Selection of the right payment gateway is extremely important for your Shopify business as selection of the wrong one will have an impact on not only the checkout process but also on your earnings. In fact, there are many choices available in 2026 beginning from the default Shopify Payment gateway and ending up with multiple third-party ones such as PayPal, Stripe and Authorize.Net. The below guide will give you all information related to payment gateways on Shopify.
What Is a Shopify Payment Gateway?
A payment gateway is the means by which customer payment details are collected, encrypted and sent from your Shopify store to the payment gateway, then to your bank. Without a payment gateway, it would be impossible for you to process credit card payments, debit card payments or any digital wallets.
Shopify offers two main kinds of gateways:
• Shopify Payments: The payment processing service offered by Shopify, which is powered by Stripe and is available in 23+ countries. It has complete integration with the admin panel and offers services like Shop Pay, Apple Pay, Google Pay and Fraud Protection using Shopify Protect.
• Third-party gateways: There are over 100 third party payment gateways that you can use in case Shopify Payment is unavailable in your region.
Shopify Payments: The Default Choice
How It Works
For a merchant to employ Shopify payments, he needs to have his business based in places served by Shopify Payments. There is no need to create a separate merchant account as this will be done automatically by Shopify through Stripe. There are various methods of payment one can use; Shop Pay, Apple Pay, Google Pay, and card payments.
Fees and Pricing
However, one of the greatest strengths of the payment method is the exemption of any additional fee for using Shopify. These are the charges you will be paying in 2026:
|
Shopify Plan |
Monthly Fee |
Online Card Fee (domestic) |
In-person Fee |
Third-party Surcharge Unless You Use Shopify Payment |
|
Basic |
$39 |
2.9% + $0.30 |
2.6% + $0.10 |
2.0% |
|
Grow |
$105 |
2.7% + $0.30 |
2.5% + $0.10 |
1.0% |
|
Advanced |
$399 |
2.5% + $0.30 |
2.4% + $0.10 |
0.6% |
Plus Starting at $2,300
Key Features
• No additional set up or monthly charges apart from the Shopify subscription.
• Visibility of real-time payouts on your admin dashboard.
• Fraud protection with Shop Protect when you use Shop Pay (protects you against chargeback fraud).
• Faster payment processing such as Shop Pay, which increases conversion rates.
• Consolidated reporting of orders, refund and payouts.
Limitations
However, shopify payments are not available across the world. By 2026, shopify payments will only be available in 23 nations such as the United States, Canada, United Kingdom, Australia, and the majority of Western Europe. Therefore, for customers outside these locations, another payment gateway will be required.
Third-Party Payment Gateways:
Third-Party Provider Scenarios
You can go for a third-party gateway in the following cases:
• If Shopify Payments is not available in your country.
• If you require certain payment solutions (for instance, local bank transfer, Buy Now Pay Later options, not provided by Shop Pay).
• If you have an existing merchant account that provides better rates.
• If you wish to offer PayPal as the preferred solution (shoppers usually trust PayPal).
Popular Third-Party Gateways on Shopify
The platform can interact with over 100 third-party websites. Here is a list of the best websites that work in Shopify in 2026.
• PayPal: Operates in more than 200 countries. Fees include 2.99% plus 49 cents per transaction. It is ideal if one requires coverage all around the world and credibility of the customers; however, PayPal does not accept Shop Pay payment methods.
• Stripe: Offers Shopify Payments but also can function on its own in some countries through customization. It offers great flexibility and global availability of services.
• Authorize.Net: Experienced merchant account service provider for the United States market with high-quality fraud filters and recurring billing capability.
• Square: Best if the merchant is willing to accept payments online and off-line in the same platform.
• Klarna, Afterpay, Affirm: Buy Now Pay Later services which can be added in order to increase the cart size.
The Hidden Cost: Shopify’s Third-Party Surcharge
But here is the twist: If you use a third party gateway to make transactions, Shopify will also impose an additional charge on the fees that are charged by the gateway. These fees depend on the plan used and are as follows:
- Basic: 2.0%
- Grow: 1.0%
- Advanced: 0.6%
- Plus: 0.15–0.20%
So, on a $100 transaction using PayPal (2.99% + $0.49), on the basic plan you will be charged:
- PayPal: $3.48
- Shopify fee: $2.00
- Total fee: $5.48
Whereas, on the same transaction using Shopify Payments the total charge comes out to be just $3.20.
This is why it is strongly recommended to use Shopify Payments as the payment gateway.
Steps for Selecting the Right Payment Gateway for Your Store
Step 1: Availability Check
Check whether Shopify Payments can be used in your country since it would be the most economical and effective gateway if that is the case. If not, then you will have to find some other method of payments.
Step 2: Calculating Costs
While calculating the rate of the gateway, it is important to also calculate the following:
- The processing fee of the gateway.
- Shopify surcharge for using third party gateway.
- Monthly/Setup fees of the gateway.
- Currency conversion/cross border transaction fees if your business operates internationally.
Formula of Total Cost for $100 Domestic Payment would be:
Total fee = (Gateway rate * $100) + Fixed fee + (Shopify Surcharge * $100)
Step 3: Matching Gateway Features to Your Business Model
Businesses which provide subscription services will need a good recurring billing facility. Businesses operating globally will need to offer their customers multi-currency and local payment options.
If you belong to a high-risk industry, then you will need to use a specialized gateway instead of Shopify Payments. Omnichannel businesses will need to use either Square or Shopify POS Pro.
Step 4: Test Your Checkout Process
If the checkout process is poor, customers will not make purchases. Make sure that your selected payment gateway offers:
- Mobile-friendly forms.
- Wallets.
- Fast checkouts.
- Good error messages and retry mechanism.
Setting Up a Payment Gateway on Shopify
Enabling Shopify Payments
1. Navigate to Settings > Payments in your Shopify account.
2. Look for “Shopify Payments”.
3. Activate it and enter your business information and banking information.
4. Confirm your identity.
5. Once approved, you are all set.
Using a Third-Party Payment Gateway
1. Navigate to Settings > Payments > Third-party providers.
2. Click Choose a provider from the drop-down menu.
3. Provide the API credentials or account credentials from the payment gateway.
4. Test it out in sandbox mode.
5. Consider enabling Shopify Payments as a backup solution.
Tips to Reduce Payment Processing Costs
• Consider Shopify Payments if you can—no third-party fee here.
• Upgrade plans when your business makes sense to do so. Switching from Basic to Grow will reduce your online fee from 2.9% to 2.7%, saving potentially hundreds of dollars per month.
• Bargain for better rates on Shopify Plus. Merchants with enterprise accounts might be able to get rates under 2.15%.
• Avoid extraneous gateways. The use of each gateway will make for more confusing reports.
• Be aware of chargebacks. Too many disputes can result in higher fees or loss of an account altogether. Check out Shopify Protect or other anti-fraud apps.
Mistakes to be Avoided
• Not including third-party surcharge: Many new sellers forget about the 0.6%-2.0% surcharge that is included in addition to fees charged by third-party payment gateways.
• Failing to consider international fees: International purchases often attract additional currency and processing fees ranging from 1.0%+.
• Selecting based on reputation: PayPal has an excellent reputation, but if it’s going to cost you 50% more than Shopify Payments, then it’s probably not worth the premium.
• Failing to test checkout experience: A bad payment experience could significantly decrease your conversion rate.
The Bottom Line
Shopify Payments remains an optimal gateway for the majority of supported countries' merchants in 2026 because it is seamlessly integrated, competitive pricing-wise, and has no third-party Shopify surcharge. Furthermore, some services like Shop Pay and Shopify Protect can help you convert more and save money on fraud losses.
Should your business operate outside of Shopify Payments' geographic boundaries or require special solutions (for instance, local bank transfers or high-risk processing), you may consider going with a third-party gateway such as PayPal, Stripe, or Authorize.net, but don't forget about Shopify's additional surcharge.
No matter what option you pick, it's important to analyze it periodically because as your business progresses, the current gateway may stop being cost-effective. For example, the gateway that suits your requirements perfectly when your revenue is $5,000 per month could be costing you thousands of dollars when it goes up to $50,000 per month.
