Preparing Your Store for Shopify Payments: A 2025 Compliance Checklist

Welcome to Devignify Studio’s Shopify Summer Edition 2025. As Shopify Payments evolves to meet new regulatory, security and merchant requirements, it’s vital to ensure your store is fully prepared and compliant. Below, we outline a comprehensive checklist to guide you through every step minimising surprises, avoiding delays and enabling smooth transactions for your customers this summer.

1. Understand the 2025 Regulatory Landscape

Before diving into specific tasks, it’s important to appreciate why compliance matters more than ever:

• Enhanced Financial Regulations
  Governments and financial authorities are increasingly tightening controls over digital payments. In 2025, several markets particularly within the European Economic Area have refined their anti-money laundering (AML) and know-your-customer (KYC) requirements. Non-compliance can lead to account holds or even suspension of Shopify Payments.

• Data Protection and Privacy Laws
  With the UK’s Data Reform Bill now in force and the EU’s Digital Markets and Services Act (DSA) gaining traction, how you collect, store and process customer data especially payment details must adhere to stricter standards.

• Consumer Rights Updates
  New regulations around chargebacks, refunds and dispute resolutions place more responsibility on merchants. Ensuring your policies and systems align with these changes reduces the risk of fines or customer dissatisfaction.

Keeping abreast of each jurisdiction’s updates (UK, EU, North America, etc.) is essential. If you sell internationally, err on the side of caution by adopting the most rigorous standard that applies to any of your markets.

2. Verify Your Business Information and KYC Documentation

Shopify Payments relies on accurate, up-to-date business data. The following documentation is typically required:

1. Verified Legal Entity

   • Company Registration: Provide a copy of your certificate of incorporation (or equivalent) registering you as a limited company, LLP or sole trader in your jurisdiction.

   • Business Address Proof: Recent utility bills or bank statements showing your registered business address.

2. Owner and Director Identification

   • Valid Photo ID: Passport, national ID card or driver’s licence for each individual with ≥25% ownership or who has control over finances.

   • Proof of Address: A separate document (e.g. bank statement, council tax bill) dated within the last three months.

3. Bank Account Verification

   • Account Holder Match: Confirm that the name on your business bank account matches the legal entity name you’ve registered with Shopify.

   • Supporting Bank Documents: A voided cheque or a recent bank statement (within 90 days) to verify account details.

❏ Checklist

• Company registration certificate (dated within validity period)

• Business address proof (utility bill, bank statement)

• Photo ID for all controlling parties

• Corresponding address proofs for all controlling parties

• Bank statement or voided cheque verifying account name/number

Ensure all documents are clear, unexpired and legible. Upload them via Settings → Payments → Shopify Payments → Complete account setup. If Shopify requests additional info, respond promptly to avoid interruptions.

3. Align Tax Settings and Currency Support

Accurate tax and currency configuration is fundamental for seamless payment processing.

1. Tax Registration and Rates

   • VAT/GST Registration: If your annual turnover exceeds the local threshold—£85,000 in the UK or €10,000 for distance selling in the EU—register for VAT/GST accordingly.

   • Configure Tax Profiles: Under Settings → Taxes and duties, set correct rates per region. Remember that certain summer sales (e.g. promotional bundles) may qualify for reduced rates or exemptions—check local guidelines.

2. Currency Conversion and Multi-Currency Checkout

   • Supported Currencies: Shopify Payments in 2025 supports over 25 currencies. Verify that you’ve enabled the currencies relevant to your target markets (e.g., GBP, EUR, USD, CAD, AUD).

   • Rounding Rules: Some currencies (e.g., JPY) don’t use decimal places. Ensure your storefront displays prices correctly to avoid confusion at checkout.

3. Automatic Tax Calculations

   • Shopify Tax: Leverage Shopify Tax if available in your region it automates VAT/GST collection, filing and remittance. Otherwise, integrate a trusted third-party app to handle tax calculations in real time.

❏ Checklist

• Confirm VAT/GST registration numbers (if applicable)

• Set up correct tax rates for each selling region

• Enable all necessary currencies in Settings → Payments → Shopify Payments

• Test currency display and rounding for edge cases

• Activate Shopify Tax or equivalent service

4. Ensure PCI DSS Compliance and Secure Data Handling

Even though Shopify Payments is PCI Level 1 certified, merchants must still follow best practices to protect cardholder data:

1. SSL Certificate and HTTPS Everywhere

   • Shopify provides a free SSL certificate by default, but confirm that every page product, cart, checkout and contact forms is served over HTTPS.

2. Avoid Storing Sensitive Data

   • Do not request or store CVV/CVC codes, full card numbers or expiry dates on your own servers. Let Shopify’s secure payment forms handle this.

3. Strong Passwords and Two-Factor Authentication (2FA)

   • Enforce 2FA for all staff accounts with access to payment settings.

   • Use unique, complex passwords and consider a password manager for your team.

4. Regular Security Audits

   • Schedule quarterly reviews of user roles and permissions. Ensure only essential personnel can access payment and financial data.

   • Utilise Shopify’s built-in fraud analysis tools review flagged orders for unusual patterns, IP mismatches or large-value transactions.

❏ Checklist

• Verify all pages load over HTTPS (no mixed content warnings)

• Confirm no sensitive payment data is stored on third-party servers or apps

• Enable 2FA for all staff accounts

• Perform quarterly user-access audits

• Review and configure Shopify’s fraud detection settings

5. Update Store Policies and Customer Communications

Transparent policies are not only a legal requirement but also build customer trust.

1. Payment and Refund Policy

   • Clearly state accepted payment methods (credit/debit cards, Apple Pay, Google Pay, etc.) and any transaction fees if applicable.

   • Define your refund timeline (e.g., “Refunds will be processed within 7–10 business days”).

   • Include procedures for disputed charges and chargebacks.

2. Privacy Policy

   • Update to reflect how payment data is processed via Shopify Payments, including any third-party services (e.g. fraud detection, currency conversion).

   • Mention retention periods for transactional records, in line with GDPR or UK Data Protection Act 2018.

3. Terms of Service (ToS)

   • If you haven’t already, include a clause specifying that Shopify Payments is a third-party payment processor.

   • Outline any limitations of liability regarding fraudulent transactions or chargebacks.

4. Checkout Notices and Consent

   • Under EU SCA (Strong Customer Authentication) rules, ensure any required customer consents (e.g., “I agree to the terms”) are captured during checkout.

❏ Checklist

• Publish an updated Payment and Refund Policy page

• Revise Privacy Policy to include Shopify Payments data handling

• Amend Terms of Service to reference third-party processing

• Add necessary consents for SCA or regional payment laws

6. Configure Payout Schedule and Bank Details

Understanding how and when you’ll receive funds helps with cash-flow planning:

1. Payout Schedule Settings

   • Shopify Payments offers daily, weekly or monthly payouts depending on your country. In the UK and EU, daily payouts are standard, whereas some markets (e.g. parts of Asia) may default to weekly.

   • Under Settings → Payments → Shopify Payments → Payouts, confirm your preferred schedule and review any delays (e.g. 3–5 working days) before the first payout.

2. Reserve and Rolling Reserves

   • In 2025, Shopify may hold a rolling reserve for certain high-risk industries (e.g. supplements, jewellery) or new merchants until a track record is established.

   • If you see a “Reserve balance” in your dashboard, factor that into inventory and cash-flow forecasts.

3. Bank Account Compatibility

   • Ensure your bank supports IBAN (for EU/UK payouts) or ACH/Direct Deposit (for North America).

   • Notify your bank of incoming deposits from Shopify to prevent them being misclassified or delayed.

❏ Checklist

• Select and verify your payout frequency

• Identify any reserve requirements or holds

• Confirm bank account accepts IBAN/ACH deposits

• Plan cash flow with anticipated payout timelines

7. Test End-to-End Functionality

Before going live, walk through every step as both a merchant and a customer:

1. Sandbox Transactions

   • Use Shopify’s test mode to simulate purchases. Ensure orders appear correctly in Orders, funds are captured, and payouts are “queued” as expected.

   • Verify that refunds and partial refunds work smoothly both in the admin and for the customer’s bank statement reflection.

2. Mobile and Desktop Checks

   • Complete transactions on various device types, screen sizes and browsers.

   • Confirm that any dynamic currency switcher or geolocation app updates prices and payment methods accurately.

3. International Customer Flows

   • Test checkouts from different countries using VPN or browser dev tools. Make sure local payment methods (e.g. iDEAL in the Netherlands, Bancontact in Belgium) appear if supported.

   • Check tax calculations and shipping fees for each region.

4. Edge-Case Scenarios

   • Attempt potentially problematic transactions: large orders exceeding typical daily limits, orders from restricted regions or orders using an altered billing address.

   • Confirm that Shopify’s fraud analysis flags or blocks these as appropriate.

❏ Checklist

• Perform at least five test orders in Sandbox/Test mode

• Execute live transactions with a small-value product (then refund)

• Test across mobile, tablet and desktop browsers

• Simulate international checkouts for every active market

• Run edge-case orders to trigger fraud analysis

8. Monitor and Update Ongoing Compliance

Your work doesn’t end once Shopify Payments is set up. Regular review and adjustment are essential:

1. Monthly Account Health Review

   • Check for any “Action Required” notifications in the Shopify admin.

   • Monitor payout trends, chargeback ratios and reserve balances.

2. Stay Informed on Legal Updates

   • Subscribe to Shopify’s merchant newsletters and follow your local financial authority’s announcements.

   • Adjust your tax, privacy and refund policies whenever new legislation comes into effect.

3. Quarterly Audit of Payment Settings

   • Re-verify that bank account details haven’t changed (e.g. after a bank merger).

   • Confirm any newly introduced payment methods (e.g. BNPL services) comply with your risk tolerance and don’t violate marketplace rules.

4. Employee Training and Documentation

   • Keep an internal guide stored centrally for anyone handling orders, payouts or refunds.

   • Train staff on recognising suspicious activity flagged by Shopify’s fraud tools.

❏ Checklist

• Review admin notifications monthly

• Update policies when legislation changes

• Audit bank details and payment settings quarterly

• Conduct staff training on fraud prevention and compliance

Preparing your store for Shopify Payments in Summer 2025 demands careful attention to regulatory updates, accurate documentation and diligent testing. By following this compliance checklist, Devignify Studio ensures your Shopify store is ready to accept payments securely, efficiently and in full alignment with evolving financial and data-protection laws.

If you need assistance whether it’s configuring tax profiles, fine-tuning fraud settings or performing a full compliance audit Devignify Studio is here to help. Enjoy a successful, stress-free summer season and focus on what matters most: delighting your customers.