Shopify Payments Review: Advantages and Drawbacks Explained

For all companies no matter how small or large they are, it’s crucial to find a stable provider that creates a robust bridge between buyer and seller. You’ve probably heard of Shopify Payments, which is on everyone’s radar. In this article, we’ll take an in-depth look at its advantages and disadvantages, learn about Shopify’s fees, and suggest alternative payment providers for the business.

Introduction to «Shopify payments»

Is Shopify a payment processor? S.P. is Shopify’s payment solution, designed to allow merchants to accept transactions as soon as their store is live. If you choose Shopify Payments, your company may bypass 3rd-party gateways entirely. It means that you will avoid the additional transaction costs.

It offers lots of options, making it a practical choice for merchants who rely on Shopify’s e-commerce or any other platforms. However, you must remember that S.P. isn’t offered globally and is limited to companies in risky sectors.

Advantages:

Customization: A definite plus of using Shopify is the fact that you can customize and design the checkout page in any way you like. You can also customize the checkout page in most languages. Spotify even displays the sale data in most currencies with ease.

Multi Payment abilities: Is Shopify payments good? It allows your purchasers to pay for their purchases in totally different ways. All types of bank cards, even PayPal and American Express!

Zero fees: If you use S.P., these operation costs are waived. This can result in massive savings, especially for companies with high sales amounts. Also, you can bypass the need for a separate merchant card processor account, simplifying the payment process and reducing additional costs. 

Fast payouts: Many people ask, how long does it take Shopify to pay you? It depends on your location. You should receive funds as soon as two business days after the transaction. Fast processing helps manage cash flow, which is important for startups.

Drawbacks

High price for advanced mode: The system charges a monthly charge for the e-commerce rate that is required to use S.P. This cost is in addition to operation fees charged for processing. The price of the advanced plan goes up to $399!

Impoverishing 3rd-party gateways: it also charges a fee if you use another gateway to finalize online payments. Limited areas: S.P. is restricted to specific countries. If your business operates in regions where it isn’t available, our advice is to use another gateway, which may involve extra transaction costs..

Additional costs: S.P. imposes a flat charge for each chargeback. The Chargeback Fee varies by country.

Pricing

Grasping the fee structure of payments is essential to assess if it’s a budget-friendly option for your business. The costs you incur depend on your plan and your location.

Shopify Payments Prices (USA Rates):

• Basic Plan: 2.9% 30 cents per operation
• Shopify Plan: 2.6% 30 cents per operation
• Advanced Plan: 2.4% 30 cents per operation

These rates apply to transactions within the U.S., but they can differ in other regions. Additionally, consider these extra costs:

• Chargeback Fees: $15 each
• Currency Conversion Charges: 2% per transaction per international sale.

Alternative Systems

Stripe

Stripe is an exceptionally user-friendly solution for payments. It has a robust developer platform, around-the-clock customer support, and a wide range of options. For all companies seeking straightforward options, Stripe also offers ready-made integration with e-commerce platforms and accounting software. The price for online payments with Stripe is 2.9% plus 30 cents.

PayPal

PayPal is a highly recognized processing solution. It allows businesses to accept online payments effortlessly. It provides a variety of features designed to meet the needs of both startups and large enterprises.

Conclusion

Shopify is a great pick for many online shops because it’s easy to use and can save you money. It works perfectly with Shopify’s system, so you don’t have to deal with extra charges or complicated setups. Plus, it helps your customers check out faster and gets you your money quickly. If your company deals with certain types of products or is in a place where S.P. isn’t available, it might not be the best choice.