If I had to write “ecommerce” on Google, as I just did, I would only have to make a few clicks on a link to Shopify.
I was not surprised. Shopify is really the leading e-commerce solution these days, and not only thanks to its online marketing techniques. In fact, they regularly head the list of the best e-commerce platforms we have tested, for their ease of use, flexibility and customer service, among others.
However, a delicate point always used to be card payments processing. You needed to use a third-party solution, which was expensive and complicated, since it meant going through another panel. In addition, Shopify charged you an additional fee.
Could this be a thing of the past now that you offer your own payment solution? To find out, I’ve tried Shopify Payments to see if it makes sense for you to use them.
Shopify Payments Overview
Shopify Payments allows Shopify users to accept card payments without having to integrate with third parties. The rates are: 30 ¢ per online card transaction, plus 2.9% to 2.4%, according to your plan. In-person transaction fees are 2.7% to 2.4%.
Shopify is a platform to build and manage an online store (and now also brick and mortar). But for payments, historically, I needed to use something called a payment gateway .
What is Shopify Payments?
In a nutshell, it is a third-party service that manages all steps between the time a user enters their card information on their payment page, until the money reaches their bank account . Usually it was PayPal, Stripe or Square.
Now Payments from Shopify eliminate the middleman . They decided that they could do a better job for their users. (Or, to be precise, they partnered with Stripe for that).
I discovered that this was mostly advantageous. But there are still things that I think you should consider before going ahead and selecting your solution.
Advantages of Shopify payments
- Perfect integration: everything takes place in your Shopify control panel. It is not necessary to log in to another platform to see where your funds are.
- Eliminate additional transaction fees: This is Shopify’s clever way of making you choose your solution. But it is a good incentive.
- You can use other payment providers: The use of Shopify payments is not exclusive, so you can still allow users to pay through other gateways such as PayPal.
Shopify Payments Cons
Shopify Pay Rates
The first thing to keep in mind is that using Shopify Payments eliminates the commission that Shopify usually charges over the rates of the catwalk. It is 2% (Shopify basic), 1% (Shopify) and 0.5% (Shopify advanced).
That’s true even if you activate Shopify Payments, and customers end up choosing PayPal when paying. Therefore, it is a great reason to activate Shopify Payments for free .
But you still have to pay for every transaction! This is how it looks, depending on your plan and method of payment.
|Shopify basic||Shopify||Advanced shopify|
|Monthly cost||$ 26||$ 71||$ 266|
|Online credit card transaction fees||2, 9% + 30 ¢||2.6% + 30 ¢||2.4% + 30 ¢|
|credit card fees in person||2.7%||2.5%  2.4%|
And now that you have all the numbers set, let’s talk about what you should consider before using Shopify Payments.
Shopify Payments Vs PayPal
While you can use Shopify Payments and PayPal, the transaction Rates for the latter are somewhat different. In the USA U.S., For example, is 2.9% of transactions based in the US. UU Plus a fixed rate (usually less than 50 ¢) depending on the currency. However, accept payments from outside the US UU It is $ 4.4% plus the small fixed rate (!).
For currencies other than US $ UU (For example, pounds sterling) PayPal charges a variable rate (for example, 3.4% + 20p to 1.9% + 20p) depending on your monthly sales volume.
- Please note that PayPal has charges for currency conversion. If sold in several countries, this could incur significant additional charges.
- There is a small discount on transactions for non-profit companies and NGOs in the US. UU (2.2% plus a fixed rate).
- Also, the big advantage is that with Shopify Payments customers stay on your website at all times. With PayPal, they are redirected to the platform, which can lower the conversion rate (even if there is an option to pay without logging in, not everyone sees it).
- There is also the dreaded Protection of the buyer of Paypal which is great if it is on the buyer’s side. However, if you are a merchant, it can result in numerous claims from customers. Paypal is known for the general side of the customers instead of the sellers.
Should I enable PayPal then?
I would recommend it. It does not cost extra and some people really like it. You can increase the reliability of your site and help your conversion rate. Merchants complain about the big PayPal button in the payment process, but that is a requirement of them, so they will have to live with it.
What is the deal with Stripe compared to Shopify payments?
Payments from Shopify are processed by Stripe. But you can still set up a different Stripe account to accept card payments. In any case, it means respecting the terms of service of Stripe, which include, among others:
About the nudity clause, some users mentioned being marked for strange reasons. They suspect that the websites are analyzed by robots, with little human supervision to verify if their products are really scandalous.
This is where some people say it’s better to consider creating a separate Stripe account. They say it’s easier to talk to someone in Stripe than with Shopify Payments, which means better customer service in case something goes wrong.
Chargebacks are also another area in which users believe that Stripe’s system is more focused on commerce. We will analyze them in detail below.
Can everyone use Shopify payments?
Not really. As noted in the Cons section, Shopify payments are not available everywhere. However, the list of countries where it is admitted seems to increase every year.
But the location is not the only restriction. Depending on the territory where it operates, there are different services / products that it is not authorized to sell, as virtual currencies in Australia or government services in Germany, for example. IP infringements everywhere are a big no-no. Be sure to check the fine print here.
How do I set it?
Nothing could be easier. As long as you are already a Shopify user, just prepare some documents such as your bank account number. It will not take more than a few minutes to start, which is incredibly fast compared to other gateways.
Here is a general description of the process:
1- Log in to the Shopify backend
2- In the configuration, select & # 39; Payment providers & # 39;
3- Click on & # 39; Complete your payment settings from Shopify & # 39;
4- Complete your business data, personal details, product details and bank information
After sending all this information, it will be reviewed and (hopefully) approved so you can start processing payments with the gateway of Shopify.
however, it’s because Shopify is quick to allow you to use Shopify payments, you can also cancel it at any time (if they discover that it violates your terms of service).
How does Shopify Payments Process Funds?
This is the best part of Shopify Paymen ts. You can track your money in real time, directly from your Shopify control panel. So you will no longer have to log in to an external platform every time.
One downside: Shopify sometimes freezes funds while resolving disputes, chargebacks or suspicious activity.This can be a pain because it lacks transparency and can be really frustrating for merchants legitimate.
Does Shopify Payments work with several currencies?
Yes, but only of the Shopify Plus plans, which start at $ 2,000 per month . If you are at that level, the prices are automatically converted according to:
- Current exchange rate
- Your rounding rule
The first one is quite simple. It's also worth noting that Shopify does not overcharge or use hidden fees, unlike PayPal.
Rounding rules are a useful tool to make your prices look orderly for customers when conversion rates vary widely. For example, you can decide that all prices end in 0.99 or 0.90, no matter how long the conversion takes.
Of course, your customers can also buy in their local currency even if they are not using Shopify Plus. But then they will have to pay a transaction fee, which your bank (or PayPal) will charge you.
What happens when I sell it in person?
Shopify payments are also the ideal gateway when processing cards in person. In fact, if you use Shopify’s recommended card readers, it may be the only option.
As with enabling multiple currencies, POS (Point of Sale) payments are only available to users of the Shopify Plan or higher.
Rates, as indicated above, are 2.7% (Basic Shopify), 2.5% (Shopify), 2.4% (Advanced Shopify).
What about the dreaded cargo returns?
Unfortunately, chargebacks are a nuisance for any store owner, and particularly for electronic buyers. In case you need a primer, this is what happens:
- Somebody buys something in your store
- You send it
- It says the card was stolen / changed your mind
- You lose an item, and the funds are returned
But here’s the trick:
- Shopify charges you $ 15 each time this happens.
- Your funds may freeze if this happens a lot
Chargebacks are the number one complaint of Shopify Payments users. Many believe that the fraud prevention system is inadequate and recommend the use of PayPal for its best technology.
Shopify Payments – Final Takeaways
I always think that the payment gateways are a pain. They are complex and opaque, and you need to investigate a lot of options to feel that they do not screw you. It takes a lot of fun out of configuring your first online store.
Therefore, the biggest advantage of Shopify Payments is transparency. It’s simple, easy to configure and with clear rates.
The only bad surprise could be fraud. If you think your store is high risk in terms of fraud, then be very careful with the chargeback rates .
Finally, it’s clear that Shopify wants you to use your payment solution. If you are already a Shopify user, that’s fine. But eliminating the standard transaction fee makes it look like you’re saving money. In fact, there could be more affordable alternatives, so it’s worth investigating other e-commerce options (if you’re not yet a Shopify user).
> Check Shopify Payments
Frequently Asked Questions
Can I use other payment providers?
Yes. It is possible to configure Shopify payments, and still allow users to choose PayPal when paying, for example.
Will I be charged two? bills for the use of two providers?
No, you will only be charged depending on the gateway that your client chooses at the time of departure.
What other gateways are there?
Most celebrities include Authorize.net, Stripe and PayPal. But there is much more to choose from, depending on your country.