Things they don't tell you before opening a store
Every tutorial on the internet explains how to open a Shopify store. Choose a template, upload products, advertise. Easy, right?
And then comes the moment when you actually need to start selling in Israel, and suddenly you discover that half the things that work abroad don't work here. The payment processing is different, the invoices are different, the VAT works differently. And no one prepared you for that.
I have been working with Israeli Shopify stores for years, and this is the guide I wish I had at the beginning. Payment processing, invoices, installments, VAT — everything, no code, step by step.
Payment processing: How do you even get paid
The most important point to understand: Shopify Payments is not available in Israel. This is Shopify's internal payment provider, and in most English tutorials, they say "just turn on Shopify Payments." In Israel, that is not an option.
What does that mean in practice? That you need an Israeli payment provider, and Shopify will charge you an additional transaction fee of 0.6-2% (depending on the plan) on top of the fee from the payment provider itself. It's unpleasant, but that's the reality.
The main payment providers
There are several players in the market and each of them has a dedicated app for Shopify. Here are the main ones:
Cardcom — one of the veteran providers. Official Shopify app, support for Bit, Apple Pay, Google Pay, and PayPal. Includes automatic invoice generation. Suitable for small to large businesses.
Tranzila — veteran and well-known, licensed by the Bank of Israel. App for Shopify with payment processing and digitally signed invoices. Support for installments, Bit, digital wallets.
Meshulam — simple interface, popular among small businesses. Shopify app, payments, document generation.
PayPlus — big advantage: the payment page remains within Shopify's checkout process, without redirecting to an external page. This improves the customer experience and reduces abandonment.
iCount — not just payment processing but also accounting. Serves as a bridge to connect with other payment providers like PayMe, Tranzila, Pelecard, and more. Connection to Shopify for 20 NIS per month.
Allpay — a relatively new player gaining momentum. Clean interface, support in English and Hebrew, quick connection to Shopify.
Hyp — one of the popular companies in Israel for small to medium businesses. Payment processing, digital invoices, support for Bit, Apple Pay, and Google Pay. Connection to Shopify with no setup cost, convenient interface also from mobile.
So what to choose
The answer depends on your situation:
Want an all-in-one solution (payment processing + invoices in one package)? Cardcom, Tranzila, Hyp, or iCount.
Is it important to you that the checkout doesn't move to an external page? PayPlus.
Only need simple and fast payment processing? Meshulam or Allpay.
My tip: Don't choose based on price alone. Check how the payment page looks on mobile, how fast the money reaches your account, and what the level of support is when there's a problem. Saturday night when the payment processing gets stuck and there's no one to call is not a situation you want to be in.
Installments, Bit, and PayPal
Three things that must be on your radar:
Installments: Israelis are used to paying in installments. This is not a "nice-to-have" feature, it is a basic expectation. If you don't offer the option to pay in 3 or 4 installments, you are losing sales. Most Israeli payment providers (Cardcom, Tranzila, PayPlus, Meshulam, Hyp) support installments. Make sure it is configured and appears to the customer at checkout.
Bit: No longer just for transfers between friends. Bit has become a payment method that customers expect to see in online stores. Cardcom, Tranzila, and Hyp support Bit, and it's worth checking this with every provider before signing.
PayPal: Easy to activate on Shopify (built into the platform, no need for an app), and especially important if you have customers from abroad. The fees are higher than regular payment processing (3.4% + 1.20 NIS per transaction), so it is not a substitute for Israeli payment processing, but an addition. Most of the stores I set up work with Israeli payment processing + PayPal simultaneously.
Prices with VAT: The mistake everyone makes
By default, Shopify displays prices without VAT. This makes sense in the US, where tax is added at the checkout and varies by state. In Israel, it's destructive.
A customer sees a product for 100 NIS, reaches the checkout, and suddenly the price jumps to 118 NIS. This causes immediate abandonment. Israelis are used to seeing a final price including VAT and do not expect surprises.
The solution is simple: Settings > Taxes and duties > Israel, and make sure that the prices you enter include VAT and that it is configured correctly. It takes a minute, but saves you lost sales.
Invoices: The part everyone forgets
In Israel, you are required to issue a tax invoice for every transaction. Shopify does not do this for you. This is not a bug, it's simply not part of the platform because in most of the world there is no such requirement.
There are two ways to handle this:
Through the payment provider: Some of the payment providers (Cardcom, Tranzila, Hyp, iCount) automatically issue invoices as part of the service. This is the simplest solution because everything happens on its own after every order.
Through a separate invoicing system: If your payment provider does not include invoices, you will need a system like Green Invoice (חשבונית ירוקה) or iCount. Both connect to Shopify and issue invoices automatically after every order.
Green Invoice is probably the most popular system in Israel for freelancers and small businesses. It is simple, has a Shopify app, and the price is reasonable. iCount offers more features if you also need inventory management, reports, and full accounting.
Important tip: Make sure your invoices are digitally signed as required by law. Most of the systems I mentioned already do this, but it's worth verifying.
Summary: Your checklist
Before you start selling on Shopify in Israel, make sure you've handled these things:
Payment processing: You chose a provider, opened an account, and connected the app to Shopify. You checked that payment processing works from mobile. You added installments, Bit, and PayPal.
Invoices: You connected a system that automatically issues tax invoices after every order. You verified digital signing.
VAT: You configured the prices on the site to include VAT. You checked that it appears correctly at checkout.
Sounds like a lot? It's less complicated than it looks. Want to also understand how much it costs? I have a full breakdown of all costs.
Need help connecting everything? That's exactly what I do. A short call, we'll understand your situation, and we'll set everything up properly from the start.
