To collect payments from your sales, you need to use a payment gateway. A payment gateway is a service that processes payments and deposits them into your bank account. It ensures all sensitive information is encrypted to keep customer data safe.

On this page:

Choose a payment gateway

There are many payment gateways that can be used to process payments for your store. The first step is to check which gateways are available in your country. Then, learn more about which gateways can meet your business needs. Shopify Payments, Stripe, Authorize.net, 2Checkout, and PayPal are popular options available in many countries.

While you choose a payment gateway, keep the following in mind:

  • Business type: Be sure the gateway supports a dropshipping business model. Using a payment gateway that does not support dropshipping could result in your payment gateway being disabled, preventing you from accepting payments. In some cases, the payments collected against their terms of service might be forfeit.
  • Fees and costs: Some payment gateways have a monthly fee, others only charge a percentage of the payments processed through the gateway. Some might have both.
  • Payment methods: The country you’re located in, and the currency of your bank account, can both impact which types of cards, alternate payment methods, and currencies your gateway can process.
  • Customer preferences: Check if the gateway and payment methods available are familiar to the customers you are selling to. For example, if you decide to use PayPal, then make sure PayPal is a well recognized payment method in the country where you are selling to.
  • Payouts: Check how quickly payments are deposited to your bank account. Fast payouts help ensure your business has the available money to purchase products from suppliers, cover marketing or other operational costs.
  • Chargebacks: Check if the gateway offers chargeback insurance, or a risk analysis on each payment processed. You can learn more in Shopify’s Chargebacks and Inquiries article.
  • Direct and external providers: Direct payment gateways integrate into your store, so customers can pay on the Shopify checkout, without leaving your store. Direct payment gateways provide the smoothest experience for your customers. External payment gateways require your customers leave your store to complete the payment on the third party checkout. The customer is then redirected back to your store, to view their order summary and confirmation page.

Set up your payment gateway

The steps to set up the payment gateway can differ with each gateway. In some cases, you might need to log into your payment gateway’s platform to get your credentials to complete the setup in Shopify.

Some payment gateways may review your online store to make sure it looks good, has all needed policies and offers the possibility to contact the store owner. Check out some tips in the Make your online store look professional article before you apply for the payment gateway account.

Set up Shopify Payments

Note: Shopify Payments is only available in certain countries. Refer to the Can I Use Shopify Payments article for more details.

The information required during the set up will vary depending on your region. For example, if you are located in Europe, then you will need to enter a Value Added Tax (VAT) number, or indicate that you do not have one.

To set up Shopify Payments for your store, follow these steps:

  1. From your Shopify admin, go to Settings > Payment Providers.
  2. Activate Shopify Payments in one of the two following ways:
  3. Enter the required details about your store and banking information. Then click Save.

Note: If you already have another payment provider activated, then setting up Shopify Payments will deactivate and replace the original payment provider with Shopify Payments.

Set up PayPal

PayPal is a popular payment method available in many countries. When you sign up for Shopify, if PayPal is an available payment provider in your country, then Shopify will create a PayPal account for your store, so you can process payments right away. The PayPal account created by Shopify will use the same email address that was used to sign up for your store.

In your Shopify admin, you can set up a new PayPal account, an existing PayPal account, or finish setting up the PayPal account Shopify created when you signed up for your store. You must finish the PayPal set up in Shopify before you are able to capture payments manually, or issue refunds from PayPal.

Set up a new PayPal account

If you do not have an existing PayPal account, you can complete the account set up in Shopify to create one.

To do so, follow these steps:

  1. In your Shopify admin, click Settings > Payments.
  2. In the PayPal section, click Complete account setup. You will then be redirected to PayPal’s website, and prompted with further instructions to finish setting up the account.

Set up an existing PayPal account

If you already have an existing PayPal account, then you can connect it to your store.

To do so, follow the steps:

  1. In your Shopify admin, click Settings > Payments.
  2. In the PayPal section, click Deactivate.
  3. Confirm this action by clicking Deactivate again.
  4. In the PayPal section, select your PayPal account type, then click Activate.
  5. Enter the email address you use with PayPal, then click Next.
  6. Enter the password for your PayPal account, then click Log In.
  7. You will be prompted to give Shopify permission to connect your PayPal account to your store. Click I Give Permission. If your account already has the necessary permissions, then you won’t see the permissions page.
  8. From the confirmation page, click Go back to Shopify.

Continue with the PayPal account created by Shopify

If you do not have an existing PayPal account, and would like to continue using the PayPal account that Shopify created when you signed up for your store, you can complete the account set up in your Shopify admin.

To do so, follow these steps:

  1. In your Shopify admin, click Settings > Payments.
  2. In the PayPal section, click Complete account setup. You will then be redirected to PayPal’s website, and prompted with further instructions to finish setting up the account.

Note: When completing the account set up on PayPal, be sure to use the account owner email address that was used to create your Shopify store. If a different email address is used, a new PayPal account will be created instead.

Set up a third party payment gateway

  1. From your Shopify admin, go to Settings > Payment Providers.
  2. In the Third Party Providers section, click Choose third-party provider.
  3. Select the payment provider from the list.
  4. Enter your account credentials for the selected provider. Contact your payment provider if you need to get your credentials.
  5. Click Activate.

Test your payment gateway

Before you launch your store, be sure to test your payment gateway. If it is not working, then it could prevent customers from placing orders.

Some gateways have a dedicated test mode, while others might require a real charge to be processed. For further testing instructions, refer to the documentation offered by your payment gateway.

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