Advertiser Disclosure

Shopify Payments Review: The Pros And Cons Of Shopify’s Integrated Payment Processor

Advertiser Disclosure: Our unbiased reviews and content are supported in part by affiliate partnerships, and we adhere to strict guidelines to preserve editorial integrity.
Liz Hull

Liz Hull

Liz Hull is a writer for Merchant Maverick. In her two years with Merchant Maverick, she has tested and reviewed over 40 eCommerce platforms and published two ebooks on the topic of online selling. Liz has also been published in Startup Nation and Home Business Magazine Online. Liz has a BA in English and Spanish from George Fox University.
Leave a comment

17 Comments

Responses are not provided or commissioned by the vendor or bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the vendor or bank advertiser. It is not the vendor or bank advertiser's responsibility to ensure all posts and/or questions are answered.

    YD

    My question is about the merchant fees. We currently use Authorize as a third party payment option and on the top of the standard payment processing fees, we are also charged merchant fees from all the credit cards we captured payments from (VISA, MC, AMEX and ect) which run between 2%-4%. So when shopify has a pricing of 2.9% plus 0.30 per transaction, is this all we would be paying related to all credit card transactions or that is just shopify’s cut and we pay the additional merchant fees?

      Rose Holman

      Hello, thanks for your question. Shopify Payments uses a flat pricing model, so 2.9% + $0.30 transaction fee covers all your wholesale fees from the card networks, plus Shopify Payment’s cut. You of course also must pay a monthly subscription fee to Shopify for using the software (starting $29/month for a full online store).

      Hope that helps answer your question. If you need more information on how processing fees work with different pricing models, check out: our complete guide to rates and fees.

        Saroni Kundu

        Hi
        Since Braintree is a Paypal company now, does Shopify intergrate with Braintree? Also what is the transaction feel that Shopify will charge on top of Braintree fee charge?
        Thanks

          Rose Holman

          Braintree is not available as a processor with Shopify. Their partnership ended in 2016, so only current Braintree + Shopify users could continue using Braintree as a processor from that point (no new accounts).

            Deanne

            I have 2 separate businesses one that is service based and one that is product based. Can I use Shopify Payments for the products and use stripe to connect with my other software of service so payments are in one place?

              Rose Holman

              Hi, Deanne. I’m not 100% sure I’m understanding your question properly, but I’ll take a stab at it. Shopify Payments, while built on Stripe’s payments infrastructure, is not the same as Stripe on its own. As far as I know, a Stripe dashboard and a Shopify Payments dashboard for managing payments won’t be integrated or accessed in the same place — especially if you’re using Shopify software for your physical products and integrating Stripe with different software for your service business. In the sense that payments will both ultimately pass through Stripe-based systems as some point, they’ll be in the “same place,” but that’s about it.

              The bottom line: you can definitely use both processors at the same time, that shouldn’t be a problem — but your interaction with your transactions and reporting may not be quite as “all in one place” as you’re envisioning. It’s best to think of Shopify Payments as a separate payment gateway.

              Hope that helps, let us know if we’ve misunderstood what you were asking!

                Valerie Trainer

                If I integrate my store from Etsy, how does Shopify get paid. Will they automatically take their money from my sales like Etsy has started to do, or will I have a payment that is due once a month? As a small business a lot of sellers on Etsy feel betrayed by their last move to do this!!!! Please explain because I’m sur a lot of sellers on Etsy would like to know!! Thank you for TRANSPARENCY!!!

                  This comment refers to an earlier version of this post and may be outdated.

                  Rose Holman

                  Hi, Valerie. There’s a couple components to this depending on your situation.

                  If you use Shopify Payments as your payment processor, a card processing fee of 2.9% + $0.30 (or less if you’re on a higher Shopify subscription plan) will be taken out of each sale in real time, and you will receive the net sales amount in your account. You will also be billed your monthly subscription to Shopify, of course.

                  If you do not use Shopify Payments and choose an alternate gateway instead, Shopify will also charge an extra commission per sale on top of your card processing fee, which will also be taken out in real time. This fee ranges from 0.5% to 2% depending on which Shopify subscription plan you have. Meanwhile, you will be charged separately for card processing fees from your chosen alternative gateway (you’ve got over 100 options to choose from for alternative gateways to use with Shopify.). These card processing fees will also mostly likely be taken out automatically in real time.

                  The reason it’s done this way is that they don’t want you to be able to withdraw funds before fees are taken out, so the fees have to be taken out as the transactions come in.

                  It’s kind of confusing, so I hope that helps answers your question!

                    This comment refers to an earlier version of this post and may be outdated.

                    Diggy

                    Question…..can i use my Square mobile app to manually process payments from customers? Would I just send an invoice to the customer myself?

                      This comment refers to an earlier version of this post and may be outdated.

                      Jessica Dinsmore

                      Hi Diggy,

                      You can send an invoice directly from within Square, but Shopify Payments also has the same ability and costs exactly the same. As far as we know, Shopify and Square don’t integrate directly, so you’d need a third-party tool that would cost more money. Shopify does integrate with PayPal and you can use PayPal alongside Shopify Payments without incurring additional transaction fees. That would also allow invoicing. But again, it’s the exact same cost.

                      I would recommend that you first check out Shopify Payments’ invoicing tools and decide whether you like them as much as Square’s invoice tools, and go from there.

                        This comment refers to an earlier version of this post and may be outdated.

                        Anahit

                        Hello, I am a little bit confused about Shopify payment, that’s why i have a few questions.
                        If I use basic Shopify payment (monthly price 29$) shopify charges me 2.9%+30c per transaction. is that right? But if I use Shopify payemnt+ an external gateway such as paypal, does it mean I should pay for per transaction 2.9%+30c + 2%(for transaction fee) or it only charges me 2% as transaction fee?

                          This comment refers to an earlier version of this post and may be outdated.

                          Liz Hull

                          Hi Anahit,

                          I’m happy to clear things up!

                          Shopify Payments works as your payment gateway for your Shopify online store, so you won’t need to add another gateway on top of it. However, you may choose to do so. If you choose to list multiple gateways, you may need to pay Shopify’s transaction fee. Here are your options below (assuming that you’re accepting payments for an online store rather than in-person):

                          Basic Shopify Plan ($29/month) + Shopify Payments (2.9% + $0.30 credit card rate) – NO Transaction Fee
                          Basic Shopify Plan ($29/month) + External Gateway (gateway’s credit card rate, likely around 2.9% + $0.30) + Shopify’s Transaction Fee (2%)

                          If you choose to combine Shopify Payments with an external gateway in order to give customers more payment options, you will have to pay that 2% Shopify transaction fee on any payment that goes through your external gateway. You will never have to pay the transaction fee on payments that go through Shopify Payments.

                          There is one exception to this rule, and that is PayPal. Shopify has negotiated with PayPal to offer you a deal on using Shopify Payments and PayPal together. If you choose to use Shopify Payments and add on PayPal, you will not have to pay that 2% Shopify transaction fee on any payments. Keep in mind that you will still be paying the 2.9% + $0.30 credit card rates on all your Shopify payments transactions, and PayPal credit card rates on all your PayPal transactions.

                          Hope that helps!

                          Liz

                            This comment refers to an earlier version of this post and may be outdated.

                            Darren

                            I have just been advised I cannot use shopify payments as I have been deemed high risk, does this mean if I accept PayPal, I will be charged the additional 2% on toof PayPal fees?

                              This comment refers to an earlier version of this post and may be outdated.

                              Liz Hull

                              Hi Darren,

                              That is correct. You will have to pay the additional transaction fee on top of PayPal Fees. That fee is 2% on Shopify’s Basic Plan. Higher plans have lower transaction fees (1% on the Shopify Plan and 0.5% on the Advanced Shopify Plan), but if you don’t/can’t use Shopify Payments, you will always have that fee.

                              Liz

                                This comment refers to an earlier version of this post and may be outdated.

                                Jason

                                Their pay period so short, that’s good news for sellers. i may start selling sooner on shopify.

                                Thanks for your good post.

                                  This comment refers to an earlier version of this post and may be outdated.

                                  Emanuel

                                  Hello! A quick question. If one builds an ecommerce site with Shopify+Shopify Payments, who is the merchant of record?

                                    This comment refers to an earlier version of this post and may be outdated.

                                    Jessica Dinsmore

                                    Hi Emanuel,

                                    Great question! Shopify Payments is powered by Stripe, and as a third party processor we suspect the merchant of record would be Stripe, but we can’t say for sure. What we do know, is that the merchant in this scenario, would not be listed as the merchant of record.

                                      This comment refers to an earlier version of this post and may be outdated.

                                    Leave a Reply

                                    Your email address will not be published. Required fields are marked *

                                    Your Review

                                    Comment moderation is enabled. Your comment may take some time to appear.
                                    Please read the "User Review and Comment Policy" before posting.

                                    Share