We take our role in providing guidance and education regarding the card payment industry very seriously. At our own expense, we have vigorously defended our right to continue expose unethical and predatory practices in the industry, successfully defeating every attempt to silence us. However, fending off frivolous lawsuits is costly. To sustain these efforts, one of the ways we generate revenue is through affiliate partnerships with ethical providers. This means that some of our outgoing links connect business owners to trustworthy, low-cost payment processors, which is what most of our readers seek. We see this revenue channel as a win-win-win for everyone involved. Business owners find good processors, processors get good clients, and we are able to continue to provide a valuable service to the small business community. We also recommend and link to many services that do not compensate us. Our priority is to guide you to the best solutions for your needs, regardless of potential revenue. If you have questions, please feel free to contact us.
All mentions of rate and fee costs are estimations based on publicly available information and client feedback. Actual costs may vary based on a variety of factors unique to your business.
In this review of Shopify, we’ll provide an overview of its credit card processing and e-commerce services. We’ll cover the key offerings, including online store setup, point of sale systems, mobile payment options, and other e-commerce tools. We’ll also highlight which types of businesses are most likely to benefit from Shopify’s platform. In addition, we’ll examine client and customer reviews to reveal common trends, praise, and concerns. We’ll break down the company’s pricing, contract terms, and included features. By the end, you’ll know whether Shopify is the right choice for your e-commerce and payment processing needs.
About Shopify
Shopify Homepage
Shopify is an Ottawa, Ontario-based merchant account provider that specializes in e-commerce solutions for small businesses. Founded in 2005, the company offers a broad range of services for online businesses, including debit and credit card processing through an online shopping cart, website creation and customization, marketing and SEO solutions, payment gateway integration, and an app store with a large number of additional features.
Products & Merchant Services
Merchant Services
In mid-2013, Shopify introduced Shopify Payments, a payment processing platform powered by Stripe Payments. This platform is the primary payment option promoted by Shopify. Business owners can also set up their own merchant accounts and payment gateways through third parties like PayPal or (link unavailable), integrating these accounts into Shopify, but this comes with additional transaction fees. Shopify additionally offers an in-store point of sale (POS) system compatible with iPads for retail merchants.
Standout Features
The Shopify app store provides a vast array of add-ons and plugins to accommodate various credit card processing needs. Shopify customers benefit from dedicated support for over 70 payment gateways, an SSL-secured shopping cart, their own domain name, and unlimited bandwidth. Merchants using Shopify Payments gain access to real-time payment tracking and a chargeback recovery service, which alerts them to chargebacks, supplies customer contact information, and prepares customized order details to help dispute chargebacks. Other features available through the Shopify app store include accounting integration, email marketing integration, support for digital downloads, rewards programs, and social media integration.
Mobile Payments
Shopify also offers Shopify Mobile, a service that enables users to accept payments via an iPhone and a mobile card reader. This service is available to existing Shopify customers at no additional cost, aside from a variable per-transaction fee.
Customer Reviews & Sentiment
A Standout In Service
Shopify consistently demonstrates a strong commitment to customer support, earning it recognition as one of the best mobile payment apps. Unlike some of its competitors in the e-commerce space, such as Amazon.com, Shopify places a significant emphasis on customer service quality, addressing an area where merchants have expressed dissatisfaction with similar platforms.
Shopify Lawsuits
In a notable legal challenge, Boom Payments! filed a lawsuit against Shopify and Stripe on February 1, 2019, for patent infringement (Boom! Payments, Inc. v. Stripe, Inc. et al). This lawsuit claims infringement of two patents held by Boom Payments! related to processing transactions.
In 2020, Shopify successfully averted a class action lawsuit in California alleging violations of the Telephone Consumer Protection Act due to the use of robocalls.
Moreover, Shopify experienced a significant data breach in August and September of 2020, resulting in a class-action lawsuit filed against the company, primarily blaming two rogue employees for the incident. This lawsuit was still active as of 2021.
Additionally, a lawsuit was filed against Shopify in 2021 concerning data collection and consumer behavior tracking, which is reportedly ongoing.
Industry Scores & User Ratings
Online Ratings Summary
PaymentPop
1
BBB Rating
1.05
Trustpilot
1.3
Average Rating
1.17
PaymentPop Rating for Shopify
Negative Feedback
I am so angry now!!!! After more than one year using the shopify I felt so unhappy . I had a international shipping cost $60 to Canada, I fill all information online for custom label, everything was fine. Do you know when you do international shipping label online, you cant leave any blank custom information. So I printed out the label and sent to my customer. For my surprise after 25 days I got the package back, the problem was no description about the product! I called the shopify support, they told me looks like the specific description font was the problem, and because I am the merchant I am the responsible to check the label. Whatttt??? If everything online was right, why I have to check after printed out? So I loss $60, Shopify don’t give any credit, I am so disappointed after at all was my first issues and nobody cares about it. I do normally international shipping and never had this problem. This is how shopify appreciated their customers.
Positive Feedback
There are no positive reviews published about Shopify on the PaymentPop website.
Shopify BBB Rating
Shopify has been accredited with the Better Business Bureau since 2012 and is currently showing an “A+” rating on the BBB website. The company has had 296 complaints filed against it in the last three years. 96 complaints were related to billing and collection disputes, 158 were due to problems with the product or service, 32 had to do with advertising issues, 8 were due to a delivery issue, and 2 were in regard to a guarantee or warranty complaint. Shopify successfully resolved 116 of these complaints, while the remaining 180 were either were resolved to the dissatisfaction of the merchant or did not receive a final response from the merchant. Shopify has a 1.05 out of 5 star rating based on 162 user reviews on the Better Business Bureau website.
What Merchants Say
Shopify Payments has also received 92 informal reviews from users, 90 of which were negative in tone and 2 of which were positive. One recent informal review describes frustrations with erroneous purchases and poor customer service:
This company will not help me resolve an issue with merchandise that I didn’t order or authorize. I have reached out to them about this and getting the same answer that it’s in the hand of the escalation department. I took it upon myself to pay and ship back the items that’s I didn’t order to keep it off my credit. I have provided them the tracking number and it shows the items were delivered back to where they came from. They are still harassing me for payments. I don’t owe you anything, I didn’t order the items and I sent them back trying to keep this unauthorized debt off my credit. I have emailed you the tracking slips and you still will not help me to resolve this issue. I didn’t place the order, I sent the merchandise back I provided you the tracking number to show that the items were received back and you still will not resolve this issue. I keep getting emails that I owe. I keep calling and no one will help me. I don’t need this to go on my credit especially when the items were sent back and received back from the company that aent them .
Many reviews on the company’s BBB accounts have been made by customers instead of merchants. In some instances, it appears that the issue lay with the merchant facilitating the shipment of a purchase instead of issues with Shopify’s payment processing. In any instance, customer satisfaction is imperative for any business. This makes the quality of customer service an important consideration when choosing a merchant account provider.
A “B” Performance Overall
Shopify’s current complaint total marks a significant increase in complaints from the time of our last Shopify Payments review, and we have accordingly adjusted the BBB’s rating to a “B.”
Trustpilot Rating for Shopify
Shopify has a 1.3 out of 5 star rating based on 3,029 user reviews on Trustpilot.
Positive Feedback
Great experience! I have tried to use many other platforms but Shopify is the best. I’ve been using them for all my websites for about 3 years
Negative Feedback
These jokers have zero human support and just pawn you off to a chat bot that goes in circles. Really sad to see a company that used to help small businesses go become so removed from the human side of doing business.
Processing Rates & Fees
Several Shopify Pricing Plans To Choose From
While Shopify does not primarily feature the minimalist, pay-as-you-go pricing found with most of its competitors, it does offer substantial value through its various monthly pricing plans. All Shopify plans are month-to-month contracts with no setup fees or early termination fees, and PCI Compliance fees are included in Shopify’s rates. Customers can select plans at $29/month (Basic), $79/month (Standard), $299/month (Advanced), or opt for a customized amount with the Plus pricing plan for larger merchants. The Shopify transaction rate for each plan is listed as 2.9% plus $0.30, 2.6% plus $0.30, and 2.4% plus $0.30, respectively. The keyed-in transaction fees are set at 2.7%, 2.5%, and 2.4%.
Each plan allows for 2, 5, or 15 staff accounts and offers shipping discounts of up to 64%, 72%, or 74%. The Standard and Advanced plans also include gift card processing at a fixed rate and access to professional reports for analyzing the business’ finances.
Reasonable Pricing At Each Level
The fees and added features Shopify provides are in proportion to the monthly charges incurred by business owners. All Shopify plan subscribers have access to a broad selection of user-friendly e-commerce tools, though smaller businesses should consider if the Basic plan meets their needs before opting for the Standard plan. It is noted that Shopify may impose additional transaction fees if a merchant chooses to integrate a highly-rated merchant account with their Shopify store.
iPad Point Of Sale
Previously, Shopify offered a separate POS hardware package for an additional $49 per month. Currently, Shopify POS is included in the Standard and Plus plans at no extra cost. This package comes with an iPad stand, barcode scanner, EMV and swipe card reader, cash drawer, and receipt printer. The transaction fees for Shopify POS are 2.7% for the Basic plan, 2.5% for the Standard plan, 2.4% for the Advanced plan, and keyed-in rates are consistent with the online transaction rates for each plan. Shopify POS features include inventory syncing, analytics, email receipts, support for multiple staff accounts, customer tracking, seamless integration between online and retail outlets, and additional apps. However, retail and restaurant owners should note that the Shopify POS app does not support tipping functionality, affecting its utility among the best merchant accounts for restaurants.
Something For Everyone
Shopify’s pricing structure offers a significant number of features relative to the fees charged, and customer complaints regarding Shopify’s pricing are rare. The company’s flexible contract terms receive high marks for customer satisfaction.
Shopify’s rates are clearly outlined.
Employee Reviews & Sales Practices
No Outside Sales Reps
Shopify appears to primarily market itself through its website, through its growing online customer base, and through strategic partnerships. The company employs a sales team to handle inbound inquiries, but it does not appear to engage in telemarketing or in-person sales. We have located a handful of Shopify reviews that complain of misleading or deceptive advertising by the company, but upon further investigation, these customer reviews seem to have simply been confused or dissatisfied with the service they received.
Separate Pricing for Third-Party Processors
Although the Shopify website does not seem to intentionally obscure its contract terms, it is not entirely clear about its pricing structure. The company’s “Pricing” page lists a series of transaction fees that vary depending on whether merchants are signed up for Lite, Basic, Standard, Advanced, or Plus pricing. These fees are only applicable to merchants who are signed up for a merchant account/payment gateway through Shopify Payments. Customers who have integrated a third-party payment processor will pay additional Shopify fees of 2% plus their third-party transaction fees on the Basic tier, 1% plus their third-party transaction fees on Standard, and 0.5% plus their third-party transaction fees on Advanced. Since Shopify Payments is now the company’s default merchant account, it’s likely that most new customers will not encounter these additional charges. If you would still prefer to integrate a third-party payment gateway with Shopify and pay the additional fees, we recommend keeping your total costs down with a cheap merchant account.
Shopify Competitors
Compare Shopify to competitors that earned top marks.
Shopify is a multifaceted platform that serves as both an online store builder and a merchant account provider. It offers a robust and user-friendly solution for businesses looking to establish or enhance their online presence. Despite the vast number of customers using Shopify, the platform has relatively few complaints regarding fees and pricing issues, which speaks to its overall customer satisfaction. When comparing the volume of complaints to the large user base, Shopify scores well, indicating that most users find the service reliable and effective.
While Shopify allows for the integration of preexisting merchant accounts, payment gateways, and websites with its shopping cart, merchants can access the most competitive pricing and comprehensive services by starting fresh with Shopify Payments. This in-house payment processing solution is designed to work seamlessly within the Shopify ecosystem, offering benefits such as lower transaction fees and simplified account management. Businesses considering Shopify are encouraged to explore these options to maximize their cost savings and operational efficiency. For more detailed information and to explore all available services, visit the Shopify website.
