How to Withdraw Money from Shopify Payments

Introduction
Setting Up Shopify Payments
Understanding Payouts
Troubleshooting Common Payout Issues
Handling Multiple Currencies
Special Considerations for Different Regions
Additional Tips
Conclusion
FAQ

Introduction

Imagine you've just made your first few sales on your Shopify store. Exciting, right? The next logical step is figuring out how to access the money earned. Shopify Payments is a built-in payment processing service provided by Shopify, enabling store owners to accept various payment methods. However, for many merchants, confusion often arises when it's time to withdraw those funds. How do you ensure the money flows smoothly from your Shopify account to your bank? What are the steps involved? In this comprehensive guide, we'll unravel how to withdraw money from Shopify Payments, ensuring you understand every detail of the process.

By the end of this post, you'll know exactly how to manage your payouts, troubleshoot issues, and get your hard-earned money into your bank account seamlessly.

Setting Up Shopify Payments

First and foremost, ensuring that your Shopify Payments account is set up correctly is crucial. Here’s how to go about it:

Step 1: Accessing the Payments Settings

To initiate withdrawals, you must correctly configure your Shopify Payments. Start by logging into your Shopify admin dashboard. Navigate to Settings > Payments.

Step 2: Enter Bank Account Details

In the Payments section, you will find the option to complete your account setup. Enter your bank account details meticulously. These details must align with your banking information to avoid delays or failures in the payout process. Ensure your bank account is a full checking account; savings accounts and certain business accounts may not be supported.

Step 3: Verify Your Information

Shopify Payments might require you to verify your identity and banking details. This is a standard procedure to comply with regulatory requirements. Be prepared to provide documents such as government ID, bank statements, or business registration documents. After verification, your Shopify Payments account will be active, and you're ready to start accepting payments.

Understanding Payouts

Payout Schedule

Shopify Payments transfers funds to your bank account based on your pay period, which is determined by the country your store operates in. For instance, the pay period for stores in the United States is typically two business days. This means your earnings from sales made in one period will be deposited into your bank account after the two-day window.

Viewing Payouts

You can easily track your payouts through the Shopify admin dashboard:

Navigate to Settings > Payments.
Click on View Payouts.

Here, you’ll find a detailed breakdown of all transfers, the amount sent, fees deducted, and the date of transfer initiation.

Withdrawing Money

Once the payout is initiated, the funds will be transferred to the bank account you specified during the setup.

Minimum Payout Amount

In certain regions, there is a minimum payout amount. Make sure to review the Shopify Payments requirements for your specific country to understand these thresholds.

Troubleshooting Common Payout Issues

Despite setting everything correctly, issues might still arise. Here’s how to troubleshoot common problems:

Failed Payouts

Sometimes, a payout might fail. This could be due to incorrect banking details or an issue on the bank's end. Shopify will notify you via email and the dashboard if a payout fails. Here are the common steps to resolve this issue:

Update Banking Information: Ensure that your bank details are accurate and current.
Retry Payout: Once the information is updated, Shopify will automatically attempt to process the payout again within the next few days.

Payout Delays

If you notice a delay in receiving your payout:

Check Business Days: Transfers initiated on non-business days (holidays and weekends) may take longer to process.
Bank Policies: Different banks have varying processing times for incoming transfers. Contact your bank for more insights if the delays persist.

Account Hold

If your account is placed on hold, you will receive an email notification from Shopify with further instructions. Resolve the issues mentioned—usually by providing additional verification documents.

Handling Multiple Currencies

Payout in Selling Currency

Shopify Payments allows you to sell in different currencies while receiving payouts in your store's default currency. This feature is particularly beneficial for international sellers. However, note that Shopify applies conversion rates and associated fees.

Multi-Currency Setup

To receive payouts in a different currency, configure your Shopify Payments settings accordingly:

Navigate to Settings > Payments.
Under Manage > Payouts, select the desired payout currency.

Ensure that the bank account you linked can accept payments in this currency to avoid conversion issues.

Special Considerations for Different Regions

United States

Require a valid checking account from a US-based financial institution.
Social security number (SSN) must be provided.

United Kingdom, Canada, Australia, and New Zealand

Require valid local bank accounts.
Business details and identification documents may be required.

Europe

VAT (Value Added Tax) applies.
Specific directives like PSD2 may affect payouts and processing.

Additional Tips

Shopify Balance

Shopify Balance is another way to manage and access your funds. It's a business financial account available to merchants in the United States. Using Shopify Balance, you can view your cash flow, pay bills, and even receive payouts quicker.

Using Third-Party Payment Gateways

If Shopify Payments isn't supported in your region or you prefer another service, consider third-party gateways like PayPal or Stripe. Each has its own procedures for setup and withdrawal, but integrating them into your Shopify store is straightforward.

Avoiding Chargebacks

Handling chargebacks through Shopify Payments requires providing documentation to dispute the claim. Always keep records of transactions and communications with customers to present a strong case if a chargeback occurs.

Conclusion

Withdrawing money from Shopify Payments involves a straightforward process once your account is set up correctly. Regularly monitor your payouts in the Shopify admin dashboard, ensure your banking information is accurate, and be aware of potential issues that might delay your transfers. By following these steps, you ensure that your hard-earned money reaches you without significant hitches.

Gracefully managing your payouts fosters a smooth operational flow, allowing you to focus on scaling your Shopify store and achieving greater heights.

FAQ

Can I link my PayPal account to Shopify Payments?

Currently, it isn't possible to directly forward funds from Shopify Payments to your PayPal account. Payouts are typically made to a bank account.

What should I do if my payout fails?

Double-check your bank details for accuracy. If correct, contact your bank for further investigation. Update your information in Shopify, and the system will retry the payout.

How long does it take to receive a payout?

The pay period varies by region. For instance, in the US, it's typically two business days. Transfers are not processed on weekends or holidays.

Can I receive payouts in multiple currencies?

Yes, Shopify Payments supports payouts in different currencies. Configure this in your Payments settings and ensure your bank can accept the specified currency.