Hey everyone so I get asked quite a lot through this blog How does Shopify pay me? So that means when someone comes to your store and buys our products how does that money that the customer pays eventually end up in your bank account.
I’m going to talk about the process that happens once a customer makes the purchase to that money eventually ending up in your personal bank account.
I’m going to talk about the fact that there are different payment providers that you can use on your Shopify store to accept payments.
And the fact that there are expenses and disadvantages to using different payment providers in terms of how long the cash takes to get to your accounts.
Whether that process is automated all you have to do it manually and things like that so if that sounds interesting to you make sure to stay tuned and if you’re interested in studying online and building brands make sure to subscribe to this blog.
If you’re not already subscribed so the confusion about getting paid on Shopify there’s a ton of different payment varieties that you can use with Shopify to receive payments.
- 1 Does Shopify payments hold your money?
- 2 Install a payment provider into your Shopify store
- 3 The different payment providers
- 4 Third-party payment provider & transaction fee
- 5 Shopify payments gateway is only available to stores based in certain countries
- 6 Payment Rules variation county wise in Shopify
- 7 About third party payment providers of Shopify
- 8 Aim to be using a direct payment provider of Shopify
- 9 Conclusion
Does Shopify payments hold your money?
I think there are over 70 different providers and this confuses a lot of people you know it seems like a really complicated process they’ve never set up an online store before.
So they don’t know how the process works of receiving money from people that have bought products in their store and the fact that there’s this different provider.
Can really confuse people and going into this people have got no idea how long it takes to get paid can be really confusing.
And people don’t know you have to like proof of delivery before you get paid through PayPal that sort of stuff and so yeah I know I can understand how it can be really overwhelming.
But once you understand all other stuff you realize it’s actually really simple and the fact that there are all of these different options basically means there’s a solution for anyone no matter where you are in the world like the type of bank account you have.
Personally set up you’re guaranteed to be able to receive money that your customers pay through your store and if you don’t already have a Shopify store there’s a link below for a two-week free trial.
So you can get a store set up and you can start making sales in that trial period and start receiving money if you make some sales so click on the link above to get two-week free trial.
But let’s jump into explaining the process of receiving money from a customer through Shopify so the way you receive money through your Shopify store first off when you set up your Shopify store you have to install a payment provider into a store.
Install a payment provider into your Shopify store
This is a provider so a company that basically handles those payments for you processes the payment and then puts the money into your personal bank account.
So Shopify has its own payment provider called Shopify payments which is the default integrated payment gateway that you can bolt into a Shopify store.
And there are also different providers like third-party provider companies like PayPal Amazon pay and stripe and so on and so forth.
So the steps from the customer landing on your store and paying for a product to you eventually getting that money in your personal account.
Go as follows first off the customer lands at your store and they pay for the product by filling in the fields that the payment provider has asked for such as the credit card information address details.
So on and so forth so the customer feels in their details using your store’s payment provider then the payment provider has to process that payment so they have to make sure the credit card payments cleared.
Its values bank account they have the money in their account and so on and so forth so that’s a processing period from the point the customer enters their card details.
To the point, you get the money in your account the processing period typically takes a couple of days for the payment provider to process that payment.
Then that money that the customers paid lands into your merchant account. So that’s not your bank account that’s a virtual merchant account such as your Shopify payment account.
Your PayPal account is a virtual account a merchant account that sits on the Internet and then after that money has cleared and it’s landed in your merchant account.
The different payment providers
It then can get sent to your bank account and depending on the payment provider you’ve used this can happen automatically or it will have to be a manual process.
Where you go to the merchant account yourself and withdraw the funds. So I’ll run through the different payment providers in a second but just know that the different payment providers.
Mean that it can take a different amount of time than the processing period can take a longer or shorter amount of time depending on the provider.
Your use and also whether you have to manually withdraw your funds or they automatically get sent to your account. As soon as a payment gets processed it’s on the provider you plug into the top if I store.
So let’s talk about some payment providers like I said before you’ve got the built-in Shopify payments provider and you’ve also got third-party providers.
That you can plugin and add to your store and you don’t have to use just one payment provider so for instance you could have Shopify payments in your store as an option for your customer to use to pay.
And you can also have a PayPal option so that’s using two payment providers in a single store but let’s start by, I think the default payment provider.
The Shopify payments gateway so looking at the advantages and using the Shopify payments gateway in your store and not using a third-party payment provider so the advantages are using Shopify payments they don’t charge any additional transaction fees.
So if you use a third-party company like stripe for instance and you put their payment gateway in your store every time the customer pays for a product on your store.
Third-party payment provider & transaction fee
You know you have the bank taking there and processing fee but you’ve also got the pavement provider so in this case stripe taking a transaction fee.
So taking a cut of the payment to pay themselves the handling of the credit card payment for you but when you use Shopify payments Shopify doesn’t take a transaction fee.
So you don’t have to worry about that if you’re using Shopify payments also the Shopify payment gateway is integrated into your Shopify store.
So this means once a customer decides to buy your product to pay for it they’re not taken off your store.
They’re kept on your Shopify store and they can fill in their name address and credit card details on your store and then continue through to the confirmation screen.
There’s no need to send your customer off your store but if you use third-party providers some of them require the customer to leave your store go to that provider’s website enter their payment details and then when the payment process is finished.
Come back to your store and this can you know taking people away from your store is never a good thing and it can result in a loss of sales.
So a big benefit of using Shopify payments the default payment provider is keeping people on your store so third advantage to using Shopify is that the money is eventually sent to your personal bank account automatically.
So the customer pays for their product you’ve got the payment processing period of a few days and then that money is sent to your merchant account in Shopify.
And then Shopify automatically transfers that money from the online merchant account to the bank account that you’ve attached to your Shopify store.
Shopify payments gateway is only available to stores based in certain countries
There are no manual processes required it’s all done automatically but some third-party payment providers they’ll put the money into your merchant account, your virtual account online.
But you only get that once you manually log on to their website and withdraw the funds into your bank account so using the default Shopify payments option is completely automatic.
And finally, by using Shopify payments you can see exactly how much money you’ve been paid in the past and how much money you’ve got pending to be paid into a bank account all within the Shopify admin area.
You know have them log in to any external sites you can just log into the back end of your Shopify store and get a complete history of your financial payments so it seems all good using the store my payments method.
But there is a little step back the Shopify payments gateway is only available to stores based in certain countries.
So I’ve got them written down here you can earn your Shopify payments if your store is based in the United States, Porto Rico, Canada, the United Kingdom, Ireland, Australia, New Zealand, and Singapore.
So if you have a store based outside of those countries that I’ve just mentioned you’re not going to be able to use Shopify payments.
It’s not going to be an option available to you in the back in the Shopify for you to select. So unfortunately you have to go on and use the third-party payment gateways.
But I’m gonna go on to those in a second and tell you exactly how they work and basically, it’s pretty straightforward and easy to use those as an alternative to the Shopify payments gateway anyway.
Payment Rules variation county wise in Shopify
But quickly I want to talk about how long it takes for that payment that the customers go on at your website and made credit card payments.
How long it takes for that payment to be processed using Shopify payments before the money is available in your merchant account, not your personal bank account.
But your online version account and basically this alternates depending on what country you’re based in so if you’re in the USA. A store that payment processing is only going to take two is using Shopify payments.
But if you’re in Canada that goes up to three days to process that payment and if you’re a UK store it takes four days for Shopify payments to process.
That credit card payment so long story short depending on the country your store is based in changes the number of days that it takes to process that payment.
But the quickest amount of time that I’ll ever take is two days and the longest amount of time that’ll ever take is four days.
So you can check on the Shopify website exactly how long it will take for your specific store based on where you are in the world.
But between two to four days where the payment to be processed and then once that’s been processed and the money is in your merchant account.
And it’s sent to your personal account it can take then another one to three days to land from the merchant account into your personal bank account.
So it can take let’s do the math’s between three days from the customer entering that money on your store to getting into a personal account it can take between three days and seven days depending on where you are in the world.
About third party payment providers of Shopify
So let’s talk about third-party payment providers for those people who aren’t in the countries where you can use the Shopify payment gateway you know for those people where that option is not available.
You’ll have to use a third-party payment gateway so the different payment varieties available to you are going to change depending on what country your stores are based in.
But don’t worry there are 70 different payment providers that Shopify supports, so no matter where you are in the world.
You’re gonna have a way to be able to accept payments from your customer and have that money transferred into a bank account and of these 70 payment providers.
You have two different types you’ve got a direct payment provider and an external payment provider. So what are those two things well a direct third-party payer-provider for Shopify is a third-party payment provider.
That you use that is integrated into your Shopify store. So remember before I said if you use Shopify payments that payment gateway your customer never has to leave your Shopify store to pay you that’s exactly the same thing.
If you use a direct third-party payment provider it’s integrated into your Shopify store and the customer never has to leave your store to pay you but if you use an external third-party payment provider.
This means that this customer is going to you know pick your products choose that they want to pay for it and then they’re gonna be taken off your store to enter their payment details.
Before then returning to your store and like I said this can result in a loss of sales for you so ideally, you want to aim to be using if you have to use a third-party payment provider.
Aim to be using a direct payment provider of Shopify
You want to aim to be using a direct payment provider, not an external payment provider a disadvantage to using a third-party payment provider is that they are going to charge you a transaction fee.
So this is a percentage of the sale that you’ve made the payment provider is gonna take and keep for themselves you know to cover the cost of handling that payment for you.
So if you’re not in a country where you can use Shopify payments if you’re outside that support zone unfortunately this is just something you’re gonna have to accept calculate into your you know predictions your forecast your financial forecast of budgets calculates.
You know and expect to lose that money that translation fee but it’s just something you’re not gonna be able to avoid if you’re outside of the supported countries area.
It’s purely gonna the swallows unfortunately but that’s basically it went down on how you get your money through Shopify. So the customer comes back to your site makes a payment.
The payment processor the provider that you’ve decided processes that payment and then puts that money into a merchant account and then depending on the provider you’ve used.
Is either automatically put into a personal bank account or you have to manually log on to that provider’s website and withdraw the funds but no matter where you are in the world.
As an option available for you the integrated Shopify payment solution or a third-party payment provider whether it’s a direct or an external payment provider.
So no matter where you are in the world as long as you put the hard work in the time in you commit to this and you learn about e-commerce and you find a good product that people are going to want to buy.
There is a way for you to make money online from having an online store. So if that sounds interesting to you make sure to subscribe to this blog ask any questions if I have not covered anything in this article.