Shopify has undoubtedly grown to become the ecommerce platform of choice for both big and small online retailers and distributors today. This is as a result of their easy to use dashboard, simple inventory management, integrated invoicing, and two-step checkout system. However, one important thing that sets Shopify apart from other website platforms is its built-in Shopify Payment processing feature which takes away the stress of finding and setting up a payment gateway to accept card transactions.
As stated above, Shopify Payments is Shopify’s solution to accepting payments online. It eliminates the need for creating an account with a third-party payment processor and then set it up on your Shopify. With Shopify Payments, you don’t have to worry about that as everything is already fully integrated with your store in such a way that you can easily track payments, pay taxes, and initiate payouts directly from your Shopify dashboard.
Whenever you’re ready to withdraw your earnings, Shopify Payments simply transfers your funds to the bank account you set on your Payment provider’s settings. Third-party payments also accomplish the above, but are not automatically integrated with Shopify. Also, when using a third-party payment provider, you won’t see any of the important features on your Shopify dashboard. Rather, they provide their information on an external site. This means that you have to juggle multiple platforms and possibly multiple usernames and passwords to accomplish the same thing Shopify Payments allows you to with a few simple clicks.
Activating Shopify Payments
Only an admin account can add, edit, or remove a payment provider on Shopify and only one provider can be used on your store at any given time. When setting up your Shopify Payments, you will be asked for the following information:
- Banking information
- Employer Identification Number (EIN)
- Average price of your orders
- Shipping time of your orders
To activate Shopify Payment on your store:
- Go to Settings > Payment providers.
- Select Shopify Payments
- Configure your account details.
- Click Activate.
That’s it! Your Shopify Payments is now able to process payments on your store.
Shopify Payments charges
You will be required to pay for merchant fees when using the Shopify Payments feature. Charges start from 2.9% + 30¢ per transaction for the Basic Shopify plan to 2.6% + 30¢ for the Recommended Shopify plan, and 2.4% + 30¢ for the Advanced Shopify plan.
Getting paid with Shopify Payments
When your customers make a payment on your store using Shopify Payments, the funds are processed by the platform and paid out in stipulated pay periods. Essentially, the pay period is the amount of time between when a customer pays and the funds are deposited in your bank account.
In Australia and the United States, the pay period is 2 business days. Canada, Denmark, Germany, Ireland, Spain, and the UK all have 3 business days pay periods, while Italy, Singapore, Sweden, and most parts of the world have 4 business days pay period. However, before you can begin withdrawing your profits, you must complete your Shopify Payments account and set it up within 21 days of your first sale. Failure to do this will see your payments refunded to your buyers.
As you can see, Shopify Payments offers a very convenient service and has extremely reasonable fees for merchant. It is highly recommended that first time ecommerce business owners use Shopify Payments with their Shopify store, as it saves a lot of hassles and reduces stress, allowing business owners to focus on what they do best – sourcing, marketing, and selling products that they are passionate about.