Payments Glossary


An adjustment is an addition or deduction made to your payout outside the regular payment flow. For example, if you receive a dispute on a charge, then the chargeback fee would be included as an adjustment to your next payout. If you issue a refund to a customer, then the credit card fees for that transaction will be returned to you as an adjustment as well.


A chargeback occurs when one of your customers disputes a charge from your store to their bank. They might have one of several reasons for doing this — but the result is the same: you should dispute the chargeback or risk losing the sale and paying the chargeback fee. Unlike other payment providers, Shopify Payments gives you control over reviewing and disputing chargebacks right within the Shopify admin.

Chargeback Fee

The chargeback fee is debited along with the chargeback amount from your next payout, or deducted directly from your bank account. If you successfully overturn a chargeback, we will return your chargeback fee along with the full recovered chargeback amount.


A charge is the amount of money taken from a customer's credit card when they place an order on your store. A small transaction fee is subtracted from each charge. When you receive a payout, you get the amount of all charges minus the transaction fees.

Card rate

The rate and fee, determined by your Shopify plan, applied to each order accepted through Shopify Payments. The rate is a variable percentage that depends on your Shopify plan. The fee is a fixed charge per transaction on top of the rate. For example, 2.25% + $0.30 where the rate is 2.25% and the fee is $0.30.


If you're using Shopify Payments in Ireland, then 23% VAT (Value-Added Tax) will be collected along with the card rate.


This is an abbreviation for "Card Verification Code". It is the three (3) digit code on the back of your Visa, Mastercard, or Discover Card. For Amex cards, it is four (4) small digits on the front. The CVV helps identify the authorized cardholder. Also referred to as CVC, or CVV2.


A payout is a transfer of funds between Shopify and the bank account that you've added to Shopify Payments. The payout amount reflects the total value of your orders after transaction fees, refunds, and adjustments. A payout includes all the transactions for a single day, as well as any previous transactions that have not been completed. You receive payouts based on your pay period.


A refund is any amount that you return to a customer for an order they've placed. Any refunds you issue will be subtracted from your next payout. When you issue a refund for an order, the credit card fees for that order will be returned to you as an adjustment on your next payout.


A reserve is a part of your payout that's on hold, usually because of a high-risk order that might result in a chargeback. Reserves can be held for anywhere from 30 to 120 days. If a reserve gets canceled, then the reserved amount will be added to your next payout.

Want to discuss this page?

Visit the Shopify Community

Ready to start selling online with Shopify?

Try it free