If you choose Shopify POS as a point-of-sale system for your brick-and-mortar store, Shopify POS payments are among the most important configurations you need to set up.
With proper payment setups, you can securely and effectively process your customers’ in-store transactions, improving your overall operational efficiency.
That’s why we’re here to help. In this quick tutorial, we will walk you through all you need about Shopify POS payments and, most importantly, how to set it up.
Contents
1. Shopify POS: At a Glance
If you are a newbie, then let’s get to know some fundamentals about Shopify POS as well as its pros and cons first.
1.1. What is Shopify POS?
Shopify POS is a cloud-based point-of-sale system developed by Shopify to integrate effortlessly with the Shopify Online Store. This means you can sync your order, customer, inventory, and other important data across channels and manage your online and offline store intuitively in one central hub.
| 🔎 Check out these insightful resources for more detailed information on Shopify POS and other POS solutions approved by our eCommerce gurus: • Shopify POS Reviews: Everything You Need to Know • Shopify POS Lite vs POS Pro: Learn The Differences • 7 Best POS Systems For Small Business Nobody Told You |
1.2. What are the key features of Shopify POS?
Though Shopify merchants can use another POS system with their Shopify store, most prefer Shopify POS for its convenience and high compatibility with Shopify. But that isn’t the full picture.
Merchants choose Shopify POS over other solutions also because of the robust features Shopify POS provides. Chief among them are:
- Smart inventory management: The Shopify POS sales tracking function syncs inventory data in real-time across channels to give you helpful insights such as demand forecasting, low stock reports, item suggestions, etc.
- Integration with Shopify App Store: You can extend your POS’s functionality by integrating with over 8,000 apps on the Shopify App Store. For instance, by installing an app like OneLoyalty, you can offer your customers points and rewards directly through your POS system
- Shopify Payments compatibility: Another perk of Shopify POS is its compatibility with Shopify Payments. This means you can accept various payment methods without the complexity of setting up a third-party payment processor. (we’ll show you how to set up Shopify Payments for your Shopify POS later on)
1.3. Shopify POS Pros & Cons
Despite being a great POS system, Shopify POS isn’t a one-size-fits-all solution. Here are the pros and cons of Shopify POS in a nutshell:
💡 Clearly, Shopify POS is the optimal omnichannel POS system for businesses that want to sell across channels. And as of the time being, Shopify has Shopify 3 months for $1, which makes starting an omnichannel business more cost-effective than ever.
2. What are Shopify POS payments?
Shopify POS payments, also known as Shopify Payments, is Shopify’s ‘in-house’ payment gateway that integrates with the Shopify POS system, allowing you to accept all popular payment methods like credit, debit card, etc.
With Shopify Payments, you don’t have to deal with the complexities of configuring a third-party payment gateway or merchant account or entering the credentials into Shopify. This makes Shopify Payments an ideal choice for businesses looking for a quick-to-set-up payment gateway for transaction processing.
❗That being said, Shopify Payments is only available in the following countries:
- Australia
- Belgium
- Canada
- Denmark
- Finland
- France
- Germany
- Ireland
- Italy
- Netherlands
- New Zealand
- Singapore
- Spain
- United Kingdom
- United States (only Puerto Rico)
❗So if you’re not living in the regions where Shopify Payments is supported, you’d have to connect a third-party payment gateway to process your Shopify POS payments.
In summary, here are the pros and cons of Shopify Payments:
3. Understand Shopify POS payment options
With Shopify POS payment gateways (either Shopify Payments or a third-party gateway), you can accept various Shopify POS payment methods from your customers.
Let’s have a quick look at what payment options you can accept and the pros & cons of each method:
3.1. Credit and debit cards
With credit and debit cards, you can accept swipe, chip, or contactless payments using Shopify POS hardware like card readers.
Pros
Cons
3.2. Cash payments
Shopify POS cash payment is activated by default for your Shopify POS payment processing.
Pros
Cons
3.3. Shop Pay Installments (requires Shopify Payments)
This is a Buy Now, Pay Later (BNPL) option that allows your customers to pay in installments.
Pros
Cons
❗Shop Pay Installments is only accessible to merchants in the United States, selling in US dollars, that have activated both Shopify Payments and Shop Pay.
3.4. Gift cards
By using gift cards, you can sell and redeem gift cards directly through Shopify POS.
Pros
Cons
3.5. Multiple and partial payments
Shopify POS allows you to split transactions across multiple payment methods or accept Shopify POS partial payment.
Pros
Cons
3.6. Custom payments
To accept manual payments not processed by Shopify, like checks, store credit, or payments via third-party terminals, you can configure a custom payment method.
Pros
Cons
4. How to set up and activate Shopify POS payment?
Now that you know what Shopify payments POS is, let’s set up and activate Shopify Payments for your Shopify POS.
✅ Step 1: First, navigate to the Point of Sale app that is already integrated into your Shopify account by default. On the Shopify POS’s onboarding guide, navigate to Store settings > Click Set up Payments.
✅ Step 2: Afterward, you will be directed to the payment settings. If you are living in a region where Shopify Payments is supported, then you’ll see a similar screenshot like this:
✅ Step 3: Then, click Activate Shopify Payments. You will then be required to provide your Employer Identification Number (EIN), banking information and other relevant information, such as your average order value and shipping time.
✅ Step 4: After you have finished setting up Shopify Payments, the next thing to do is enable it in the Shopify POS app to use Shopify Payments for your Shopify POS.
Simply open the Shopify POS app on your phone > Click on the ≡ icon > Choose Settings. Next, hit Payment Types. Herein, you can toggle on and off the payment methods you want for your Shopify POS.
💡 In case you’re wondering how to find cash payments for Shopify POS, it’s the Accept cash option right below the ‘Accept credit/debit’ under the Default payment types section.
And that’s how easy it is to activate Shopify Payments and add payment method Shopify POS.
5. Closing Thoughts
Thanks to Shopify Payments’ seamless integration with Shopify POS, you can easily process your customers’ in-store transactions with high payment security.
That’s why eComStart hopes this tutorial will help you better understand Shopify POS payments’ requirements, the types of payment methods you can accept, and how to activate Shopify Payments for your Shopify POS.
If you like reading this blog, you are very welcome to explore more helpful guides, tips, and tricks produced by our experts at eComStart.io.
6. Frequently asked questions
