Manage Payment Processing on Your Shopify Store

Bahroze Ali

|

December 2, 2024

Manage Payment Processing on Your Shopify Store: Seamless Shopify Payment Processing

Shopify Payment Processing is the method that lets store owners manage payments from users. This ensures fast, secure, and reliable transactions between merchant accounts and user payment methods. Shopify payment processors complete business transactions, including debit and credit cards. They also support digital wallets and bank transfers. Shopify payment processing has a pre-made method called Shopify Payments. It also provides other payment gateways offered by third-party developers. These payment gateways are easily integrated with the Shopify stores to meet various business needs.

In this blog, we'll learn how Shopify payment processing works. We'll also see the alternatives to Shopify payment processing and a guide to setting up Shopify payments.

Introduction to Shopify Payments

Shopify Payments is a pre-made Shopify payment processing solution for accepting online payments. It is the simplest way for merchants to accept payments directly through their stores. The hassle-free Shopify Payment method eliminates the need to set up a third-party payment provider. Shopify Payments provides transparent pricing and eliminates extra transaction fees charged by the other payment gateways.

Shopify Payments gateway is by default integrated with a Shopify store account. The merchant needs to activate and set it up. When all Shopify Payments settings are complete, Shopify Store Analytics will start collecting Shopify Payments data. Shopify analytics uses this data to generate a finance report.

With the Shopify Payments gateway, you are ready to accept all main payment methods as soon as you create a Shopify store. The merchants do not need to provide any extra account on other payment providers. Shopify Payments gateway supports the following payment methods:

• Credit and Debit Cards: Various credit and debit cards such as Mastercard, Visa, American Express, and Discover.
• Local Payment Methods: Support local payment methods like Bancontact in Belgium, and Sofort in Germany.
• Digital Wallets: Support digital wallets like Google Pay, Apple Pay, and Shop Pay.
• Traditional Options: The Shopify Payments method supports cash on delivery (COD).

Shopify allows you to receive payments in various currencies. It helps merchants provide global Shopify payment processing platforms that want to grow into new markets.

Shopify Payments provides a complete solution to simplify the payment process. It offers secure and reliable checkouts by using integrated tools. Shopify Payments gateway offers built-in fraud protection tools like CVV and AVS (Address Verification System).

Shopify Payments Pricing: The Shopify transaction fee varies depending on the Shopify plan. Solo entrepreneurs pay 2.9% plus 30¢ per transaction for online sales. For in-person transactions, they pay 2.6% plus 10¢. Small businesses pay online transactions is 2.7% plus 30¢. They pay 2.5% plus 10¢ for in-person transactions.

How does Shopify Payment Processing work

Shopify payment processing is a service that handles the actual transaction. It sends payment details to the relevant bank, card network, or other systems to complete the sale. Shopify payment processing provides merchants with a secure and efficient environment to accept payments from customers. Here's how Shopify payment processing transfers money to ease transactions:

Payment Processor Receives Payment Information

A customer enters the card information in the payment gateway after placing the order. The payment gateways like POS terminals or online checkout pages encrypt the data. It sends this data securely to the payment processor.

Payment Processor Seek Authorization

After receiving payment information, the payment processor sends this data for authorization to the card-issuing bank. If a company issues the card then the payment processor sends this data to the credit card company for authorization.

Complete Payment

The bank or card network provides information to the payment processor on whether the user is authorized or not. If banks or card networks approve the payments, the merchant accepts and completes the transaction. But if they decline the payment information, a message of "Try another payment method" prompts to customer.

Funds are Transferred

Once the payment information is authorized and completed, the issuing bank or card network transfers the funds to the merchant's Shopify payment account.

Shopify payment processing is designed for fast, secure, and reliable transactions. Integrated tools like Shopify Payments, PayPal, Strips, and more are gateways that ensure a smooth transaction for both user and merchant. The Shopify Store Security ensures the secure integration of all payment gateways

Alternatives of Shopify Payments

There are some countries in which Shopify Payments doesn't work. However, Shopify supports various payment gateway alternatives that can be integrated with a Shopify store. Many companies provide payment processing options which are listed below:

PayPal

PayPal is the common globally used payment processing. It accepts transactions from PayPal accounts, credit cards, and debit cards. PayPal supports multiple currencies and processes payments in different formats. Integrating PayPal into Shopify checkouts is easy. PayPal transaction fees are higher than Shopify payments, but they don't charge monthly subscriptions. PayPal is a popular and trusted payment gateway but still, it is less appealing for high-volume businesses.

Pricing: PayPal charges 2.99% plus 49¢ for debit and credit card payments.

Payment Depot

Payment Depot is a suitable payment process for high-sales volume businesses. It offers low transaction fees as compared to Shopify payments. However, it charges customers a monthly subscription. Also, Payment Depot doesn't support the POS payment gateway option.

Pricing: Payment Depot subscription charges start at $39 per month. It costs a wholesale interchange rate plus 10¢ for online transactions. It costs a wholesale interchange rate of 1.51% to 2.5% plus 10¢ per use in-person transactions.

Stripe

Stripe is a common and user-friendly payment gateway. It supports payments over 135 currencies and provides advanced tools for fraud prevention. Stripe is a popular option among merchants due to its competitive fixed fees for online transactions. The strip is flexible and specifically designed for web developers. It allows them to customize API to suit their business goals.

Pricing: Online and in-person transaction fees are 2.9% plus 30¢.

Square

It is a popular payment process for small businesses and physical stores. Offering various POS payment gateway options, Square easily integrates with the Shopify store. Shopify merchants track sales and payouts using Square's user-friendly dashboard. Square doesn't charge subscription fees or startup fees.

Pricing: For online transactions, it charges 2,9% plus 30¢ while for in-person purchases, it charges 2.6% plus 10¢. Transaction fee.

Payline

Payline is a suitable option for handling credit card payments in high-risk industries with more regular disputes. It separately charges the online and in-person monthly transaction fees. Payline data integrated with QuickBooks. Using this popular software makes it easy to manage your accounting.

Pricing: It costs $20 per month online business fee and 0.75% plus 20¢ interchange rate per transaction fee. It costs a $10 per month in-person business fee and 0.4% plus a 10¢ interchange rate per transaction fee.

Finix

Finix is also a popular payment processor providing a monthly subscription rate plus a low transaction fee. Due to its high subscription rate 250$ per month, you require a high sale volume to justify the price. Finix offers 24/7 customer support, customizable payment solutions, and an online checkout setup. It also provides analytics and reporting.

Pricing: It starts with a $250 per month subscription fee. It costs an interchange rate plus 8¢ for in-person transactions. Finix cost interchange rate plus 15¢ for online payments.

Stax

Stax is another payment processor. Due to Stax's low transaction rates, it is a great choice for online stores with high sales. But you need to cover the monthly subscription charges of $99.

Pricing: The monthly subscription fee is $99 but depends upon sales volume. It costs an 8¢ interchange rate for in-person payments and a 15¢ interchange rate for online payments.

Helcim

Helcim is also a popular payment processor and the best option for fast-growing businesses. It offers volume discounts which means your fee decreases with an increase in your sales. Helcim doesn't charge a monthly fee. It bases its fee on the interchange rate.

Pricing: Helcim cost interchange rate and 0.5% plus 25¢ for online sales, if monthly sales are less than $50,000. It costs an interchange rate and 0.4% plus 8¢ for in-person sales if monthly sales are less than $50,000.

Step-by-step Guide to Setting Shopify Payments

Shopify Payments is a built-in solution offered by Shopify payment processing. Setting up Shopify payment processing is important for every store in Shopify. It allows a fast and secure transaction between the user and the merchant.

Shopify Payments is the easiest and simplest method of accepting online payments. Before setting up the Shopify Payments, deciding and setting a store currency is essential. The store currency is the same as the currency used in Shopify admin. Also, you need to select the store currency before making the first sale.

Here are the steps to setting up Shopify Payments:

• Log in to your Shopify admin account.
• Go to Settings, and click on Payments.
• Activate the Shopify Payments in one of the following methods:
  • If you have not setting credit card payment provider, click Complete Account Setup in the Shopify Payments section.
  • If already different credit card payment provider is activated, click Activate Shopify Payments in the Shopify Payments box. Then confirm by clicking Activate Shopify Payments. This will remove the other credit card payment providers from the account.
• Enter all required information about the store.
• If you are eligible, a Shopify Balance account is created otherwise you need to provide additional banking details.
• If you're using Shopify Balance, activate the two-step authentication based on your region.
• Click Save.

By following the given steps, the pre-made Shopify payment processing is created. Now you're ready to accept secure payments online with Shopify Payments.

Shopify payment processing is a service that provides different payment gateways. Whether it is built-in or third-party, Shopify supports the integration of all payment gateways. It ensures fast, secure, and smooth checkouts to support the store's success.