How to Set Up Shopify Payments (And Avoid Costly Mistakes)

Your Shopify store is almost ready to go, but there’s one important thing left to figure out: how to set up Shopify Payments. Between payment providers, business verification, and bank account requirements, this step can feel more intimidating than it should. And of course, the last thing you want is to run into payment issues when someone is finally ready to buy. 

No need to worry, though. In this guide, I’ll walk you through the process step by step, from checking your eligibility to connecting your bank account and testing your checkout. I’ll also break down the fees, explain your options if Shopify Payments isn’t available to you, and cover common setup problems so you can start accepting payments like a pro.

How Payments On Shopify Actually Work

When someone buys something from your Shopify store, the money doesn’t go straight into your bank account. First, a payment provider checks and processes the transaction. Once the payment is approved and captured, the funds are prepared to be transferred, minus any applicable fees. 

Here’s the basic flow:

Customer pays at checkout > Payment provider processes the payment > Fees are deducted > Money reaches your bank account

According to the official Shopify Help Center, Shopify Payments is Shopify’s built-in payment provider. Stripe acts as its banking partner, but you can manage your payments, transactions, and payouts directly from your Shopify dashboard.

Then, once an order comes in, your money arrives through scheduled payouts, which can be daily, weekly, or monthly depending on your location. Bank processing can add a few business days.

Processing Fees vs. Transaction Fees vs. Your Plan

Shopify has three different types of fees:

Let’s look at a $100 sale.

As of November 2026, Shopify Payments charges 2.9% + $0.30 for standard domestic online card payments on the US Basic plan.

• With Shopify Payments, you pay $3.20 in processing fees and keep $96.80.
• With a third-party provider, assuming the provider charges the same 2.9% + $0.30, you’d pay $3.20 in processing fees plus $2 in Shopify’s third-party transaction fees. That leaves $94.80. 

That’s a $2 difference on a single sale. Keep in mind that this is just an illustrative example. Actual third-party processing rates vary, and additional fees may apply.

Want the full breakdown? Check out our Shopify pricing guide to see how plan costs and transaction fees compare. 

Are You Eligible For Shopify Payments?

Before you start setting things up, make sure Shopify Payments is actually available for your business. Not every country or product category qualifies, even if you can create a Shopify store. 

Here’s what you need to check:

• Supported countries: As of November 2026, Shopify lists 41 supported countries and regions, including the US, UK, Canada, Australia, and much of Europe. Some have additional restrictions, such as invitation-only access in China. What matters here is where your business is based, not where your customers are shopping from. 
• Restricted businesses and products: Some categories, including sexually explicit adult content, gambling, tobacco, and counterfeit goods, aren’t eligible. Restrictions vary by country, so review Shopify’s prohibited business list before applying.
• Business verification: You’ll need a legitimate business address in a supported country, personal identification, and any required business registration or tax information.
• Bank account: You’ll need an eligible account that accepts electronic transfers in a supported payout currency. The exact requirements depend on your country.

Meeting these requirements doesn’t guarantee approval. Shopify reviews applications and can decline or restrict accounts that don’t meet its eligibility and risk standards.

So, what if you’re not eligible? No worries! You can set up a third-party provider instead. Just remember that Shopify generally charges an additional transaction fee on payments processed through external gateways (between 0.2% and 2%, depending on your plan).

🎯 Dropshipping note: You can use Shopify Payments for dropshipping, but there are a few things to keep in mind. Accurate business details, realistic delivery estimates, and clear shipping and refund policies matter. Late deliveries and excessive chargebacks can trigger red flags, so make sure your customers know what to expect and work with reliable suppliers.

What You Need Before You Start

Before opening your Shopify settings, make sure you have everything ready. It’ll save you from having to stop halfway through the setup to look for a document or bank account number you don’t even know where to find.

To make things easier, here’s a quick checklist of everything you’ll need.

✅ Legal business name and address: Use your official registered details, or your legal name if you’re operating as an individual.

✅ Business type: Know whether you’re registering as an individual, sole proprietor, LLC, or another business structure.

✅ Tax identification number: An EIN, SSN, or ITIN for US merchants, depending on business type, or the applicable local tax ID elsewhere.

✅ Government-issued ID: Have a valid passport, driver’s license, or national ID ready in case Shopify asks you to verify your identity.

✅ Bank account details: Your account and routing numbers (or local equivalents) for a bank account that meets Shopify’s payout requirements.

✅ A store that’s ready to launch: Make sure your products, contact information, and store policies are in place. Need help with the paperwork? Use our free templates for shipping, refunds, returns, and privacy.

Before setting up payments, go through this list and make sure you have everything in place. The good news? The exact documents Shopify asks for depend on your country and business type, so you might not need everything on this list. Just make sure the information you provide matches your official records. 

How To Set Up Shopify Payments, Step By Step

Ready to start accepting payments? Let’s get hands-on and go through this together. The process is fairly straightforward, especially if you already have your business documents handy.

Here’s how to set up Shopify Payments from your store’s dashboard.

1. Open Settings And Go To Payments

First, log in to your Shopify admin.

Click Settings in the bottom-left corner of your dashboard, then select Payments. This is where you’ll manage how customers pay for their orders and how you receive your money.

You’ll see your available payment providers, including Shopify Payments if your business is in a supported country.

2. Activate Shopify Payments

Find the Shopify Payments section and click Activate Shopify Payments to begin the setup.

If you already have another payment provider configured, you might see Switch to Shopify Payments instead. 

Don’t see the activation option? Your business might be located in an unsupported country. In that case, look for Payment providers > Choose a provider to set up an alternative. I’ll explain this in more depth in one of the following sections. 

You’ll also need two-step authentication enabled on your Shopify account to help protect your payments and financial information.

3. Enter Your Business Details

Next, Shopify will ask for information about you and your business. This includes:

• Business type: Individual, sole proprietor, registered company, or another applicable structure.
• Legal business name and address: Your official details, not just your store’s brand name.
• Tax identification: An EIN or SSN for US merchants, depending on the business type, or the relevant identification number in your country.
• Personal information: Details about the person responsible for the account.
• Customer statement phone number: A contact number that customers can see on their bank statements.
• Information about your product or services, including industry, category, and store name. 

Follow the prompts and click Next as you complete each part.

💡 Pro Tip: Make sure everything matches your official documents. For example, if your registered business name is different from your Shopify store name, don’t mix them up. Small inconsistencies can delay verification.

4. Verify Your Identity

Shopify needs to verify who’s behind the store before it can fully approve your account.

Once you’ve entered your details, review the Business type and Store details, click Confirm, and then Submit for verification.

Shopify might also ask you to upload a government-issued photo ID, such as a passport or driver’s license. If additional documents are required, you’ll receive a secure upload request in your Shopify dashboard.

To avoid having your documents rejected:

• Take a clear, color photo of the original document.
• Make sure all four corners are visible.
• Avoid blurry images, glare, or cropped information.
• Check that your name and other details match what you entered.

💡 Pro Tip: Don’t email your ID to Shopify or send it through support chat. Use the secure upload option in your dashboard.

5. Connect Your Bank Account

After your Shopify Payments account is verified, return to Settings > Payments.

In the Shopify Payments section, click Add bank account. Depending on your location and available options, you can either:

• Select Connect a bank account and follow the bank login instructions.
• Select Enter account details manually, add your banking information, and click Save.

Your account must be able to receive electronic transfers supported in your country. For example, US bank accounts generally need to accept ACH transfers, while many European countries use SEPA.

Also, your bank must support the payout currency you’re using. This doesn’t always have to match your store’s selling currency, since Shopify supports different payout currencies in certain regions.

6. Review Your Settings And Test A Checkout

Almost done! Before opening your store to customers, check that everything works.

Go to Settings > Payments > Shopify Payments > Manage and review these final settings:

• Payout schedule: Choose when you want Shopify to send your earnings to your bank. Depending on your country, you can select daily, weekly, or monthly payouts under Payouts > Payouts schedule.
• Shop Pay: Check whether Shop Pay is enabled in the Shop Pay section. If it’s available and isn’t already active, select it and click Save to offer customers a faster checkout.
• Test mode: In the Test mode section, select Enable test mode and click Save.

Now visit your storefront, add a product to your cart, and go through checkout using one of Shopify’s test card numbers. For example, you can use Visa test number 4242 4242 4242 4242, any future expiration date, and a three-digit security code. Your order total must be greater than the equivalent of $1 USD.

Check that the order appears correctly in Orders and that the checkout behaves as expected. No real payment is collected during this test. Once everything is ready and connected, this is what you’ll see in your Payments dashboard:

Keep in mind that you can only test Shopify Payments with a paid plan, so if you still haven’t upgraded, this is a good time to do so. If you haven’t used it already, remember you have a 3-day free trial, and then a $1/month trial for three months before you pay the full subscription. 

Important: Turn off test mode when you’re finished, or customers won’t be able to make normal card payments through Shopify Payments. If you use automatic fulfillment, disable it during testing so a test order doesn’t accidentally trigger a shipment.

And that’s it! Once your account is approved, your bank account is connected, and test mode is off, you’re ready to accept real payments. 

How Long Does Shopify Payments Verification Take?

According to Shopify’s Help Center, uploaded verification documents can take up to 24 hours to be reviewed. However, that doesn’t guarantee your entire account will be approved within a day. Additional checks can take longer.

Shopify might ask for more information if your business details don’t match your documents, your ID photo isn’t clear, or it needs to confirm your address or business registration.

💡 Pro Tip: While you’re waiting, you can keep working on your store: add products, customize your design, and finish your shipping and refund policies. 

Taking longer than expected? Check Settings > Payments for verification alerts, and keep an eye on the store owner’s email. If Shopify requests more documents, upload them through the secure link in your admin. If there’s no clear reason for the delay, you can always contact Shopify Support.

Keep in mind that verification issues can temporarily hold your payouts, even if your store can still accept orders. 

If You Can’t Use Shopify Payments: Set Up Another Payment Provider

If you’re not eligible for Shopify Payments, no worries: you can still accept payments on your Shopify store. You’ll just need a third-party payment gateway instead. 

Shopify supports over 100 external payment providers, although the options depend on your country. You might use this because Shopify Payments isn’t available where your business operates, or just because you need a specific local payment method. Either way, it works just fine. 

Here’s how to set one up:

1. From your Shopify admin, go to Settings > Payments. In this case, if you’re not eligible for Shopify Payments, you won’t see that option at all, just like in the following example:

2. Under Payment providers, click Choose a provider. If Shopify Payments is available but not activated, select See all other providers instead.

3. Choose an available provider and enter your account credentials. You might need to create an account with that provider first.

4. Click Install, then Save.

You can also add supported local payment options through Settings > Payments > Additional payment methods > Add payment methods.

And what about Stripe? Although Stripe is a popular payment processor, Shopify generally doesn’t offer it as a separate gateway in countries where Shopify Payments is supported. That’s because Shopify Payments is powered by Stripe, so offering both would be redundant. If Shopify Payments isn’t available in your country, you may be able to add Stripe as a third-party provider. Just check whether Shopify offers it in your region.

Just remember: third-party gateways generally come with an extra Shopify transaction fee, on top of the provider’s own processing fees. So, if you’re eligible for Shopify Payments, it’s usually the simpler and cheaper choice. But if you’re not, an external provider can still get your store up and running.

Shopify Payments vs Stripe

You might be wondering: should you use Shopify Payments or Stripe? Here’s the thing: they’re more closely connected than you might think.

Stripe is Shopify Payments’ banking partner, so when you use Shopify Payments, you’re already benefiting from Stripe’s infrastructure. And according to Shopify, if Shopify Payments is available in your country, Stripe isn’t offered as a separate payment provider.

Here’s how they compare:

Fees are based on US Shopify pricing as of November 2026 and are separate from card processing fees.

So, which should you choose? If you’re eligible for Shopify Payments, it’s usually the simpler and cheaper option. You can manage everything from your Shopify dashboard without paying Shopify’s extra third-party transaction fees.

A separate payment gateway makes sense if Shopify Payments isn’t available to your business or you need a specific local payment method. Just check which providers Shopify supports in your country before making your choice. 

Can You Switch From A Third-Party Gateway To Shopify Payments Later?

Yes! If you started with another payment provider, you can switch to Shopify Payments later, as long as your business is eligible. And the good news? You don’t need to shut down your checkout while setting things up.

Here’s how to make the switch:

1. Go to Settings > Payments in your Shopify admin.
2. Click Switch to Shopify Payments.
3. Enter your business and personal details, then click Submit for verification.
4. Once Shopify approves your account, connect your bank account and review your payment settings.
5. After your account verification is complete, click Activate.

You can keep accepting payments through your existing provider while Shopify reviews your information. However, there are a few things worth checking before making the change. 

• Your old provider: When you switch completely, your previous gateway is removed from your active payment settings. Keep its account credentials available in case you need to issue refunds.
• Existing orders and payouts: Your previous orders remain in Shopify, but payments processed through your old provider still follow that provider’s payout schedule.
• Timing: There’s no guaranteed approval timeframe, so allow time for verification and any additional document requests.

💡 Pro Tip: Avoid switching right before a major sale or during your busiest shopping days. Even though Shopify lets you prepare the switch without interrupting checkout, it’s better to make changes when you have time to check that everything works and place test orders. 

Common Setup Problems

Running into trouble with Shopify Payments? Don’t panic. Most setup issues come down to missing information, mismatched details, or bank account requirements. Here are six common problems and what you can do about them.

1. Your name or ID doesn’t match. Even a small difference between your account details and official documents can cause verification to fail. Double-check your legal name, address, and date of birth, then resubmit the correct information. If Shopify keeps rejecting your documents, contact Support.
2. Your bank account gets rejected. Check your account and routing numbers, bank account type, and supported payout currency. Shopify requires an eligible checking or current account, not a savings account. If everything looks correct, contact your bank first, then Shopify Support if you still can’t fix it.
3. You selected the wrong business type. Registered as a company when you’re actually a sole proprietor? Review your business details under Settings > General. Changing your legal business type can affect your registered business entity, so contact Shopify Support if you’re unsure how to correct it.
4. You’re selling restricted products: Some products simply aren’t supported by Shopify Payments. Check the prohibited business list and consider another payment provider that accepts your category. Removing a restricted product doesn’t guarantee approval.
5. Your store information is incomplete: Shopify doesn’t list store policies as a formal requirement for Shopify Payments, but missing or vague information can contribute to customer disputes and account reviews. Make sure your contact details, shipping times, and return and refund policies are easy for customers to find, and that your product descriptions accurately describe what you’re selling. Clear information helps prevent chargebacks, which can lead to reviews or payout holds.
6. Your payouts are on hold: You might still be able to accept orders, but Shopify won’t release your payouts until the issue is resolved. Check Settings > Payments and the store owner’s email for alerts or document requests. Follow the instructions provided, and contact Shopify Support if the reason for the hold isn’t clear.

Still stuck? Visit the Shopify Help Center to contact Support. Have your store details and any error messages ready so they can help you figure out what’s going wrong. 

Frequently Asked Questions

What do I need to set up Shopify Payments?

To set up Shopify Payments, you’ll need your legal business name and address, business type, tax identification number (such as an EIN or SSN in the US), and bank account details. Shopify may also ask for a government-issued ID or additional documents to verify your identity and business.

Is Shopify Payments available in every country?

No, Shopify Payments is only available in certain countries, including the US, UK, Canada, Australia, and several European countries. Availability depends on where your business is based, not where your customers live. Check Shopify’s supported countries list before getting started.

How long does Shopify Payments verification take?

Shopify says uploaded verification documents can take up to 24 hours to be reviewed, but full account approval may take longer. If Shopify needs more information, you’ll receive a notification in your dashboard or by email.

What happens if my business isn’t eligible for Shopify Payments?

If your business isn’t eligible for Shopify Payments, you can still accept payments through a supported third-party provider. Go to Settings > Payments > Choose a provider to see your options. Just keep in mind that Shopify generally charges an additional transaction fee when you use an external gateway.

Is Shopify Payments cheaper than using Stripe through Shopify?

Usually, yes. Shopify Payments is generally cheaper than using Stripe through Shopify. Shopify Payments doesn’t charge Shopify’s extra third-party transaction fee, while external gateways generally do. However, Stripe isn’t normally available as a separate payment provider in countries where Shopify Payments operates, so you might not have both options to choose from.

Can I switch from a third-party gateway to Shopify Payments later?

Yes, you can absolutely switch from a third-party gateway to Shopify Payments, as long as your business is eligible. Go to Settings > Payments > Switch to Shopify Payments and complete the verification process. You can keep your existing provider active during setup, so your checkout won’t be interrupted. Once approved, you can activate Shopify Payments.

Start Accepting Payments On Your Shopify Store

Setting up Shopify Payments is pretty straightforward once you know what to expect. All in all, Shopify makes the process easier by keeping everything in one place.

As long as your business is eligible, you can start accepting payments in just a few steps: enter your business details, verify your identity, connect your bank account, and test your checkout. And if Shopify Payments isn’t available to you, there are plenty of third-party providers to choose from. 

Now, if you’re not quite there yet because you’re still busy customizing your theme, choosing a color palette, and building product pages one by one, I’ve got good news for you. BuildYourStore takes a lot of that work off your plate with a free, AI-built Shopify store that comes with a ready-to-use theme, product pages, winning products, and more. That way, you can skip the tedious setup and focus on getting your business up and running.

Build your free store now and get straight to setting up payments instead of spending hours designing your store from scratch.

Want to become an expert at setting up your Shopify store? Here are a few reads you might find inspiring: 

• How To Remove ‘Powered By Shopify’ (2 Easy Methods)
• Shopify Conversion Rate Optimization: 6 Fixes to Try
• Shopify Domains: Cost, Options & Where to Buy

Checked November 2026. Shopify Payments availability, fees, and setup requirements were reviewed against Shopify’s official documentation. Requirements may vary by country and business type. This guide is for informational purposes only and doesn’t constitute financial or legal advice.

Written by:

Lola Rainero

Lola has focused on crafting high-impact content for B2B SaaS companies in the e-commerce and dropshipping space since 2019. With a strong background in digital marketing, she creates strategic content that helps dropshippers and business owners thrive at every stage of the funnel—from generating awareness to driving conversions. She translates complex software features into clear, actionable insights, helping online retail brands connect with their audience and stand out in competitive markets.

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