance with Section A16 above.” Shopify does not need to provide any advanced notice of your account’s termination. It just has to send you an email.
• Shopify Holds Funds: Merchants frequently complain about their funds being withheld for an extended period. Here’s what Shopify Payments’ Terms of Service says about that: “Stripe, on behalf of Shopify and/or Wells Fargo, reserves the right to change the Payout Schedule or suspend payouts to your Bank Account should we determine it is necessary due to pending disputes, excessive or anticipated excessive Chargebacks or refunds, or other suspicious activity associated with your use of the Service or if required by law or court order.” Funding holds are common with Stripe and other third-party processors, but they do happen with traditional merchant accounts too. We recommend checking out our guide to avoiding holds and freezes.
• Difficulties With Chargebacks: Chargebacks are an unfortunate and inevitable part of running an online business. If customers file too many chargebacks against you, Shopify may withhold your funds, further complicating the issue.

Make sure you read the Terms of Service for every solution you sign up with, including Shopify and Shopify Payments. It could save you a world of pain.

Positive Reviews & Testimonials

Customers choose Shopify Payments for many reasons. Here are the primary benefits of using Shopify Payments:

• No Shopify Transaction Fees: While there will always be processing fees when you use Shopify Payments, you no longer have to pay the extra 0.5%-2.0% Shopify transaction fee associated with your Shopify plan.
• Potentially Lower Processing Fees: As I’ve said before, higher-level Shopify merchants benefit from lower rates. You may find that Shopify’s rates are competitive with those of other major processors.
• Already Integrated: You won’t need any developers to connect with Shopify Payments, and payment management is seamlessly integrated into your admin panel.

Shopify Payments is a great solution if you meet the requirements and are looking for a processor that’s easy to integrate.

Final Verdict

So, at the end of all this, the question remains: Should you use Shopify Payments to process payments? And my answer is, it depends.

I’ve seen enough negative reports about Shopify Payments to advise merchants to do their research before signing up. Many merchants have been denied payments or had the service revoked entirely. However, without knowing all the specifics of individual situations, it’s difficult to determine whether Shopify was justified or not in these actions. If merchants were not complying with Shopify Payments’ Terms of Service, Shopify was within its rights to cancel the service.

As you make your decision, please (please!) read every word of Shopify Payments’ Terms of Service to ensure your business qualifies. More importantly, keep in mind that no matter how clearly any payment processor outlines its terms, they’re still subject to the interpretation of each reader. If you have even the tiniest inkling of doubt as to whether your business qualifies for Shopify Payments, I’d recommend speaking with the risk department directly before signing up. It’s better to be explicit about your business details from the get-go than to assume, guess, or hope it will all work out.

There are some great benefits to integrated payments, and if your store follows all the rules, Shopify Payments could be the best choice for your store. But don’t stop your research here. Take a look at our complete review of the entire Shopify platform (and the real customer comments below) to learn more about the software, and be sure to read up on Shopify Payments in its knowledgebase. Or, for more options, check out our article on the best online credit card processors. Best of luck with the search!

Visit Shopify Payments

Check Out Our Preferred Credit Card Processors 🏆

	Payment Depot	Fattmerchant	Dharma Merchant Services	Payline
	Visit Site Read Review	Visit Site Read Review	Visit Site Read Review	Visit Site Read Review
No early termination fee	✓	✓	✓	✓
Pricing model	Interchange-plus*	Interchange-plus*	Interchange-plus*	Interchange-plus*
Rate matching / Negotiable	✓	✓	✓	✓
Next Steps	Visit Site	Visit Site	Visit Site	Visit Site

*All of our preferred processors use fully transparent Interchange-plus pricing.

See more information

Hide

We've done in-depth research on each and confidently recommend them.

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