Shopify’s dominance in the ecommerce sector is just like other cardinal sales channels. You will see that there are many Shopify-oriented posts. You can read a thorough review of Shopify’s functionality to find out why it is one of the most popular ecommerce platforms. What if I said that Shopify Payments is the best ecommerce platform?
This solution is still an option if you have to, but it will be a better choice if your store is on Shopify.
The integrated payment solution has made this e-commerce channel stand out. Shopify merchants can do business online with ease thanks to this simple gateway.
Shopify Payments is now available to all store owners located in the United States, UK and Canada. Shopify Payments’ ability to take credit card payments from customers shopping at your online store is what makes it stand out.
This system secures all payment credentials, making it even easier for frequent visitors. This article will provide a brief overview of the system and the process it uses to accept payments.
Let’s roll the dice.
Before you begin, though, we recommend you take a look at our Shopify pricing guide and Shopify reviews.
Shopify Payments fees
Who can access Shopify Pay?
Shopify payments is available to merchants who reside in the United States, Canada, and the UK.
- New Zealand
- Hong Kong
Shopify payments has strict guidelines that every user must follow, just as any other payment gateway. You need to understand the terms and conditions in order to be on the right path.
What are Shopify Payments?
Shopify payments can be used in your online store to secure handle transactions, just like other payment gateways. This refers to credit and debit card payments made by customers when they make purchases from your online store.
Online stores will require you to use a Shopify Monthly Plan. This e-commerce channel allows merchants to choose the subscription model that suits their needs.
You must sign up for a plan in order to use the Shopify Payments solution. Shopify is a SaaS platform that offers a wide range of services. It technically means that you have to first choose a plan that best suits your business and then pay for the subscription.
Why is the Shopify payments gateway so popular?
Here’s an executive summary:
- All payments can be transferred to a merchant’s bank account
- Shopify Payments takes credit card transactions
- All payouts can be accessed via the dashboard of your Shopify store
- It is strictly PCI compliant. It doesn’t reveal any banking-related information.
- It manages chargebacks with ease
Shopify Pay: Pros
With Shopify payments dominating the market, you should be aware of the benefits.
Let’s take a look at the ones we can all relate too:
- There are no additional transaction fees
- Shopify does not charge a processing fee like other payment gateways. However, Shopify is different from the rest because it doesn’t require any additional costs. If you choose to use Shopify payments out to make your purchase, rest assured that no 0.5- or 2% additional charges will be incurred.
- Monitoring in real-time
- As long as your Shopify merchant account is active, you can track all transactions and profit margins. Although you can track transactions on other gateways, Shopify offers a much more efficient way to optimize your performance. To view all payments made by PayPal, you will need to sign in first to its official site.
- Seamless Integrations
- It is easy to sync your online store to Shopify payments because it is already up and running. All actions can be managed via the admin dashboard.
- High-security measures
- It employs a strategy to deter any fraudulent activity from either end. The first is the chargeback process. This creates a positive atmosphere for business and resolves claims in the most friendly way. Shopify provides sharp tools to flag high-risk orders for retailers. A tool like Fraudblock is also available to help your store with security concerns.
- Checkout process faster
- Shopify Payments gateway allows for optimized conversions, and therefore, lower bounce rates. Shopify also allows the retailer to manage their orders.
- Lower processing fees
- Let the numbers speak for themselves. Shopify Payments transaction rates are exceptionally lower than many payment gateways. For example, rates for the Advanced plan are lower than the Basic plan.
- The toughest chargeback rules
- This is the worst thing that can happen to an online merchant in the e-commerce business model. This is a very bad part of online business. Shopify is known for imposing harsh and punitive penalties on its customers.
- You could lose your online store completely, which can make matters worse. It is also difficult to pay chargeback fees due to the possibility of fraudulent chargesback claims from unscrupulous customers.
- Shopify might Temporarily withhold your funds
- Sometimes, this duration can be longer than you would expect. It is strangely inclined to justify every future action by Shopify payment. This includes the possibility of freezing your funds for a variety of reasons.
- One of the most obvious is that there are pending lawsuits that must be resolved, or that you are selling prohibited products that could lead to high-risk transactions. It’s a good idea to thoroughly examine both sides of the coin.
- Shopify’s decision to terminate accounts without notice is what scares many retailers.
How does Shopify Payments work?
Shopify payments is a real-time payment gateway. You’ve probably noticed this when you have done some testing. A comprehensive dashboard is included with the merchant account. You don’t need to search for third-party services to monitor your transactions.
This tool allows a merchant track each penny in real time. Shopify is different from PayPal, where you need to log in to see all transactions.
Shopify’s dashboard gives you complete control over all payouts. The transaction history can be analyzed in such a way that the user can make data-driven decision. Practically, you can see all payment options used for each transaction.
Shopify will notify you when a scheduled payment is due to mature. The dashboard shows an estimated date at which the amount will be reflected in your bank account. Technically, the exact payday depends on where you are operating your business.
This would take approximately 3 working days for a Canadian merchant.
This is the exact amount of time these retailers have to wait:
- New Zealand
It might take up to 2 business days for those living in the US. It might take longer than expected to confirm that the amount paid is sufficient to cover future charges or refunds. This will avoid any potential problems.
How to Setup Shopify Payments
It’s very easy. If you are a merchant already using Shopify as your sales channel, then you will only need to know a few details.
This is a faster payment gateway than other ones.
These are the steps to configure all settings.
- Log in to Shopify’s dashboard
- Click on the “Settings” button, and then select the “Payment Providers” option.
- Complete the’Shopify payments setup’ procedure
- All the information you need, such as bank details, product information, and personal data, should be entered.
Alternativly, you may activate Shopify payments by using another credit card payment provider. Online merchants in Europe must provide a VAT (Value Added Tax) number for business tax purposes. Shopify will verify that the number you have submitted is valid by using the VAT Information Exchange System VIES.
Let me just give you a quick disclaimer.
A Shopify Payments account must be created within 21 days from the date of the first sale transaction. All payments to an online store owner that are not completed within the time frame will be refunded to the buyer.
This is a dangerous and high-risk move that you don’t want to take. This setup process is crucial for any potential transactions. Your bank account is also important in this process. It must comply with local banking regulations.
Let me illustrate.
For example, in Australia, a merchant needs to link their Shopify store to an account whose physical branch is in the country. The currency must be in AUD (Australian Dollars).
This applies to Canadian merchants as well. They must also use an ACH-accepting merchant.
Shopify Payments Multicurrency Processing
Shopify is currently only available in a few countries. It works with all major currencies.
Shopify’s currency converter calculator doesn’t charge any extra fees and is completely free. This is a significant advantage compared to other currency conversion calculators. This option allows you to sell products internationally and receive payments in different currencies.
This calculator automatically converts the customer’s payment to your default currency payout as long as they make the payment. The required conversion fee is deducted later by the system.
It is worth noting, however, that the currency converter tool works on a rounding rules. What’s the deal? The rounding rule simply sums up or rounds the purchase amount to nearest number. It’s that simple.
Why should I choose Shopify Payments over its counterparts?
Although the possibilities are endless, it is prudent to summarize everything.
This remarkable solution charges significantly less than its competitors. The transaction fee per sale can be waived if you upgrade to a higher Shopify pricing plan. In a moment, we’ll go over the details.
Do the math.
You will definitely see a substantial increase in your profit margins if you use a platform that does not charge transaction fees. You don’t think so?
It’s obvious that merchants must pay the gateway fees. Shopify will need to pay the transaction fees instead of Shopify’s.
Take Square, for example. The payment processor charges 2.75% for each sale transaction. PayPal charges merchant account holders 1.9% to 2.9% plus 30 cents per transaction.
PayPal does not seem to have any extra fees, especially if you’re a merchant who expects to sell international goods and services. Shopify payments is a more affordable option.
Shopify’s payment platform will reduce your gateway fees, which will help you to increase your profit margins.
Review of Shopify Payments Fees
Shopify employs a tiered method to calculate fees for transactions across all its plans. The processing fee for each transaction is lower when you upgrade to a more expensive plan. This is all thanks to the Shopify Stripe partnership program. Each plan includes a routine fraud analysis as an additional service.
This helps the retailer avoid any banking fraud from unscrupulous customers reporting false chargeback claims.
Let’s compare the plans:
Shopify Basic Plan
- Canada Online Credit Card Transactions – 2.9% + 30C
- Online International/American Express Credit Card Rates – 3.5% + 30C
- Transaction fees for in-person credit cards – 2.7% + 0.0C/ swipe
- Additional fees for third party payment providers – 2% per transaction
- Online Canadian Credit Card Transactions – 2.7% + 30C
- Online International/American Express Credit Card Rates-3.4% + $30C/
- Transaction fees for in-person credit cards – 2.6% + 0.0C/per swipe
- Additional fees for third party payment gateways – 1% per transaction
Shopify Advanced Plan
- Online Canadian Credit Card Transaction Fee – 2.4% + 30C
- Online International/Amex Credit Card Rates – 3.3% + 30C
- 2.4% transaction fee for in-person credit cards
- Additional fees for payment gateways that are not Shopify payments: 0.5%
Shopify Recurring Payments
Let’s suppose you have an online subscription company where customers pay repeatedly for your services. You will understand the recurring payments structure. It’s actually quite easy to manage such payments using Shopify. Same goes for recurring orders. Customers can log in to their accounts to view their billing information and sign into their accounts.
There are many apps available on Shopify’s Marketplace which allow retailers to manage subscription-based payments. These plugins integrate seamlessly with your online shop.
Let’s take a look at the top-ranking ones.
ReCharge a subscription management application that does outstanding work in recurring billing to the scale that you desire your ecommerce site to reach. This app makes it easy to handle repeat orders within minutes. This allows you to store your customers’ order information so that they can easily access it when they place their next order.
ReCharge app standard plans start at $39.99 per calendar month. There is a fee of 1% + $5C per recurring transaction. ReCharge Pro, which is an advanced plan also known as ReCharge Pro, is ideal for merchants that manage more than $100,000 in recurring bills.
The pricing is intended to scale your online company. To get a customized quote, you will need to contact our support team.
You can send notifications to your subscribers, updating them with the estimated delivery dates and to avoid any chargebacks. ReCharge allows you to offer discounts to customers who purchase the products on an ongoing basis.
Bold offers a similar option to the recurring payments app. Bold offers a 60-day free trial to new users. After the trial period expires, you will have to pay $29.99 per month. Bold is the same as ReCharge and connects to your Shopify store with just a few clicks.
This plugin is enterprise-oriented and can be used by merchants that do recurring billing using either Shopify Plus or Enterprise plans. This app can be integrated with your ecommerce site so that customers can add new subscriptions to existing ones. You can also embed a subscription “BUY” button on your campaigns and store’s blogs.
Shopify Payments allows you to sell in person
Shopify offers a mobile point-of-sale (POS) app, which runs on both iOS AND Android. You can make in-person sales and sell your products or services to customers. It’s mobile-friendly, so you can sell your products at outdoor trade fairs, pop up shops, and markets.
How do I manage my orders then?
The POS integrates seamlessly with Shopify’s online shop. You can view all orders in the POS dashboard and have your inventory updated automatically. You can get more retail features if you upgrade to the Shopify plan or higher. Shopify currently sells its own mobile card reader,, which is popularly known as the ‘audiojack’ and retails for $9.
You can securely swipe credit cards from customers once Shopify Payment has been enabled in your store.
You need to choose the right device for you when making changes to your shopping cart options. For example, an iPad allows you to view product details and add shipping costs and addresses for each order. These options can’t be set up if you have an Android or iPhone.
Shopify allows retailers to sell in person and offer additional services to customers to improve their shopping experience.
Selling in-person is convenient for purchases.
- Offer discount codes to customers
- Include taxes during checkout
- Before you checkout, create a customer account
- Accept multiple payment methods for one order
- Gift card payments are allowed
- You can customize your shopping cart to accept other payment methods
- Refund Orders
You can also add Amazon Pay to your payment options in order to gain customers’ trust. This channel is viewed by most shoppers as the best and most secure way to pay for goods they want to buy online.
You can let customers pay products through their Amazon account to speed up the conversions of your store. This is compatible with Shopify shops that sell in USD and GBP as well as EUR and JPY currencies.
Shopify Payments Chargebacks Processing
This process is made easy and straightforward by the payment gateway. Chargebacks can be a real pain in the neck. I’m sure most merchants agree. These are almost inevitable when you run an online business. You will need to manage credit card transactions at least.
This is the process for you if you don’t know what it is.
After the customer has successfully supported their claim, a chargeback is made. When an item ordered is not received and paid for, damaged or if money is taken from the customer’s account without authorization, the claim will be filed. As a result, the chargeback process is initiated.
The best thing about Shopify payments? It’s dispute resolution mechanism weighs in both the claims and grounds for the dispute from the customer and merchant.
Shopify will charge the retailer a $15 per chargeback if the claim is resolved and the customer receives a refund. Your online store could be permanently locked if this happens concurrently. This applies to all funds that are available in your sales channel account.