As an existing non-resident Shopify seller, you likely started your Shopify store with Shopify Payments linked to your region.
However, if you’d like to set up a Shopify Payments account for a region different from your location, such as the U.S., you can submit your case to the Shopify Support Team and follow the steps below.
Not Everyone Will Qualify for Shopify Payments (Even If You Meet All the Steps)
However, having the requested documents does not guarantee approval for Shopify Payments. Shopify’s internal specialist teams will ultimately make the call regarding supportability.
What is Required to Qualify for Shopify Payments?
To use Shopify Payments US, a business must have an operational presence in the US. It also needs a USD checking account opened with a US banking institution. What about virtual banks? Here is direct feedback from our partnership with Shopify: Virtual bank accounts can be accepted, but have a higher risk of payment failures. To use Shopify Payments, the bank account should be a full checking account in the correct currency (USD), eligible for ACH transfers and debits from Shopify. If you wish to proceed with connecting the virtual bank account, please be aware that this may disrupt your payout deposits.
Items you will need to be ELIGIBLE for Shopify Payments U.S.
- US Tax ID: To get a Shopify Payments US account, you’ll need a US tax identification number (TIN). If you’re a business, like an LLC or Corporation, you need an Employer Identification Number (EIN). You’ll need a Social Security Number (SSN) if you’re a Sole Proprietor.
- Operational Presence in the US: A US tax ID isn’t enough. Your business needs a physical presence in the US, meaning a real operation there. Shopify says to show them that you rent or own warehouse space and ship your orders from there, you have an office there with employees consistently occupying the space, or you have a retail location(s) there. Are there exceptions? Yes. Does Shopify guarantee you will be approved? No. Are there cases where working with a 3PL would be sufficient? Yes, but not in most cases.
- Specifically, here is what Shopify says about this part to qualify for Shopify Payments: To be eligible for Shopify payments in a particular region, you must EITHER (a) be PHYSICALLY present within that region (not 99% of you as non-residents), OR (b), have an OPERATIONAL presence with that region.
- To establish PHYSICAL PRESENCE, they will require a document in your name (personal name), such as a utility bill (e.g., water, electricity, or gas bill from the past three months (not cell phone bill), PERSONAL LEASE AGREEMENT (dated), or property insurance (dated). Shopify will want a detailed explanation. As a Shopify partner, we know what Shopify requires.
- By the way, this is the same evaluation in 2024 for local banks in the U.S. for a personal bank account (which has changed in the last two years); they want you to lease an apartment in your name and have one major utility bill in your own name with that address.
- If you are NOT physically present in the selected region, we would INSTEAD need to establish OPERATIONAL PRESENCE. This can be done, for example, by showing you have RENTED or OWNED warehouse space or retail space in the U.S. For example, see warehouse space for sale in Las Vegas at this link. Here is warehouse space for rent in Las Vegas at this link.
- Please note (from Shopify) that registering a company within a region is NOT sufficient to establish an operational presence. Translation: a cheap online LLC with an EIN and address will not qualify you for Shopify payments in the U.S. NCP can set up your U.S. LLC for your Shopify payments journey. Learn more here. We recommend you start with a consultation on the overall plan before moving forward with any steps.
- Government-Issued Photo ID: You’ll need a government-issued photo ID (e.g., a driver’s license or passport) for verification. Sometimes, they might accept non-US IDs, but it’s best to check with Shopify.
- Business Registration Document: Ensure your business is officially registered in the US. This proves that your business is legitimate. The key is, are you creating a U.S. person? And you need to be clear on the U.S. tax responsibilities that it creates.
- Proof of US Operation: You must show evidence that your business operates in the US. A bank statement or forwarding service won’t work as proof. It would be best if you had something more reliable. A utility bill and a lease agreement are recommended.
- USD Checking Account: You’ll need a real US bank account in US dollars to handle transactions.
SSN or ITIN Verification
U.S. merchants enjoy the convenience of Shopify Payments, but they must meet specific requirements to use the U.S. version of this payment gateway. Let’s explore the obligations of U.S. merchants:
U.S. merchants setting up a Shopify Payments US account must provide all 9 digits of their Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN) for verification. This is a mandatory step, even if the merchant already has an Employer Identification Number (EIN) for their business.
This rule still applies even if your business has an EIN. Shopify needs to bypass this step on sign-up. To learn more about this, refer to the US Shopify Payment Terms of Service: Section B-3.
Meeting this requirement helps Shopify ensure the merchant is a legitimate entity operating in the U.S. and adheres to relevant regulations and tax laws.
Processing Time for ITIN
If an ITIN is truly required, build it into your entity plan from the start. IRS processing commonly takes 8 to 16 weeks, and peak periods can run longer. A Certifying Acceptance Agent can verify your passport so you do not mail originals, but this does not speed IRS processing. Plan LLC onboarding and payment-provider KYC around that lead time.
Possible Exemptions for ITIN
In some cases, Shopify may waive the requirement for an ITIN based on the account holder’s unique circumstances. Each case is reviewed individually, and exemptions are considered on a case-by-case basis. If Shopify determines that the account holder’s circumstances warrant an exemption, they may proceed without an ITIN. We consult on this EIN and ITIN subject and share the internal messages we have shared from our Shopify partners and clients. Learn more about booking a consultation about this strategy here.
Considerations for Setting up the LLC
When forming a U.S. LLC, decide first how it will be taxed, as that determines whether and when an ITIN is available. A disregarded single-member LLC does not, by itself, create ITIN eligibility. An ITIN typically results from filing a 1040-NR for current-year U.S. income, or under narrow exceptions such as a real partnership with §1446 withholding or a valid withholding-agent letter. An LLC taxed as a corporation usually does not require a shareholder’s ITIN until there are reportable payments to the individual, like dividends. Do not submit a W-9 unless you are a U.S. person for tax purposes.
Separately, make sure you understand whether your activities constitute a U.S. trade or business and whether the income is effectively connected to a U.S. trade or business, and handle sales tax properly. Only enable sales tax where you are registered, after confirming economic or physical nexus in each state.
How to Update Your Shopify Store to Qualify for Shopify Payments U.S.
You can change your address to a US location. Access your dashboard and click the “Settings” option to get started. If you go to “Payments, “you will see the option to activate the Shopify payment gateway.
Step 1
Comprehensive financial/strategic consultation and plan for your situation to determine the options, costs, and odds of acceptance. Assuming the result of that plan is to move forward to attempt to get approved, and again, there are no guarantees.
- Form an LLC US Company
- Apply For an EIN Number
- Get a US Phone Number
- Get a US Address
- Get a US Bank Account
- Obtain an ITIN
Step 2
Once you’ve successfully established your US company, whether a US citizen or a non-US citizen, the next step is to activate your Shopify payment gateway using the information obtained during your LLC formation.
Before activating, update your store address to the US address in your LLC documents. This US address can be utilized for your business or online applications.
During the Shopify payments activation process, you may encounter a field requesting your SSN’s last four (4) digits. In this case, you can replace it with the last four (4) digits of your ITIN.
Complete the remaining personal details as required, submit the information, and the Shopify review team soon notify you to determine if your application has been approved or if additional information is required.
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Shopify’s verification takes place by activating the Shopify Payments account.
The instruction says to change or update the store address to a US address, but doesn’t ask for any verification.
The next step is to activate Shopify Payments. You would only need to provide entity documents to activate Shopify Payments.
If applicable, you can enter your Business Number or Tax Identification Number depending on which country your business is located in.
They will ask the following:
- Business Type
- Individual/Sole Proprietorship – need SSN/ITIN or SIN – Social Insurance Number (for Canada)
- Corporation
- Nonprofit
- Partnership
- Business Number/TIN
- Business Address
- Personal Details
- First and Last Name
- DOB
- Product Details
- Customer Billing Statement
- Banking Information
If your store is in Europe, you must provide a VAT number or indicate that you don’t have one.
If you set up your Shopify Payments account as a Corporation or LLC, you will still need to provide the name and date of birth of someone associated with the business. This is a requirement for verification purposes.
All businesses must submit a tax ID and are responsible for collecting and remitting tax on their sales.
You may also need to submit details about you and your business. This information is used to help identify merchants using Shopify Payments and is a requirement to comply with the terms of service.
What is required may differ from country to country. Typically, this includes:
- documentation about the business associated with the Shopify Payments account
- owner of the business
- or an individual with signing authority for the business.
If Shopify is unable to verify your identity using the information above, you may be asked to submit additional documentation that could include the following:
- Proof of identity
- Proof of home address
- or, Proof of business verification
If your business can’t be verified using the information you provided at the time of Shopify Payments sign-up, additional documentation might be requested. Just so you know, the documents that you provide must include the business name, business address, and company registration number or VAT number.
For business verification, upload your official federal business registration document, including your federal tax registration number, if available.
Business documents require the following:
- Documents must be clear and large enough to read.
- Documents must be valid and representative of up-to-date registration.
- Complete documents must be uploaded. A complete document contains the following:
- The full business name, business address, and either VAT number OR company registration number are clearly stated and legible.
- All pages of a multiple-page document. Upload a PDF containing all the relevant pages.
- Documents can be uploaded in .png, .jpg, or .pdf format.
To help the verification process, when providing documents as evidence, ensure that your documentation:
- is clear and large enough to read
- is correct, valid, and up-to-date
- is complete with all details visible
- is free of any errors or typos
- matches the information provided
Your identity, home address, and proof of entity documents must be reviewed and matched successfully to the information on your Shopify Payments account before your business can be fully verified.
Reviews of your Shopify Payments account can take up to 3 business days to complete.
Important: You must complete your Shopify Payments account setup, including all your business details and banking information, within 21 days of your first sale. If your account isn’t set up within 21 days, then payments might be automatically refunded to the customer.
Merchants in the European Union and Hong Kong must complete their Shopify Payments account setup before accepting customer payments.
If you’re having trouble meeting Shopify Payments’ operational presence requirements, it’s important to explore your alternatives and understand how they compare. Other merchant account options might be a better fit for your business. The next step is to book a call with our team to discuss your unique situation.
We’ll walk you through the options and help determine which of our consulting packages will best guide you through the process, including the fees and timelines involved. Whether Shopify Payments is the right fit or not, we’ll help you avoid unnecessary costs and time spent on the wrong solutions so you can focus on what’s best for your business.
