Configuring Shopify Payments

You can complete optional tasks to configure Shopify Payments, such as setting up payout notification emails, adjusting your fraud-detection settings, and editing your bank account information.

Shopify Payments account status indicators

In the Payments section of your Shopify admin, you can review any Shopify Payments account status indicators. These indicators provide an overview of any issues with your Shopify Payments account, including payout holds, local payment method onboarding errors, and business information requirements. The status indicators also state when your Shopify Payments account is operational and no issues are present.

Shopify Payments account status indicators are color-coded for easy reference, and contain a reference to the Shopify Payments feature that requires your attention. The following colors indicate the different statuses of your Shopify Payments account and features:

• Green: The payment product or feature, for example your Shopify Payments payouts, is working as expected.
• Yellow: The referenced part of Shopify Payments isn't working as expected, or is expected to stop working. For example, Shopify might require further business information from you before your account is fully onboarded. Follow the instructions in the Payments section of your Shopify admin to resolve any issues.
• Red: The referenced part of Shopify Payments is blocked from use. Follow the instructions in the Payments section to resolve any issues.

Set up payout notification emails

When a payout is transferred to your bank account, you receive an email to your store email address. The email includes the amount paid and a link to the payout in your store, so you can review the included orders and customer details. Learn more about changing your store email address.

You can turn payout notification emails on or off in your Shopify Payments settings.

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Change your payout statement name

The payout statement name is how your payouts display on your bank statement. By default, your payout statement name displays as Shopify. If you're located in the United Kingdom or Ireland, then your payout statement name is listed as Earthport PLC Shopify, instead of Shopify.

You can customize the payout statement name that appears on your bank statement. However, your bank might not use the custom name that you provide. If your bank doesn't use your custom payout statement name, then your payouts might display as a payment processing partner name on your bank statement, depending on which payment processor handles the transaction.

Some payout statement names might contain additional information on your bank statement. Your bank adds any additional information, and you can't change it.

You can change the appearance of your payouts by editing your payout statement name in your Payment providers settings. Payout statement names must be between 5 and 22 characters in length. Only Latin character letters are supported, and a payout statement name can't include the special characters <, >, ', or ".

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Changes to your payout statement name can take up to 3 business days to reflect in your bank account, or might reflect only after your current payout cycle is complete. Changing your payout statement name only changes the appearance of future payouts, and doesn't change the appearance of past or pending payouts.

Secure your Shopify Payments account

If your Shopify account has been compromised and you use Shopify Payments, then you must take immediate action to protect your finances and report fraudulent activity.

Examples of fraudulent activity

The following types of activity might indicate that your Shopify Payments account has been compromised:

• Unauthorized bank account changes: Unauthorized changes to the bank account used for Shopify Payments payouts.
• Unauthorized payout schedule changes: Unauthorized changes to your payout schedule.
• Unauthorized orders: Orders placed through your store that you didn't authorize, potentially resulting in chargebacks.
• Unauthorized refunds: Refunds issued to customers for orders that you didn't approve.
• Unauthorized fraud setting changes: Unauthorized modifications to fraud prevention settings that allow high-risk transactions.

Securing your account

If you believe your account has been compromised, then take the following actions immediately to secure your account:

• Verify that the bank account connected to your Shopify Payments account, payout schedule, and holds haven't been changed without authorization. Learn how to edit your bank account information.
• Review and update your banking details for PayPal and any other payment providers that you have configured.
• Review the customer information for recent orders, including draft orders, to verify the legitimacy of the orders.
• If your account was used to create fraudulent orders, then cancel the orders, or refund the orders.
• If fraudulent orders have resulted in chargebacks, then resolve chargebacks within the deadline shown in your admin, which is typically 7-21 days, by contacting the customer or accepting the chargebacks.
• Verify that your fraud prevention settings haven't changed without authorization.

To ensure that your account is secure and prevent fraudulent activity, complete the account security setup.

Fraud prevention settings

When you use Shopify Payments to process transactions at checkout, Shopify automatically performs enhanced fraud analysis. The results of the analysis are displayed as fraud analysis indicators on the order, that you can use to help you decide whether to fulfill the order.

The following are the two most commonly used fraud prevention methods for card transactions:

• Address Verification System (AVS): AVS compares the numeric part of the customer’s billing address and zip code or postal code to the information on file with the credit card issuer. With Shopify Payments, AVS is deactivated by default because Shopify's fraud analysis authenticates high risk transactions during the payments process. After you create an order, Shopify runs further fraud analysis that uses information from the AVS to verify whether an order is high risk.
• Card Verification Value (CVV): The CVV is a 3-digit or 4-digit number on the customer’s credit card. Credit card companies prohibit the storage of the CVV code, so asking for the CVV is a way of ensuring that a customer has the card physically in their possession. Credit card information stolen from a merchant database is also less usable, because it shouldn't contain CVV information.

Learn more about payment security with Shopify Payments.

Change your fraud prevention settings

You can choose to automatically decline any transaction that fails verification by activating Decline charges that fail AVS postal code verification and Decline charges that fail CVV verification. If you activate these settings, then any transaction attempt that fails the verification is declined and no order is placed. If you activate AVS checks, then you might encounter an increase in failed transactions.

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3D Secure

3D Secure for credit cards is an additional authorization method for online Visa and Mastercard transactions. During checkout, your customers verify their identity with their bank before completing a purchase.

When you turn 3D Secure on in your checkout, a fraudulent chargeback can't be filed for the order. You can turn on 3D Secure on the Payment providers settings page in your Shopify admin.

If you're not using Shopify Payments, then you can use a third-party payment provider that supports 3D Secure in the checkout. Learn more about third-party payment providers that support 3D Secure.

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Edit bank account information

Review the following considerations before editing your bank account information:

• If your bank account details change, then you can update the information in your Shopify Payments settings. You need to verify your old bank account information to edit banking information.
  • When you change your bank account information to a new account, your payouts are paused for 4 calendar days to protect against fraud. This time is used to ensure the change was not made by a bad actor.
• When you update your bank account for Shopify Payments, any payouts that are already scheduled are sent to your old bank account. If a scheduled payout fails, then it's automatically retried to your new bank account within 72 hours.
  • Payouts are created 1–2 days in advance, so it might take a few days for changes to take effect. Any changes to your Shopify Payments settings can also cause a slight delay in payout scheduling, in addition to your region's standard pay period.
• You can't use prepaid bank cards as bank account credentials to receive payouts from Shopify Payments.
• If the old bank account is closed, or the account details are unknown or incorrect and can't be verified, then refer to Troubleshooting bank account changes.
• If you add a Japanese bank account, then you need to use Kanji (full width) characters.

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Troubleshooting bank account changes

To update your payout bank account, you need to verify your old bank account details first using the Confirm old bank account step. This helps protect your payouts from unauthorized changes.

If the old account is closed, or the details are unknown or incorrect, then you might not be able to complete this step.

To continue updating your payout bank account, contact Shopify Support for account verification. Shopify Support can disable the confirmation requirement so that you can update your payout bank account.

If you manage bank accounts for multi-currency payouts, then this troubleshooting guidance also applies when you replace a bank account.

Editing bank account information when using Shopify Balance as your payout account

If you use Shopify Balance as your payout account and your account details change, then review the following information:

• Payouts: Your Shopify payouts are automatically deposited into the correct Shopify Balance account even if your account details change. No action required on your part.
• Scheduled bill payments: Any scheduled bill payments are automatically updated with your new Shopify Balance account details.
• Third-party integrations: If your Shopify Balance account is linked to any third-party providers, such as eBay, Etsy, or utility companies, for automatic debits or credits, then you need to manually update your account details with the external service provider. You might need to disconnect and reconnect your Shopify Balance account to these service providers, or manually update your account details with these service providers.
• Accessing old account information: If you've changed account information on any of your accounts, then you can access your old account information in your Shopify Balance account.

Edit customer statement name

You can change the statement name that displays on your customer's payment card bill when they make a purchase on your store. You must add your phone number so that customers can call you if there's a problem. You can also add the name of your store, so that your customers know what the payment card charge was for.

Customer statement name compliance for Shopify Payments

If you use Shopify Payments, then your customer statement name must be between 2 and 19 characters in length, and it must include your shop name, legal entity name, store name ("Doing Business As" name), or URL. If you don't edit your customer statement name on setup, then Shopify sets one for you that complies with these requirements.

If you choose to edit your customer statement name, and it's deemed insufficient, then Shopify updates the statement name on your behalf to meet the character requirements, and this reflects your shop name, legal entity name, store name ("Doing Business As" name), or URL. You receive an email to notify you of the change. This is intended to help you avoid payout or charge holds related to an invalid customer statement name.

You can update your customer statement name at any time, regardless of whether it's been automatically set by Shopify as described above.

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Some additional public information might be included on your customer's statement name, depending on their credit card network, brand, or issuing bank. This decision is up to the individual bank.

Updating business and owner details for Shopify Payments

If your business details change after you have already setup Shopify Payments, then you can update your details through your Settings > General > Business Details section. Click the 3 dots beside your business entity, and then click "Edit".

Changing important details such as the legal entity name, identifying tax ID, or business type, will result in a new legal entity being created. If you need assistance with this or have questions, contact Shopify Support.

If you simultaneously have opened a Balance account, Credit account, or have an outstanding Capital loan under your current business details, then you may need to contact Shopify Support to make the necessary changes.

Trade name ("doing business as") compliance for Shopify Payments

A trade name is the name a business uses publicly with customers. It may be the same as the registered legal name, or it may be a different name used for branding, marketing, storefronts, websites, or receipts.

For example:

• Registered name: ABC Inc.
• Trade Name: Cool Closet Company

When you sign-up for Shopify Payments you'll be asked for your "Store name". This field will act as your trade name. The store name you enter in your Settings > General > Store contact details section will be automatically used in the Shopify Payments set up form, but you have the opportunity to change it during account set up.

You can make sure your account stays healthy and compliant by ensuring your trade name follows this guidance:

• Use actual words. Do not use placeholder terms, abbrieviations, or random strings of characters (e.g., "fkasfkk234")
• Do not use generic terms (e.g., "Online Store", "Shopify", "My store", "e-commerce business")
• Do not use well known brand names belonging to other businesses (e.g., "Apple", "Nike", "Amazon")

If you have already set-up Shopify Payments and need to update your trade name, you can do so by updating your store name in Settings > General > Store contact details. This will sync with your Shopify Payments account. If you're having difficulty, contact Shopify Support.

Updating tax details for Shopify Payments

When you set up Shopify Payments you need to enter your tax details. All registered businesses need to submit a tax ID. If your business isn't registered, then in most regions you can set up as an individual instead.

If the tax ID that you submit isn't valid, then you'll be prompted to update it. You might receive an email from Shopify and a notification displays in the alerts feed of your Shopify admin. Incorrect tax details can potentially result in failed payouts, and a hold on your ability to accept orders using Shopify Payments.

To update the personal or business tax details, go to Settings > General > Business Details section. Click the 3 dots beside your business entity, and then click "Edit". If you simultaneously have opened a Balance account, Credit account, or have an outstanding Capital loan under your current business details, then you may need to contact Shopify Support to make the necessary changes.

If you're updating your business tax ID, such as your Value Added Tax (VAT) ID, Goods and Services Tax Identification Number (GSTIN), or business identifier (depending on the region), then you might also need to update your tax details for billing and tax details for your orders.

Tax reporting

As a merchant, you're required to abide by all applicable regulations, including tax reporting. Depending on your jurisdiction, Shopify Payments might also be required to report your sales to the local tax authorities.

In the United States specifically, Shopify is obligated to file a Form 1099-K with the Internal Revenue Service (IRS) for merchants who meet annual reporting thresholds.

Some countries have unique tax reporting requirements. For details, refer to the tax reporting requirements for each supported country.

Adjust the major credit cards that your store accepts

With Shopify Payments, you can select the major credit card types that your store accepts.

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Deactivate Shopify Payments

You can deactivate Shopify Payments from your Shopify admin. Deactivating Shopify Payments impacts your store in the following ways:

• All payment methods provided by Shopify Payments, including cards, wallets, and Shop Pay, are removed from your online store.
• If you're using Shopify Payments when you receive funding through Shopify Capital, then you can't deactivate Shopify Payments until the total amount owed is fully repaid. Learn more about Shopify Capital and Shopify Payments options.
• It could affect how your checkout works on other sales channels, such as Facebook, Instagram, and the Shopify POS.
• Any fixed prices are deleted from your markets, and you can't support currencies other than your store currency.
• You're ineligible for Shopify features and services that require using Shopify Payments as a prerequisite, such as Shopify Balance or Shopify Collective.

After deactivating, you can reactivate Shopify Payments or activate a third-party payments provider.

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