How to Setup Payment Gateways on Shopify
Last updated:
May 01, 2024
How to Setup Shopify Payments for your Dropshipping business?
A successful dropshipping business needs a way to get paid! A smooth and secure payment system is critical to taking orders and generating income. Let's dive into how to do this on Shopify.
Step 1: Access Your Shopify Admin Panel
- Log in to the Shopify website and enter your store's login credentials (email and password).
- Admin Panel: Look for a main menu or navigation area once logged in. This usually has a section labeled "Settings" or an icon that resembles a gear. Click this to access your admin panel.
Access Your Shopify Admin Panel
Step 2: Navigate to the 'Payments' Section
- Find Settings: Within your admin panel, locate the "Settings" tab. This is often found towards the bottom of a sidebar menu.
- Payments Section: Once in "Settings," look for a subsection specifically dedicated to "Payments."
Navigate to the 'Payments' Section
Step 3: Choose and Enable Your Payment Providers
- Shopify Payments: Check Availability: Ensure Shopify Payments is available in your location by checking their supported countries list.
- Deactivate Existing Gateways: Click the "Deactivate" button next to any currently active payment gateways. Then, confirm the deactivation.
- Activate Shopify Payments: Locate the "Shopify Payments" option under "Accept Payments." Click the "Activate Shopify Payments" button and follow the on-screen prompts.
- Third-Party Payment Gateways: Select Provider: Choose your desired gateway (PayPal, Stripe, etc.). Shopify likely has a list of supported providers.
- Follow Instructions: Each provider has specific steps for linking to your store. These usually involve creating an account with the provider and obtaining API keys to enter Shopify.
- Manual Methods: Locate Area: Find a section in your Payment settings for "Manual Payment Methods."
- Enable Options: Select the manual methods you want (e.g., cash on delivery, bank transfer) and follow the specific instructions.
Choose and Enable Your Payment Providers
Step 4: Enter Business and Financial Details
- Business Information: Fill out fields including your legal business name, business type, address, and contact details.
- Tax Information: Provide your Taxpayer Identification Number (TIN). Depending on your country and business setup, this might be your Employer Identification Number (EIN) or Social Security Number (SSN).
- Bank Account: Enter your bank account number, routing number, and other details to receive payments.
Enter Business and Financial Details
Step 5: Select Accepted Payment Methods
- Credit/Debit Cards: Choose which major card brands you'll accept (Visa, Mastercard, etc.). Tick the relevant boxes.
- Digital Wallets: Decide if you want to enable options like Apple Pay, Google Pay, or others supported by Shopify.
Select Accepted Payment Methods
Step 6: Customize Settings
- Taxes: Determine if you need to charge sales tax. Set up your tax rules and preferences within the Shopify Payments settings.
- Payment Authorization: Choose "Automatic" to have charges processed immediately upon order or "Manual" if you want to review each payment before processing.
Step 7: Manage Fraud Prevention
- Fraud Settings: Access the "Fraud Prevention" section within your Shopify Payments settings.
- Customize Protection: Adjust filters and rules to set the level of fraud checks that match your business needs and risk tolerance.
Manage Fraud Prevention
Step 8: Thoroughly Test Your Setup
- Test Mode: Enable "Test Mode" in your Shopify Payments settings. This lets you simulate transactions without real money changing hands.
- Bogus Gateway: Use Shopify's Bogus Gateway to mimic a customer's card information during checkout.
- Order Simulation: Go through the entire checkout process on your store as if you were a customer. Ensure the payment options work and the process flows smoothly.
Thoroughly Test Your Setup
Step 9: Go Live!
- Turn Off Test Mode: Once everything works to your satisfaction, disable "Test Mode" in your Shopify Payments settings.
- Start Accepting Payments: You're ready to receive real orders and payments!
Step 10: Monitor Transactions
- Admin Panel Monitoring: Regularly visit your Shopify admin panel to view transaction details and payouts and track your sales figures.
FAQ: Shopify Payment Gateway
When setting up Shopify Payments, you must verify your business information to comply with legal requirements. This typically involves providing your business's legal name, address, EIN (or equivalent tax ID), and possibly supporting documents like business registration or tax documents. Shopify may also require personal information and identification from the primary business owner.
- Enable Digital Wallets: Offer options like Apple Pay and Google Pay for quick one-tap mobile payments.
- Simplify Forms: Minimize the number of fields customers must fill out at checkout.
- Security: Ensure Shopify Payments' security features are up-to-date to reassure mobile shoppers.
Yes, Shopify Payments supports international transactions, allowing you to sell and accept payments in multiple currencies. This is particularly advantageous for dropshipping businesses that cater to a global market. However, be aware of currency conversions' exchange rates and fees.
Shopify Payments offers a range of fraud prevention tools, including fraud analysis features that help you assess the risk of transactions. It utilizes machine learning algorithms to flag potentially fraudulent transactions. You also have the option to set up additional fraud prevention measures, such as AVS (Address Verification System) and CVV (Card Verification Value) checks.
Shopify Payments facilitates the refund process through your Shopify admin dashboard, where you can initiate refunds for returns or issues. In the case of chargebacks, Shopify will notify you and provide an opportunity to respond with evidence to dispute the chargeback. Handling disputes promptly to minimize losses and maintain good standing with your payment processor is essential.
Sam Nguyen is the CEO and founder of Avada Commerce, an e-commerce solution provider headquartered in Singapore. He is an expert on the Shopify e-commerce platform for online stores and retail point-of-sale systems. Sam loves talking about e-commerce and he aims to help over a million online businesses grow and thrive.
