Configuring Shopify Payments

Set up payout notifications

By default, Shopify sends you an email whenever a payout is sent to your bank account. The email includes the amount paid and a link to the payout in your store, so you can review the included order and customer details. You can turn these emails on or off in your Shopify Payments settings.

Steps:

  1. In the Shopify Payments section, click Manage.
  2. Under Payout schedule in the Payout details section, check or uncheck Enable notifications.
  3. Click Save.

Set up fraud prevention

Shopify Payments can do enhanced fraud analysis checks to let you know if an order is potentially fraudulent. Shopify Payments has two fraud filters that you can choose to enable, AVS and CVV:

  • Address Verification System (AVS) - AVS compares the numeric part of the customer’s billing address and zip code or postal code to the information on file with the credit card issuer. This helps reduce a significant amount of fraud, because unauthorized users often don't have the correct billing address.

  • Card Verification Value (CVV) - The CVV is a 3-digit or 4-digit number on the back of the customer’s credit card. Credit card companies prohibit the storage of the CVV code, so asking for the CVV is a way of ensuring that a customer has the card physically in their possession. Credit card information stolen from a merchant database is also less useable, because it shouldn't contain CVV information.

Steps:

  1. In the Shopify Payments section, click Manage.
  2. In the Fraud prevention section, check the options that you want to use to automatically decline charges.
  3. Click Save.

Edit bank account information

If you change banks or if your bank account details change, then you can update the information in your Shopify Payments settings.

You can't use prepaid bank cards as bank account credentials to receive payouts from Shopify Payments.

Steps:

  1. In the Shopify Payments section, click Manage.
  2. Under Payout bank account in the Payout details section, click Change bank account.
  3. Enter your bank account information, then click Save.

Edit customer billing statement

You can change the statement that appears on your customer's credit card bill when they make a purchase on your store. Consider adding the name of your store, so that your customers know what the credit card charge was for. You can also add your phone number so that customers can call you if there is a problem.

Steps:

  1. In the Shopify Payments section, click Manage.
  2. In the Customer billing statement section, enter a customer statement descriptor and your phone number, and then click Save.

Update your tax details

When you set up Shopify Payments, you need to enter your tax details. All businesses need to submit a tax ID. If you are a sole proprietor and don't have a tax ID, then you can submit your Social Insurance Number (SIN) or the last four digits of your Social Security Number (SSN) instead.

If the tax ID that you submit is not valid, then you have to update it. When you're required to update your tax details, you receive an email from Shopify and a notification appears on the home page of your Shopify admin.

As of June 24, 2019, you need to contact Shopify Support to update your tax details.

Tax reporting

As a merchant, you are required to abide by all applicable regulations, including tax reporting. Depending on your jurisdiction, Shopify Payments might also be required to report your sales to the local tax authorities.

The United States, Australia, and Europe have unique tax reporting requirements.

United States

In the United States, if you process more than $20,000 and have more than 200 transactions, then you are required to submit a 1099-K form to the IRS. This form is generated by Shopify Payments and provided to both you and the IRS on an annual basis.

Store owners can download a copy of the 1099-K in the payments section of the Shopify admin:

  1. In the Shopify Payments section, click View payouts.
  2. Click Documents.
  3. Click Download PDF next to the 1099-K tax form.

Australia

In Australia, you need to file the amount of GST paid on transaction fees with the government. To get this information, you can either download a generated invoice, or export a file with your transaction information.

Download a generated invoice

You can download monthly invoices to submit with your tax claim. Each invoice includes the total GST paid on transaction fees for all orders made in your store that month. This feature uses the UTC timezone, which might be different from your store's timezone. If you want a report that uses your store's timezone, then you can export a list of your store's transactions as a CSV file.

The invoice for each month is generated on the 5th of the following month. For example, the invoice for June is generated on July 5th. If you had no transactions with Shopify Payments for a certain month, then no invoice is generated for that month.

Steps:

  1. In the Shopify Payments section, click View payouts.
  2. Click Documents.
  3. On the Tax documents dialog, click Download PDF next to the invoice that you want to download.

You can now submit this invoice with your tax claims.

Export transactions

You can export a list of your store's transactions as a CSV file. It includes a GST column for Australian merchants.

Steps:

  1. In the Shopify Payments section, click the View payouts button.
  2. Click Transactions.
  3. Click Export. A CSV file downloads in your browser.
  4. Open the CSV file in a spreadsheet editor.
  5. The last column of the CSV file displays the amount of GST collected on each transaction.
  6. Use the SUM tool to calculate the total amount of GST that you've collected.

Europe

Shopify Payments fees do not include Value-Added Tax (VAT) for stores in Europe with the exception of Ireland. You may need to account for VAT at the local applicable tax rate on your VAT return. To get this information, you can either download a generated invoice, or export a file with your transaction information.

For stores in Ireland, 23% VAT is charged in addition to the Shopify Payments fees.

Download a generated invoice

You can download monthly invoices to submit with your tax claim. Each invoice includes the total VAT paid on transaction fees for all orders made in your store that month. This feature uses the UTC timezone, which might be different from your store's timezone. If you want a report that uses your store's timezone, then you can export a list of your store's transactions as a CSV file.

The invoice for each month is generated on the 5th of the following month. For example, the invoice for June is generated on July 5th. If you had no transactions with Shopify Payments for a certain month, then no invoice is generated for that month.

Steps:

  1. In the Shopify Payments section, click View payouts.
  2. Click Documents.
  3. On the Tax documents dialog, click Download PDF next to the invoice that you want to download.

You can now submit this invoice with your tax claims.

Export transactions

You can export a list of your store's transactions as a CSV file. It includes a VAT column for European merchants.

Steps:

To export your transactions:

  1. In the Shopify Payments section, click View payouts.
  2. Click Transactions.
  3. Click Export. A CSV file downloads in your browser.
  4. Open the CSV file in a spreadsheet editor.
  5. The last column of the CSV file displays the amount of VAT collected on each transaction.
  6. Use the SUM tool to calculate the total amount of VAT that you've collected.

Verify your identity

At any time, Shopify and its banking partners might ask you to verify your identity. In most cases, this requires you to submit a picture of a piece of government-issued photo identification, along with any required supporting business documentation.

If any verification is required for your business, then the account owner can upload the required documents from a banner that appears in your Shopify Home page. During verification, your payouts might be placed on hold until your identity is verified, but usually your store remains open and customers can usually still buy your products.

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