Shopify POS & Credit Card Processing: Is It Right For Your Business?

Fantastic processor for mid-to-large sized businesses that need an eCommerce solution

Editor's Rating

4.5

Good for

  • Companies that want an easy way to set up an online store
  • Small and mid-sized businesses

Bad for

  • Restaurants and hospitality businesses
  • Companies with many locations that need more than 15 staff accounts

Shopify POS & Credit Card Processing: Is It Right For Your Business?

Fantastic processor for mid-to-large sized businesses that need an eCommerce solution

Good for

  • Companies that want an easy way to set up an online store
  • Small and mid-sized businesses

Bad for

  • Restaurants and hospitality businesses
  • Companies with many locations that need more than 15 staff accounts

Editor's Rating

4.5

Shopify POS & Credit Card Processing: Is It Right For Your Business?

Editor's Rating

4.5

Good for

  • Companies that want an easy way to set up an online store
  • Small and mid-sized businesses

Bad for

  • Restaurants and hospitality businesses
  • Companies with many locations that need more than 15 staff accounts

Shopify POS is a great way to accept credit cards and sell things online. They can host your website and handle everything from payment processing to issuing refunds. Everything is customizable through a graphical user interface, which means it’s friendly for non-developers. If you do have developer resources though and want to lower costs, we recommend using something more barebones like Square or Stripe.

Review: Should You Get Shopify POS?

Shopify POS is a good option for small and mid-sized businesses looking for a simple way to start selling things online. Their services come with a lot of robust features, like detailed reporting and inventory management useful to small companies. However, if you want to scale and have more than a few users handling the POS you will need to pay additional fees that make it less affordable than competitors like Vend or Square.

Good For…Bad For…
Companies that want an easy way to set up an online storeRestaurants and hospitality businesses
Small and mid-sized businessesCompanies with many locations that need more than 15 staff accounts

With Shopify POS you can choose one of three membership packages that will determine your fees and features. These are broad enough that most small shops will find something that fits their needs. However, the most basic plan includes only two staff accounts, while “Shopify Advanced” caps it at measly 15. If you have multiple locations and many cashiers, Shopify may get expensive very quickly. Though their competitor, Vend, has higher monthly fees, they don’t place any caps on the number of staff accounts making them a lot more easily scalable for large businesses. If you are only interested in offline processing, and have no web component to your business, we recommend going with Square, since it will also scale more affordably.

Shopify POS is better suited for retail stores than restaurants and hospitality businesses. Their system currently doesn’t include a way to add tips at checkout. It is built to handle inventory-focused businesses like clothing stores. If you run a restaurant or coffee shop, Square may be the better choice.

Bottom Line: Shopify POS is an overall good choice for businesses that want a quick and easy way to start selling things online and want a lot of bells and whistles. If you want to build something for yourself and lower fees and costs, you’ll be better of with Square or Stripe.

Shopify POS Fees, Features & Benefits

Shopify offers three packages with varying monthly costs and benefits: Basic Shopify, Shopify and Advanced Shopify. Based on the monthly fee you pay, you will need to pay different rates for processing credit card payments both online and in person. Generally, the more you pay the lower your rates and the more of Shopify’s features you’ll unlock.

Basic ShopifyShopifyAdvanced Shopify
Monthly Price$29$79$299
Staff accounts2515
Credit Card Processing Fee
  • Online: 2.9% + $0.30
  • In person: 2.7%
  • Online: 2.6% + $0.30
  • In person: 2.5%
  • Online: 2.4% + $0.30
  • In person: 2.4%
Additional Features
  • 24/7 Support
  • Fraud analysis
  • Web hosting
  • Free SSL certificate
  • 24/7 Support
  • Fraud analysis
  • Web hosting
  • Free SSL certificate
  • Gift cards
  • 24/7 Support
  • Fraud analysis
  • Web hosting
  • Free SSL certificate
  • Gift Cards
  • Advanced report builder
  • Third-party calculated shipping rates

Note: If you pre-purchase a plan for one year, you can get a 10% discount on your membership. If you pay upfront for two years you get a 20% discount.

You can still use Shopify POS along with their eCommerce platform while using another company as a payment gateway. However, doing so will result in an extra penalty. Basic Shopify members need to pay a 2% markup, regular Shopify members pay 1%, and Advanced Shopify users will pay 0.5%. Shopify is fully compatible with Stripe, PayPal, Authorize.net, First Data, Amazon Payments and over 70 other gateways.

Shopify also offers an additional package for large enterprise-level businesses called Shopify Plus. The details of this plan are not publicly available, and will likely differ greatly depending on your business. With this high-volume package, Shopify will work closely with you to design pricing and features that best suit your needs.

Business owners can also purchase a retail package that includes hardware for accepting credit card payments in-store. The price for this will depend on what equipment you exactly need. Shopify can supply you with a cash drawer, a barcode scanner, receipt printer, iPad stand, card readers – everything you need to process credit card payments at a brick-and-mortar location.

Image Source: Shopify.com


Beyond this, Shopify’s interface is generally praised by most business owners. It’s feature rich, and provides businesses with detailed reporting, inventory tracking, and even the ability to export data to accounting software like Quickbooks. You can also use Shopify for web hosting purposes. This is included with all the packages free of charge, except for Shopify Lite.

How Much Can Shopify POS Cost Your Business?

For companies that want a better idea of what are the costs of using Shopify, we ran it through a couple simulations to show the actual dollar amount you’d end up paying. Here are the results.

Comparing Monthly Pricing of Different Shopify Plans (In Person Pricing)

Monthly SalesBasic ShopifyShopifyAdvanced Shopify
$5,000$164$204$419
$15,000$434$454$659
$25,000$704$704$899
$30,000$839$829$1,019
$50,000$1,379$1,329$1,499

How Does Shopify POS Compare to Other Credit Card Processors and Platforms?

When shopping for point of sale and credit card processing solutions you never have just one option. That’s why it’s worthwhile to consider how Shopify stacks up against its competitors. Below you’ll find a few quick comparisons we’ve made between Shopify POS and other leading options.

Shopify vs Square

Square is a significantly cheaper way to start accepting payments in person and online than Shopify, especially if you are a small business. However, for online implementation Square does require some extra expertise, as you will need to either code an eCommerce site from scratch using their API or sign up with a pre-existing platform. Assuming you have the resources to do everything yourself, Square will save you on the costs. Business owners who want an all-in-one system that already comes with a lot of built-in features and who don’t mind paying the monthly fees should go with Shopify.

Square is also more versatile than Shopify, and can be well suited to work better for restaurants. Shopify is built-around serving product oriented businesses, like clothing stores. It lacks features like table management or the ability to set tips. If you own a small coffee shop, for example, Square will provide you with a much better POS experience.

Bottom Line: If you’re mostly concerned about cutting costs and don’t process that many payments per month you should go with Square. For more information check out our full review of Square.

Square Highlights

  • More difficult to set up for eCommerce
  • 2.75% per retail transaction
  • No monthly fees

Shopify POS vs Vend

Vend is significantly more expensive than Shopify for smaller shops. The cheapest plan starts at $69 per month – that is $40 more than Shopify’s Basic membership. However, Vend can scale at lower costs for businesses with multiple locations then Shopify POS does. This is the major point of differentiation between the two. While Shopify limits you to 2-15 staff accounts, depending on the plan you choose, Vend allows for unlimited accounts. You’ll have to pay extra with Shopify to have the same unlimited account capabilities.

In terms of POS solutions, choosing between Vend and Shopify will come down to personal tastes and price sensitivity. Both of these POS solutions are rich with features and you will need to look through them yourselves to really make a determination. We can tell you that both have a lot of things in common including 24/7 customer support, detailed reporting, and the ability to set up your employees with admin accounts.

Vend Highlights

  • Online only
  • No monthly fees
  • 2.9% + $0.30 per transaction

Shopify POS vs Stripe

Stripe is one of the top online credit card processing options today, though it’s less friendly for non-developers than Shopify. Stripe’s main claim to fame is a well documented and developer-friendly API that makes it quick and easy to build your own custom checkout into a website and start processing payments. You can even use Stripe to process in-app purchases. However, all these things require some coding skills. You have the option to use Stripe as a payment gateway with an eCommerce platform, like Shopify, but that will most likely increase your overall costs.

On the cost side, Stripe doesn’t charge any monthly fees. You pay 2.9% + $0.30 per transaction. Unlike Shopify, there are no monthly plans that you can sign up for to reduce this cost. However, if you’re processing less than $50,000 per month through your eCommerce site, you will likely save more by just skipping the high monthly fees on Shopify and going with Stripe.

You can learn more about Stripe in our review.

Stripe Highlights

  • Online only
  • No monthly fees or minimums
  • 2.9% + $0.30 per transaction

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