Regional Support: Payments (Ireland)

[Don]

Learn more about managing your payments while running your Shopify store in Ireland.

This thread is part of the Regional Support threads offered for merchants in the Republic of Ireland. To see which other topics are available, you can visit the Irish hub here.

Shopify Payments is available for businesses that operate in Ireland and can be used to accept payments made by customers with Visa, Mastercard, and American Express debit and credit cards online and Visa & Mastercard via EMV*.

The cost of using Shopify Payments is dependent on which subscription plan you have chosen, with higher plans offering lower credit card processing rates. A full breakdown of these fees can be found on our Irish pricing page.

To receive payouts through Shopify Payments, merchants will need to connect an account that:

• Accepts payments in euro
• Is a current account opened with a financial institution in Ireland
• Is eligible for SEPA transfers

Please note that other types of account (including savings or Credit Union accounts) or those provided by a virtual banking service (such as e-wallet or cross-border service accounts) are not supported.

Due to the nature of EU banking, merchants are able to use a bank account from any IBAN-supported country in the Eurozone (beginning with any of the below prefixes) when setting up Shopify Payments Ireland, as long as the currency is in euro.

Eurozone IBANs that can be used will begin with the prefix AT, BE, CH, DE, DK, EE, ES, FI, FR, GB, GI, IE, IT, LU, NL, NO, PT and SE. These refer to the countries from which IBANs can be accepted. Please note that if you are wanting to use UK IBAN, the UK account’s currency will need to be in euro.

Please also note that Ireland’s regulations require that Shopify collects 23% VAT on payment processing fees processed via Shopify Payments, which is not included in our processing rates. An example of how this works is featured below:

€100 order
€100 * 2.2% + €0.25 = €2.45 fee subtotal
€2.45 * 23% VAT = €3.01 fee total
€100 - €3.01 = €96.99 payout

Note: From Sept 1st 2020 to Feb 28th 2021 inclusive, the Irish VAT rate will drop from 23% to 21%.

Some types of businesses and services are not permitted to use Shopify Payments. Prior to signing up, review our list of prohibited businesses to confirm whether your business is eligible.

If you do not believe your business is eligible, or if you want to check alternative options, you can view the full list of integrated payment gateways for merchants in Ireland. Orders processed via third-party payment gateways are subject to transaction fees, unless you have these gateways activated alongside Shopify Payments as your primary gateway.

If you have a question or comment to make about processing payments on Shopify in Ireland, please post it below.

[Sowdiverse]

Hi, 

Thanks for posting. Would you know if it is then possible for a merchant to claim the tax back on the 23% Shopify charges on transaction fees when using Shopify payment? For instance, if I am on the basic monthly Shopify plan, I am being charged 2.2% of the order value in transaction fee +0.25 euros. And then 23% of the total of the processing fee. So for a 5 euros order, I end up paying 0.45 euros in transaction fees to Shopify VAT included broken down as follows=

5 euros x 2.2% +0.25 euros = 0.36 euros and 23% VAT is charged by Shopify on the transaction fee = 0.082 euros in VAT. The total transaction fee is therefore 0.45 euros rounded. Do you know if a merchant can reclaim that 0.082 VAT charge? Our business sells products which are at a zero rate VAT which means we are not charging VAT to our customers. We are however VAT registered since we source from other EU countries. 

Thanks for the help.