How Does Shopify Pay Its Store Owners?

As a potential entrepreneur who wants to use Shopify to create and manage an online store, understanding how Shopify pays you is one of the most important factors to consider before starting your business venture.Shopify offers several payment options to help users receive their funds securely and conveniently. These options include:

• Shopify Payments: Shopify’s integrated payment platform, Shopify Payments, allows users to accept credit card payments directly on their online store. This eliminates the need for third-party payment platforms and simplifies the payment process for both merchants and customers. Payouts are typically processed daily or weekly, depending on your store’s location.
• Third-party Payment Platforms: If you prefer using a different payment platform, Shopify also supports numerous third-party options like PayPal, Stripe, and Authorize.Net. This way, you can link your store to existing accounts and accept payments through their platforms.
• Manual Payment Methods: For those who wish to accept offline payments or alternative methods like cash on delivery (COD), Shopify enables the use of manual payment options. While this method offers a lot of flexibility, it requires manual tracking and processing.

Payout Schedule

The timing of your payouts can vary based on several factors:

• Location: Payout schedules differ based on your store’s location. For example, stores based in the United States using Shopify Payments usually receive their payouts within 2-3 business days. Other regions have slightly different timelines.
• Payment Platform: If you're using a third-party payment platform, payout schedules will be influenced by the terms and conditions of that platform. It’s important to review and understand the specific policies of your chosen platform.
• Store Plan: Your chosen Shopify subscription plan can also impact your payout schedule. Higher-tier plans come with better payout timelines.

Receiving Payouts

Receiving your earnings from Shopify is a straightforward process:

• Bank Account Setup: To receive payouts, you’ll need to connect your bank account to your Shopify store. This is done through the Payment providers section in your Shopify admin dashboard.
• Payout Request: When you’re eligible for a payout based on your store’s payment schedule, Shopify automatically starts the transfer. If you’re using Shopify Payments, these transfers are sent directly to your linked bank account.
• Payment Confirmation: Once a payout is initiated, Shopify sends an email notification to confirm the transaction. This email includes details about the payout amount, expected delivery date, and any associated fees.
• Funds Arrival: The funds from your payouts typically arrive in your linked bank account according to the specified schedule. Keep in mind that most banks also have their own processing times, so consider those potential delays.

Conclusion

Shopify’s payment system is designed to provide users with an easy and secure way to receive their earnings from online sales. Whether you end up choosing Shopify Payments, third-party gateways, or manual methods, understanding all the options available is essential for managing your e-commerce business effectively. Stay informed about how Shopify pays you and you can focus on growing your online store and serving your customers.