If you are running an online store on Shopify, understanding the payment system is very important. Payments are the heart of any eCommerce business. If customers cannot pay easily and securely, you will lose sales.
In this blog, we will explain everything about Shopify’s payment system and payment gateways in simple and easy words. Looking to scale your store faster? hire shopify developers to optimize your payment setup and checkout experience
1. What is the Shopify Payment System?
The F allows merchants to accept payments from customers through different methods like:
- Credit cards
- Debit cards
- UPI
- Net banking
- Digital wallets
- Buy Now, Pay Later (BNPL)
Shopify connects your store with payment providers so you can securely collect money from customers worldwide.
2. What is Shopify Payments?
Shopify Payments is Shopify’s built-in payment gateway.
It allows you to accept payments directly without using any third-party provider.
Key Benefits:
- No need for third-party payment setup
- Lower transaction fees
- Fully integrated with Shopify dashboard
- Fast payouts
- Fraud analysis included
Supported Payment Methods:
- Visa, Mastercard, American Express
- Apple Pay
- Google Pay
- Shop Pay
It is available in selected countries like:
- USA
- UK
- Canada
- Australia
- Some European countries
Note: Shopify Payments is not available in some countries like India. In that case, you must use third-party gateways.
3. What is a Payment Gateway?
A payment gateway is a service that processes online payments between customers and your bank.
It does three main things:
- Encrypts customer payment data
- Sends it to the bank for authorization
- Confirms payment success or failure
Without a payment gateway, online payments are not possible. Partner with a trusted shopify development company to integrate secure and high-performing payment gateways.
4. Third-Party Payment Gateways in Shopify
If Shopify Payments is not available in your country (like India), you can use third-party payment gateways.
Popular options include:
- Razorpay
- PayPal
- Stripe
- PayU
- CCAvenue
For Indian Shopify Stores
Since you are likely working in India, commonly used gateways are:
- Razorpay
- PayU
- CCAvenue
- Cashfree
These support:
- UPI
- Net Banking
- Debit/Credit Cards
- Wallets like Paytm
5. How Shopify Payment Flow Works
Here is the simple payment flow:
- Customer adds product to cart
- Goes to checkout
- Enters shipping details
- Selects payment method
- Payment gateway processes transaction
- Bank approves payment
- Order is created in Shopify
If payment fails → order is not confirmed.
6. Shopify Transaction Fees
Shopify charges two types of fees:
Shopify Subscription Fee
Depends on your plan:
- Basic
- Shopify
- Advanced
Transaction Fees
If using Shopify Payments → No extra Shopify transaction fee
If using third-party gateway → Shopify charges extra transaction fee (depends on plan)
Example (approximate):
- Basic Plan → 2% extra
- Shopify Plan → 1% extra
- Advanced Plan → 0.5% extra
Plus the gateway’s own processing fee.
7. Manual Payment Methods
Shopify also allows manual payments like:
- Cash on Delivery (COD)
- Bank Deposit
- Money Order
In this case:
- Payment is not processed automatically
- You must manually confirm payment
COD is very popular in India.
8. Multi-Currency & International Payments
Shopify supports:
- Multi-currency selling
- International cards
- Automatic currency conversion
If using Shopify Payments, customers can see prices in their local currency.
For international selling, you can also use:
- PayPal Express Checkout and Stripe (if supported)
9. Security & Fraud Protection
Shopify uses:
- SSL encryption
- PCI DSS compliance
- Fraud analysis tools
- 3D Secure authentication
This keeps customer data safe and secure.
10. How to Set Up Payment Gateway in Shopify
Follow these steps:
- Go to Shopify Admin
- Settings → Payments
- Choose:
- Activate Shopify Payments
OR - Add third-party provider
- Enter required business details
- Save and test payment
Always do a test transaction before going live..
11. Which Payment Gateway is Best?
It depends on:
- Your country
- Your target customers
- Transaction fees
- Settlement time
- Support quality
For India: Razorpay and PayU are commonly preferred.
For USA/UK: Shopify Payments is usually the best option.
12. Common Payment Issues in Shopify
Some common problems:
- Payment declined
- Gateway not activated
- Market not configured properly
- Currency mismatch
- Fraud detected
Always check:
- Market settings
- Product availability
- Gateway configuration
- Domain SSL
Conclusion
The Shopify payment system is flexible, secure and powerful.
If Shopify Payments is available in your country, it is usually the best and easiest option. If not, Shopify supports 100+ third-party gateways like Razorpay, PayPal, Stripe and PayU.
Choosing the right payment gateway improves:
- Customer trust
- Conversion rate
- Checkout experience
- Cash flow management
Need expert help? 👉 Contact us Today! and get your Shopify store payment-ready.