Since its appearance, the Shopify platform has had a significant impact on the e-commerce field. With Shopify, anyone can easily create a professional sales page without needing a team of programmers or website administrators.
If you don't use Shopify, to own an online store, you will need to have a lot of in-depth knowledge about hosting, domains, HTML codes, URLs, DNS, and many other aspects, along with resources. Mainly to buy servers, hire website development and administration experts. However, when using Shopify, you only need to pay a small monthly fee of less than $30 and without hiring additional staff, you can still create and operate a global online store.
Along with the development of the store creation platform, Shopify has also integrated its own payment gateway, helping customers pay more easily and businesses receive money quickly.
What is Shopify Payment?
Shopify Payment Gateway is an internal payment gateway built into Shopify. Similar to other payment gateways, it is a secure and reliable service that acts as an intermediary to process the customer's payment card information with the merchant's bank. Simply described, a payment gateway is where customers can pay merchants and ensure the security of their transactions.
See more: International payment gateway: Concepts and classifications
Source: Internet
By integrating the payment gateway into the Shopify platform, The payment transfer from the customer to you is completely taken care of by Shopify. Customers don't need to be redirected to third-party websites when checking out stores on Shopify (like Paypal, 2Checkout...). This means that:
- Faster payment processing.
- Higher security.
- Minimize the amount of fees paid (because there is no need to go through an intermediary).
It's important to remember that Shopify Payment is a payment service provided by Stripe – one of the most reputable and trusted payment processing providers globally. Basically, Shopify Payments is an integrated version of Stripe on the Shopify platform, specifically focused on supporting businesses selling online. For more details, you can refer to the article: “Stripe Or Shopify Payment, Which Is The Right Choice?”
What forms of payment does Shopify Payment accept?
With Shopify Payments, your customers can pay with the following credit and debit cards:
- Visa
- American Express
- Master Card
- Discover
- Diners Club
- Elo
- JCB
For domestic payments in the US, funds will be transferred to your bank account within 2-3 business days. Shopify's payment system has no limit on transaction volume and always performs money transfers according to the same payment schedule, as long as the payment amount is $1 or higher.
Advantages and disadvantages of Shopify Payment payment gateway?
Shopify's payment system, built on the Stripe platform, offers more advantages in terms of speed, simplicity, and overall experience for both merchants and customers. However, there are also some limitations to keep in mind. Here are the strengths and weaknesses of Shopify Payment:
Advantage
1. Full integration:
Integrating the Shopify payment system directly into the platform eliminates the need for customers to leave your website during the checkout process, unlike using Paypal, 2Checkout, and other payment gateways. This creates a smoother and more convenient payment process. Instead of being redirected to a new website and having to perform complicated operations, customers can complete their payment directly on your website. This helps increase conversion rates and reduces the likelihood of customers abandoning orders.
Another notable benefit of the Shopify Payment integration is the ability to track all orders and financial information from your dashboard. This offers the convenience of being able to manage all payments related to orders in one place.
Shopify's checkout system also offers the ability to customize your checkout page. You can set multiple currencies and languages, and enable additional features like instant checkout for regular customers.
2. Quick and easy setup:
Thanks to direct integration with the Shopify ecosystem, setting up a payment processor is simple and doesn't require waiting for any third-party approvals or reviews. It's an integral part of your store, allowing you to easily set it up and be ready to receive payments from your customers.
Source: Internet
3. Free transactions:
Another highlight of the Shopify payment gateway is that there are no fees for transactions. While third-party payment agencies typically impose transaction fees of around %3, using Shopify Payment saves you a significant amount of money in the long run.
4. Diversity in payment methods:
With Shopify Payments, you have a variety of payment options available, expanding payment options for your customers. This creates flexibility, allowing customers to pay with their preferred cards and e-wallets with ease.
5. Fast transactions:
Compared to Paypal or 2Checkout, the time to receive money into a Vietnamese bank account when using Shopify Payment is significantly shortened. Instead of waiting 21 days, you typically only need to wait 3 business days to receive your payments.
Defect
Registration country restrictions:
Although Shopify allows creating stores in all countries, using the Shopify Payment payment gateway is not allowed in all countries. Unfortunately, Vietnam is not on the list of countries that can register to use Shopify Payment. In case your store has owner information in Vietnam, you can only use Paypal or 2Checkout to process payment.
You can see more detailed information about countries that can register here.
Refund fee:
When you encounter a credit card transaction dispute, you'll be charged a chargeback fee after the customer makes a request or disputes the order. This happens when the buyer demonstrates that there is a problem with the order or wants to cancel the order. On Shopify Payments, merchants are charged chargeback fees, which vary by country. For example, in the US, the fee is $15. However, in the unlikely event that you win the dispute, Shopify will refund your fees.
Lock account:
Shopify Payments has a policy of freezing accounts if there are too many chargebacks or if there is suspicious activity on your account. Usually, chargebacks are resolved quickly and you receive your money in your next payment. However, in the event of an investigation or delay with suspicious activities or chargebacks, your funds will be locked until Shopify completes processing.
Restrictions on e-commerce platforms:
Unlike payment gateways such as Paypal, 2Checkout, Stripe and many other e-commerce platforms such as Woocommerce, Wix, Shopify Payment only supports payments on the Shopify platform only. This means that you cannot integrate Shopify Payment into e-commerce platforms other than Shopify.
Source: Internet
Differences between Shopify Payment and Shop Pay:
People often get confused between Shopify Payment and Shop Pay. However, these two concepts have important differences.
Shop Pay (formerly Shopify Pay) is an instant checkout feature that customers see when purchasing from stores using the Shopify platform. This is a convenient payment method that allows customers to store payment information so they can pay quickly for future purchases.
Meanwhile, Shopify Payment is a supporting payment processor. To use the Shop Pay feature, you need to activate Shopify Payments first. Simply put, Shop Pay is the payment button that customers use to make payments through Shopify Payments.
Conclude
Above is important information about the Shopify Payment payment gateway that you need to know. Despite some limitations such as being limited to certain countries, Shopify's payment processor is still a great and comprehensive solution for both sellers and buyers.
Hopefully in the future, Shopify Payment will expand the scope of support to provide businesses in Vietnam the opportunity to use this payment gateway on its platform.
If you are planning to do business across borders, you can refer to PlutusPay for services such as: Stripe portal rental, PayPal portal rental, Payment gateway rental service.
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