Configuring Shopify Payments

Set up notifications and fraud prevention

To set up notifications and fraud prevention for Shopify Payments:

  1. In the Shopify Payments section, click Edit:

    The Edit button for Shopify Payments
  2. Select the notification and fraud prevention setting that you want:

    The checkboxes for Notifications and Fraud prevention
  3. Click Save.

Here’s the information you need to decide whether you want the boxes checked off or not:

Notifications

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

Fraud prevention

Shopify Payments can do enhanced fraud analysis checks to let you know if an order is potentially fradulent. 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 to the information on file with the credit card issuer. This helps reduce a significant amount of fraud, because unauthorized users might not have the billing address information for the credit card they’ve stolen.

Card Verification Value (CVV)

The CVV is a 3 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.

Edit bank account information

If you change banks, or need to update your bank account details for some reason, you can do this easily from within the Shopify Payments settings. You can't use prepaid bank cards as bank account credentials to receive payouts from Shopify Payments.

  1. In the Shopify Payments section, click Edit:

    The Edit button for Shopify Payments
  2. In the Bank account box, click edit:

    The edit link for the bank account you use for Shopify Payments
  3. Enter your bank account information.

  4. Click Save.

Caution

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

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 putting the name of your store, so 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.

  1. In the Shopify Payments section, click Edit:

    The Edit button for Shopify Payments
  2. Under the "Customer billing statement" box, click edit:

    The edit link for the bank account you use for Shopify Payments
  3. Enter the billing statement and your phone number.

  4. 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'll have to update it. When you're required to update your tax details, you'll receive an email from Shopify and a notification will appear on the home page of your Shopify admin.

To update your tax details:

  1. In the Shopify Payments section, click Edit:

    The Edit button for Shopify Payments
  2. Click Update business details:

    The Update business details link
  3. In the Tax details dialog, enter your tax information.

  4. Click Save.

After your tax details are verified, you can use your Shopify Payments account again.

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 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.

Account 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 the ... button to expand the sub-menu, and select Documents.
    The View payouts button for Shopify Payments
  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 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. In the Shopify Payments section, click View payouts:

    The View payouts button for Shopify Payments
  2. Click the ... button to expand the sub-menu, and select Documents.

  3. On the Tax documents dialog, click Download PDF next to the invoice 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:

Export GST

To export your transactions:

  1. In the Shopify Payments section, click the View payouts button:

    The View payouts button for Shopify Payments
  2. Click Transactions.

  3. Click Export. A CSV file will download 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 you've collected.

Verify your identity

After you have made a significant number of sales using Shopify Payments, you'll need to verify your identity through the Payments page in your Shopify admin. You can verify your identity by submitting a government-issued photo ID or your SIN.

When you're required to submit a photo ID, you'll receive an email from Shopify and a notification will appear on the home page of your Shopify admin.

Until you verify your identity, you won't be able to use your Shopify Payments account. If the photo ID that you submit cannot be verified, then you'll need to resubmit it.

To submit your photo ID:

  1. In the Shopify Payments section, click Edit:

    The Edit button for Shopify Payments
  2. Click Submit photo ID:

    The Submit photo ID link
  3. In the Submit photo ID dialog, click Choose file.

  4. Select a picture of a photo ID from your device.

  5. Click Submit.

After your photo ID is verified, you can use your Shopify Payments account again.

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