Payments at eCommerce portals are made through third-party payment gateways that process transactions from the time buyers swipe their cards till the money reaches your bank account. The most popular third-party service providers are PayPal, Stripe, and Payoneer. The downside to this is that the sellers had to keep track of payments on other websites plus they have to pay a service charge. However, all of that’s a thing of the past.
Shopify now has its own payment gateway. Shopify store owners can now get their funds directly from Shopify without them being routed through a third-party payment gateway. Not only does it cut out the extra cost but store owners can also now manage Shopify’s payment gateway directly from their dashboards. The payout schedules are automatically updated and transferred into your bank account after three days. Shopify payment gateway is available in select countries only where the transfer time is seven days. The delay is to ensure that there are sufficient funds to cover refunds. Learn more about avoiding the third-party payment gateway.
With Shopify Payments, customers can checkout without leaving the website
No Transaction Fees
Shopify Payments comes in three variants: Basic Shopify, Shopify or Advanced Shopify, with transaction fees ranging from 0.5% to 2% per sale. Shopify Payments doesn’t charge these fees so sellers benefit to that extent. However, merchants still have to pay payment gateway fees. PayPal charges you between 1.9% to 2.9% plus $0.30 per transaction, depending on the number of sales per month. Store owners in other countries have to pay currency conversion charges as well. Shopify Payments’ gateway fees are very competitive across all payment gateways.
If you use Shopify as your main payment gateway, you can still use third-party gateways like PayPal for those customers who prefer to pay through them. In fact, it’s a good idea to give your customers more payment options. Flexibility is known to increase sales. However, other payment gateways ask for a ton of information and take a long time to approve. Current Shopify users are pre-approved. However, even for new users, the approval process is relatively short.
The non-monetary features of Shopify Payments are more beneficial for sellers. For those unfamiliar with chargebacks, they happen when people make a purchase using a credit card, then change their mind or file a complaint with the credit card company saying they didn’t authorize the payment or that they didn’t receive the product.
This can be a hassle. Merchants using other payment gateways have to log in to their dispute resolution dashboards and provide all proof regarding the transaction. It’s definitely a frustrating, time-consuming process when merchants would rather do other things. Shopify automatically provides all the information pertaining to the transaction directly on your dashboard. Store owners who have gone through the tedious, third-party chargeback process will know what this means.
Things To Note
Setting up Shopify Payments on your system is a breeze if you’re already a Shopify store. If you’re a new user, you have to wait for a few days till your information is reviewed and your eStore is approved. Shopify Payments has its own terms and conditions. Merchants applying for Shopify payments should read it carefully. In case certain items violate those terms, your account can be terminated as fast as it was approved.
You also need to read the T&C carefully since there may be products you cannot sell depending on the country you operate from. For example, you cannot sell products that infringe upon Intellectual Property laws; Government services in Germany or virtual currency in Australia. Shopify Payments also work with multiple currencies but only with Shopify Plus, which begins at $2000 a month. Currencies are converted based on the current rate and your rounding off rule.
Payment gateways can be a pain. They involve external parties and are opaque. Digital store owners need to spend a lot of time in researching their optimal service provider. Shopify Payments is very upfront and its processes are transparent with no hidden fees. You can easily track transactions from the convenience of your own system. If your store operates from a territory that’s high-risk in terms of chargeback fraud, then you need to consider the fees carefully.
Shopify Payments is a thoughtful service provision for eStore owners. It’s a great addition to their variety of eCommerce templates, themes, and other services. Features of Shopify Payments can be very useful to users, especially those who are already on Shopify websites.