Requirements when using Shopify Payments for Canada

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

You're required to upload documents to verify the information that you provide.

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 Automated Clearing House (ACH) transfers.
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 that business. Ensure that your documentation is clear, correct, up-to-date, and free of errors.

Purpose of collecting personal information

The collection of information is necessary to identify individuals and businesses 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. You can find further guidance on the information you need to provide.

Shopify Payments for Canada uses Stripe as a payment processor. Stripe is a regulated Money Service Business and must fulfill specific collection and verification obligations as required by the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) and associated regulations in Canada.

Required information

The 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.
The directors of the business

Acceptable document types

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

Identity documents

When you submit your address documents, they must include your full legal name, the personal address that you add to your Shopify Payments profile, and the document must be within date. If you use a document to verify your identity, then you can't use the same document to verify your address.

The following are the accepted identity documents when using Shopify Payments in Canada:

Passport (this is the preferred identity document)
Driver's license (photographs of the front and back are required)
Permanent resident card
Provincial or territorial photo identity card (photographs of the front and back are required)
Certificate of Indian Status card

When available, you can also confirm your identity by uploading a selfie with a valid photo ID.

Address documents

When submitting address documents, they must include your full legal name, the personal address that you add to your Shopify Payments profile, and be within date. If a document is used to verify your identity, then you can't use the same document to verify your address.

The following are the accepted company or entity documents when using Shopify Payments in Canada:

Driver's license (photographs of the front and back are required)
Provincial or territorial photo identity card (photographs of the front and back are required)
Utility bill (must be dated in the past 6 months)
Investment account statement (must be dated in the past 6 months)
Property tax statement (must be dated in the past 6 months)
Insurance documents (must be dated in the past 6 months)
Bank statement (must be dated in the past 6 months)

Business documents

To verify your company or entity details, you need to submit a government issued document which clearly displays your legal entity name, and business address. The following are some examples of the documents typically used:

Valid letters or documents from a municipal, provincial, territorial or federal government.
Canadian Revenue Agency Notice of Assessment or Re-Assessment. These documents must be dated within the past 12 months.
Federally-issued Corporate Profile Reports
Partnership registration or agreements

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
Document issued by the Canada Revenue Agency confirming registration status

Directorship documents

To verify the directorship of your business or entity, you need to submit a government issued document which displays your legal entity name and the names of all of your Directors. The following are some examples of the documents typically used:

Valid letters or documents from a municipal, provincial, territorial, or federal government
Federally Issued Corporate Profile Reports
Articles of Incorporation, such as Form 1
Notice of Change of Directors, such as Form 6, Form 4006, or Form 3006

Some provincial governments provide corporate summary documentation that is specific to that region. When submitting these documents, you must ensure they display the business name and director names. The following are some examples of province-specific documents:

Ontario Profile Report
Quebec Enterprise Register Documents
British Columbia Company Summary
Alberta Corporate Registration Documents

For non-profit organizations and registered charities you might be required to submit the following documentation:

Board meeting minutes/resolutions. These documents must be dated within 12 months.
Board resolutions for Account Opening.

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. Do not crop, redact or edit your document.
Consistency: Ensure that the information on your documents matches the information provided during the account setup process.
Currency: Upload documents that are 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

You 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.