Shopify Payments Review 2021: Find Out Its Pros & Cons

Shopify is a leading eCommerce site which is amongst the top-rated eCommerce solution for online marketing. Shopify payments are always on the top list of the platforms for the best eCommerce payment providers. We have tested the site based on the flexibility, ease of use, credit card management, and customer support for merchant accounts amongst all the other payment service providers.

There is only a single drawback that is the credit card payment processing. It is required to access a third-party solution, which can be a bit expensive and so much complicated because it will require the user to go through another dashboard. Adding to that, Shopify already charged you extra fees for the business. We have discussed Shopify payments for credit cards below and in the table of contents.

Shopify payments review

The users for the Shopify payments can easily accept payments without the integration of a third party. They charge $0.30 for all of the online card transactions along with the 2.9% to 2.4%, which depends on your plan, which is mentioned in their terms of service for a credit card.

Shopify payments is a platform used for building and operating an online store and for the brick and mortar for the point of sale. But for carrying out the payments, you require a system known as the window payment gateway.

What are Shopify payments?

Shopify payments are known to be a third-party service for the credit card payment option. In straightforward terms, it will manage all steps between the time the client types their information of the card into the checkout page to the point where the money transferred quickly reaches your bank account. We can achieve this by efficiently using PayPal, Square, or Stripe payments other than payment provider Shopify for business.

The Shopify payments have cut down on the opportunities of the middlemen in business. The company identified that the price could be made with the assistance of the other payment methods. To be able to achieve that, they made a partnership with Stripe. This has its advantages for business. But still, there are certain things that one needs to consider before opting for the Shopify solution.

Pros of Shopify payments

  • Seamless integration: All these payments can be easily carried out in the dashboard of Shopify. There is no need for you to login into the other platforms to locate and manage your funds.
  • Removes extra transaction fees: This is a hidden solution opted by Shopify so that you can get attracted to choose their answer. But it is a good initiative that is taken by them.
  • You can also use the other payment providers: It is unnecessary to use the Shopify payments option as the users can use the different payment options like the payment gateway PayPal.  

Cons of Shopify Payments

  • Users cannot access the Shopify payments method in all other countries. If you are not residing in any of the locations listed by them, you may not be able to access their services.
  • It should comply with all other products like the terms and conditions for not representing nudity etc. Shopify’s reputation is quite a reputation to instantly change their perception about the online store without further notice for PCI compliant.
  • The Shopify methods are availed on condition like if, by any chance, there is a scenario of a chargeback, then, in that case, they will bill $15 from you for accepting payments.
  • Your funds can get frozen all of a sudden while the eCommerce website is investigating your merchant account for any chargeback error or occurrence of any suspicious activity. There have been many reports from the customers on the social media platform or the comments section for the fraud analysis.

Shopify payments fees

The most vital thing that one might notice while using the payment option is that Shopify will remove the commission fee that it charges as a part of the gateway fees. The business payment gateway fees are 2% for the basic Shopify fee, 0.5 % for the advanced Shopify fee, and 1% for the Shopify fee.

The removal of the commission fee is that you can enjoy the benefits once you are done activating the advanced Shopify payment service provider. The customers sometimes choose the PayPal gateway during the checkout process. So if you want to enjoy the benefits of free Shopify pay per transaction for business, you should make sure that you select the Shopify payments gateway.

But this also means that you will have to pay a certain amount of fee per transaction. The price you will be paying will depend on your plan and the payment method you have opted for.

Shopify payments VS PayPal

You can enjoy the experience of using both of the payment options, PayPal and Shopify but they both have varying fees per transaction means you will have to pay different amounts of transaction fees for both of them.

For example, In the US, the transaction fees are charged at 2.9% per transaction fee and fixed additional fees, which will highly depend on the country’s currency. But still, for accepting the payments which are coming from outside the US, Shopify dashboard will charge 4.4% fees, which is fixed for every transaction.

In the case of PayPal, for different currencies than the US dollars, PayPal will charge some varying amount of fee, which will depend highly on the volume of the monthly sale.

  • It will help if you remember PayPal will charge you for getting your currency converted. If you are going to sell your products in multiple countries, this will add more charges.
  • The non-profit US businesses and the NGOs provide a little discount on each transaction fee with an additional 2.2%of the fixed fee.
  • Shopify POS payments cannot be carried through PayPal.
  • There is a massive advantage of using Shopify as the customers are more likely to stay on your website when they are using the Shopify store sales channels. If they use PayPal, they get redirected to the same platform again, ultimately decreasing the conversion rate.
  • You can also get PayPal buyer protection, which can work excellent for you if you consider purchasing something. If you are Shopify merchants, it will lead to a hefty amount of claims for the customers. PayPal is a payment method that is often known to be on the customers’ side rather than the merchants.

What’s the deal with Stripe VS Shopify payments?

The Shopify payments are being processed with the assistance of Stripe. You can still set up a different merchant account for Stripe to use the credit card payments if you want. In all the cases, it purposely means to adhere to the terms of services, which involves no drop shipping, no toleration of nudity in the products, account termination for a rate of 3%, and other businesses that have been banned.

There have been reports by the customers for being flagged by the Shopify payments for weird reasons. They consider suspicious activities by the bots for the payment gateways eCommerce sites. These sites are under constant watch from the company to check whether if the products are raunchy.

This is the same reason why most people consider setting up a personal account for Stripe. This will also enable them to access all the customer support with the e-commerce site.

Can everyone use Shopify payments?

We discussed the same in the Cons section for the Shopify payments as it is not available worldwide. But it is increasing its availability in the countries in the increasing years. But the availability is not the only point which worries us. Certain products cannot be sold in specific countries like Australia and Germany. As there are IP infringements in certain countries, so Shopify payments do not allow it.

How do I set it up?

It is significant to set the use of Shopify payments. Setting up an account while using Shopify payments requires you to keep a few documents like the bank account number handy. It will only take some minutes to get started with your account, which is very fast compared to the other payment gateways. Just follow these steps to create your account using Shopify payments.

  • Try logging in to the Shopify eCommerce site.
  • Select the ‘Payment providers’ option under the settings.
  • Select the ‘Complete your Shopify payments setup.’
  • Fill in the details of the business, product detail, personal information, and all the bank information.

When you are done sending the information, the company will review the story, to begin with, credit card processing for the payments with the Shopify plan gateway. It is mentioned in their terms of service that the Shopify plan will allow you to use Shopify right away. They can also terminate the account right away without giving any notice if they discover any violation.

How do Shopify payments process funds?

The best part about the basic Shopify features is that the users can track their money in real-time with the Shopify dashboard’s help. So there is no requirement for you to access another external platform every other time. The funds will generally take three business days so that it can reach directly into your bank account. It might take longer if the location is at much distance.

Another drawback is that e-commerce Shopify can sometimes freeze your cash funds so that they can have a solution for all the disputes, chargebacks, and all the other suspicious activity. This can be a significant drawback as the store will not provide transparency, which can also be frustrating.

Do Shopify payments work with multiple currencies?

Shopify payments provide support to all the multiple currencies, and the prices can be raised or decreased drastically based on the current currency and the rounding rule. It is a known fact that Shopify does not charge its users any hidden fees. For your prices to be present neatly for the customers, the rounding rules are often used. For example, the prices are supposed to end with 0.90 or 0.99 even after the conversion rate.

What happens when I sell in person?

For processing cards in person, the Shopify plans are said to be the most prominent gateway. For the accessibility of the multiple currencies, you cannot use Shopify payments outside the Canada, UK, and Ireland.

What about the dreaded chargebacks?

For the owners of the store business and e-commerce, the chargeback fees can be an issue.

The examples of such situations can be a person buying something in the store, and then you ship that product, then they provide you with a reason that their card got stolen, or now they do not want the product and later you are short of one item, and the funds come back to you. But the bummer about this scenario is that Shopify pricing plans charge you $15 whenever something of this sort happens.

If this situation is happening a lot, then you might experience freezing of your funds. So these fees Shopify charges you is the major drawback and reason for complaints from the users.

Shopify payments- final takeaways

Building up an online store can be difficult. Still, it becomes even more complicated with the payment gateways as the system for credit card processing, terms of service, point of sale, credit card rates, any question, card payments, payment processor, etc., are not very opaque. All this procedure might take away the fun from enjoying your first store with the online store shoppers and the high risk it contains.

The most perfect and fantastic advantage offered by Shopify payments is the transparency of their service and domain. The stores are straightforward to set up, and they offer a free trial for business stores in their Shopify plan.

The only drawback can be in the case of fraud. It would help if you were careful as Shopify charges you with a chargeback amount. The merchant accounts complained the most about the chargeback in the comment for Shopify payments review.

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