What is Shopify Payments? Everything You Need To Know

What is Shopify Payments? And should you be using it? 

Shopify Payments is regarded as safe, quick, and reliable, but is it the best? In this article, we will discuss what Shopify Payments is and how it compares to its competitors.

What Is Shopify Payments?

Shopify Payments is Shopify’s payment service that allows businesses to manage online transactions and accept payments. It is powered by Stripe, a global leader in online payments. As such, businesses can trust in the security and reliability of Shopify Payments.

This payment provider doesn't require additional fees to use. You can connect your Stripe account and then you’ll be able to start accepting payments online. It also comes with various currencies that you can accept from customers in different locations.

What makes Shopify Payments unique is the fact that it's merchant-facing. This means that buyers can process their payments using all major credit cards.

What credit cards do Shopify Payments accept?

  • Mastercard
  • American Express
  • Apple Pay
  • Google Pay
  • Discover
  • Shop Pay
  • Visa

Shopify Payments is the easiest and quickest way to accept online payments from your customers. It's also a great way to save money on transaction fees.

Who Can Use Shopify Payments?

Another thing to note is that Shopify Payments is available in 150 countries. This makes it an ideal payment provider for businesses with a global reach.

Some of the countries where Shopify Payments is available include:

  • Australia
  • Brazil
  • Canada
  • UK
  • US
  • Chile
  • China
  • France
  • Germany
  • Hong Kong SAR
  • Singapore
  • India
  • Italy
  • Japan
  • Mexico
  • Netherlands
  • Norway
  • Portugal

Note: Shopify is not available in US territories apart from Puerto Rico.

How Does Shopify Payments Work?

Shopify Payments is straightforward to use. With it, you can start accepting payments from customers in minutes.

Here's how it works:

First, you'll need to create a Stripe account. This is the payment gateway that powers Shopify Payments. Once you have created your Stripe account, you can connect it to your Shopify store.

Next, you'll need to set up your bank account. This is the account where all payments will be received and deposited directly into your business account.

Finally, you can start accepting credit card payments from customers around the globe. These funds will then be transferred directly into your Shopify store for easy access and withdrawal as you wish.

It's important to note that Shopify Payments is available in countries that support Stripe payments. If the country you're operating from doesn't support Stripe, then Shopify Payments won't work for you. However, other alternatives such as Paypal and Square will help you accept credit card payments from your customers.

Is Shopify Payments Safe To Use?

To further understand the question “what is Shopify Payments”, you need to understand its security features. This payment gateway is safe for all businesses to use. It's encrypted with the latest security technologies and protocols to protect your business from malicious attacks by hackers and other cybercriminals.

Additionally, Shopify Payments is PCI-compliant. They comply with cardholder information management standards set out by credit card companies worldwide. This helps protect your customers' data and keep them safe when making purchases in your store.

Shopify also offers a range of features that help you keep your business safe from online threats, including:

  • Two-factor authentication. This feature requires you to enter your password as well as another form of verification (your mobile device or a security key) before you can log in.
  • Privacy policy. This document states how Shopify protects and handles all customer information shared with them through their platform.
  • Advanced fraud protection. This feature helps to detect and prevent fraudulent transactions from taking place in your store.

Shopify also has a team of experts who are available 24/7 to help you with any security-related issues or questions you may have.

What Is The Shopify Payments Fee?

When you choose to use Shopify Payments, you will pay two types of fees. These include:

Credit Card Processing Fee

This is the fee charged by Shopify Payments when it processes your customers' credit card payments. The amount you pay depends on several factors, including your Shopify plan, order value, and the number of purchases.

Note: This fee may vary depending on where you're located and what currency you use in your store. The rate you pay also depends on your credit card processor.

Transaction Fee

This is the amount charged by Shopify Payments every time a customer purchases in your store. The good news is once you activate Shopify Payments, you will not be charged this fee. Even if you activate multiple payment gateways, the transaction fee will be waived.

What Is The Shopify Payments Processing Time?

It usually takes up to three business days for your customers' payments to appear in your account after being processed by the credit card company. The funds will then transfer directly into your shop's bank account within 24 to 72 hours of receipt.

Shopify allows you to set up weekly or monthly automatic deposits into your bank account. You can also make a direct deposit whenever you want to, at no cost.

What Is the Difference Between Shopify Payments and Shop Pay

If you search “what is Shopify Payments” online, some sources might confuse you by using Shopify Payments and Shop Pay interchangeably. However, these are two different things.

Shop Pay is a feature that allows you to accept payments in person using Shopify's point-of-sale system. It has been integrated with Shopify Payments so that you can use it to process card payments from your customers in person.

Shop Pay is the button that customers see on your checkout page. Shopify Payments is the backend that must be activated to use Shop Pay.

The bottom line is that if you want to use Shop Pay, you must activate Shopify Payments.

Shop Pay Installments

It's a no-brainer that “buy now pay later” options are a popular way to purchase items, and Shopify knows it. 

Shop Pay Installments is a payment option that allows your customers to buy products from you and split their purchase into four equal payments over six weeks.

This is an excellent way to encourage shoppers who may not have enough cash on hand to make purchases. It also offers a convenient way to receive payment in full and not have to worry about collecting from your customers.

Shop Pay installments are currently available only in the US. Sales must be between $5-$1000, which can be split into bi-weekly payments. It's worth mentioning that these payments must be interest-free.

Giving your clients this freedom of choice can significantly increase your sales and encourage more people to buy from you.

Why Use Shopify Payments?

Now that you understand what Shopify Payments is, you are probably asking yourself, do I have to use Shopify Payments? 

Well, some of the reasons you should consider using Shopify Payments include:

Easy to Set Up

You don't need any coding knowledge to activate Shopify Payments. Log into your admin panel and follow the prompts to set up your account.

Once you are done, you can accept payments through Shop Pay and make direct deposits into your bank account at no extra charge! It's that easy!

No Transaction Fees

Shopify doesn't add any transaction fees when using their payment processor. This means you won't have to worry about paying any additional costs on top of what your customers pay.

You only need to pay a monthly subscription fee if you want access to more advanced features. This includes automatic shipping rates calculations based on customer location data, custom domains with built-in SEO tools, and more!

Better Customer Experience

Shopify Payments integrates seamlessly with your online store. Your customers will be able to check out quickly using their preferred payment method without having to create an account or fill in their information again every time they visit.

Shopify Payments is Fully Integrated

One of the features you will come across when researching “what is Shopify Payments” is full integration. The Shopify Payments platform is fully integrated into your Shopify admin panel. This gives you a birds-eye view of all your sales data and allows you to manage your payments easily.

It also makes it easy for customers to pay you, as they can checkout with a single click without having to leave your store. Moreover, you can manage failed payments and refunds from within your Shopify admin panel.

However, if you choose third-party providers such as PayPal, it can be frustrating for your customers as it redirects them to the platform to complete the payment process. This can be tedious for those who are not tech-savvy.

Shopify Payments is Safe and Secure

One of the biggest concerns people have regarding online payments is safety. However, Shopify Payments is one of the most secure payment processors available.

Shopify uses 128-bit SSL encryption technology to protect your customers' information during checkout. They also use Fraud Defender, which helps prevent fraudulent transactions in your store.

Shopify Payments Support Offline Sales

Shopify POS is a mobile app that allows you to sell in person and accept payments through Shopify Payments. It also has a range of other features such as inventory management, customer profiles, barcode scanning, and more!

As a result of this robust functionality, it's easy for businesses that don't have an online store to start using Shopify POS. This ensures that you can accept payments anytime, whether it's during an in-store event or when your customers go shopping.

Shopify Payments Comes with a Built-In Refund System

Refunding is one of the most important features of running an online store using Shopify Payments. No matter how good your products are, there will always be times when you need to issue a refund.

This is why Shopify Payments comes with a built-in system that allows you to process refunds quickly and easily. You can do this from within your Shopify admin panel without going through third-party providers.

However, if you choose to use a third-party provider such as PayPal, you will need to process refunds through their system. This can be time-consuming and frustrating for both you and your customers.

Does Shopify Payments Have Any Cons?

Learning the drawbacks of this platform is one of the essential parts of learning “what is Shopify Payments”. This way, you can make an informed decision and determine if the platform is suitable for your business needs.

Some Shopify Payments cons include:

Not Available In Every Country

This is one of the biggest drawbacks to using Shopify Payments. It's only available in certain countries and not others.

So, if you have customers from unsupported regions, you may need to find alternative payment methods.

Must Comply With Products T&Cs

If you want to use Shopify Payments, you need to ensure that your products comply with their terms and conditions. This includes the types of products you can sell, your shipping policies, and more.

If you don't comply with their terms, Shopify may disable your ability to use Shopify Payments. If you rely on this platform to process payments, this could hurt your business.

Final Thoughts

Learning “what is Shopify Payments” is essential for any store owner who wants to succeed on the Shopify platform. You can make more sales and improve customer satisfaction with a suitable payment processor.

Hopefully, this article has answered all your questions about this topic! Now that you know what Shopify Payments is, it's time to get started.

Make sure to read the terms and conditions carefully before choosing this platform as your payment processor. This will help ensure that you are fully aware of the restrictions and requirements involved in using Shopify Payments.

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