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If you are getting curious about running an online store on Shopify, you must be aware of the payment system to run your online activities on Shopify. It is a remarkable eCommerce platform that provides an opportunity to sellers to enhance their sales in a quick time. You always get a chance to grow faster using this awesome online shopping platform that comes with terrific ROI plans for business entities.
Apart from looking at the success rate, one must know the payment system. How do Shopify payments work? Every seller or buyer should know this system. Every eCommerce platform offers a strong payment process that all the selling and buying parties have to follow to finish the purchase. Remember, payment processing always comes into play whenever we talk about eCommerce websites.
What is Shopify Payment?
Shopify is a terrific platform that has its own payment processor. You can always continue with an in-house payment setup using a credit card. The system is based on a built-in payment processor that you deal with credit card info; even you don’t need any support from third-party processors. You can integrate your credit card payment as a default system in your Shopify store.
Furthermore, you can also get support from the default integrated payment gateway through credit card information. With the help of PayPal, Square, and Stripe, you can transfer money to your bank account. You don’t need to log in to any other platform to deal with payments, as Shopify payments take place in the dashboard.
How Do Shopify Payments Work?
Shopify payments work in a simple way for buyers. If you are a buyer and want to purchase any product from the Shopify store, you have to follow the payment processor. Customers do purchase from Shopify stores by paying through their credit cards. Hence, you receive products after paying money using this simple and easy payment processor. Once you add the payment info, it stores it in the server so that you may use again being a buyer.
What is Payment Processing?
Payment processing is all about handling your credit card information. Indeed, it is a sensitive matter, but you feel secure with Shopify payment processing. It includes Payment Gateway, Payment Processor, and Merchant Account.
Payment Gateway
The payment gateway works like a middleman between you and your customers. Payment Gateway provides information to processors regarding payment methods safely.
Payment Processor
Payment Processor speeds up the payment process. It works like a financial institution that manages payments from different merchants and consumers.
Merchant Account
Merchant Account is so important in the payment processing system. It’s a reliable payment system that accepts various debit and credit cards coming from different processors. Indeed, it is a kind of special bank account that accepts payments with ease. For its approval, one has to undergo paperwork and that takes time.
Shopify Payments fees
Shopify payment is based on a commission system that depends on different methods and transactions through Gateway fees. Here are the details of some payment plans with respect to credit card processing!
For all Shopify payments, it charges 2.9% + $0.30 per transaction, whereas for in-person payments it charges 2.7%.
If you use Stripe online payments, it charges 2.9% + $0.30 per transaction, whereas for in-person payments, it charges 2.7% + $0.05 per transaction.
For PayPal, the fee criterion is different. It depends on the revenue you earn. Below $5k per month, it charges a 3.4% + 45c transaction fee.
Further, Shopify Basic Plan starts from $29 per month. Shopify Plan starts from $79 per month and Advanced Plan starts from $299. You can’t escape from hidden fees, monthly fees, and setup fees while continuing payment services.
How to set up Shopify Payments?
Want to set up Shopify payments? One needs to understand the complete process. In this article, we have got you covered with some basic step-by-step ideas to set up Shopify payments! Here are the steps you should follow!
Customer Purchasing
The first thing that comes into play is the process of customer purchasing. A customer comes to complete purchasing from your store in this step by adding credit card details. Without purchasing, the payment processer doesn’t work.
Payments Start to Process
It is the second stage where the payment provider steps in that you integrate with your online store. It is the stage, where a payment processor verifies whether the bank has sufficient balance to pay the amount through a credit card. This process may take few days.
Payment Comes to Merchant Account
In this stage, payments are received in a merchant account. You don’t receive money directly in your bank account, but you get it through a merchant account. For this, people often prefer PayPal or Shopify payment account to continue the process.
Payment Comes to Your Personal Account
Step 4 is so interesting and keeps importance for a seller. It is the stage where you receive payment into your personal bank account. However, the process depends a lot on the payment provider that you choose.
Who can use Shopify Payments?
Shopify payments are not active for all countries. Here are the countries that allow Shopify payments without any trouble! Australia, Canada, Germany, China, Hong Kong, Italy, Ireland, Japan, Denmark, Netherlands, Singapore, New Zealand, Spain, US, and the UK, etc.
Despite payment availability, currencies also matter to a great extent when someone uses the Shopify payment system. The currencies supported by Shopify are the US dollar, Australian dollar, Canadian dollar, New Zealand dollar, Hong Kong dollar, Singapore dollar, Japanese yen, British pound and Euro, etc.
Conclusively, we come to know that Shopify payment is completely a transparent system that comes clean and clear. It is incomplete without a payment processor, gateway, and merchant account. One has to enter credit card information along with personal information to continue the purchasing. So, money first comes to the merchant account and then lands into the personal account after a buyer pays online. The most important thing is to choose a payment gateway that is available in your country after you complete all the formalities regarding purchase and transaction.
