You spend months building a sleek digital platform. Your traffic spikes. But when it’s time to set up payments, confusion sets in. Too many conflicting articles, outdated forums, and myths flood your search results. This often delays critical decisions, which can affect your customer experience and revenue.
Especially when it comes to the payment gateway in Shopify, misinformation runs deep. Despite Shopify Payments powering millions of e-commerce businesses worldwide, many businesses hesitate to leverage it fully. Why? Because a few persistent myths continue to circulate, making it harder for business leaders to separate facts from fiction.
In this blog, we debunk the top five myths about the Shopify payment gateway. You’ll discover facts, insights, and practical advice tailored to fast-scaling businesses . If you’re a digital platform looking to elevate your payment strategy, this is your blueprint for navigating Shopify Payments with confidence.
Let’s clear the fog, one myth at a time.
Understanding Shopify Payments
Before busting myths, you need to understand what Shopify Payments really is. At its core, it’s Shopify’s built-in payment system that helps simplify transactions by removing third-party hurdles. You can accept major debit and credit cards directly, without relying on external integrations.
How Shopify Payments functions:
- Acts as an in-house gateway embedded into the Shopify platform.
- Supports seamless transactions with major card networks like Visa, Mastercard, and American Express.
- Provides a single dashboard where you can oversee orders, track payments, and manage payouts effortlessly.
Supported countries and currencies:
- Available in major markets such as the United States, United Kingdom, Australia, Canada, and several European countries.
- Businesses must be based in an eligible country and accept supported currencies.
- Local requirements like tax registrations may apply depending on your region.
Eligibility criteria:
- Businesses must align with Shopify’s terms of service and not sell prohibited items.
- Bank accounts must match the currency and country of operations.
- Certain industries may face additional verification steps.
Comparison with third-party payment providers:
- Choosing Shopify Payments helps you avoid additional transaction charges, which could be as high as 2% with external gateways.
- Settlements are faster since everything stays within Shopify’s ecosystem.
- Third-party providers may offer niche features, but often at the cost of additional complexity and higher fees.
Choosing the right Shopify payment gateway sets the stage for efficient scaling. Understanding these fundamentals helps you avoid costly assumptions.
Why Shopify Payments often gets misunderstood
Despite its simplicity, Shopify Payments is often misunderstood, mainly due to scattered and outdated information.
Common reasons for confusion:
- Legacy articles spread incorrect details about transaction fees and settlement delays.
- Technical jargon like “authorisation hold“, “chargeback fees”, or “payout schedule” intimidate non-technical teams.
- Businesses expect third-party flexibility, but Shopify optimises integration over customisation.
How Shopify’s built-in system differs:
- Unlike traditional setups where you install external gateways, Shopify Payments is pre-configured.
- Payment data flows directly into Shopify’s admin, removing the need for extra reconciliation tools.
- Customer checkout remains fully branded, providing a smoother and faster experience.
Misinterpreted limitations:
- Eligibility: Shopify Payments has restrictions, but they mostly concern highly regulated industries, such as CBD or gaming.
- Fees: While card processing fees apply (standard in all gateways), Shopify waives additional transaction fees if you stick to their system.
- Currency handling: Some assume they can transact in any currency instantly, but payouts are based on your store’s country currency.
With a clear understanding, it’s easy to see that Shopify Payments is built for speed, simplicity, and lower operating costs. By addressing these misconceptions, you’ll unlock the true potential of the payment gateway in Shopify.
The truth about using Shopify Payments
Even leading e-commerce platforms sometimes get misled by widespread myths about Shopify Payments. It’s easy to see why: payment systems are complex, and misinformation travels fast. But when it comes to the payment gateway in Shopify, clarity leads to better decision-making.
Let’s dive into the five most common myths and uncover the real story behind Shopify Payments.
Myth #1: Shopify Payments has high hidden fees
Many businesses worry about surprise costs. The truth? Shopify Payments follows a transparent pricing model.
- Standard card rates apply, similar to other global gateways.
- When you exclusively use the Shopify payment gateway, you eliminate extra transaction fees entirely.
- You get predictable costs without separate third-party gateway fees, which can save up to 2% per transaction.
This model allows you to forecast operational expenses better, manage profit margins tightly, and simplify reconciliations.
Myth #2: You must use Shopify Payments
You are not locked into one choice. Shopify offers flexibility because every business has unique needs.
- You also have the option to integrate third-party solutions like Pine Labs, PayPal, Stripe, Razorpay, and more.
- However, additional transaction fees apply (typically 0.5% to 2%), which increase operational costs.
- For businesses operating across multiple geographies, Shopify also supports multiple gateway integrations.
By combining Shopify Payments with external gateways, you give customers greater flexibility in payment methods. Simply put, Shopify Payments is highly recommended for its convenience, but it’s up to you to decide whether to adopt it.
Myth #3: It only supports local currency
In today’s cross-border e-commerce boom, limiting currency support could be fatal. Thankfully, that’s another outdated misconception.
- Shopify Payments natively supports over 130 currencies.
- Customers can make purchases in their local currency, while you still receive payouts in your selected home currency.
- Automatic currency conversion happens at competitive rates, ensuring minimal friction for international buyers.
With the Shopify payment gateway, you can unlock global opportunities without spending time on complex custom setups. If expanding your reach is a key goal, Shopify’s payment gateway has the capabilities you need.
Myth #4: You can’t use it outside the U.S.
When Shopify Payments first launched, coverage was limited. Today, the picture is vastly different.
- Shopify Payments is now available in over 23 countries, including the UK, Australia, Japan, Singapore, and several European countries.
- Shopify is actively expanding coverage every year to new regions.
- Localised features, such as regional tax handling, are also integrated automatically.
For example, e-commerce platforms based in India can now access Shopify Payments with RuPay, UPI, and local debit card support through partners like Pine Labs Online. This eliminates one of the biggest pain points—region-specific payment compatibility.
If your platform operates across markets, the Shopify payment gateway offers a scalable, region-ready foundation.
Myth #5: Switching to Shopify Payments is complicated
Switching payment gateways often sounds overwhelming. But Shopify removes the typical technical roadblocks.
- Setup can be completed within minutes through your Shopify Admin.
- Basic information like banking details, tax IDs, and a few compliance documents are all that’s required.
- No API coding or complex reconfigurations are needed.
Once activated, payouts, order management, chargebacks, and customer support flow through a single dashboard, saving hours of operational hassle every week. This integrated approach reduces payment disputes for platforms migrating to Shopify Payments, thanks to built-in fraud detection and unified security protocols.
| Myth | Reality | Benefit |
| Shopify Payments has high hidden fees | Transparent pricing with fewer third-party charges | Lower operational costs |
| You must use Shopify Payments | You can still use third-party payment gateways | Increased flexibility and customisation |
| It only supports local currency | Built-in multi-currency support | Broader global reach and higher conversions |
| You can’t use Shopify Payments outside the U.S. | Available in multiple countries and expanding constantly | Easier global expansion and scaling |
| Switching to Shopify Payments is complicated | Quick setup with minimal technical skills required | Faster onboarding and time savings |
Wrapping up!
The digital landscape is evolving fast, and myths should not hold your platform back. Through this journey, you’ve seen common misconceptions about Shopify Payments—from fears of hidden fees to confusion about global support.
The reality is far more empowering. With transparent pricing, multi-currency capabilities, and an easy setup, the payment gateway in Shopify offers everything needed to help your platform scale.
Making informed decisions gives you an undeniable edge in a competitive market. Focus on facts, not fears. Unlock the power of Shopify Payments and scale with confidence today.
Want more such insights? Contact us today!