What is an external payment gateway in Shopify?

A third-party processor like Authorize.net, Braintree, or Stripe used instead of Shopify Payments.

Do external gateways add fees?

They can — external gateways may add transaction fees on some Shopify plans and have their own processing fees.

Does Shop Pay work with external gateways?

No — Shop Pay only works with Shopify Payments.

How do I connect an external gateway?

Go to Settings > Payments, choose the gateway, and enter your credentials.

Glossary Term

E

External Payment Gateway

Q: Should I use Shopify Payments or an external gateway?

Most US stores use Shopify Payments for lower fees and Shop Pay; use an external gateway for a specific processor, niche method, or unsupported country.

A third-party processor (Authorize.net, Braintree) that handles card payments outside Shopify Payments.

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Key Takeaways
An External Payment Gateway is a third-party processor (Authorize.net, Braintree, Stripe) used instead of Shopify Payments.
Connect it under Settings > Payments.
Most US stores use Shopify Payments for lower fees and Shop Pay.
Use an external gateway for a specific processor, niche method, or unsupported country.
External gateways may add transaction fees and separate dashboards.

Overview

An External Payment Gateway is a third-party payment processor — like Authorize.net, Braintree, or Stripe — that handles credit card transactions on your Shopify store instead of Shopify Payments. You connect it under Settings > Payments.

Most US stores use Shopify Payments for lower fees and built-in features like Shop Pay. An external gateway makes sense when you need a specific processor (an existing merchant account, a niche payment method, or a country Shopify Payments doesn't cover), or when your business model requires it.

External gateways add flexibility but often add transaction fees and separate dashboards. The choice between Shopify Payments and an external gateway comes down to fees, features, and where your business operates.

1

Why External Payment Gateways Matter for Shopify Merchants

1
Processor Flexibility
Use an existing merchant account or a specific processor your business requires.
2
Niche Payment Methods
Offer payment methods Shopify Payments doesn't support.
3
Geographic Coverage
Process payments in countries where Shopify Payments isn't available.
4
Existing Relationships
Keep a processor you already have rates or terms with.
5
Enterprise Needs
Some enterprise setups need a gateway for compliance or routing reasons.

2

Choosing Between Shopify Payments and an External Gateway

1
Compare fees
Shopify Payments avoids the extra transaction fee that external gateways can trigger on some plans.
2
Check Shop Pay
Shop Pay only works with Shopify Payments — a big conversion advantage.
3
Verify country support
Use an external gateway only where Shopify Payments isn't available or suitable.
4
Watch the dashboards
An external gateway means managing payments in two places, not one.
5
Plan for payouts
External gateways handle payouts on their own schedule, separate from Shopify.