What is Shopify Payments?
In essence, Shopify Payments simplify Shopify store payment acceptance. It renders merchant accounts or third-party payment providers unnecessary. No more do you need to submit credentials into Shopify. As you launch your Shopify store, Shopify Payment facilitates major payment methods across the board. Simply you know how to setup Shopify payment.
What is Shopify Payment gateway?
For ease of understanding, compare it to Stripe, PayPal, and Authorize.net. Shopify Payment gateway processes the payment. Within seconds, it verifies the payment method and checks with the bank. Then your bank account sees all accepted payments.
Do Shopify Payments cost?
Shopify Payments remove the majority of third-party payment gateway fees. But expect it with a pinch of salt, some additional charges. Setting up Shopify payments to your store, enjoy the perks. In terms of scope and fees, Shopify store packages widely vary.
● Shopify Lite – $9 per month.
● Basic Shopify – $29 per month.
● Shopify – $79 per month.
● Advanced Shopify – $299 per month.
● Shopify Plus – Starting at $2,000 per month.
Transaction and credit card fees demand your attention. Fortunately, Shopify Payments invalidate all additional transaction fees for Shopify, except standard credit card processing charges. No-hassle Shopify plans often level out those rates too.
● Basic Shopify – 2.9% + $0.30 for online transactions & 2.7% + $0.00 for in-person.
● Shopify – 2.6% + $0.30 for online & 2.5% + $0.00 for in-person.
● Advanced Shopify – 2.4% + $0.30 for online & 2.4% + $0.00 for in-person.
Many payment gateways charge 2.9%+$0.30 for individual online payments. Here, Advanced Shopify packages introduce a good bargain for you.
What other costs entail Shopify Payments?
Currency conversion fee — US-based stores pay 1.5% while the rest of the world pays a flat 2% currency conversion fee.
Volatile conversion rate — Conversion rates are infrequently changeable. The market involuntarily undergoes rate variations. So, it does count as a fee.
Returns — Shopify never charges on refunds. Meanwhile, you receive no reimbursement for the credit card transaction fees.
Chargebacks — Normally, it involves a $15 charge for stores in the USA. But successful claims land you a full refund.
How to setup Shopify Payment?
Customers can buy products from your e-store using credit cards once you launch Shopify Payments. Activate Shopify payments from the ‘Payment Providers’ tab in the Shopify settings.
Phase 1: Choose your store currency as it directly influences your sales report and product prices. To pick another monetary unit, go to Settings → General → Store currency.
Phase 2: Click the Settings → Store Settings → Payments. Then enable the store’s payment providers.
Phase 3: Click Accept Credit Card → choose Shopify Payments as a payment provider. Some primary information surfaces here for your general notification, such as transaction fees, credit card rates, and accepted payment methods. You can also compare offers from competitive payment providers like Amazon Pay, PayPal, etc.
Phase 4: Click on “Complete Shopify Payments setup”. Then provide the required information including business particulars, personal details, product data, customer billing statements, and bank records. Study the terms and conditions.
If satisfied, click the “Complete account setup” button at the bottom. You have completed your end of the deal.
Now, Shopify reviews your application. If your information is convincing, they launch the approval procedure for applicable local payment methods and credit card methods.
Manual Shopify payments review
Before your use, Shopify Payments manually approve several payment methods. Upon Shopify Payments activation, applicable local payment methods and credit card methods automatically start rolling through the authorization process. But payment methods under evaluation show a ‘manual review’ status. You can use the method if permitted
Which stores are suitable for Shopify Payments?
Shopify Payments are restricted to certain countries. As you initiate a Shopify store, Shopify Payments let you access major payment methods.
However, particular businesses and services are categorically dismissed, including adult content, gambling, drugs, legal services, MLM, debt reduction, investment services, e-cigarettes, weapons, etc. Explore the banned countries and off-limits services in a minute.
To connect with Shopify Payments, spruce up your bank account with these benchmarks:
● It must be a full checking account. But a current account can secure the deal only for businesses in the UK and Ireland.
● The bank account needs to use the local currency for payouts.
● It must conform with electronic money transfers.
Also, a handful of additional region-specific conditions apply to Shopify Payments. US-based businesses must open a bank account with a physical US bank.
—Besides, your account must agree to Automated Clearing House (ACH) transfers and accept USD. Anyway, Shopify Payments forbid fix-currency accounts, checking accounts, virtual accounts, savings accounts, and mock accounts.
Advantages of Shopify Payments
● Immaculate integration: Shopify dashboard contains all information and services. Forget another platform to check your balance.
● No transaction fees: Shopify Payments outdates other solutions by removing extra fees.
● All payment solutions: Shopify accepts other payment methods. So, customers can take advantage of their preferred gateways.
Disadvantages of Shopify Payments
● Not global: Country and region exclusivity is a huge impediment.
● T&C compliance: Shopify introduces sudden alterations in policy and your store bears the brunt. Play it safe by strictly adhering to the rules.
● chargeback fees: They hand you a hefty $15 bill for each chargeback.
● Abrupt fund seizure: Suspicious account activities and chargebacks involve scrutiny. They frequently freeze accounts.
Thriving Shopify stores inevitably pick Shopify Payments due to incredible privileges. Effortless sales, money transfer, and revenue management expedite astonishing outcomes.
—However, strict regulations are often irritating. There is none to trump their offers and advantages. Shopify Payments are clearly miles ahead of the competition.
Your journey to Shopify objectives becomes way easier. We have a word of caution. Make your individual decision exclusively from their terms and conditions page.