Shopify Payments: The Complete Guide for Danish Online Stores
When you choose Shopify, you get everything you need to open an online store, including a payment solution. In other words, you can open your webshop within a few days.
Shopify Payments is an integrated payment solution in Shopify and (almost) all merchants using Shopify have the option to use it. Shopify takes care of everything – from receiving payments to transferring your earnings directly to your Danish account.
In this guide, we've gathered everything you need to know about Shopify Payments with a special focus on what's important for Danish webshops. You will find a comprehensive overview of advantages and limitations plus a series of expert tips along the way.
What is Shopify Payments? Payment gateway and acquirer in one solution
Shopify Payments functions as both a payment gateway and acquirer, meaning it handles the customer's payment and ensures the transfer to your account. As Shopify Payments is built into the platform, you generally don't need to integrate separate payment providers and acquirers, saving time and simplifying the setup.
What is a payment gateway and an acquirer?
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Payment Gateway: This can be compared to a "terminal" in a physical store. It is the software that manages the transfer of payment information from your webshop to the bank for payment approval. The payment gateway ensures that all data is encrypted and securely handled, protecting both you and the customer.
- Acquirer: Once the customer's payment information has been processed by the payment gateway, the data is sent to an acquirer. The acquirer facilitates the money transfer between the customer's bank and your account. Acquirers work with specific card types, such as Visa or Mastercard.
For this service, Shopify Payments charge various fees. The fee size depends on your Shopify plan. The fees are a combination of a fixed price per transaction and a percentage of the total amount. The advantage of using Shopify Payments is that you only pay these fees, not any additional third-party payment provider costs.
Who can use Shopify Payments? Key restrictions and conditions
Shopify Payments is available on all Shopify plans, but there are some restrictions. Shopify Payments excludes certain types of businesses and business models. These include, but are not limited to:
- Financial and legal services: such as money transfers, debt counseling, and law firms handling client funds.
- Virtual currency: such as the sale of Bitcoin or other cryptocurrencies.
- Weapons and explosives: Sale of firearms, ammunition, and fireworks.
- Pornography and adult content: including paid adult chat and sexually explicit material.
- Gambling and gaming: Lotteries, online casinos, and sports betting.
- High-risk businesses: such as pyramid schemes, travel reservations, and telemarketing.
You can find more info in Shopify Payments Terms of Service - Denmark
Available payment methods in Shopify Payments for Danish webshops
Since Shopify Payments can be used globally, the most popular payment methods are included. For Denmark, this currently means you can accept:
- Credit and debit cards: Visa, Mastercard, American Express, Maestro, and UnionPay.
- Express payment methods: Apple Pay, Google Pay, and Shop Pay.
- Local payment methods: Bancontact and iDEAL.
You can see an updated list of available payment methods here: Shopify Payments for Denmark
Advantages of Shopify Payments: Security, ease of use, and fast payouts
1. Easy setup and user-friendliness
Shopify Payments is built into the Shopify platform, making the setup quick and user-friendly. You can activate Shopify Payments directly from your Shopify dashboard without the need for integrations or technical changes. All payments are consolidated in one place, making it easy to monitor payments and payouts, minimizing administration.
2. Support for popular payment methods
Shopify Payments allows Danish merchants to accept payments via the most used cards like Visa, Mastercard, and American Express, as well as through digital wallets like Apple Pay, Google Pay, and Shop Pay. These payment methods are both popular and accepted by most customers in Denmark.
3. Checkout takes place directly in your shop
With Shopify Payments, the entire payment process happens on your webshop. The customer stays on the checkout page and is not redirected to a third party. This can reduce the risk of purchase interruptions.
4. High-security standard
Shopify Payments complies with the highest security standards and protects payment data with advanced encryption and 3D-Secure technology.
5. Quick payout
For Danish merchants, Shopify Payments has a payout period of 3 business days, ensuring a stable cash flow and better liquidity. Fast payouts mean you can reinvest in your inventory and marketing quicker, thereby improving your business growth opportunities.
6. Reporting and support
Since Shopify Payments is integrated directly into Shopify, all payments can be viewed and managed in one place. You don't need to log into different accounts. You can see detailed analyses and reports on transactions, payouts, and refunds, and Shopify's support team will be able to assist with payment issues.
7. Perfect for global trade with Shopify Markets
Shopify Payments supports multiple currencies, allowing your customers to pay in their own currency. Shopify Markets helps identify and optimize international markets.
8. Support for physical sales
With Shopify POS, you can accept payments in physical stores, at trade shows, and pop-up stores. Shopify Payments is integrated into Shopify POS.
9. Support for subscription solutions
Subscription solutions allow for recurring payments and automatic deductions, requiring a secure and integrated payment gateway. Shopify Payments is designed to handle these subscription payments securely and is compatible with Shopify's apps and integrations for subscriptions.
How to set up Shopify Payments step by step
Activating Shopify Payments is easy and quick. Before you activate, make sure you've set a currency for your shop (base currency). Do this under Settings -> General -> Store Defaults.
Step-by-step setup of Shopify Payments:
- Log into your Shopify account and go to Settings -> Payments
- Click on Activate and follow the instructions.
- Select the payment methods you wish to offer, such as Visa, Mastercard, and American Express, Apple Pay, and Google Pay.
- Complete the necessary identification documents, and ensure you have an approved bank account in Denmark.
Compliance with requirements and documentation
To be approved for Shopify Payments, Danish merchants must provide documentation like a CVR number, ID verification, and account details. This is important to comply with both Shopify's and Danish authorities' security and identification requirements. You can read more about documentation here: Shopify Payments requirements for documentation.
What does Shopify Payments cost
Shopify charges a fee depending on which Shopify plan you are on. You can find the latest prices here. It's not the cheapest, but the easiest and most transparent solution. What you see is what you get!
You avoid handling agreements with multiple acquirers. The money comes in one place, and even lightning-fast. This saves you a lot of administrative hassle (and therefore time/expenses for employees) – and perhaps even the lost revenue that can result from missing some conditions in too many different agreements.
Disadvantages and limitations of Shopify Payments: What you should be aware of
1. Lack of MobilePay integration
A major disadvantage for Danish merchants is that Shopify Payments does not support MobilePay, one of the most popular payment methods in Denmark. If you want to offer MobilePay, you must use a third-party payment provider such as AltaPay, PensoPay, or a similar solution. This can result in additional costs and make the payment experience less cohesive for both merchant and customer.
You can read more about integrating MobilePay on Shopify in our blog post: Guide: How to offer MobilePay on your Shopify webshop
2. Additional costs for third-party payment gateways
If a Danish webshop owner wants to offer both Shopify Payments and MobilePay via a third-party payment provider, additional fees will be incurred.
Shopify typically charges a transaction fee for using third-party providers, even if you use Shopify Payments for other payment methods. It's important to account for these additional costs as they can affect profit margins.
Can you avoid paying third-party fees?
Perhaps you've heard that you can avoid this third-party "penalty fee" by activating Shopify Payments and hiding this payment method at checkout using an app such as HidePay or Payfy. This was previously possible, but in 2024, Shopify has closed this option.
3. Chargeback fees
Shopify Payments charges a fee for chargebacks on credit card payments. However, this is standard in the industry.
4. Frozen amounts during review
In the event of suspicious activities, Shopify Payments may temporarily freeze amounts. As a merchant, you can always reach out to Shopify support, which is available 24/7, for assistance.
Is Shopify Payments the right choice for Danish webshops?
The choice of Shopify Payments depends on the store's needs and goals. Shopify Payments can be an ideal solution if you sell to countries other than Denmark and prioritize simple administration and transparency.
If you are exclusively selling to Denmark, where 96 percent of consumers have a Visa/Dankort, a third-party solution might be the right choice for you. Since Shopify Payments does not support Dankort, it will use the VISA portion, making it a more expensive alternative.
For shops where MobilePay or Dankort is a necessity, the combination of Shopify Payments and a third-party provider can be optimal. This provides the flexibility to offer a wide range of payment methods and thus attract more customers in different segments.
Why Shopify Payments are required for certain features
Shopify Markets
Shopify Markets enables Shopify merchants to expand internationally by offering localized pricing, payment options, and checkout experiences in multiple countries. To fully take advantage of these features, Shopify requires the use of Shopify Payments, as it is the only payment solution that integrates deeply enough to support local currency and tax regulations in different markets.
Subscription solutions
For Danish Shopify merchants offering subscription solutions, Shopify Payments is also a necessity. Subscription solutions allow for recurring payments and automatic deductions, requiring a secure and integrated payment gateway.
Unfortunately, third-party gateways cannot support this feature, meaning those who wish to offer subscriptions must choose Shopify Payments.
Contact DTAILS for expert help
The payment discipline can seem overwhelming, which we understand. Both financial and user journey considerations must be taken into account. We gladly provide advice and also offer to calculate it with you. You can always contact us here.
