Shopify Payments requirements for Canada

Before you can use Shopify Payments in Canada, you need to understand the personal information requirements. These requirements are in place to comply with regulations and prevent financial crimes. In this article, you can find the purpose of collecting personal information, the types of documents accepted, and guidance on ensuring that your documentation meets the necessary criteria.

Overview of requirements for Shopify Payments in Canada

Before you can use Shopify Payments in Canada, you must ensure that you meet following requirements:

Eligible business types: Certain types of businesses and services aren't permitted to use Shopify Payments. To determine whether your business is eligible, refer to the list of prohibited business types for Canada, that's outlined in the Shopify Payments Terms of Service (TOS).
Bank Account Requirements: Your bank account must meet the following requirements before you can connect it to Shopify Payments:
- The bank account is a checking account with a bank in Canada.
- If your payout currency is CAD, then the bank account must be in CAD currency.
- If your payout currency is USD, then the bank account must be in USD currency and be with a Canadian or American financial institution.
- The bank account is eligible for ACH transfers.
Personal Information requirements: To comply with regulatory requirements and prevent financial crimes, you must provide information about yourself and your business. This includes details about the individual creating the Shopify Payments account, the associated business, and the individuals who own or control the business. Ensure that your documentation is clear, correct, up-to-date, and free of errors or typos.

Purpose of collecting personal information

The collection of personal information is necessary to identify merchants using Shopify Payments and to comply with regulatory requirements. This helps prevent money laundering, terrorist financing, and other financial crimes. As regulations evolve, Shopify and its partners might request additional information from you to ensure compliance. These reviews can happen at any time during the lifespan of your Shopify Payments account.

Required information

The personal information that Shopify is required to collect varies from country to country. In the case of Canada, the following details are typically required:

The individual creating the Shopify Payments account.
The business associated with the Shopify Payments account.
The individuals who ultimately own or control the business, including the business owner or a senior executive with legal signing authority.

Acceptable document types

To help with the verification process, you need to provide certain documents to validate your personal information and in some cases your business information. The following document types are acceptable for individuals and businesses in Canada.

Identity documents

Passport: this is the preferred identity document, when available
Driver licence: scans of front and back are required
Permanent resident card
Provincial or territorial photo identity card: scans of front and back are required
Certificate of Indian Status card

Address documents

Driver licence: scans of front and back are required
Provincial or territorial photo identity card: scans of front and back are required
Bank statement
Utility bill
Investment account statement
Property tax statement
Insurance Documents

Company/entity documents

All legal entity types might be required to submit the following documents:

Corporate profile report
Certificate of active corporate status
Published annual report signed by an audit firm
Letter or notice of assessment from a municipal, provincial, territorial or federal government

For partnerships, you might be required to submit the following documentation:

Partnership agreement
Partnership registration
Articles of association
Business licence

For non-profit organisations, you might be required to submit the following documentation:

Articles of association
Business licence
Signed resolution confirming organisational level authorisation

For registered charities, you might be required to submit the following documentation:

Notice of charity registration issued by the Canadian Revenue Agency
Charity Information Return (Form T3010)
Registered Charity Basic Information report
Official Donations Receipts
Document issued by the Canada Revenue Agency confirming registration status.

Relationship documentation

For directorship verification, you might be required to submit the following documentation:

Corporate Profile Report: this is the preferred form of documentation
Certificate of active corporate status
Published annual report signed by audit firm: dated within 12 months
Letter or notice of assessment from a municipal, provincial, territorial or federal government.

For directorship verification for non-profit organisations you might be required to submit the following documentation:

Articles of association
Signed resolution confirming organisational level authorisation
Business licence.

Ensuring documentation compliance

When providing your documents, you need to ensure that they meet the necessary criteria. Use the following guidelines to ensure compliance:

Accuracy and validity: Ensure that the information on your documents is correct and valid.
Clarity and legibility: Make sure that your documents are clear and large enough to read.
Completeness: Provide all necessary details and ensure that all information is visible. If a document has been cropped, then ensure all important information remains visible in the frame.
Consistency: Ensure that the information on your documents matches the information provided during the account setup process.
Currency: Keep your documents up-to-date with the most recent data possible.
Error-free: Double-check your documents for any errors or typos
Avoid Copies: Submit original photographs of your documents whenever possible, and avoid scanning or copying them. If your documents were digitally issued, then submit the original, unaltered PDF.

Tax Reporting

As a merchant, must 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.