Setting up an online store involves many decisions. One of the most important is how you will accept money from your customers. If you are using Shopify, you have likely heard about Shopify Payments. It’s the platform’s own payment processor, designed to make getting paid simple. But is it the right choice for your business as we look toward 2026?

This guide will walk you through everything about Shopify Payments. We will explore its features, transaction fees, benefits, and potential drawbacks. By the end, you will have a clear picture to help you decide if it fits your business goals.

What is Shopify Payments?

Shopify Payments is the integrated payment gateway for the Shopify platform. Instead of connecting a third party provider like Stripe or PayPal, you can manage everything directly from your Shopify dashboard. When a customer buys something from your store, the payment is processed through Shopify Payments and the funds are deposited into your bank account.

Think of it as the express lane for your online store’s finances. It simplifies the entire process, from checkout to payout. This integration is a big reason many merchants choose it. You avoid the headache of managing multiple accounts and logins.

For example, a new t shirt business can set up their store and start accepting credit card payments almost instantly. They do not need to apply for a separate merchant account, which can often take days or even weeks.

How Shopify Payments Works

The system is designed for ease of use. Once you set up your Shopify store, you can activate Shopify Payments with a few clicks. You will need to provide some basic information about your business, like your employer identification number and banking details. After a brief verification process, you are ready to go.

Key Features for 2026

Shopify continuously updates its platform. For 2026, here are some features that make Shopify Payments a strong contender:

• Accelerated Checkouts: It supports Shop Pay, which saves customer payment and shipping information. This allows for one click checkouts, significantly speeding up the buying process and reducing cart abandonment.
• Multi Currency Selling: You can sell to international customers in their local currency. The prices on your store automatically convert based on current exchange rates, creating a better experience for global shoppers.
• In Person Payments: With Shopify POS (Point of Sale), you can use Shopify Payments to accept payments in your physical store, at a pop up shop, or at a market. This unifies your online and offline sales data.
• Fraud Protection: Shopify includes built in fraud analysis to flag potentially risky orders. This helps protect you from chargebacks and financial losses.

Understanding the Fee Structure

One of the most talked about aspects of any payment processor is the cost. Shopify Payments has a straightforward fee structure that depends on your Shopify subscription plan.

Online Transaction Fees

Here’s a general breakdown of the credit card rates for online sales:

• Basic Shopify Plan: Expect rates around 2.9% + 30¢ per transaction.
• Shopify Plan: Rates drop to approximately 2.6% + 30¢ per transaction.
• Advanced Shopify Plan: This plan offers the best rates, typically around 2.4% + 30¢ per transaction.

These percentages can change, so it’s always a good idea to check the official Shopify pricing page for the most current information.

A key benefit is that if you use Shopify Payments, Shopify waives its own transaction fees. These are extra fees, usually between 0.5% and 2%, that Shopify charges if you use a third party payment gateway. This can lead to significant savings.

For instance, a business on the Shopify Plan doing $10,000 in monthly sales would save $100 a month just by avoiding Shopify’s 1% transaction fee for external gateways.

In Person Transaction Fees

For payments collected through Shopify POS, the fees are lower because swiped or inserted cards are less risky.

• Basic Shopify Plan: Around 2.7% per transaction.
• Shopify Plan: Around 2.5% per transaction.
• Advanced Shopify Plan: Around 2.4% per transaction.

There is no additional 30¢ fee for in person transactions, making it an affordable option for brick and mortar businesses.

The Pros of Using Shopify Payments

Why do so many merchants stick with Shopify Payments? The advantages are compelling, especially for small to medium sized businesses.

Seamless Integration

Everything is in one place. Your sales, payments, and payout schedules are all visible right in your Shopify admin panel. This makes bookkeeping and financial reporting much simpler. You can track your money from the moment a sale is made until it hits your bank account. As our team at MoDuet often advises clients, simplifying your tech stack can free up valuable time.

Faster Payouts

Compared to some third party providers that can hold funds for weeks, Shopify Payments offers relatively quick payout schedules. Depending on your location, you could see money in your account within a few business days.

Enhanced Customer Experience

Features like Shop Pay create a smooth, fast checkout experience. When customers can buy what they want without friction, they are more likely to complete the purchase and return in the future. A positive checkout experience is a cornerstone of a good e-commerce strategy.

No Additional Transaction Fees

As mentioned earlier, using Shopify Payments means you avoid the extra transaction fees Shopify charges for using other gateways. This makes your cost structure more predictable and often more affordable.

The Cons and Considerations

Shopify Payments is not perfect for everyone. There are some potential downsides to keep in mind.

Account Holds and Terminations

Shopify Payments, like other processors, has a list of prohibited products and services. If your business is considered high risk, your account could be frozen or terminated with little warning. Businesses selling items like CBD, vape products, or adult content may need to seek out a specialized high risk payment processor.

For example, a store selling handmade candles is unlikely to have issues. However, a subscription box for vape juice would almost certainly be flagged. It is crucial to review Shopify’s terms of service carefully before committing.

Limited Availability

Shopify Payments is not available in every country. While the list of supported countries is growing, merchants in unsupported regions must use a third party gateway. Be sure to check if your country is on the supported list.

Chargeback Fees

If a customer disputes a charge, you will be hit with a chargeback fee. This fee is typically around $15 in the United States, and you will incur it even if you win the dispute. While this is standard practice for payment processors, it is an important cost to be aware of.

Is Shopify Payments Right for Your Business in 2026?

The decision to use Shopify Payments depends on your specific business needs.

It is likely a great fit if:

• You are a new or small business looking for a simple, all in one solution.
• Your business sells low risk products.
• You operate both online and in person and want unified reporting.
• You are on the Basic or Shopify plan and want to avoid Shopify’s additional transaction fees.

You might want to explore alternatives if:

• Your business is in a high risk industry.
• You operate in a country where Shopify Payments is not supported.
• You have a very high sales volume and can negotiate lower rates with a third party provider that offset Shopify’s extra fees.

Final Thoughts

For the vast majority of merchants on its platform, Shopify Payments is an excellent choice for 2026. Its deep integration, user friendly interface, and competitive fee structure offer a powerful combination of simplicity and value. It streamlines the payment process, allowing you to focus on what you do best: growing your business.

Before making a final decision, review your business model, product line, and sales volume. Compare the total costs, including subscription plans and transaction fees, to ensure you are making the most financially sound choice for your store. By understanding the complete picture, you can set your business up for a successful and profitable year.