Individual entrepreneurs and small businesses that are passionate about the ecommerce space are quickly opening up virtual storefronts on the popular ecommerce platform Shopify.
Whether or not you already have an account with this ecommerce platform, you might be wondering how easy it is to make sales and get paid.
With so many websites out there that put you through complicated payout processes and long wait times, it can be hard to believe that any online platform will actually pay you what you owe.
If you are wondering, ‘how do I get paid on Shopify?’, you’ve come to the right place!
Today, I’m going to talk about the process of getting paid on Shopify through Shopify Payments and I will discuss alternative payout options for those connected to third-party banks.
I will also answer an additional question of interest: does Shopify take a percentage of sales per transaction? Like most ecommerce sites, Shopify does charge a small fee for each sale you make, which can vary depending on the membership plan you have.
Keep reading so you can get a better understanding of how Shopify payments work.
How do I get paid on Shopify?
So you’ve set up your Shopify store, and you’re ready to start making some money. But how do you actually get paid? It can be a little confusing at the beginning but don’t worry, we’re here to help.
In this article, we’ll walk you through the different payment methods available on Shopify, and show you how to start taking payments from your customers. Let’s get started!
Getting paid with Shopify is easy and convenient. Here are the steps to follow:
- Create a Shopify Payments account. This can be done from your shop’s settings page.
- Enter your bank information. This includes your routing number and account number.
- Your Employer Identification Number (EIN) is a tax number that is used to identify your business.
Once you have received your EIN, then you can enter it into your Shopify account.
1. Set up a payment provider
Before you can get paid at all, you need to set up payment details on the admin page in your Shopify account.
For those who are concerned, Shopify is completely Level 1 PCI compliant and also uses a 265-bit SSL certificate to keep all payment data secure for both you and your customers.
If you want to take advantage of the Shopify Payout system, which offers a faster checkout process, you need to enable Shopify Payments as your preferred payment method before you can cash out.
Setting up Shopify payments is like drinking a cup of tea, simply follow the steps below and you’ll be good to go.
Head over to your Shopify store dashboard.
Go to settings, you’ll be prompted to complete the account setup.
There, you will need to enter information about your business, such as:
- Business type
- Product category
- Company registration number
- Banking information
Once you’ve filled out the form, click on complete account setup.
Very simple right? Now, Shopify Payments is the main payment provider for Shopify stores. However, there are others too!
For example, PayPal. If you would like to learn more about the different payment providers on Shopify, make sure to check out our full guide here.
Warning: Shopify payments will review your application. Often, payment gateways don’t like to work with dropshippers, be smart about it, don’t just say you are a dropshipper!
Alternative payout options
If you don’t want to enable Shopify Payments for whatever reason, you can still cash out through a third-party banking system.
The biggest difference between this method and Shopify Payments is that you won’t be able to see your transaction information on your admin page.
Shopify Payments provides details about the dates and amounts of your payouts, but third-party options will only show this information on the other end.
Some popular alternate payout options include:
- Apple Pay
- Google Pay
- Amazon Pay
- Shop Pay by Affirm
Another popular alternative to Shopify Payments is Stripe, which is actually the company that operates Shopify Payment processing in the first place. You can go directly to the provider and customize the way you handle payments.
A lot of people enjoy having access to Stripe’s developer platform as well as the 24/7 customer service available if you ever run into a problem.
That could be one of the drawbacks as well; if you don’t have experience as a developer, Stripe might be hard to customize for your needs.
2. Modify your pay period to fit your schedule
Like I said earlier in the article, I want to go into more detail about Shopify’s pay periods as this is probably the most complicated (and sometimes frustrating) part of the Shopify payout process.
First, here’s a rundown of what you absolutely need to know:
- You have to set up your Shopify Payments account within 21 days of your first sale or else everything will get refunded.
- Some banks take between 1-3 days to process payments further.
- You pay a subscription transaction fee when you withdraw payments.
- You can view all payouts on the Payments page.
If you are set up with a payment method that directly supports Shopify payments, you will enjoy a faster checkout process that releases your funds more instantly.
Depending on what country your bank is based in, you may even have instant checkout options available.
Alternative payment options will offer gateway payments which could take a varying amount of time depending on the type of bank you have.
Shopify tries to get your payments into your bank as fast as possible, which is why it has become one of the top-rated ecommerce sites for entrepreneurs looking to sell products online.
3. Choose your preferred payout statement descriptor
Your payout statement may have an impact on the way that you receive payments from customers.
By default, your payouts appear as Shopify and can be edited through Payment Providers settings in case of any changes to their appearance or name which need more than 24 hours’ notice before they take effect.
The next time you go to check your bank account, look at the payments section and see what kind of payout statement it has.
You can change how they appear by editing the payment provider’s settings in Shopify’s dashboard!
Does Shopify take a percentage of your sales? (And how much?)
There are a few different types of fees that you need to be aware of on Shopify. For most transactions, there is a flat-rate fee applied to your account each time you withdraw a payment.
This fee doesn’t change regardless of whether your customer used a card or a different payment method to purchase your product.
In addition, there are Shopify rates you must pay that can differ depending on the type of membership plan you have with the website as well as whether your customer purchased a product online or in an in-person store.
Here’s how much Shopify takes from your revenue:
|Shopify Lite||$9 per month||2.9% + $0.30|
|Basic Shopify||$29 per month||2.9% + $0.30|
|Standard Shopify||$79 per month||2.6% + $0.30|
|Advanced Shopify||$299 per month||2.4% + $0.30|
|Shopify Plus||Quote-based||Custom quote|
The smallest membership plan costs $9 per month and charges 2.9% + $0.30 per transaction for online payments. In-person payments are slightly lower at 2.7% per transaction.
The basic plan costs $29 a month and offers the same transactional charges as the Lite plan. Both online and in-person payments remain the same as the previous plan.
The standard version of the plan is the most commonly used plan and the standard cost is $79 per month. The transactional charges are a bit better, at 2.6% + $0.30 per online transaction and 2.5% for in-person sales.
Those who are generating significant profits on Shopify might opt for the advanced plan at $299 per month. Members at this level enjoy transactional fees of 2.4% + $0.30 for online transactions and 2.4% for in-person transactions.
Most individual members are not concerned with Shopify Plus, as the $2,000/month plan is really built for enterprises and large businesses.
In fact, transactional fees aren’t even available for the Plus plan, since transactions this big require custom quotes that vary depending on location and product availability.
Finding out which Shopify pricing plan is best for you really depends on your needs as well as your business size and your bottom line.
FAQs about getting paid by Shopify
Does Shopify pay you instantly?
The answer is both yes and no. Payments are processed immediately, but it may take a few days for the funds to be deposited into your account.
This wait time depends on your bank and whether or not they offer immediate deposits.
Overall, Shopify payments are a quick and easy way to get paid for the products you sell online.
How do you refund an order that is already paid out?
Shopify makes it so easy to refund an order that was already paid out. Simply click the ‘refund’ button within your Shopify account.
The money stays in your bank, your customer gets refunded, and Shopify will deduct the refund from your future orders.
Where can I view my Shopify payouts?
Your Shopify payouts are available in the reports section of your store.
You can also access them by clicking on the gear icon and selecting payments and taxes from the dropdown menu, then click on show all pending payments.
This will display a list of all incoming transactions that you have not yet processed.
Do you need a business bank account for Shopify?
The answer is no, you don’t need a business bank account to use Shopify. You can use your personal bank account to process payments and manage your finances.
However, there are some benefits to using a business bank account for Shopify. A business bank account can help you keep track of your expenses and income separately from your personal finances.
This can make tax season much easier when it comes time to file your taxes. A business bank account may also offer other benefits like merchant rates or discounts on credit card processing fees.
If you’re interested in setting up a business bank account for Shopify, we recommend talking with your local banker about the options available to you. They will be able to guide you through the process and help you
How often are Shopify payouts?
Shopify payout is every two weeks on average. There are some exceptions where payouts may be more or less frequent, but this is the general schedule for Shopify payouts.
The reason for the staggered payout schedule is to help ensure that merchants have enough money in their accounts to cover any potential chargebacks.
This also gives Shopify time to investigate any potential fraudulent activity before issuing a payment.
If you are expecting a large payout, it’s best to reach out to Shopify support ahead of time so they can be prepared and make sure everything goes smoothly.
Getting set up with Shopify Payments is simple for those who are moving forward with their ecommerce businesses on this ever-growing platform.
If you have ever wondered how to get paid on Shopify and how long it takes to get paid on Shopify, hopefully, this guide has helped.
No matter what payment option you decide to make use of for your online business, Shopify should allow you to use it with ease!
If you don’t have a Shopify account yet, click this link to get a 14-day free trial!
Want to learn more about Shopify?
Ready to move your Shopify store to the next level? Check out the articles below: