Shopify Payments for the United States

Merchants based in the United States can use Shopify Payments to accept credit cards and other popular payment methods.

Requirements for Shopify Payments

To use Shopify Payments, ensure that you can meet the following requirements.

Prohibited businesses

Some types of businesses and services are not permitted to use Shopify Payments. To see whether you can use Shopify Payments, check the list of prohibited business types for the United States.

More details can be found in the Shopify Payments Terms of Service (TOS).

Bank account requirements for Shopify Payments

Make sure that your bank account meets the following requirements before you connect it to Shopify Payments:

  • The bank account is a full checking account with a bank in the United States in USD currency.
  • The bank account is eligible for ACH transfers.

Checking accounts that are set up to accept only wire transfers don't work with Shopify Payments. Savings accounts, flex-currency accounts, virtual accounts, and money-transferring services that mimic bank accounts aren't supported by Shopify Payments.

To confirm that your account can accept the transfer type listed for your region, contact your bank.

Personal information requirements for Shopify Payments

In response to regulations in different countries, you're required to provide information about you and your business. The information is collected to help identify merchants using Shopify Payments, including the beneficial owners of a particular corporate entity. The purpose of collecting this information is to comply with regulatory requirements designed to prevent money laundering, terrorist financing, and other financial crimes.

As local rules and regulations evolve, Shopify and its partners might reach out to collect additional information about you and your business. These standard reviews can occur at anytime during the lifespan of your Shopify account.

The information that Shopify is required to collect differs from country to country, but typically includes documentation about the following:

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

Acceptable document types for individuals and businesses in the United States include the following.

Identity documents:

  • Passport
  • Passport card
  • Driver license
  • State-issued ID card
  • Resident permit ID / U.S. Green card
  • Border crossing card
  • NYC card
  • U.S. visa card
  • Birth certificate

Company/entity documents:

  • IRS Letter 147C
  • IRS SS-4 confirmation letter

Accepting payments

In most countries, when your business is a sole proprietorship you're automatically set up to accept all major payment methods as soon as you create your Shopify store with Shopify Payments activated. Your card rate is based on your store's Shopify subscription plan, and you can change plans whenever you want.

Businesses in the United States can accept Visa, Mastercard, American Express, Discover, and Diners Club debit and credit cards. Additionally, accepting Discover automatically allows acceptance of Elo, JCB, and UnionPay.

Businesses in the United States can also accept payments using Bancontact, and iDEAL.

Pay periods

Your pay period refers to the amount of time between the date that a customer's payment is captured and the date that those funds are sent to your bank account. The date and time that a customer's payment is captured is recorded in UTC time. Funds from payments that are captured on Friday, Saturday, and Sunday are grouped and sent together as one payment.

In the United States, the pay period is 2 business days.

Learn more about to getting paid with Shopify Payments.

Tax reporting

As a merchant, you're required to follow 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. It's your responsibility to consult with local tax authorities or a tax professional to verify the regulations that apply to you.

In the United States, your payment settlement entity is required to file a 1099-K form to the IRS if you meet any of the following criteria:

  • For calendar years prior to 2022: You receive more than 20,000 USD in gross payments and have more than 200 transactions.
  • For calendar year 2022 and later: You receive more than 600 USD in gross payments and have any number of transactions.
  • You meet your state's individual thresholds.

Shopify is required to submit a 1099-K form to the IRS for your transactions that are processed through Shopify Payments, and you are required to report these values when you file your income taxes. This form is generated by Shopify Payments and it is provided both to you and to the IRS on an annual basis. Only store owners can access information that is related to the 1099-K form.

The form that you receive from Shopify only accounts for transactions that have been processed by Shopify Payments. Transactions that have been processed by other gateways, such as PayPal, are accounted for on a separate form provided by that gateway.

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

Learn more about the 1099-K form on the official website of the IRS.

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

If you need to refer to a list of transactions that will be accounted for in your 1099-K form, then store owners can download them in CSV format.

  1. In the Shopify Payments section, click View payouts.
  2. Click Transactions.
  3. Click Export.
  4. Select 1099-K Transactions.
  5. Choose the date range of transactions to download.
  6. Click Export items.

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