Shopify Payments for Australia: Setup, Benefits, and Optimization Tips

If you're an Aussie entrepreneur with a Shopify store, you’re probably familiar with the challenge of choosing the right payment gateway. But what if you could skip the middleman and process payments directly through Shopify? Enter Shopify Payments. It’s Shopify’s very own built-in payment service that lets you accept popular payment methods without needing a third-party provider.

In this post, we’ll dive into the many benefits of Shopify Payments for Australian merchants. See how it compares with other payment options like Afterpay, Stripe, and PayPal. Stay tuned for the setup process, share optimization tips for local customers, troubleshoot common issues, and even show you how to enhance your checkout page with GemPages. 

Benefits of Using Shopify Payments for Australian Merchants

First, let’s take a look at the rates and fees that Shopify Payments charges Australian sellers based on their plans. 

Note: Third-party transaction fees are charges that apply if you use a third-party provider.

From the table, you may wonder if Shopify Payments charges more than Third-party providers. The answer is not. Shopify will charge additional fees if you opt for third-party payment providers. That means you have to pay extra on top of the rates and fees the service providers already charge. It makes Shopify Payments much more attractive for Australian merchants. 

Shopify Payments also comes with Shop Pay, another proprietary solution from Shopify.

However, this isn’t the only benefit you’ll enjoy with Shopify Payments as an Aussie seller. Here are the advantages Shopify’s built-in services offer: 

• No Third-Party Transaction Fees: Shopify Payments waives additional transaction fees (0.6%–2%), saving Aussie merchants, especially on Basic plans, from paying extra surcharges with external gateways. You only pay the standard credit card rate.

• Competitive Processing Rates in AUD: Shopify Payments offers competitive fees (e.g., ~1.75% + 30c on Basic for domestic cards), billed in AUD, so no currency conversion or surprises.

• Local Payment Methods: Shopify Payments supports Apple Pay, Google Pay, and EFTPOS cards (for in-person transactions via Shopify POS), making it easy for Australian businesses to accept payments online and offline.

• Faster Payouts: Funds are transferred to your Australian bank account within 2 business days, improving cash flow compared to some third-party gateways with longer processing times.

• Integrated Dashboard & Ease of Use: All payment info is in Shopify’s dashboard—track payouts, manage refunds, and view chargebacks easily, without needing to log into separate gateways.

• Shopify’s Fraud Analysis and Security: Built-in fraud analysis tools and PCI compliance offer peace of mind, so you don’t have to worry about separate security certifications.

• Support for Multi-currency: Shopify Payments supports multi-currency checkout for international sales, allowing you to accept payments in multiple currencies and maintain balances in different currencies with Advanced/Plus plans. Perfect for merchants with overseas customers.

Also Read: All You Need to Know about Shop Pay

Comparing Shopify Payments and Popular Gateways in Australia

How will Shopify Payments stack up against the most commonly used payment service providers in Australia? Let’s find out!

Shopify Payments vs. Stripe

Do you know Shopify Payments is powered by Stripe on the backend? So, can Shopify Payments beat Stripe, particularly for Australian sellers on Shopify? The answer is yes. 

While Stripe is a popular choice for card processing, using it separately on Shopify can lead to higher costs. That's because, if you opt for Stripe, you'll still incur Shopify's transaction fee on top of Stripe's charges. 

Additionally, managing Stripe settings would be done outside Shopify. It requires more effort and added complexity. For most Aussie merchants, Shopify Payments provides an easier and more cost-effective option. It allows you to leverage Stripe’s technology while keeping everything neatly integrated within Shopify’s system. 

Shopify Payments vs. PayPal

PayPal accounts for 64% of purchases made with a digital wallet. It’s a well-established platform, offering a trusted payment option for a large existing customer base. However, PayPal’s fees for domestic transactions typically hover around 2.6% + 0.30 AUD, which is a bit higher than Shopify Payments' rates for many plans.

PayPal is still one of the biggest digital wallets, despite all of the new competitors.

Another consideration is PayPal’s currency conversion fees, which apply to international sales. These fees can add up, making PayPal a more expensive option for global transactions. You’re trading this for PayPal’s buyer protection and credibility.

For Australian merchants, a common strategy is to enable both Shopify Payments and PayPal. This provides flexibility for customers who want to use PayPal. Do note that PayPal funds are deposited into your PayPal account, not directly to your bank like Shopify Payments. PayPal will charge extra if you want to withdraw the funds to your bank account. 

“Buy Now, Pay Later” (Afterpay, etc.) vs. Shopify Payments

In Australia, Buy Now, Pay Later (BNPL) services like Afterpay are incredibly popular. Afterpay allows customers to split their payments into installments, which can be especially appealing for higher-ticket items. While Shopify Payments doesn’t include Afterpay by default, it’s possible to integrate it as an additional payment option.

One key thing to remember is that Afterpay has its fees, which tend to be higher than regular credit card fees. Typically, Afterpay charges around 6% + a fixed fee per transaction, which can cut into your margins. Moreover, Shopify treats Afterpay as an external payment method, meaning it may incur the Shopify transaction fee unless you're on Shopify Plus or qualify for an exemption.

For merchants who want to offer flexible payment options, integrating both Shopify Payments for card processing and a BNPL service like Afterpay can be a winning combination. Shopify Payments will handle the regular card transactions, while Afterpay gives customers the option to pay in installments. 

Other Gateways (e.g., eWAY, SecurePay)

Australia also has a range of traditional gateways and bank merchant facilities, such as eWAY and SecurePay, as well as services from the Commonwealth Bank and NAB (National Australia Bank). While these systems can work for some merchants, they often require lengthy paperwork, and the setup process can be a hassle.

How to Set Up Shopify Payments for an Australian Store

Setting up Shopify Payments for your Australian store is a straightforward process, and it's designed to be as seamless as possible. Follow these simple steps, and you'll be ready to start accepting payments in no time!

1. Check Your Business Eligibility

Before you dive in, make sure you meet the requirements:

• ABN (Australian Business Number): If you're a business entity, you'll need a valid ABN. If you're an individual seller, you'll need your details for verification.

• Australian Bank Account: Shopify Payments needs a local Australian bank account to deposit funds. It must be a transaction account that can accept ACH transfers (no savings accounts, sorry!).

• ID Verification: Shopify will request identity verification during setup. You’ll need to provide a driver’s license or passport and possibly some additional business details.

2. Enable Shopify Payments in Shopify Admin

Log in to your Shopify admin. Go to Settings > Payments. Look for Shopify Payments as an option. Click on it, then hit “Activate” or “Complete Setup.” And voilà, you're almost there!

For your information, Shopify Payments is only available in certain regions.

3. Provide Your Business Details

Now, Shopify needs some information to get everything set up:

• Business Type: Select your business type (individual, company, etc.).

• ABN or ACN: Provide your ABN (or ACN if applicable).

• Account Holder Info: You’ll be asked to fill in personal details of the account holder (name, date of birth, address).

You might also need to upload verification documents like ID scans or business registration documents. No stress – just follow the prompts!

4. Enter Your Bank Account Information

Shopify will ask for the details of the Australian bank account where you’d like to receive payouts. Double-check your BSB and account number to avoid any payout hiccups. It’s crucial to get these right so the funds can be transferred without issue!

5. Submit and Wait for Approval

Shopify Payments is usually activated instantly, but sometimes there’s a short review process. Keep an eye on your email in case Shopify needs any additional verification documents (like proof of address or bank account ownership).

Once approved, you’re good to go!

6. Configure Your Settings

Pay some attention to the following:

• Statement Descriptor: Choose the name that will appear on your customers’ card statements. Make it something that they'll easily recognise!

• Payout Schedule: Shopify lets you choose your payout frequency—daily, weekly, etc. Many stores go with daily payouts, which batch all transactions with a 2-day rolling period.

• Accelerated Checkouts: Shopify Payments usually has Apple Pay enabled by default. You can check and enable other payment methods (Google Pay, etc.) that might be relevant for your store.

7. Test a Transaction

It’s always a good idea to run a test. You can use Shopify’s test mode or simply do a $1 transaction with a personal card in real production.

Check that the payment gets captured and that it shows up in your Shopify Payments payouts schedule.

Common Issues with Shopify Payments and How to Troubleshoot

For the most part, Shopify Payments is reliable. It runs seamlessly and securely. However, there can be a few common hiccups that Aussie merchants might encounter. Don’t worry—most of these issues are easy to troubleshoot and resolve with a little guidance. 

Here’s a rundown of the most frequent problems and how to tackle them:

Payouts Not Arriving or Failing

One of the more frustrating issues is when a payout doesn’t arrive as expected. Common culprits include incorrect bank details or issues with the bank account itself (e.g., it’s closed or doesn’t accept certain transfer types).

Solution: Double-check the bank details you’ve entered in Settings > Payments. Make sure the BSB and account number are correct. If a payout fails, Shopify will usually notify you by email. Once you update the info, the payout will retry automatically. Also, ensure that your bank account can accept deposits (most Aussie checking accounts should work just fine; savings accounts might cause issues).

Account On Hold / Verification Issues

If Shopify Payments puts your account on hold, it usually means Shopify needs more information, perhaps due to a sudden increase in transaction volume or missing documents.

Make sure all of your details are correctly entered.

Solution: Check your email or Shopify admin for any notifications about verification. If Shopify needs additional documents, like proof of identity or business info, provide them as soon as possible. 

Don’t panic if your account is on hold—this is typically resolved quickly once the requested information is provided. To avoid this, make sure your account details are accurate during setup and stay on top of any changes.

Customers’ Cards Being Declined

It can be frustrating when customers report that their card is being declined, especially if it’s a legitimate card. This could happen due to a range of issues—insufficient funds, fraud blocks, or even a mismatch in billing address.

Solution: As the merchant, you can’t override declines, but you can encourage customers to try a different card or contact their bank for clarification. To reduce declines, remind customers to enter their billing details correctly (Shopify’s checkout will flag errors if something’s off). 

Make sure your checkout page is SSL-secure (it is by default), and that CVV verification is enabled (which is also turned on by default with Shopify Payments). If multiple customers face issues, check the Shopify Status page to see if there’s a payment processing outage.

High Chargeback Rate or Reserves

If you sell high-risk items like digital goods or if you’re experiencing a surge in chargebacks, Shopify may place a reserve on your account or hold a percentage of your sales.

Solution: To avoid chargebacks, ensure you’re providing excellent service, have a clear refund policy, and use fraud analysis tools to screen suspicious orders. If you do face chargebacks, respond to them with evidence via your Shopify admin. If Shopify imposes a reserve on your account, you’ll need to demonstrate the stability of your business over time to have it lifted.

GST and Tax Settings

While not directly a Shopify Payments issue, Aussie merchants need to ensure that GST settings are properly configured. This ensures GST is accounted for in your reports and potentially on customer receipts.

Solution: Use Shopify’s tax settings to specify that your store is based in Australia, apply the 10% GST, and choose whether you want to display prices as tax-inclusive. This helps avoid confusion for both you and your customers. For digital products or services, make sure you know whether GST applies in your case.

Build the Ultimate Checkout Experience with Shopify Payments and GemPages

GemPages will be your ultimate sidekick for building pages that not only look great but also push customers straight to the checkout button. Sure, Shopify Payments handles the transactions, but GemPages gives you the power to design pages that make people want to pay!

Revolutionize how you build your Shopify store with GemPages, now powered by AI.

Imagine this: your product pages look sleek and have all the key selling points. With GemPages, you can easily add key payment options like “Buy Now, Pay Later” or “Secure checkout with Visa/Mastercard”. Throw in trust badges, payment security reassurance, and simple return policies right near the Add to Cart button, and boom—your customers are ready to check out, not bounce.

Custom landing pages are where GemPages shines. Shopify’s default checkout might work, but it’s not built for conversion. GemPages enables you to create a landing page that skips all the fluff by simply dragging and dropping elements you want! Running short on ideas? Worry not. GemPages also comes with a library of hundreds of pre-made templates to inspire you! 

Now, Aussies love to shop on mobile, and your checkout experience better be ready for that. Luckily, GemPages makes mobile optimization a breeze. You can create mobile-friendly layouts that ensure your checkout button stands out, no matter how small the screen. This means customers can easily navigate to checkout without any annoying zooming or squinting, leading to more completed transactions.

Create faster, more mobile-responsive pages using GemPages.

With GemPages, you’ve got all the tools to build a checkout experience that’s not just functional, but optimized for Aussie shoppers. It’s easy, powerful, and designed to convert. When you pair it with Shopify Payments, you’ve got a one-two punch that’ll have your customers clicking “buy” in no time.

Wrapping Up!

In the competitive world of online retail, having a seamless, high-converting checkout process is key to turning visitors into loyal customers, and GemPages is the secret weapon Aussie Shopify merchants need to make that happen. 

By giving you the power to design custom product pages, optimize for mobile, create compelling landing pages, and test different designs, GemPages ensures that your checkout experience isn’t just functional but optimized for maximum conversions. Add to that the reliability of Shopify Payments, and you’ve got a smooth, efficient, and cost-effective system that makes it easy for your customers to pay and hard for them to resist completing their purchases. 

Whether it’s showing off payment options, reassuring customers with security messages, or streamlining the entire checkout process, GemPages helps you build the perfect sales funnel that leads straight to that “buy” button. Simply put, with GemPages and Shopify Payments, you’ve got everything you need to run a high-performing online store that’s built to convert.