Mastering Shopify Payments: A Complete Guide to Payouts
Table of Contents:
- Introduction
- How to receive payments with Shopify Payments
- Alternative payment providers
- Setting up Shopify Balance for receiving payouts
- Accessing Payouts through the Settings menu
- Understanding the Payouts screen
- Pay periods and payout schedules
- Processing times for payments
- Example scenarios for payout processing
- Fees and refunds in Shopify Payments
- Adjustments to payout totals
- Payout statuses and issue resolution
- Conclusion
How to Receive Payments with Shopify Payments
Shopify Payments is a user-friendly and convenient payment method for accepting payments from your customers. If you're wondering how you will get paid through Shopify Payments, this article will guide you through the process. We'll cover various aspects, including alternative payment providers, accessing payouts, pay periods, fees, refunds, adjustments, and resolving payout issues. By the end of this article, you'll have a clear understanding of how Shopify Payments works and how it can benefit your business.
1. Introduction
Accepting payments is a crucial aspect of any e-commerce business. With Shopify Payments, you can easily streamline your payment process and ensure a smooth transaction experience for your customers. In this article, we'll delve into the details of how Shopify Payments handles payouts and transfer of funds to your bank account or Shopify Balance.
2. How to receive payments with Shopify Payments
Shopify Payments is the primary payment processing option offered by Shopify. To receive payments through Shopify Payments, you need to enable it in your Shopify store settings. Once activated, customers who choose Shopify Payments as their payment method will submit their payment directly to Shopify. You'll receive the payout from Shopify, including the funds from these transactions.
3. Alternative payment providers
While Shopify Payments is the recommended payment method, some customers may prefer using alternative payment providers like PayPal. In such cases, the funds from these orders will be available through the respective third-party gateways. Make sure to familiarize yourself with the terms of service of these providers to understand how their payouts work.
4. Setting up Shopify Balance for receiving payouts
If you have Shopify Balance enabled on your store, it is automatically set up to receive your Shopify Payments payouts. Shopify Balance is a financial service offered by Shopify that simplifies the management of your store's finances. If you haven't enabled Shopify Balance, we'll guide you on how to access and set up your payouts in the following sections.
5. Accessing Payouts through the Settings menu
To access your payouts, follow these simple steps:
- Go to your Shopify admin dashboard.
- Click on "Settings" located in the lower-left corner.
- From the dropdown menu, select "Payments."
- On the Payments page, you'll find the option to "View Payouts." Click on it to proceed.
6. Understanding the Payouts screen
Upon accessing the Payouts screen, you'll see a comprehensive summary of your payouts. The screen displays the date of each payout, its status, total changes, refunds, adjustments, total fees deducted, and the final payout amount. This breakdown ensures transparency and allows you to review the details of each payout.
7. Pay periods and payout schedules
The pay period refers to the time between when a customer places an order and the day you receive the funds in your bank account or Shopify Balance account. By default, payouts are made every business day as soon as the funds become available. However, you can set up a specific payout schedule if you prefer to receive payouts on specific days of the month or week. We'll guide you on how to manage your payout schedule in the following steps.
8. Processing times for payments
Once an order is placed on your store, it takes a few days for the payment to be processed. The length of the pay period varies based on the country where your store is located. Different countries have different processing times, so it's important to understand the timeframe relevant to your business. We'll provide an example scenario to make it easier to comprehend.
9. Example scenarios for payout processing
Let's consider a couple of scenarios to understand how payouts are processed. Suppose your store is located in Toronto, and a customer named Priya places an order on Monday at eleven am. The order will be accounted for at four pm UTC time. Since your store is in Canada, it can take up to three business days for the payment to be processed. If you haven't set up a payment schedule, you can expect the payout to arrive in your bank account by Thursday, the first available business day.
10. Fees and refunds in Shopify Payments
When using Shopify Payments, you are charged a credit card rate, which is a fee deducted every time a credit card is used for a transaction. These fees, along with any refunds processed during the pay period, are subtracted from the total charges to determine the final payout amount. It's important to understand these fees and manage refunds effectively to ensure accurate payouts.
11. Adjustments to payout totals
In some cases, adjustments might be made to the payout totals. Adjustments can occur when changes are necessary for your payout, such as winning a chargeback or accounting for sales and returns from Facebook orders. These additions or subtractions ensure that your payout total accurately reflects any necessary adjustments.
12. Payout statuses and issue resolution
Payouts can have different statuses, including "In transit," "Paid," or "Failed." An "In transit" status means the funds are in the process of being sent to your bank account. "Paid" indicates that the payout has been sent but may require further processing before depositing into your account. If a payout fails due to issues with your bank account, you'll receive notifications and need to resolve the issue directly with your bank.
13. Conclusion
Understanding how you get paid and where your money is, is crucial for any business owner. Shopify Payments simplifies the process by providing a seamless payment option. By following the steps outlined in this article, you can easily set up Shopify Payments, access your payouts, manage your payout schedule, and resolve any payout issues. With Shopify Payments, you can focus on running your business while ensuring swift and secure payments from your customers.
FAQ:
Q: Can I use alternative payment providers with Shopify Payments?
A: Yes, customers can choose alternative payment providers like PayPal, but the funds from these orders will be available through the respective third-party gateways.
Q: How can I access my payouts through Shopify?
A: To access your payouts, go to the Settings menu in your Shopify admin dashboard, select "Payments," and click on "View Payouts."
Q: How long does it take for payments to be processed?
A: The processing time for payments varies based on the country where your store is located. It typically takes a few days for payments to be processed.
Q: What happens if my payout fails?
A: If a payout fails, you'll receive notifications, and a hold will be placed on all future payouts until the issue is resolved. Contact your bank to resolve any payout issues.
Q: Are there fees deducted from my payouts in Shopify Payments?
A: Yes, you will be charged a credit card rate for each transaction made through Shopify Payments. These fees, along with any refunds, are subtracted from your charges to determine the final payout amount.
Q: Can I set up a payout schedule?
A: Yes, you can set up a specific payout schedule to receive payouts on specific days of the month or week. Manage your payout schedule in the Shopify Payments section of your payments settings.
