Guide to Shopify Payments

Reinvent Checkouts.

Shopify Payments, powered by Stripe, allows merchants to accept payments from major credit card and payment providers. Built by Shopify, it removes the need for third party extensions allowing users to save on hidden costs.

Why Use Shopify Payments?

Shopify Payments is a single service that replaces the need for multiple cards and payment methods. However, that's not nearly enough to choose it. Read on for a breakdown of the pros and cons.

Easy Set Up

The Shopify Payments setup system is far simpler than manually entering card information into Shopify. To install, simply enter the following information into Shopify.
1. Bank account information
2. Average price of orders
3. Average shipping time of orders
4. Employer Identification Number

Seamless Sync with Shopify

As a Shopify product, Shopify Payments integrates seamlessly with the larger platform. The dashboard is connected to your Shopify account, allowing you to view customer information and link data directly from your main dashboard.
Customers also enjoy an easier checkout experience with Payments. Your clients can store checkout information (credit card and address) directly on the site, speeding up the payment process.

Third-Party Payment Portals

In America, Shopify Payments supports Visa, American Express, MasterCard, Discover, Diners Club, Elo, and JCB. The list of cards varies depending on country, but the most popular payment methods are always included. If you require cards not included in the Payments plan, you can add additional payment providers. Please note you would pay an extra transaction fee for every new type of card you add.

Lower fees

With Shopify Payments, the normal 0.5%-2% that Shopify normally charges per transaction is waived, and replaced with a Shopify Payments cost. The Shopify Payment fee depends on the type of card and registered location. All merchants must pay $0.3 (CAD) for online orders.
please note all figures are in CAD
The Shopify Payments processing cost for the Basic plan is also lower, ensuring every store saves money.

Robust Claims System

Chargebacks and inquiries are a part of every e-commerce business, and with Shopify Payments, the process is simple and relatively stress-free. Shopify automatically collects evidence when a chargeback or inquiry occurs, and sends the data directly to the credit card company. Once the evidence is submitted, they guarantee the issue will be resolved within 4 months. It is also possible to submit a manual inquiry.

Limited Worldwide Support

As of September 2021, Shopify Payments is only available is 16 countries, each with a varied list of prohibited businesses and accepted payment methods. Some included regions include the United States (no territories besides Puerto Rico), Australia, Canada, and Hong Kong.

Shopify Holding Funds

Onboarding with Shopify Payments is extremely simple, as there is no sign up process required. As a result, Shopify has implemented a strict payment regulation system to closely monitor fraud. If your business has a high chargeback risk, there is an increased possibility of having your Shopify funds on hold. To handle chargebacks and inquiries, read the full guide published on the Shopify website. Some reviews also point to a weak customer service system when filing claims.

1. To begin installing Shopify Payments, log into your main Shopify dashboard and select "Settings".
2. Within settings, select "Payments" to control all payment information.
3. Once payments is open, please scroll to the bottom to confirm payment authorization is set to "Automatic". This will charge clients immediately when the order is placed.
4. Then, scroll to the top of the screen, where you will find the Shopify Payments portal. Select "Activate Shopify Payments" to begin the installation process.
Installation is extremely simple, and only requires personal banking and basic store data. If you already have a credit card provider (eg: Paypal) set up, you will need to select "Change Provider" to use Shopify Payments.

While Shopify Payments information will appear on your main Shopify dashboard, you may want to make more use of your sales information by exporting the data to platforms such as MYOB or Xero. There are hundreds of places to use your store data, but not nearly enough reliable connectors to get the job done well each time.
For a connector you can always depend on, consider using Shypyard. Shypyard is designed to be easy to set up, highly customizable for your business, and most importantly, reliable. Currently, there are MYOB and Xero accounting connectors. With these connectors, you can seamlessly integrate your Shopify store data to your accounting connector. Once onboarded, the system runs completely autonomously. This means the manual task of recording payment fees is off your plate! For a free trial of Shypyard, sign up today or visit the official website.

Q: What are the bank account requirements to run Shopify Payments?

A: To connect your card to Shopify Payments, your bank account must be a checking account, and must be able to accept electronic money transfers. The specific settings vary depending on region, however a few restrictions are constant. No matter location, your bank account must not be virtual, a savings account, or use flex-dollars.

Q: What business types are prohibited?
A: The list varies largely with countries and regions, however many financial service providers may be at an increased risk of chargebacks or issues. Check this offical Shopify list for information on prohibited businesses by region.

Q: Can I control any funds on hold?
A: Unfortunately, you will not be able to access any funds if a chargeback investigation is ongoing. In chargeback investigations, Shopify Payments also does not take any responsibility for claims filed against your company. However, the system does record payment documentation which may be useful when disputing claims.

Shopify Payments, like all Shopify products, is an easily accessible solution for all merchants. From the simple onboarding to user-friendly design, it was built to be a worry-free part of managing your Shopify store. For more in-depth Shopify Payments information, consider reading a blog!

Shopify Payments