what are shopify payments

Everything You Need To Know About Setting Up Your Shopify Payments 2021 all right so in this video w

Hannah Gardner

Updated on Jan 08,2023

Everything You Need To Know About Setting Up Your Shopify Payments 2021

The above is a brief introduction to what are shopify payments

Let's move on to the first section of what are shopify payments

Let TThunt's experts help you find the best TikTok product on your Shopify business!

Find TikTok products (It's Free)
No difficulty
No complicated process
Find winning products
3.5K Ratings


TThunt has the world's largest selection of TikTok products to choose from, and each product has a large number of advertising materials, so you can choose advertising materials for TikTok ads or Facebook ads without any hassle.

Everything You Need To Know About Setting Up Your Shopify Payments 2021

all right so in this video we're gonna,be going over everything that you need,to know about setting up your shopify,payments,as well as some commonly asked questions,that an ordinary person would ask when,it comes to,getting paid on shopify so that's,basically what's happening,what's up guys my name is hannah garner,if you are new to the channel in this,channel i talk about,anything and everything that has to do,with e-commerce and making money online,so if that is stuff that you are,interested in,please do go ahead and subscribe to the,channel because i am putting out videos,regularly all right i'm gonna hop in to,my computer,and i'm gonna screen share with you,exactly how to set up your shopify,payments,so this is the inside of a shopify,payments page and the way that you,actually get to this,is just by going to your settings in the,bottom left corner once you hit settings,it's going to bring you to shopify,payments,all right so this is a shopify payment,page that's actually,already set up but it's very very easy,to set up your shopify payments,this one right here that i'm pointing to,um,because basically what it is is it's,a payment processor already inside of,shopify,so that means that when you make a sale,and someone checks out with shopify,payments,which is actually stripe stripe and,shopify or partner together,shopify is actually going to be the one,that's giving you the funds,now if you set up paypal which you can,offer both of these payment gateways for,your customers,um your paypal payments are actually,going to go into a paypal account,so that means that you're actually going,to have to log in to another,you know processor which is paypal and,you're going to have to,deposit the money to you inside from,your paypal account,now in shopify payments because shopify,and stripe,which stripe is just another payment,processor just like paypal,um because stripe is partnered with,shopify that's why,you don't actually have to like manually,go into your shopify day and give,yourself your deposit because you can,set it up,manually where they give you the,deposits every day every week every,month however you want to do it,most people like their money every day i,mean i like my money every day so,you get the point all right so the first,payment provider that,i highly highly recommend you that you,do you know,set up is your shopify payments because,that is gonna be,next to paypal one of the most common,ways people are going to,purchase things in your site inside your,store so,um basically because mine's already set,up you'll,actually see a button here that says set,up your shopify payments,and basically the only pieces of,information that you're going to ask for,which,mine's already set up here but it's,going to ask you for basically,obviously your name your address your,business ein number or your tin number,if it's applicable so if you do have an,llc it's going to ask you,what kind of business you're operating,so if it's a llc,if it's a sole proprietorship if it's a,whatever type of business,you set up but mine's an llc,most of you guys are probably going to,be an llc or a sole proprietor,you're going to basically classify your,business give your business address the,name of the business and then your name,and then your business address those are,basically all the things that it's going,to be asking for it's nothing rocket,science it's information that you should,have at your fingertips,but basically that's all it takes to set,up,a stripe account that's you know,integrated with shopify,or a shopify payment account now another,thing that you just,want to make sure once it is set up um,is you want to make sure that all these,credit cards are enabled,um what you're going to see here one of,the first things that you're going to,see is the standard rates,so if you don't know just like when you,go,to publix and you pay with a credit card,or,if you don't have public if you go to,the grocery store and you pay with a,credit card,the business actually has to pay a,merchant fee so there's a fee that comes,with,using your credit card for the business,that you're purchasing from,so just like you know the grocery store,has to pay for the fee,when they have a transaction you also,have a merchant fee as well,and those fees are usually around three,percent or in this case it's 2.9 percent,plus,30 cents per transaction and i'm going,to go into a little bit more depth of,that and show you,some numbers from my back-end so you can,see where those fees are actually,deducted from your balance when you get,paid,so you want to be make sure that you are,taking all these credit cards,different credit cards have different,rates these are the standard rates here,um so i don't know you're gonna have you,have to pay these fees anyway,and i wouldn't forfeit a sale by not,accepting one of these credit cards if,it is a little bit more expensive than a,different credit card,because at the end of the day merchant,fees exist everywhere so you might as,well make the sale anyway,um you want to make sure that all these,are enabled,um in the u.s obviously you need to make,sure that your bank account is,linked to your payout your payout,details which all that requires is your,routing and your account number,which is something that you just get,from your bank account personal or,business,um and then you're going to ask it's,going to ask your payout schedule i,obviously want to get paid every day,so your payout is going to be every day,monday through friday,um it's not going to obviously give you,a payout on monday or,saturday and sunday so you'll be getting,your,you'll be getting a monday payout and,then usually tuesdays will be,your biggest payout because it's going,to accumulate the money that you made,over the weekend,and it's going to deposit it on tuesday,um you want to enable notifications,if you want to get notified every time,you get a payout um,fraud prevention i'm just declining,charges that fail cvv,verification um i just automatically,decline it and if it failed then,you know obviously they have to like do,it again,just to keep as many low risk orders,to keep my orders as low risk as,possible um,the customer billing statement so the,customer statement description,is what your customer actually sees when,it hits their bank statement,so you want to make sure it's like your,company name because and this is very,very very important because,if you put something in here that they,don't recognize what you're going to,find is they're going to be disputing,charges on their credit card,and you don't want that happening,because dealing with disputes is a, we can bleep that out,um so you want to make sure that the,description is something that,they're going to recognize so they know,that you know when they see it they're,not going to be like,oh my god what's this purchase this is,not me and then they're going to like,call their credit card and,say that they didn't make that purchase,when you did um obviously,um the phone number as well just in case,that does happen in the bank,it can get into contact with you,um so yes this is everything that,you really need to do when you're,setting up shopify payments it's very,similar when you're setting up,just like a venmo account or a paypal,account which is the next thing that i'm,going to tell you to do,is offer paypal payments as well,which is basically if you already have a,paypal account,you just link your paypal account here,if you don't go to and do,open a business paypal account don't do,it personal don't try to make it sketchy,because,you're eventually gonna get caught if,you're trying to make a business,set it up properly make a paypal,business account and then sync it here,um to allow paypal express checkout,i would say that my sales between paypal,and stripe is like,70 30 30 is paypal so a lot of people do,use paypal and are used to using paypal,um now as far as any other payment,providers,there are different types that they also,allow you to,integrate with your shopify account some,of them might require like different,coding and stuff but,for the most part these are the main two,ones that most all,shopify stores use um so yeah this is,what we use and,it's worked so well the last thing that,you want to make sure that is,checked is the automatically capture,payment for orders,this ensures that the customer's payment,method is authorized and charged,automatically,so you don't want to have to manually,authorize,all these payments and delay orders,being fulfilled so,i always recommend to keep everything on,automatic,um okay now one of the things that i did,want to show you,on the back end of the payout is exactly,where,these fees get hit to your account so,a few things to note here you can see,that in the view payouts tab right here,um so you can see your previous payout,your next payout and your balance,and you can see where all those merchant,fees get deducted from your payout so,i'm going to just move this,right here as you can see june 15th,there was about 4 800,the refunds like something that i,refunded got deducted adjustments and,then fees,this fee column here is where those,merchant fees are being taken,out of your balance so,we'll make another i've already started,to make another video on just like,all the different types of flows of,money inside of shopify but one of,the most important ones that you want to,factor into your,final profit of sale um,is these fees here because that is about,a three percent fee so,when you're calculating your profit,margins you want to make sure that,off the top three percent is being,deducted from your final profit,just for your own bookkeeping it's good,to know to have accurate,you know books on what you're actually,making but i also just wanted to show,you in here,where you can see that more in detail so,if you click the date here,let it load you'll see yesterday,there's an order 63.81 it was charged,44.44 and the fee for that was 1.59,um so if you take 1.5 1.59,and you subtract 30 cents um,and then you take the 30 you subtract 30,cents,and then you divide you know that number,that final number by,this 44.44 amount that's going to,actually give you 2.9 percent,um right so it's 2.9 percent plus 30,cents per transaction,that's what this fee number is,representing here,so again when you're doing your books,trying to calculate profit you need to,make sure that you're facting in,factoring that into it another thing to,note is that you are paying that three,percent,of the total gross amount including,taxes and shipping,so yes that sucks so this 44.44 amount,that three percent right here that's,coming out,is with the gross of the sale plus taxes,plus shipping so if you charge four,dollars for shipping,and you know there's a 90 percent 90,cent tax,on you know whatever accumulated to the,44.44,you actually are paying three percent on,that so,just a heads up um it's,very very important that all these,little details are being tracked in your,bookkeeping,just so you know your final numbers it's,kind of tricky with mine because i offer,free shipping,over 75 so sometimes i'm paying,for shipping and then sometimes i'm,straight up just paying for the shipping,because they got free shipping but then,sometimes,they're paying for the shipping but then,i'm paying that three percent,and that 30 cent fee per transaction on,the shipping,money that they gave me another thing to,note,with while we're on the same topic um,your sh while this fee of the three per,the 2.9 percent plus 30 cents per,transaction,gets deducted from your balance um,i can show you where your shipping,actually gets,charged so like you actually get billed,like you can choose to get billed for,your shipping costs,to your credit card and it doesn't,actually get deducted to your balance,which is something that i personally,prefer because,i like to get credit card points so i,rather all the money hit my credit card,so i get points because i have to pay,that money anyway,instead of getting getting deducted,actually from inside my shopify,balance so if we actually go back here,and we go to our billing,and you go to your billing history,we're going to a fee threshold you'll,see here,this fee for 242 was for 49,shipping fees which was billed to,my amex card um but that's the whole,point of me showing you that was to show,you that,those fees are actually getting charged,in my card where the other fee,of the merchant fee is getting deducted,from my balance that's getting deposited,into my account if it was my choice i,would have all my fees,get charged to my credit card instead,but unfortunately with the merchant fees,that's just,not how it works so yeah i think that,pretty much summers up,summarizes the shopify payments and the,payouts,basically the only other thing i would,really say that you have fees inside,shopify for,besides the merchant fee and the,shipping fees is obviously your 29,a month that you pay for shopify as well,as any applications that you use,so if you have any apps like a review,app or an email marketing app,linked to your shopify account which you,can get in the app store,inside your shopify account kind of like,when you have an iphone,you pay for the iphone you pay monthly,for the iphone but then you can have a,bajillion apps that you also pay for,shopify,is the same way where you can get a,bunch of applications to add to your,store,add apps that give you different,analytics all types of things,some of my favorite apps are actually in,the description of this video um,but the point of me saying that is that,that those would,be the only other variable of what other,of other fees that you would be,accumulating from your shopify store,i need to start to breathe,all right guys so if you enjoyed this,video and you got any value out of this,content,please do go ahead and like comment down,below any questions that you have,please subscribe to the channel because,this helps my channel and i will see you,guys in the next video,you

Congratulation! You bave finally finished reading what are shopify payments and believe you bave enougb understending what are shopify payments

Come on and read the rest of the article!

Browse More Content