What Are Shopify Payments?
Setting up payments with merchants or third parties can be tedious. It's quite the hassle, and most Shopify users could only rely on a third-party solution provider before Shopify Payments came along.
Shopify Payments offers the simplest way to accept any online payments through your online business.
It's a service from Shopify themselves that allows users to manage the steps to performing an online transaction.
So, you no longer need to depend on any third-party payment services. Instead, you can use Shopify Payments to allow your business to accept various payment methods, including credit, debit, and gift cards.
From Visa to American Express to MasterCard, businesses set up on Shopify can accept various credit and debit cards using Shopify Payments.
Requirements Before Using Shopify Payments
Before we go over how to activate Shopify Payments, your business needs to meet all the requirements. Here are all of the qualifications for Shopify Payments.
Check The Availability In Your Country.
Availability shouldn't usually be a problem. eCommerce merchants use this service in over 20 countries, including the United States.
Have The Right Bank Account Type
To connect your bank account to the Shopify payment service, you must ensure that your bank account is a checking account. If you've got a UK-based account, it needs to be a current account.
Suppose you have a virtual account, a savings account, or any other account that isn't a complete checking or current. In that case, you won't be able to connect your bank to Shopify Payments.
Secondly, the payout currency should be that of your country or region.
Ensure Your Bank Accept Electronic Transfers
And finally, you should have a bank account that allows for electronic transfers and purchases.
The US has an additional requirement in that your bank needs to be with a physical US bank and should be able to accept US dollars as the currency.
Now that we've covered the basics let's dive into enabling Shopify Payments.
How To Use Shopify Payments
Let’s assume you haven't already set up your Shopify Payments. In that case, you will be greeted with a message on your Shopify store's dashboard reminding you to enable a payment provider.
If the message doesn't show up, you can access the same message from your settings page under the payments tab.
Clicking on this button will redirect you to a page where various payment providers are available, with Shopify Payments being the first one to activate.
From there, click on the button labeled Activate Shopify Payments.
You should be greeted with the Shopify Payments setup page, where you are required to enter information regarding your business.
The first item to fill in is your business type. For example, if you're just getting started on Shopify and don't necessarily have a business entity, then you would choose the individual sole provider option.
Other information to fill in would be the business address, email address, full name, contact details, and the date of birth of the business owner.
This information will show up on your customer's bank statements to know who to contact or where to go should they have any queries.
After you have filled in the details regarding the business and the owner, there are more textboxes regarding product details.
These are important to fill out as Shopify will view this information and decide whether you qualify for Shopify Payments.
This information includes the business category in what products you market. It should also have a small description area where you can elaborate on what you'll be selling.
You need to fill in your business's banking information.
These details should include the routing and account number.
If you don't know how to acquire those numbers, there are instructions alongside the textboxes that let you know how to retrieve or find those numbers.
There's also an option that allows you to bill your Shopify recurring subscriptions to your Shopify balance, but this is optional.
Ensure you have the correct pay period.
Depending on what country you are in will affect the different pay periods available to you.
The pay period refers to the amount of time between the day that a customer places an order to the day that those funds are sent to your bank account.
For example, if you run a company in the United States, the pay period is roughly 2 business days.
Once you've filled out everything and Shopify approves your request, they'll grant access to the edit feature on your Shopify Payments account.
From here, you will be able to change settings such as which types of credit cards you will accept from customers.
You can now confidently turn on Shopify Payments and get to making some money.
Benefits Of Using Shopify Payments
Now that you know how to use Shopify Payments, here are some benefits of setting up the service.
Firstly, the integration is quick and easy, so you won't need to leave your website when making any purchases.
Secondly, you save on any transaction fees that will cost you in the long run. Shopify Payments waive off transaction fees. This will allow for substantial savings in the future.
Thirdly, Shopify Payments allows your customers to access various convenient payment methods.
Lastly, there's a variety of fraud and security options that ensure your customer's safety comes first.
Address Verification Systems (AVS) and Card Verification Value (CVV) will help protect your customers. They'll keep customer data secure when they pay via Shopify Payments.
Setting up Shopify Payments doesn't take long at all. It's a simple process that will allow you to get the most out of your online market.
If you are considering purchasing Shopify, then be sure to visit their website and check out their different payment plans.