Bank account and personal information requirements for Shopify Payments in the United States

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

Overview of requirements for Shopify Payments in the United States

Some types of businesses and services aren't 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.

Banking requirements for Shopify Payments

Shopify Payments payouts can be sent to a Shopify Balance account or an eligible external account. If you use an external account, then 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 Automated Clearing House (ACH) transfers.

Checking accounts that are set up to accept only wire transfers don't work with Shopify Payments. Savings accounts, flex-currency accounts, and money-transferring services that mimic bank accounts aren't supported by Shopify Payments. Although non-Shopify virtual accounts are supported, you might experience more payout failures with these accounts.

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

Using a Shopify Balance account

Eligible merchants receive a Shopify Balance account, spending card, and payouts as fast as the next day when activating Shopify Payments. You can change your payout account at any time.

Two-step authentication requirements for Shopify Payments

To receive your payouts from Shopify Payments, you need to set up two-step authentication for your Shopify account. If you don't have two-step authentication active, then your payouts might be placed on hold.

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 contact you to collect additional information about you and your business. These standard reviews can occur at any time during the lifespan of your Shopify Payments account.

The information that Shopify has to collect differs from country to country, but typically includes details about the following people and organizations that are involved:

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

To help the verification process, when providing documents as evidence, ensure that your documentation:

is clear and large enough to read
is correct and valid
is up-to-date with the most recent date possible
is complete with all details visible
is free of any errors or typos
matches the information provided

For more information, refer to the full document requirements for identity and address verification and business verification.

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

Company/entity documents:

IRS Letter 147C
IRS SS-4 confirmation letter

Your Shopify Payments information is verified based on IRS records. When you set up Shopify Payments for your business, you must enter your Employer Identification Number (EIN) and business name, owner name, or organization name exactly as it's registered on your IRS CP575 notice or Letter 147C. This is the same name that you enter on your IRS W-9 form.

After your Shopify Payments account is set up, you can't manually change your EIN. To update your EIN, you must contact Shopify Support.

If you're unsure about these details, then you need to verify them with the IRS, or consult a tax professional.

Customer statement name compliance for Shopify Payments in the United States

If you use Shopify Payments, then your customer statement name must be between 5 and 19 characters in length, and it must include your shop name, legal entity name, "Doing Business As" name, or URL. If you don't edit your customer statement name on setup, Shopify sets one for you that complies with these requirements.

If you choose to edit your customer statement name, and it's deemed insufficient, then Shopify updates the statement name on your behalf to meet the character requirements, and this reflects your shop name, legal entity name, "Doing Business As" name, or URL. You receive an email to notify you of the change. This is intended to help you avoid payout or charge holds related to an invalid customer statement name.

You can update your customer statement name at any time, regardless of whether or not it's been automatically set by Shopify as described above.

Learn more about changing your customer billing statement.