Shopify Payments: Effortless & Unified Transactions for Businesses
Published: January 8th, 2024.
Shopify, a comprehensive platform for commerce, emerged as a means for entrepreneurs to initiate, expand, and enhance their enterprises. Presently, Shopify is the fastest-growing builder for online stores.
Shopify Payments is a solution that aims to streamline and enhance the checkout process for businesses. They allow companies to accept a wide range of payment methods, such as online, face-to-face, mobile, ACH transactions, and digital wallets. They are known for their lack of transaction fees and integrated payment gateway, making them a dependable credit card processor.
This review will examine their main features, service offerings, pricing structures, security precautions, and user experience to comprehensively understand this provider. Once completed, businesses will have a nuanced understanding of Shopify Payments, simplifying the decision-making process.
Shopify launched Shopify Payments in 2013 as a comprehensive payment processing solution that seamlessly integrates with their e-commerce platform. Beyond transaction processing, the suite incorporates a range of services.
Shopify Payments can be used to accept and process transactions where debit and credit cards are present. As both individuals and businesses can access and scale Shopify, they currently do not service a specific industry or business size. Therefore, whether you have a small, medium, or enterprise-sized business, Shopify Payments has a plan readily available to begin accepting debit and credit card payments.
With this provider, businesses can track online and in-person orders and transactions on a unified platform, access over 130 currencies, and synchronize transactions between their bank and accounting software.
Launched in 2013, Shopify store users are automatically set up with a payment processor, eliminating the need to process payments through a third-party provider.
Shopify Payments seeks to simplify the payment processing solution for their customers by any means possible. Their services include an integrated payment gateway, chargeback recovery management, synchronization, various major payment method acceptances, compliance support, and more.
Integrated payment gateway
Shopify Payments allows users to process payments securely on their website. Customers can use debit or credit cards to pay instantly.
Payment method variety
Shopify Payments is a widely accepted payment gateway that allows customers to make transactions using their credit cards. Most major credit cards such as Mastercard, Visa, American Express, and Discover are accepted with Shopify Payments. Customers can also use various other club and credit cards, including Elo, JCB, Union Pay, and Diner Club cards usually associated with Discover.
International payment acceptance
For business and enterprise clients, handling international clients and sales from abroad is simple and can be done from anywhere. Accessing and selling products in multiple currencies is also possible with Shopify Payments, streamlining the process of going international with any business you intend to grow and scale.
If you want to speed up the checkout process for your customers, Shopify's Shop Pay feature is an excellent option. Shop Pay offers regular customers and repeat visitors the convenience of saving their payment details for future purchases. This feature allows merchants to permanently save customer information to a secure and encrypted database, significantly increasing the overall sales you can generate.
Shop pay installments
Shopify Payments now accepts Buy Now, Pay Later through Shop Pay Installments integration. Businesses using this feature allow their customers to divide their purchases into equal payments over a set period, enhancing the shopping experience by making products and services more accessible. Fully integrated into a business’s online store, customers can enjoy this feature with no hidden or late fees.
Additional service offerings
Advanced checkout solutions: In addition to providing a streamlined digital checkout, Shopify Payments allows businesses of all sizes to offer local delivery and curbside pickup options. Offering customers the ability to checkout by opting for an in-store pickup or even curbside pickup is easy and can be done with the updated Shopify POS application. The integrated app will also inform you when a client or customer has arrived to pick up their order.
Chargeback assistance: If your Shopify store receives a chargeback notification, Shopify will work with you to provide evidence to your bank. In most instances, Shopify will also assist with the actual process of sending the appropriate evidence to your current banking institution. With automated chargeback analysis technology in place, it is now much easier to determine if a chargeback is authentic or fraudulent.
Multi-channel solution platform: Using Shopify is ideal for those seeking the most versatile online payment processing platforms. From selling products in person to setting up local delivery fees, the options are virtually endless once you have a Shopify merchant account and are ready to move forward with the use of Shopify Payments.
Reporting & analytics: Shopify Payment’s dashboard allows users to view and manage all transactions freely. Their unified platform lets you view analytics, financials, fraud reports, orders, inventory, marketing, sales, profit, and customer reports. Furthermore, depending on the plan you are under, you can even create custom reports, allowing you to monitor your cash flow and gain a deeper understanding of your business’s performance.
Shopify Payments Equipment & Hardware Solutions
When opting for Shopify as your primary payment processor, you gain immediate access to a range of hardware and equipment solutions designed to enhance your business operations. This includes their popular Built-In Shopify POS system, which streamlines sales generation through tablets or mobile smartphones and the ability to sync inventory seamlessly online and offline. Card readers, available for offline card transactions, are also accessible, with the option to purchase the complete Shopify POS system for $399, inclusive of a reader, scanner, and integrated app.
For those considering hardware and equipment rentals, Shopify collaborates with Fello to manage the process. Rentals, accessible directly from your Shopify account post-registration as a merchant with a paid subscription plan, cover a range of options, including tablets, stands, receipt printers, barcode scanners, and even cash drawers. This comprehensive hardware support caters to diverse retail store needs, providing flexibility and convenience for businesses utilizing Shopify Payments.
Pros & Cons
As with any payment processor designed for businesses, there are pros and cons that come with using Shopify Payments.
Pros of using Shopify Payments
Fully integrated dashboard: With Shopify Payments, access your entire account in one built-in dashboard. Browse inventory, recent sales, and shipping or tracking information from particular purchases with just a few clicks. An integrated dashboard simplifies the process of becoming adjusted to a new payment processor, even if you are new to the industry altogether.
Free trial: When signing up with Shopify, you get access to a free trial; however, the duration of this free trial is not disclosed. Additionally, all their plans, excluding Shopify Plus, offer the first three months at a monthly cost of $1.
No surprise fees or costs: With Shopify, the cost of the services you require is upfront and straightforward, including no setup fees. Whether you are an individual, a medium-sized business, or you own and operate an enterprise that needs to scale, Shopify displays cost transparency at every angle of their business operation once you directly contact them.
Integration capabilities: Another appealing aspect of Shopify is the ability to connect with third-party applications, including the ability to accept and process payments via PayPal.
Save customer information: If you want to drastically increase your chances of repeat business and generating sales from loyal customers, Shopify Payments allows you to save and store customer information. Once a customer checks out using your online store, they will be given the option to save and store their information in a built-in database on your website with the use of the Shopify platform itself.
API developer tools: For developers and those interested in working alongside developers, Shopify Payments provides the perfect environment to do so, regardless of your intentions. Whether you want to accept payments with the use of PayPal or if you're seeking connections with another third-party app that is relevant to your current business and brand, Shopify Payment's thorough guide and included API documentation are a great place to start.
Live chat and virtual assistant: Shopify offers a live chat feature for prompt support, facilitating smoother communication between businesses and customers even through your mobile device. The Shopify website has a helpful tool that answers your questions and links to relevant resources, making website navigation easier.
Drawbacks of using Shopify Payments
Unfortunately, there are also a few drawbacks to Shopify to keep in mind if you are in the market for a new payment processor for your business, such as:
Location and industry restrictions: An eligibility criteria is in place for businesses looking to use Shopify Payments. Shopify states that a company must be in a supported country, and the business type must not be prohibited, according to their standards.
Transaction fees for third-party gateways: While they give you the freedom to choose whether or not you can use their payment gateway or a third party’s, the downside is that they place transaction fees when you opt for a third-party provider, which can accumulate overtime as opposed to the absence of transaction fees with Shopify’s gateway.
Reported poor customer service: One of the biggest complaints about Shopify and Shopify Payments is a lack of customer service. While most of the time, it is reported that Shopify Payments runs without issue, it can be challenging for clients to reach the support representative they require when they find themselves in need.
Lack of transparency regarding pricing: While they do disclose the fees of their pricing plans, there is no mention of the overall credit card processing fees associated with Shopify Payments, which leaves customers uncertain about the cumulative prices.
High fees: Taking into consideration the credit card processing fees along with the prices of their plans, the total price required to pay for payment processing may be relatively high.
Shopify Payments Pricing
After setting up a Shopify store, businesses are provided with Shopify Payments right away. Shopify offers several plan options, each with distinct features: Starter ($5/month), Basic ($32/month), Shopify ($93/month), Advanced ($399/month), and Shopify Plus ($2000/month).
Regarding transaction fees, Shopify's lack of specific information about the costs associated with different types of transactions results in some ambiguity. However, they do mention that if you choose to utilize a third-party payment provider, then it is a given that additional fees will be applied, varying by the type of plan you have chosen and ranging from 0.5%, 1%, and 2%.
To obtain current and precise information on credit card processing fees, particularly for face-to-face and ACH payments, contacting Shopify directly is advisable. For tailored details, especially if you're contemplating the Shopify Plus plan, contacting their support or sales team is essential.
Security & Compliance
Shopify, a leading provider in eCommerce, upholds the highest PCI compliance standards, a commitment mirrored by their Shopify Payments solution. Shopify also possesses SOC 1 Type 2, SOC 2 Type 3, and SOC 3 audit reports to bolster their security. These certifications and audits demonstrate their dedication to protecting customer information.
With stringent fraud prevention tactics, encrypted payment data, and 3D secure checkout systems, Shopify Payments emphasizes its dedication to creating a secure and reliable payment processing space for both businesses and their clients.
User Experience & Testimonials
Shopify Payments does not have a specific profile on the Better Business Bureau (BBB), but their parent company, Shopify, boasts an A+ with accreditation. In contrast, Shopify Payments has a lower rating of 1.6 out of 5 on Trustpilot.
Negative reviews highlight concerns about funds held and accounts shut down under the claim that the accounts are under review, resulting in frozen funds. One user reported that an order of theirs was deemed “high-risk” and, therefore, not eligible to be processed; however, Shopify processed the payment and did not refund the fees. Additionally, difficulty in reaching Shopify for issue resolution is a common complaint.
On a positive note, users commend their intuitive and all-in-one dashboard, seamless integration with other Shopify products, and the absence of transaction fees for their gateway. Lastly, customers also praised the Shopify gateway's duality and third-party gateways' support.
Although customer reviews offer valuable perspectives, it's crucial to approach them with a degree of skepticism, acknowledging that personal experiences can differ and individuals are often more likely to express grievances than positive feedback.
Customer Support & Service
Although they do not provide an email or phone number for the general public to access, Shopify offers various avenues for customer support. These include a live chat option, a community center for discussions and questions, a comprehensive help center with valuable resources on their products, and a virtual assistant that can be accessed through their help center. For email inquiries, being a Shopify store owner is essential, and access to support is facilitated through their help center, ensuring authentication of your account.
Integrated into the comprehensive Shopify commerce platform, Shopify Payments offers a reliable solution for businesses of all sizes to manage and scale their operations. Shopify Payments provides an integrated payment gateway, a variety of accepted payment methods, international transaction capabilities, and additional features such as Shop Pay and Shop Pay Installments. The platform ensures a secure and compliant environment, with a range of hardware solutions available for enhanced business operations.
While Shopify Payments comes with a fully integrated dashboard, free trial options, and transparent pricing, its drawbacks include location and industry restrictions, transaction fees for third-party gateways, reported customer service concerns, and a lack of transparency regarding overall credit card processing fees. The pricing structure of the platform offers various plans. However, direct contact with Shopify is required to obtain accurate credit card processing fees for in-person and ACH payments.
If you are still looking for other providers, we recommend you take a look at our reviews of the top credit card processors and compare each one. Additionally, our blog page provides educational content about the credit card processing industry, so check it out!
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