Shopify Payments: The easiest and cheapest way to accept your customers' most important payment types online. The in-house feature for your Shopify store saves you the detour via an external payment provider and simplifies the setup process considerably. With the huge selection of payment providers such as Mastercard, VISA, Shop Pay, Apple Pay, Klarna purchase on account and Sofortüberweisung, there is nothing to stop you from achieving a good conversion. The security aspects thanks to PCI-compliant servers and 3D Secure Checkout also leave nothing to be desired.
The most important payment providers are already integrated: Best conditions for your conversions. (c) Screenshot shopify.com
The key benefits of Shopify Payments:
The easiest setup
From activation to selling with one click: This is how Shopify promotes its own payment gateway. And indeed, processing via your own account saves you a lot of setup and maintenance effort.
Costs and fees
First, all the usual additional gateway fees are eliminated. Certainly the biggest incentive, because Shopify is the cheapest option on the market for the payment methods integrated in Payments. You can reduce all costs such as the obligatory credit card fees (these are always incurred regardless of the payment gateway and in this respect are not Shopify's own fees) by increasing your pricing plan with Shopify. So, depending on your sales, you can save money on this right away. Apart from credit card fees and the regular fees for your Shopify subscription, there are no other monthly or one-time costs for integrating Shopify Payments into your store.
Depending on sales, the lower fees for credit card payments already can make the next higher Shopify rate worthwhile. (c) Screenshot shopify.com
With Shopify Payments, you'll always have an overview of your e-commerce business' earnings right in your dashboard, rather than having to go to a third-party site or accounts. It usually only takes up to three business days to see your money there.
All payment providers
Your customers have the option to pay via payment providers such as Shop Pay, credit card, ApplePay or Klarna (on account or via instant bank transfer) in your store. So they can choose freely and use the payment method they prefer. A great advantage for the satisfaction of your customers and thus in the long run also a great advantage for you as a merchant. Also, you can use additional payment providers like PayPal and Amazon Payments in your Shopify store - Shopify Payments are the best option, but don't claim to rule your store alone!
Shopify Payments supports almost all currencies from all over the world. Your prices are automatically converted according to the current exchange rate.
Probably the biggest advantage for you as a seller is the ease of use of Shopify Payments. The entire use as well as all processes and transactions are uncomplicated and cost-effective. Shopify transparently displays your regular and monthly fees - you won't come into contact with hidden and sudden costs, as long as you properly inform yourself in advance.
You also have the option to perform a fraud analysis. For this purpose, Shopify Payments offers you two fraud filters:
- AVS: The Address Verification System (AVS) compares your customer's billing address and zip code with their credit card company's information. Unauthorized buyers often do not have a correct billing address. This means that fraud can be detected in advance with the help of the AVS.
- CVV: The Card Verification Number (CVV) is a three or four digit number found on the back of the credit card. Credit card companies do not allow these numbers to be stored. So if you ask for it, you can be sure that the credit card given really belongs to your customer and it is not a stolen one.
The Shopify Payments setup
After you have finished creating your store, your customers will be able to purchase and pay using all major payment methods. Before setting up Shopify Payments, you should of course decide on a currency in which you want to set your final product prices. However, you can change your store currency at any time, just contact support.
To set up Shopify Payments, it is important that you fill out the forms correctly and completely to avoid verification issues. If your store is located in a European country, it is essential to provide a VAT ID if you have one. When entering the business data, you must also provide the address of your business in addition to your VAT ID. This address should be the same as the address at which the company was founded. Your first and last name must exactly match the data on your currently registered ID card, otherwise your account cannot be verified. When entering your account details, you should make sure that the relevant Shopify Payments requirements are met. Namely, your account must be a checking account that uses the payment currency of your region and accepts electronic bank transfers. Savings accounts, flex currency accounts, and others are not supported by Shopify Payments. Each region has separate requirements in this regard that your bank account must meet. For your German account, it is important that it is in EUR currency, accepts SEPA transfers, and has a valid IBAN.
Shopify payments configuration
Once you have Shopify Payments fully set up for you, you can make all the customizations afterwards. For example, you can set up a notification for payouts. Normally, you will receive an email from Shopify when a payment from one of your customers is sent to your bank account. You can enable or disable these emails as you see fit in the settings.
Furthermore, you can edit your bank information afterwards, if it should change. Just go to the "Payments" tab in the settings. There you can easily manage your account information.
Another important point is the issue of taxes. When setting up Shopify Payments, you have already provided your details in this regard. If these details need to be updated by you, you should contact Shopify Support. In terms of taxes, as an e-commerce merchant, you are of course also required to file a tax return with the tax office. Shopify provides you with monthly invoices that you can easily download and save on your computer. You will always receive them on the fifth of the following month, provided that there were transactions in your store in the previous month.
Potential issues with Shopify Payments:
To the extent that Shopify audits account activity or if chargeback errors occur, the funds in your Shopify Payments account may suddenly freeze and you may not be able to access them for a period of time.
High Charges for Chargebacks: For every chargeback that occurs in your online store, Shopify charges you an amount of 15 euros in Germany. This can quickly add up to a decent amount if you have a lot of transactions and frequent chargebacks. This is one of the most common criticisms, but in practice, cancelled credit card payments are not really part of daily life.
Product Restrictions: In terms of industries such as gambling or financial services, you are restricted according to the terms and conditions. If you use Shopify Payments in your store, you are not allowed to offer products from these unauthorized businesses. In this regard, you can and should refer to Shopify's terms and conditions for detailed information.