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The setup procedure takes only a few minutes and consolidates everything onto the Shopify dashboard.Whether you’re just starting your online business or looking to simplify your payment processing, Shopify Payments offers a convenient, secure, and integrated solution for accepting payments from your customers. In this blog, we’ll cover everything you need to know about Shopify Payments, including its features, benefits, fees, and setup process. By the end of this article, you’ll have a complete understanding of how Shopify Payments works and whether it’s the right payment solution for your business.
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In simple terms, Shopify’s payment gateway for managing online transactions is known as Shopify Payments, eliminating the need for third-party payment gateways or service providers. Powered by Stripe, Shopify Payments is highly secure and reliable and does not require any additional fees to use. And since it is merchant-facing, buyers can use almost every major credit card to process payments, such as; Mastercard, American Express, Apple Pay, Google Pay, Discover, Shop Pay, and Visa.
Before we discuss how much payments on Shopify cost, let’s go through how much it actually costs to use Shopify as an eCommerce platform.
These are the plans currently being offered by Shopify. To learn more, click here: Shopify Pricing.
Now that we’ve discussed how much Shopify costs, let’s move onto discussing how much Shopify Payment transactions and credit card fee costs.
Other payment processors usually charge a flat rate of 2.9% exclusive of per transaction fee, so you’re actually getting a pretty good deal.
Almost all Shopify store owners can utilize Shopify Payment services as they are available in a lot of countries such as the USA, UK, Australia, Canada, Germany, Japan, Belgium, Hong Kong SAR, Italy, Netherlands, New Zealand, Spain, and more. You can find the full list here. If you’re trying to activate Shopify Payments from a country that is not present on the list, you won’t be able to. So instead of Shopify payments gateway, you’ll have to opt for a Shopify supported third-party payment gateway to handle payments and transactions.
As we mentioned before, Shopify Payments uses Stripe processing system to process payments. Think of it as a built-in, slightly tailored, Stripe processing system that is renamed to Shopify and use it to process and record all transactions on your Shopify store in real-time. View these transactions on the Shopify dashboard. Monitor and check each transaction for fraud, legitimacy, and if your bank has approved the payment. If everything is clear, deposit the money into your account. Note that the deposit time may vary based on the country.
While Shopify has support for over a hundred different payment processors, it is important to clarify that if you use a third-party payment processor instead of Shopify Payments, you will be charged an extra fee. How much you are charged is dependent on what Shopify Plan you are subscribed to.
For example; Basic Shopify charges you a rate of 2.0%, Shopify charges you a rate of 1.0%, and Advanced Shopify charges you a rate of 0.5%.
Note: You will only be charged this fee if you have completely disabled Shopify Payments.
Setting up and configuring Shopify payments is an extremely easy task. All you have to do is begin by clicking on the Settings button which can be found in the bottom left-hand corner of the screen. You will find all payment related details and options under this tab. Once you’ve followed through this step, find and click the Payments button on the dashboard. Now you will be greeted by two options, either Shopify Payments or Complete Account Setup, depending on whether or not you have already begun the process. You can proceed ahead by filling in all the required information including verification details, personal information, business details, and banking information such as routing number and account number. Once you’re finished entering in all the required information, just click on the Complete Account Setup button to finish the process.
Just like how everything entails its own set of pros and cons, Shopify Payments is of no exception. In this section, we’ll be discussing the pros and cons store owners face when processing store transactions and payments.
The question still remains, should you, or should you not use Shopify Payments? How do you even tell if Shopify Payments is the right choice for you. Just tick the checklist we’ve prepared for you below to figure out if Shopify Payments is the right choice for you.
If you check off all three items on the list above, it would be foolish not to take Shopify Payments into account. If you are not in a supported country or if you would prefer to utilize an eCommerce platform like WooCommerce, Volusion, or BigCommerce, you may want to search elsewhere for a payment gateway.
In addition, Shopify Payments rates and transaction fees in credit cards are drastically lowered. The setup procedure takes only a few minutes and consolidates everything onto the Shopify dashboard. Because of these factors, we heartily endorse Shopify Payments to all businesses utilizing Shopify and operating in the supported nations and business categories.
Yes, you need to choose a payment gateway for your Shopify store. A payment gateway is a service that securely processes the transactions between your customers and your business by allowing your customers to securely make payments using credit cards, PayPal, Apple Pay, or other payment methods. Shopify offers several payment gateway options including Shopify Payments, PayPal, and Stripe. You can choose the payment gateway that best fits your business needs and requirements.
A) No, you don’t have to choose between Shopify Payments and a third-party payment gateway. You can use both in your Shopify store, and offer your customers the option to choose their preferred payment method at checkout. Shopify Payments is a payment gateway provided by Shopify, but you can also integrate other third-party payment gateways such as PayPal, Stripe, and more. Each payment gateway has its own fees, features, and limitations, so it’s important to evaluate and compare each one to determine which is the best option for your business.
The time it takes to receive a payment from Shopify depends on several factors, including the payment gateway you use, your payment settings, and your location.
For Shopify Payments, the standard payout schedule is 2 business days for the United States, Canada, Australia, and the United Kingdom, and 7 business days for other countries. This means that payments will be deposited into your bank account two or seven business days after the payment is processed.
For other third-party payment gateways, the payout schedule can vary. For example, PayPal usually takes 1-2 business days to deposit payments into your account, while Stripe typically takes 2-7 business days.
It’s important to note that some payment gateways may have a hold period on funds to help ensure that the payment is not fraudulent, which can affect the time it takes to receive the payment. It’s always a good idea to check with the specific payment gateway you use for their payout schedule and any holds that may apply.
There can be several reasons why your Shopify Payments account may be on hold. Some common reasons include:
If your Shopify Payments account is on hold, you can contact Shopify Support for more information and to resolve the issue. It’s important to address the issue as soon as possible to prevent further delays in receiving your payments.
When a refund is made through Shopify Payments, the original payment made by the customer is reversed, and the customer’s payment card or account is credited for the refund amount. The refunded amount will then be deducted from your Shopify Payments account balance, and if your account balance does not have enough funds to cover the refund, the remaining amount will be taken from your next payout.
It’s important to note that refund Shopify payments can take several days to process, and the time it takes to receive the refund may vary depending on the payment gateway used by the customer. Additionally, some payment gateways may charge a fee for processing refunds. Thus, it’s important to review the terms and conditions of your payment gateway to understand any fees that may apply.
Yes, you can change rounding conversion rates in your Shopify store. Shopify provides an option to round the conversion rate of your prices to the nearest integer. You can choose to enable or disable this feature in your store settings.
To change the rounding conversion rate in Shopify:
By changing the rounding conversion rate, you can control the precision of your prices in different currencies. However, it’s important to note that rounding can also affect the total price of an order. Hence, so you should evaluate and test the impact of rounding on your prices before making changes.
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