How Does Shopify Pay You? Understanding the Payment Process

Now that you have achieved quite some sucess on Shopify. You want to withdraw some money from Shopify to enjoy the fruits of your hardwork. Yet, you don't know how to do it.  So how does Shopify pay you?

This article delves into Shopify's payment process, explaining how you receive funds from your store sales. Shopify offers various payment methods to suit each seller's needs. Regardless of your choice, the payment process is designed to ensure you get paid quickly and securely.

Let's go find out!

How Does Shopify Pay You?

Shopify can pay you through several methods such as PayPal, Bank Account, and Wire Transfer. Depending on your country, currency, and region, not all 3 methods are going to be available. 

The most common option is Bank Account, with which, Shopify will deposit directly into your bank account through Shopify Payments within 2-3 business days.

Merchants can also use third-party payment gateways like PayPal or Stripe. These can be managed directly within the platform, simplifying the process. Even with external vendors, Shopify ensures a smooth payment-receiving experience, regardless of location or bank account type.

There are also manual payment methods such as cash on delivery or bank transfer, with processing time depending on the method chosen.

Once you've selected a provider, you can start accepting orders.

Here's a basic overview of the payment process:

• The customer places an order and makes a payment.
• You receive the payment (minus transaction and other fees, if applicable).
• Payments typically undergo processing, leading to a slight delay in receiving funds, ranging from minutes to 72 hours depending on location.
• Once processed, the purchase fee is transferred to your merchant account.
• You decide how to manage the funds from your merchant account, including transferring them to your bank account.

Most payment providers handle these steps automatically, while others like PayPal may require manual action to transfer funds from your merchant account.

=>> Read more: Shopify Tutorial: How to Start a Shopify Store for Beginners

Where can you view your Shopify payouts?

You can view your Shopify payouts in your Shopify admin dashboard. Here's how:

• Step 1: Log in to your Shopify admin.
• Step 2: In the left-hand sidebar, click on "Settings."
• Step 3: From the dropdown menu, select "Payments"
• Step 4: In the Shopify Payments section, click Manage

• Step 5: Scroll down to the "Payouts" section.

• Step 6: Here, you'll see a list of your recent payouts, including their dates and amounts.

You can click on any payout to view more details, such as the specific transactions included in that payout.

How long does it take for Shopify to pay you?

The timing of when you receive payouts from Shopify depends on several factors, including your store's location, the payment provider you use, and any additional processing times.

Shopify usually processes payouts within 1-3 business days after capturing a customer payment. The exact timeframe for payouts may vary depending on your store's location.

You can schedule recurring payouts to receive payments at regular intervals.

With Shopify Payments, the standard payout time is typically within 2 business days for most countries. You can check your pay period to determine when you'll receive payment.

With Shopify Balance, payouts can be received in as little as one business day.

What are Shopify's payment fees?

Shopify doesn’t charge any fees specifically for payouts. However, there are other fees to consider before the payout.

Transaction fees vary depending on your Shopify subscription plan.

• Shopify Payments: If you use Shopify Payments, transaction fees typically range from 2.4% + 30¢ to 2.9% + 30¢ per transaction, depending on your Shopify plan. Additional fees may apply for international cards or manual payments.
• Third-party payment gateway: If you use a third-party payment gateway, such as PayPal or Stripe, transaction and payment processing fees are determined by the provider and may vary.

It's important to review the specific fees associated with each payment method to understand the costs associated with processing transactions on your Shopify store.

If a currency conversion is involved, there’ll also be a conversion fee to pay.

=>> You might be interested in: What is Shop Pay and how does it work?