Are you an online merchant looking for a simple, cost-effective way to accept customer payments? Look no further than Shopify Payments!
Shopify is a powerful e-commerce platform enabling online merchants to sell products and services. One of the key features of Shopify is its built-in payment processing system, known as Shopify Payments.
Shopify Payments is an all-in-one payment processing system designed specifically for online stores using the Shopify platform. With Shopify Payments, merchants can accept payments from various sources, including credit cards, debit cards, and digital wallets like Apple Pay and Google Pay. It’s easy to set up and use, with no need to manage multiple accounts or reconcile transactions.
How Do Shopify Payments Work?
YOu might be curious about how the Shopify payment gateway works, but it’s pretty easy. Shopify offers a range of payment options, integrates seamlessly with Shopify stores, and provides robust reporting and fraud prevention tools. But how? Let’s see.
- It’s a payment gateway integrated into Shopify.
- It allows merchants to accept credit card payments directly through their stores.
- Payments are processed securely and transferred to the merchant’s bank account within 2-3 business days.
- Fraud prevention tools and chargeback protection are available.
- Shopify Payments charges a transaction fee of 2.9% + 30¢ per transaction, with lower rates available for advanced pricing plans.
Overall, Shopify Payments is a secure and reliable payment gateway that simplifies the payment process for merchants and customers.
Types Of Shopify Payments?
Shopify Payments is a payment gateway offered by Shopify that allows merchants to accept credit and debit card payments directly in their stores. The types of payments that can be processed with Shopify Payments include:
- Credit and debit card payments:
Shopify Payments can process payments with Visa, Mastercard, American Express, and Discover cards. It is the primary payment method used in most Shopify stores.
- Alternative payment methods:
Shopify Payments supports alternative payment methods such as Apple Pay, Google Pay, and Shop Pay. These payment methods allow customers to complete their purchases with just a few clicks and are available on supported devices and browsers.
- Local payment methods:
Shopify Payments supports local payment methods in some countries. For example, in Canada, merchants can accept payments made with Interac Online; iDEAL prices are kept in the Netherlands.
- Multi-currency payments:
Shopify Payments supports multi-currency payments, which allows customers to pay in their local currency while the merchant receives the amount in their preferred currency. It is a helpful feature for merchants who sell to customers in different countries.
- Automatic payouts:
With Shopify Payments, merchants can set up automatic payouts to receive their funds regularly. This feature saves time and eliminates the need to request payouts manually.
Overall, Shopify Payments offers a range of payment options that cater to the needs of different merchants and customers. It simplifies the checkout process, makes payments more secure, and offers competitive fees.
How To Setup Shopify Payments?
Setting up Shopify Payments is a relatively simple process. Here are the steps you can follow to set it up:
- Create a Shopify account: If you haven’t already, sign up for a Shopify account at https://www.shopify.com
- Navigate to Payment Providers: Once you have logged in, navigate to the “Settings” menu on the left-hand side of the screen, and click on “Payment Providers.”
- Enable Shopify Payments: Scroll down to the “Third-party providers” section, and click “Choose the alternative payment method.” Select “Shopify Payments” from the list of available options.
- Provide Business Information: Enter your business information, such as your business address, your business type, and your tax ID number. You’ll need to provide your personal information if you’re a sole proprietor or partnership.
- Add Bank Account Details: You will need to provide your bank account information to receive payouts from Shopify. You’ll need your bank routing number and account number.
- Complete Activation: After providing all the required information, click the “Activate” button to complete the setup.
Once you have set up Shopify Payments, you can start accepting credit card payments through your Shopify store. Shopify Payments allows you to accept Visa, Mastercard, and American Express, and more payment options might be available depending on your country.
What is the Fee for Shopify payment?
While using the Shopify Payment method, there are three forms of fees that merchants have to pay for using this payment method.
- Transaction Fee
Shopify Payments charges a transaction fee for each payment, which varies depending on the merchant’s Shopify plan and the country in which they’re based. Here is a breakdown of the fee for using Shopify Payments:
- Basic Shopify Plan: The transaction fee is 2.9% + 30¢ for each online transaction and 2.7% + 0¢ for each in-person transaction (using Shopify POS).
- Shopify Plan: The transaction fee is 2.6% + 30¢ for each online transaction and 2.5% + 0¢ for each in-person transaction (using Shopify POS).
- Advanced Shopify Plan: The transaction fee is 2.4% + 30¢ for each online transaction and 2.4% – 0¢ for each in-person transaction (using Shopify POS).
- A fee for third-party Payment gateway
Note that these fees only apply to transactions made through Shopify Payments. If a merchant uses a third-party payment gateway, such as PayPal or Stripe, they will be subject to that provider’s fees.
- Chargebacks and refunds
In addition to the transaction fees, Shopify Payments charges a fee for chargebacks and refunds. The chargeback fee is $15, and the refund fee is equal to the transaction fee for the original payment. However, Shopify Payments doesn’t charge additional fees for using its payment gateway, unlike some third-party payment providers.
Overall, Shopify Payments’ fees are competitive with other payment providers, and its simple fee structure makes it easy for merchants to understand and manage their payments.
Factors Of Shopify Payments
Shopify Payments is available to merchants in many countries, but eligibility depends on several factors, including:
- Country of residence:
Shopify Payments is available in select countries, including the United States, Canada, the United Kingdom, Australia, and many others. The availability of Shopify Payments may vary by country, and some countries may have specific requirements for using the payment gateway.
- Business Type:
Shopify Payments is available for many businesses, but some industries are prohibited or restricted from using the service. For example, companies involved in multi-level marketing, drop shipping, or CBD products may have additional requirements or restrictions.
- Payment processing history:
New merchants may need to establish a processing history with Shopify Payments to build trust and a track record of successful transactions. It may include a review of the merchant’s previous processing history or other information related to their business.
- Chargeback and fraud history:
Merchants with a history of chargebacks or fraud may be subject to additional restrictions or requirements when using Shopify Payments. It is to protect both the merchant and the payment gateway from fraudulent activity and disputes.
- Business Location:
Some countries may have specific business requirements or regulations within their borders. Merchants should be aware of applicable laws and regulations in their country and comply with them when using Shopify Payments.
Overall, the eligibility requirements for Shopify Payments are designed to ensure that merchants can use the service safely and securely while protecting customers and the payment gateway from fraud and other risks.
Benefits of Shopify Payments
Here are some advantages of using Shopify Payments for merchants:
- Easy setup and integration with Shopify
- No setup fees or monthly fees
- Fraud prevention and chargeback protection
- Competitive transaction fees with no additional hidden fees
- Faster payouts compared to some other payment gateways
- Reduced risk of cart abandonment as it offers a streamlined checkout experience
- Seamless integration with Shopify’s other features and apps, including reporting and analytics
- Multiple payment options are available for customers, including credit cards, Apple Pay, and Google Pay
- Shopify’s dedicated team provides responsive customer support.
Frequently Asked Questions (FAQs)
How do I get my money from Shopify payments?
Shopify Payments automatically transfers the funds from a merchant’s sales to their bank account. Payouts are made on a rolling basis and are typically processed within 2-3 business days. Merchants can also view their payout history and upcoming payouts directly in their Shopify account.
How are Shopify Payments processed?
When a customer purchases a Shopify store, their payment is securely processed by Shopify Payments. The funds are captured and transferred to the merchant’s bank account within 2-3 business days.
Shopify Payments also provides fraud prevention tools and chargeback protection for eligible orders.
Is Shopify payment safe?
Yes, Shopify Payments is safe. It is PCI-compliant and uses industry-standard security measures to protect the sensitive data of both merchants and customers.
Shopify Payments also provides fraud prevention tools and chargeback protection, which helps to minimize the risk of financial loss due to fraudulent transactions.
In conclusion, Shopify Payments is a valuable tool for merchants looking to sell products or services online. It offers a streamlined, secure, cost-effective way to process payments directly through the Shopify platform.
With its easy setup process, competitive transaction fees, and reliable fraud prevention tools, Shopify Payments gives merchants the peace of mind they need to focus on growing their business. Its integration with other Shopify features also allows for a seamless and cohesive user experience for merchants and customers.
With responsive customer support from Shopify’s dedicated team, merchants can be confident in providing a great online shopping experience. Overall, Shopify Payments is a great solution for businesses of all sizes looking to sell online.