Payments with Shopify:
Getting Paid with Shopify Payments

What Is Shopify Payments?

Shopify Payments is a payment processor offered by Shopify eCommerce platform. It allows merchants to accept payments directly through their Shopify store without needing a third-party payment provider. This simplifies the setup process and eliminates additional transaction fees for certain payment methods.

Shopify Payments are easy to use, since there’s no need to set up a separate merchant account. They claim no additional transaction fees for specific payment methods (however, make sure to check the fees first, as they can vary). Built-in security features help protect transactions and Shopify Payments supports a wide range of currencies and payment methods.

By using Shopify Payments, merchants can streamline their checkout process, improve customer experience, and boost sales. Let’s explore how to make this happen!

Is Shopify Payments a Payment Processor?

Yes, Shopify Payments is a payment processor.

First things first: Payments with Shopify is a service provided by Shopify that allows merchants to accept payments directly through their Shopify store without needing a separate merchant account. It handles the processing of credit card payments, debit card payments, and other payment methods.

How to Set Up Shopify Payments

Getting started is straightforward:

• Log in to your Shopify dashboard.
• Navigate to Settings > Payments.
• Activate Shopify Payments and enter your bank details.
• Customize settings, including accepted payment methods like credit cards and digital wallets.

One of the benefits is that you can offer local payment options. Shopify Payments supports multiple currencies, letting you cater to international customers without extra effort. Beyond convenience, Shopify Payments offers unique advantages:

• Shopify helps mitigate risks by assisting with disputes.
• Track payments and revenue through Shopify’s analytics dashboard.
• Expand globally with features like localized pricing and duties calculation.

Test your Shopify Payments setup by running a small transaction to spot any issues before launch.

Overcoming Common Challenges in Using Payments with Shopify

Shopify Payments offers a convenient, built-in payment solution for Shopify users, but it’s not without its challenges. From transaction fees to limitations in functionality, businesses often face hurdles when using the platform. Fortunately, there are effective strategies to overcome these issues. Below, we address common challenges and practical solutions to make the most of Shopify Payments.

Managing High Transaction Fees in Payments with Shopify

Challenge: Shopify Payments charges a transaction fee for every sale, which can add up quickly, especially for small businesses with narrow profit margins. For international transactions, currency conversion fees can further inflate costs.

• Evaluate whether Shopify Payments is the most cost-effective option based on your sales volume.
• Consider integrating ArtsylPay for large transactions or to access rebates, which help offset costs.
• Encourage customers to use lower-fee payment methods like ACH transfers where possible.

Regularly monitor your payment processing fees to identify trends and negotiate rates if your volume increases.

LEARN MORE: Choosing a Payment Processor: 10 Things to Consider

How to Deal with Limited Multi-Channel Flexibility in Shopify Payments?

Challenge: Shopify Payments works exclusively with the Shopify platform. Businesses that sell across multiple channels like Amazon, Etsy, or their own website face difficulties consolidating payments. Possible workaround:

• Use a complementary payment processor like ArtsylPay for non-Shopify channels, ensuring consistency and streamlined operations.
• Set up Shopify Payments for your Shopify store and a separate payment method for other platforms to maintain flexibility. For example, a boutique clothing brand selling on Shopify and Instagram integrated ArtsylPay to manage all payments from a single dashboard.

How Can I Overcome Restricted Shopify Payment Access in Some Countries?

Shopify Payments is not available in all regions. If you’re based in a country outside its coverage, you’ll need to rely on third-party processors. Research alternative payment gateways compatible with Shopify, such as PayPal, Stripe, or ArtsylPay. You can also use Shopify’s supported payment providers to bridge the gap for international transactions.

For businesses selling globally, consider ArtsylPay’s low transaction fees for cross-border payments, reducing costs and improving speed.

Why ArtsylPay Is the Right Fit for B2B Operations

While Shopify Payments is an excellent built-in solution for e-commerce businesses operating in the B2C space, its limitations become apparent for companies handling B2B transactions. Shopify Payments primarily caters to small-scale, customer-facing transactions, whereas ArtsylPay is specifically designed to automate complex B2B payment workflows.

Key differences include:

• Advanced Payment Automation: Unlike Shopify Payments, ArtsylPay automates invoice processing, payment tracking, and rebate calculations, eliminating manual tasks and reducing errors.
• Multi-Channel Flexibility: ArtsylPay integrates seamlessly with ERP systems like SAP Business One, ensuring comprehensive payment workflows for businesses operating across multiple platforms.
• Cashback and Rebates: ArtsylPay enables businesses to earn rebates on outgoing payments, offering a unique financial advantage that Shopify Payments doesn’t provide.
• Large Transaction Support: Tailored for high-volume B2B payments, ArtsylPay handles large invoices, ACH transfers, and customized payment terms effectively.

If your business needs go beyond Shopify’s ecosystem, ArtsylPay offers a scalable, intelligent payment solution to optimize your accounts payable processes.

How to Handle Chargebacks and Fraud When Accepting Payments with Shopify

Chargebacks can be costly and time-consuming. Shopify Payments has tools to address fraud, but some businesses find them insufficient for high-risk industries. Chargeback rates average 0.47% across industries, but proactive fraud tools can reduce this by up to 50%.

• Leverage Shopify’s fraud analysis tools to review high-risk transactions.
• Integrate ArtsylPay, which includes additional fraud mitigation features like secure payment links and invoice validation.
• Educate your team about best practices for handling disputes and fraudulent orders.

Stressed About Lack of B2B-Friendly Features in Payments with Shopify?

Shopify Payments caters primarily to B2C businesses, making it less ideal for B2B transactions that require custom invoicing, payment terms, or higher transaction limits. To resolve this, you can integrate ArtsylPay with OrderAction to send professional invoices directly to B2B clients with secure payment links.

Shopify Payments may not scale effectively for larger businesses that require more advanced features, such as bulk payment handling or detailed analytics. Combining payment processors can help solve this issue. Pair Shopify Payments with a robust processor like ArtsylPay to handle complex needs as you scale.  Businesses using payment automation save an average of 25% on operational costs.

Alternatively, you can use ACH transfers or bank payments instead of credit cards to reduce fees for high-value transactions. For example, a wholesale distributor shortened its payment cycles and reduced fees by combining Shopify Payments for smaller orders with ArtsylPay for bulk B2B transactions.

FIND OUT MORE: Best Payment Solutions for Businesses. Pros and Cons

Ensuring Fast Payment Processing When Using Shopify Payments

Payment settlement times can delay cash flow, especially for small businesses reliant on quick access to funds. To resolve this, you can set up Shopify Balance for faster access to funds within the Shopify ecosystem. At the same time, you can use ArtsylPay to accelerate payment cycles, especially for invoice-based payments. To boost checkouts, offer discounts for early payments to encourage faster customer transactions.

While Shopify Payments is a convenient solution, businesses can face challenges ranging from high fees to limited functionality. By integrating complementary tools like ArtsylPay, you can overcome these limitations, optimize payment workflows, and improve your bottom line. The key is understanding your specific needs and building a flexible, scalable payment ecosystem.

Types of Stores Benefitting from Payments with Shopify

Shopify Payments is a powerful solution for e-commerce businesses, but it doesn’t serve every store equally. Certain types of businesses stand to gain more from its seamless integration, lower fees, and streamlined processes. Let’s dive into the types of stores that thrive with payments with Shopify and why this payment solution is a good match for them.

Small and Mid-Sized Retail Stores

For small and medium-sized businesses, every saved penny matters. Shopify Payments eliminates extra transaction fees, keeping costs low. These stores often rely on simplicity, and Shopify Payments offers an out-of-the-box solution. For example, a boutique selling handmade jewelry can focus on creative designs while Shopify Payments handles everything from multi-currency transactions to fraud detection.

Small businesses using Shopify Payments reported saving up to 2% on every transaction compared to using third-party gateways.

Why Payments with Shopify Are Good for Subscription-Based Stores

Businesses offering recurring products or services, like subscription boxes, can benefit immensely from Shopify Payments. Shopify Payments ensures recurring payments are processed seamlessly, reducing failed payments due to issues like expired cards.

Users can pair Shopify Payments with Shopify Subscriptions apps to manage recurring revenue more efficiently. For instance, a coffee subscription business keeps customer retention high with dependable payment processing.

How Can International and Multi-Currency Stores Accept Payments with Shopify?

Stat to know: Global e-commerce sales are expected to reach $6.3 trillion in 2024, making tools like Shopify Payments indispensable for international sellers.

Global e-commerce requires robust payment solutions, and Shopify Payments delivers with multi-currency support. Built-in currency conversion helps store owners cater to international customers without worrying about complex setups. For example, an online sneaker shop sells to customers in 20+ countries with payments processed in local currencies.

Using Payments with Shopify for High-Volume Direct-to-Consumer (DTC) Brands

DTC brands that process large volumes of orders need payment solutions that scale without adding complications. High-volume sellers can benefit from Shopify Payments’ fraud prevention features, reducing chargebacks on expensive orders. For example, a popular fitness apparel brand grows its global customer base by relying on Shopify Payments’ scalability.

When is ArtsylPay a Better Option Than Shopify Payments?

While Shopify Payments offers an easy, integrated payment solution for Shopify stores, there are specific scenarios where ArtsylPay stands out as a better option. Whether you’re prioritizing lower fees, flexible payment options, or advanced features like automation and rebates, ArtsylPay caters to businesses with unique needs. Here’s when ArtsylPay might be the smarter choice for your business:

When You Prioritize Lower Transaction Fees

ArtsylPay often offers more competitive rates, especially for businesses handling high transaction volumes. While Shopify Payments charges standard rates based on card types and regions, ArtsylPay is tailored to keep costs down for its users.

Lower fees mean higher profit margins, which is especially important for businesses with slim margins. For example, a wholesale supplier processing $100,000 in monthly payments saves significantly with ArtsylPay’s reduced rates.

When You Need Payment Automation and Business System Integration

ArtsylPay excels in automating payment workflows, especially when integrated with tools like OrderAction and InvoiceAction. Shopify Payments focuses primarily on straightforward e-commerce transactions, but ArtsylPay extends functionality to automate invoicing, payment tracking, and rebate processing.

ArtsylPay streamlines complex payment workflows, reducing manual errors and improving efficiency. In one example, a manufacturing company automates accounts receivable processes with ArtsylPay and collects payments faster via integrated invoices. You can combine ArtsylPay with OrderAction to generate invoices with payment links, expediting payment cycles.

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When Vendor and Customer Rebates Are Important

Unlike Shopify Payments, ArtsylPay offers rebates on transactions for both payers and payees. This feature adds an incentive for businesses to process payments through ArtsylPay and improves cash flow efficiency.

Rebates on payments reduce overall costs, making it a financially savvy choice. Just imagine how a vendor earned cashback on transactions while their customers enjoyed easier payment options with lower costs. Businesses using ArtsylPay report significant savings through rebate programs.

When Operating Beyond Shopify’s Ecosystem

If your business operates across multiple sales channels or platforms outside Shopify, ArtsylPay provides greater flexibility. Shopify Payments is designed exclusively for Shopify stores, which can be a limitation for multi-platform sellers.

ArtsylPay integrates with a variety of platforms, making it ideal for businesses with complex operations. For instance, a retailer selling on Shopify, Amazon, and their own website consolidates payments seamlessly with ArtsylPay.

ArtsylPay also integrates with ERP systems, enabling end-to-end payment automation for enterprise-level businesses.

Why ArtsylPay Is Better When You Handle B2B Transactions

Shopify Payments is optimized for B2C transactions, while ArtsylPay is tailored for B2B payments, which often involve higher amounts, more complex terms, and invoice-based processing.

ArtsylPay supports larger transaction sizes, flexible payment terms, and lower processing fees, making it ideal for B2B operations. ArtsylPay also supports ACH transfers and lower-cost payment methods, perfect for B2B clients looking to save. In one example, a logistics company automates its accounts payable process, cutting payment cycles in half and earning early payment discounts.

Key Takeaway: When It’s Time to Switch to Purpose-Driven Payment Processing

While Shopify Payments is an excellent fit for e-commerce businesses, ArtsylPay shines in scenarios that require flexibility, cost savings, automation, and a focus on B2B or multi-platform operations. Looking for a payment processor designed for your unique business needs? Explore how ArtsylPay can optimize your payment workflows today!