How Does Shopify Payment Work

How Shopify Payment Processing Works

Shopify Payments handles the entire checkout flow: a customer enters card details, the transaction is authorized, and funds are captured and settled directly into the merchant's bank account. The system runs on Stripe infrastructure and is available in multiple countries, with local payment methods added as the merchant's region supports them.

Transaction Fees and Pricing

When using Shopify Payments as the gateway, the merchant pays the standard card processing rate and a Shopify transaction fee on top. For most plans, the base Shopify transaction fee is 0.5% to 2% of the sale, depending on the subscription plan. External gateways skip the Shopify fee but may carry their own costs.

• Basic plan: 2.9% + 30¢ per transaction plus a Shopify fee
• Shopify plan: 2.6% + 30¢ per transaction plus a reduced Shopify fee
• Advanced plan: 2.5% + 30¢ per transaction plus the lowest Shopify fee

Charge Flow From Checkout to Settlement

After authorization, funds move through Shopify's clearing process. The merchant can capture charges immediately or delay capture for pre-orders. Settlement typically occurs within two to three business days after capture, though local bank timelines may vary.

Supported Payment Methods

Shopify Payments supports credit and debit cards, Apple Pay, Google Pay, and region-specific options such as ACH payments in the United States or iDEAL in the Netherlands. Additional third-party providers can be added through the Shopify App Store for currencies or methods not built in.

Setting Up and Managing Payments

Activation happens in the Shopify admin under Settings > Payments. Merchants provide business details, bank account information, and tax IDs, then verify identity before going live. The dashboard provides transaction logs, refund controls, and payout schedules.