A Comprehensive Guide to Setting Up Payments in Your Shopify Store
Table of Contents:
- Introduction
- Setting Up Payments in Shopify
- General Setup
- Store Address and Legal Business Name
- Setting Up Shipping Settings
- Setting Up Payment Settings
- Payment Providers
- PayPal
- PayPal Express Checkout
- PayPal Payflow Pro
- Shopify Payments vs. PayPal
- Pros of Using Shopify Payments
- Pros of Using PayPal
- Cons of Using Shopify Payments
- Cons of Using PayPal
- Setting Up Shopify Payments
- Account Setup
- Deposition Time
- Setting Up PayPal Express Checkout
- Activating PayPal
- Alternative Payment Methods
- Bitcoin
- Afirm
- Other Third-Party Providers
- Manual Payments
- Cash on Delivery
- Bank Deposit
- Money Order
- Payment Authorization
- Automatically Capture Payments
- Manually Capture Payments
- Conclusion
Setting Up Payments in Your Shopify Store
Setting up payments in your Shopify store is an essential step in ensuring that your customers can easily and securely send you their money. This article will guide you through the process of setting up payments, including choosing the right payment provider and understanding the different options available.
1. Introduction
As an online store owner, one of your primary goals is to make it easy for customers to purchase your products or services. Setting up payments in your Shopify store is crucial in achieving this goal. By offering multiple payment options and ensuring a secure checkout process, you can enhance the overall shopping experience for your customers.
In this article, we will walk you through the process of setting up payments in your Shopify store. We will cover various topics, including general setup requirements, choosing a payment provider, and alternative payment methods. Additionally, we will explore the advantages and disadvantages of using different payment options to help you make an informed decision.
2. Setting Up Payments in Shopify
Before you can start accepting payments in your Shopify store, there are a few essential setup tasks that need to be completed. These tasks include filling out your store address and legal business name, setting up shipping settings, and configuring payment settings. By completing these steps, you will provide the necessary information for payment processing and ensure accurate tax calculations based on your location.
2.1 General Setup
To begin setting up payments, navigate to the Shopify dashboard and go to the home page. From there, access the Settings section and click on General. Here, you need to provide your store address and legal business name. This information is crucial as it determines your tax rate and the payment processors available in your country.
2.2 Store Address and Legal Business Name
Under the Store Address section, fill out your legal business name and address information. Additionally, ensure that your time zone and store currency are correctly set. If necessary, you can modify the store currency based on your country of operation. It is essential to provide accurate and up-to-date information as it will be used for shipping and payment processing purposes.
2.3 Setting Up Shipping Settings
Once you have filled out your store address and legal business name, you can proceed to set up your shipping settings. Being aware of your exact location helps Shopify determine the applicable shipping rates and methods for your store. Ensure that you select the most appropriate shipping options based on your business needs and customer preferences.
2.4 Setting Up Payment Settings
After setting up your shipping settings, you can now proceed to set up your payment settings. To access this page, click on "Payment providers" in the Settings section. The payment providers page allows you to choose the payment methods you want to offer to your customers.
3. Payment Providers
Choosing the right payment provider is an important decision for every Shopify store owner. A payment provider handles the processing of customer payments, ensuring that transactions are secure and seamless. Shopify offers a variety of payment providers, including PayPal, which we will focus on in this article.
3.1 PayPal
PayPal is one of the most widely recognized and trusted payment providers worldwide. It offers various payment solutions, including PayPal Express Checkout and PayPal Payflow Pro. Both options allow customers to pay for their purchases using PayPal, enhancing the overall convenience of the checkout process.
3.2 PayPal Express Checkout
PayPal Express Checkout is a popular payment gateway that seamlessly integrates with the Shopify checkout process. With PayPal Express Checkout, customers can choose to pay using their PayPal account, making the process faster and more familiar. The yellow "Pay with PayPal" button at the checkout page indicates the availability of this payment option.
3.3 PayPal Payflow Pro
PayPal Payflow Pro provides a seamless checkout experience, where customers can still use the Shopify checkout process while not explicitly knowing that PayPal is being used as the payment gateway. This option may be beneficial for several reasons, including potentially lower transaction costs and the ability to work with PayPal to negotiate better fees.
4. Shopify Payments vs. PayPal
When setting up payments in your Shopify store, you may have to choose between Shopify Payments and PayPal. Both options have their advantages and disadvantages, and it is important to consider your business needs and requirements when making a decision.
4.1 Pros of Using Shopify Payments
- Seamless integration with Shopify: Shopify Payments is built directly into the Shopify platform, providing a more streamlined experience for store owners.
- Easy setup process: Setting up Shopify Payments is straightforward and can be done directly through your Shopify account.
- Quick deposit time: With Shopify Payments, you can expect to receive your funds in your account within three to five business days.
4.2 Pros of Using PayPal
- Global recognition and trust: PayPal is widely recognized and trusted by customers worldwide, improving the credibility of your store.
- Flexibility in payment options: PayPal offers various payment options, including credit cards and PayPal account payments, providing convenience for customers.
- Potential for lower transaction costs: Depending on your business type and negotiations with PayPal, you may be able to secure lower transaction fees compared to other payment providers.
4.3 Cons of Using Shopify Payments
- Limited availability: Shopify Payments is currently available in select countries only. Before choosing this option, ensure that it is supported in your country of operation.
- Risk assessment limitations: Shopify Payments is based on Stripe, which has certain risk assessment criteria. This may result in limitations for businesses classified under high-risk categories, such as pseudo pharmaceuticals.
4.4 Cons of Using PayPal
- Additional account setup: To use PayPal as a payment provider, you need to create a business account and link it to your Shopify store. This requires additional setup steps compared to using Shopify Payments.
- Potential for PayPal holds or freezes: PayPal has strict policies and may put holds or freezes on your funds if they suspect any fraudulent activity or violations of their terms of service.
5. Setting Up Shopify Payments
If you choose to use Shopify Payments as your payment provider, the setup process is relatively straightforward. Here's how you can get started:
5.1 Account Setup
Click on "Account setup" under the Shopify Payments section in the payment providers page. Fill out the necessary information and complete the account setup process. This involves providing details about your business and bank account information.
5.2 Deposition Time
Once you have completed the account setup, you can expect your funds to be deposited into your account within three to five business days. Shopify Payments ensures a smooth and secure process for receiving payments from your customers.
6. Setting Up PayPal Express Checkout
If you prefer to offer PayPal as a payment option, specifically PayPal Express Checkout, follow these steps:
6.1 Activating PayPal
To activate PayPal Express Checkout, select "PayPal" as your payment method in the payment providers page. This will redirect you to the PayPal login page. Once you log in and authorize your account, ensure that your PayPal account is set to a business account. This allows you to receive payments seamlessly from your customers.
7. Alternative Payment Methods
Apart from PayPal and Shopify Payments, there are several alternative payment methods available for your Shopify store. These methods cater to customers with specific preferences or requirements. Some of the alternative payment options include Bitcoin, Afirm (layaway), and other third-party payment providers.
8. Manual Payments
In certain situations, manual payment methods may be necessary. These options allow you to accept payments such as cash on delivery, bank deposit, or money order. While these methods provide flexibility, it's important to note that manual approval of transactions can significantly slow down your growth and order fulfillment process.
9. Payment Authorization
When it comes to payment authorization, you have the option to automatically capture payments for orders or manually capture payments. Automatic payment capture means that once an order is verified and marked as legitimate, the payment is automatically processed. Manual payment capture, on the other hand, gives you the ability to manually capture payment when you're certain about the order's legitimacy.
10. Conclusion
Setting up payments in your Shopify store is an essential aspect of running a successful e-commerce business. By carefully choosing the right payment provider and configuring the necessary settings, you can offer a seamless and secure checkout experience for your customers. Whether you decide to use Shopify Payments, PayPal, or alternative methods, it's important to consider your business's specific needs, customer preferences, and potential cost savings.
