One of the questions we receive the most before launch is about Shopify Payments. There seems to be a huge confusion around this with a lot of business owners thinking that Shopify is only the website and not anything else…while, in fact, Shopify does EVERYTHING. You can run your entire business with Shopify alone – no need for third party credit card providers or payment processors, third party apps…nothing.
So, let’s break down Shopify Payments.
What is Shopify Payments? Shopify Payments is a payment gateway that allows merchants to accept payments directly on their Shopify store…just like your physical credit card machine in-store. It is a one-stop payment method that is fast, easy to use, and has low fees. Shopify Payments eliminates the need to set up a third-party payment provider (like Square) or merchant account, making it a convenient option for merchants.
What sort of payment methods can I use with Shopify Payments? Shopify Payments accepts a variety of payment methods including Mastercard, American Express, Apple Pay, Google Pay, Discover, Shop Pay, and Visa. It serves as a “middleman” who collects customers’ money and sends it directly to store owners. In other words, it’s responsible for managing all the steps, from when customers fill in their billing information until the money has already been in your bank account.
You can also choose to offer only specific credit cards. Some of our clients choose not to use Discover, some of them use all companies – the choice is yours!
What are the fees for Shopify Payments? Shopify Payments fee varies depending on your current Shopify plan. However, accepting payments in Shopify usually involves two different types of fees.
1: Credit card processing fees: If you use Shopify Payments in your store to accept payments through credit and debit cards, such as Visa and Mastercard, you will pay the standard credit card fees for each transaction. The rate depends on your current Shopify plan.
2: Transaction fees: If you have activated Shopify Payments, you do not have to pay a single coin.
How does Shopify Payments work? Shopify Payments executes all transactions directly on your store, meaning customers do not have to leave your website during checkout. This ensures a steady reduction of the abandonment cart rates. Shopify Payments removes the transaction fees incurred when using a third-party payment processor. Meanwhile, you will have to deduct up to 2% of your revenue through a third-party gateway for each transaction if you have not activated Shopify Payments in your store.
The fee varies depending on your current Shopify plan:
Basic Shopify – 2.0%
Shopify – 1.0%
Advanced Shopify – 0.5%
Is Shopify Payments safe? Shopify Payments is an incredibly safe and secure payment processor. Shopify uses 128-bit SSL encryption technology that ensures a safe and effective checkout process. It also uses Fraud Defender, which significantly prevents any potentially fraudulent transactions in your store. If an order gets flagged as fraud, they’ll let you know within the order details immediately.
In all honesty, Shopify Payments is a great option for merchants who want to accept payments directly on their Shopify store and we highly recommend using only that. Its fast, easy to use, and has low fees. Shopify Payments is a safe and secure payment processor that eliminates the need to set up a third-party payment provider or merchant account. It also removes the transaction fees incurred when using a third-party payment processor, making it a cost-effective option for merchants.
Have questions? Ask us below!