Using Shopify Payments

Shopify Payments is the simplest way to accept payments online. It eliminates the hassle of setting up a third-party payment gateway, and merchant account, then entering the credentials into Shopify. Shopify Payments comes fully integrated with your store and includes a wide variety of functions that let you manage your entire business and financials in one place.

Note

Shopify Payments is available only to stores in the United States, Puerto Rico, Canada, the United Kingdom, and Australia. It is not available to US territories except Puerto Rico.

Pay periods

Your Shopify Payments pay period will vary depending on what country you're in.

United States and Australia

There is a delay of 3 calendar days between the date that an order is paid and the date that the money is deposited into your bank account.

United Kingdom

There is a delay of 4 business days between the date that an order is paid and the date that the money is deposited into your bank account.

Note

If you are the United Kingdom, you will now see "Earthport PLC Shopify" on your bank statement when the money is deposited into your bank account, instead of "Shopify".

Canada

There is a delay of 7 calendar days between the date that an order is paid and the date that the money is deposited into your bank account.

Payout schedule

Shopify Payments transfers funds to your bank account based on the payout schedule in your store's admin. To view your payout schedule:

  1. From your Shopify admin, click Settings, then click Payments (or press G S P).

  2. In the Accept payments section, find Shopify Payments and click View Payouts:

Using payout schedule

Your payout schedule is subject to change given the possibility of refunds.

Note

Banks typically take between 24-72 hours to process deposits to your bank account.

Pending payments

Within the payout schedule you can click to view your pending transactions — these represent the sales that you've made that haven't been deposited into your bank account yet.

Click your Pending balance amount to see the breakdown:

Using payout schedule pending

Here, you'll see a nice summary of each specific order that you haven't been paid out for just yet.

Using pending transactions

The Net column displays the amount that each order contributes to your payout: the Amount (Total sale of that order) minus (-) the Fee (processing fee of that order).

Your payouts

Using payout schedule view all

That brings you to an index of your individual payouts.

Using all payouts

By clicking any date or the last payout balance, you'll be directed to an overview of that payout, including a list of orders relevant to the payout and a breakdown of the charges, refunds, and adjustments. Here's what that will look like:

Using view payout

Failed payouts

Sometimes a payout will fail. Usually this is because there is an issue with the bank account that you have on file. Until the issue with your bank account is resolved, there will be a hold placed on all your pending payouts.

After you resolve the issue or update your bank account details to a valid checking account, you will receive the funds from the failed payout in your next scheduled payout.

If you are unsure why the payout failed, you should reach out to your bank to investigate the issue.

Error messages and notifications

When a payout fails, you will receive an email. You will also get a notification on the home page in the Shopify admin:

Failed payout notification

You can click the View failed payout button to go to the page for that payout. On that page there will be an error message that explains why the payout failed, and what you can do to resolve the issue:

Failed payout message

Depending on the issue that caused the payout to fail, you might see a link you can click to update your bank account details.

Some error messages will suggest that you contact your bank to resolve the issue, then retry the payout. After the issue is resolved, you can click the Retry payout button. If you retry the payout before the issue is resolved, the payout will fail again.

Costs of using Shopify Payments

Shopify Payments costs will vary based on your plan. You can tap into lower rates as you upgrade your subscription with Shopify. For a full list of pricing broken down by plan please navigate over to https://www.shopify.com/payments or https://www.shopify.com/pricing.

The pricing for Shopify Payments is all inclusive. There are no monthly fees, no hidden fees, and no setup fees beyond the regular subscription fees for your store's Shopify plan. There are no additional charges to accept American Express or international orders. When you're using Shopify Payments as your processor, any other subscription transaction fees are waived, putting money back in your wallet.

If you decide to change your plan at any time, your Shopify Payments card rate will be updated. When you activate Shopify Payments you will stop paying the subscription transaction fees listed at https://www.shopify.com/pricing. Likewise, if you're using Shopify Payments and switch to another payment processor, you will begin paying the subscription transaction fees to Shopify. These fees would be over and above the fees paid to your new third party payment processor.

The total fees for each payout and pending transaction will be displayed in the All payouts table. You can navigate there from the Dashboard and scroll down to click All payouts.

Note

Are you a Shopify POS user? The rates are slightly different - click here to learn more

When do I pay processing fees?

Traditionally, using any other payment gateway, you would pay your accumulated transaction fees every 30 days. With Shopify Payments the fees are deducted at the time the transaction is processed. If a refund is issued later on, we'll refund your fee as well.

To see the fee of any individual order, click to your Orders tab. Scroll down to the order history, where you can expand the transaction details by clicking here:

Using order history

Scroll down again to see the details of the processing fee collected on that order (it's displayed in cents, not dollars):

Using fee 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 and Australia have unique tax reporting requirements. You can find the information you need below.

United States

In the U.S., all merchants who process more than $20,000 and have more than 200 transactions are required to submit a 1099-K form to the IRS. This form is generated by Shopify Payments and provided to both the merchant and the IRS on an annual basis.

Australia

In Australia, all merchants 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 will include 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 will be generated on the 5th of the following month. For example, the invoice for June will be generated on July 5th. If you had no transactions with Shopify Payments for a certain month, then no invoice will be generated for that month.

To download an invoice:

  1. From your Shopify admin, click Settings, then click Payments (or press G S P).

  2. In the Shopify Payments section, click View Payouts:

    Click view payouts
  3. Click Documents:

    Click payouts documents
  4. On the Tax documents dialog, click Download PDF next to the invoice you want to download:

    Download invoice

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:

Export GST

To export your transactions:

  1. From your Shopify admin, click Settings, then click Payments (or press G S P).

  2. Click View Payouts.

  3. Click Transactions.

  4. Click Export. A CSV file will download in your browser.

  5. Open the CSV file in a spreadsheet editor.

  6. The last column of the CSV file displays the amount of GST collected on each transaction.

  7. Use the SUM tool to calculate the total amount of GST you've collected.

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