How to Set Up Shopify Payments and Best Payment Gateway in 2024?

One of the steps that play an essential role is payment gateways to complete the customer checkout process. But, you are considering which ones will suit your store from hundreds of payment providers. So, we are here to give a hand to merchants selling on the Shopify eCommerce platform. The following article provides the most up-to-date information about Shopify Payments, such:

• • What is it & how does it work?

• • How to set up Shopify Payments?

• • Shopify Payments requirements

• • Benefits of using Shopify Payments

• • What is the best payment method for Shopify?

What are Shopify Payments?

Shopify Payments is an integrated payment gateway on the Shopify eCommerce platform. It allows customers to check out in person or online without going through a third-party provider. So, the payment processing will take place directly on the sales website without redirecting or sending external payment information. With high security, all personal information, as well as payment details, are protected.

How do Shopify Payments Work?

We have just discovered the definition of Shopify Payments; let’s look at how it works.

When the customers finish shopping on your Shopify store and add products to their cart, they will go to the checkout page. There, they can select one of the payment options that you have integrated into your site. Then, the payment gateway will collect the customer’s card information to transfer money to the merchant account. If there are no obstacles in the payment process, your customer’s order has been completed and comes to the next stage.

What is Shopify Payments Fee?

Shopify has a payment gateway that was already integrated with your website store. So, if you use the Shopify Payment gateway, it has no monthly fees or setup fees. Therefore, you will not pay an extra fee for each transaction. The price you need to pay is the Shopify plan, and there are three common plans.

However, this payment gateway is not supported by some countries and regions. Therefore, the merchants have to integrate with the third payment providers, and they will be charged an additional fee for every transaction.

When connecting with the third payment provider, you need to pay two types of fees. The specific rates are based on your Shopify plan and how your customer pays for their order. The chart below will show you the detailed costs.

Accepted payment methods

All payment gateways are built with the basic features of use. So, it will help your store meet the payment need from scratch and secure the customer data. Your customer can pay for their order in two ways, such as credit card and debit card.

How do I accept payments on Shopify?

During the payment process, the money that the customer paid for their order has not been directly transferred to the merchant account. As a rule, to receive the money, the Shopify Payments account needs to be completed within 21 business days after the first sale transaction. Otherwise, the payments will be automatically refunded to the customer’s account.

Set Up Shopify Store Currency

Before setting up the Payments, the store owners need to set up the store currency that will show up on your product’s price. Shopify will process payments and transfer money to the store’s original account in this currency.

However, the currency can be changed in the course of business according to the wishes of the store owner. Store owners in some countries can also sell and receive payments in currencies other than the one you initially set up.

How to set up Shopify Payments?

Set up Shopify Payments for Desktop

Step 1: From the Shopify Admin, select Settings > Payments.

There are two ways to enable Shopify Payments:

• • Your store has not yet set up a payment gateway: Click Complete account setup in the Shopify Payments section.

• • Your store uses a payment gateway from an external service provider: Select Activate Shopify Payments in the Shopify Payments menu, then Activate Shopify Payments in the dialog.

Step 2: Enter the required information when using Shopify Payments, and select Save to complete the setup process.

Set up Shopify Payments for IOS/Android

Step 1: From the Shopify Admin, select Store > Settings.

Step 2: At Store settings, choose Payments.

Step 3: Enable Shopify Payments:

• • Your store has not set up a payment gateway: Click Complete account setup in the Shopify Payments section.

• • Your store uses a payment gateway from an external service provider: Select Activate Shopify Payments in the Shopify Payments menu, then Activate Shopify Payments in the dialog.

Step 4: Enter the required information when using Shopify Payments, and select Save to complete the setup process.

Shopify Payments requirements

Transaction Fees

The fees you will pay for Shopify for each completed transaction. Depending on the payment option your customers select, there are different fees. There is no extra charge for Shopify Payment Gateway, but you must pay the fee if they choose another gateway. The rate cost is based on your Shopify Plan, specifically:

• • Basic Shopify – 2% per transaction

• • Shopify – 1% per transaction

• • Advanced Shopify – 0.5% per transaction

AcceptPayment Cards

To receive money from customers, your bank account needs to meet the following requirements:

• • The full checking account or a current account in the UK and Ireland.

• • The currency of your region.

• • Your bank account can accept electronic bank transfers.

Furthermore, each region where the Shopify Payment Gateway is available as local requirements. Your store needs to set up a checking account for the third-party payment gateway to accept the electronic bank transfer and then contact your bank.

Worldwide Availability

Shopify Payment is only available in some countries and regions, such as Australia, Austria, Belgium, Canada, Denmark, Hong Kong SAR, Ireland, Italy, Japan, Netherlands, Singapore, Spain, Sweden, UK & US. If your store operates in the countries listed above, you will receive Shopify Support when you have any problem related to the payment process. 

But it doesn’t mean you must stop selling on Shopify because they accept third-party payment gateways in other countries and regions. However, setting up the payment gateway from a third party is challenging due to the data format… The payment data and customer information are not integrated into different channels. So, it would help if you have an integrated solution for this obstacle to run your business effectively. 

Beehexa launched HexaSync – an integration platform to help your store connect the data from different sale channels. On the other hand, this system can help you integrate other systems into your store to improve the influence. 

Prohibited Business

As a Terms of Service, several types of businesses and services are not supported to use the payment gateways. There is an important thing, so you should double-check before selling. Also, depending on your country and the region, there are different rules such as Payment Service, Customer Service, Tax, Security, Privacy of merchants and customers, and Payment Network Rules, … 

Besides, Shopify has automatic reminders to send you an email, a message, or a call about your Shopify Payments Account, if you accidentally violate one of these terms. Your answering machine or voicemail may record the message, and you may be charged a fee when you receive a call.