And there should equally be a minimum ongoing management cost. You want to ensure you don’t have to overhaul your system to use the payments service. The integration process is the first consideration.

While we can’t guarantee a service provider will tick all the boxes you need, we can guide your decision with the following features of an ideal Shopify payment method. Think about the pros and cons of each Shopify payment option before onboarding them.

It requires careful consideration regarding features and benefits. What to Look For When Choosing The Best Shopify Payment OptionsĬhoosing a Shopify payment method is a big decision. While tech has evolved to make the process less murky and stressful, it pays to look into the fine print of each service provider and know what you're getting. Payment Confirmation: Once the payment is successfully processed and settled, both parties (i.e., the payer and the payee) will receive transaction confirmation, which can be an SMS or email notification, depending on the Shopify payment method.Some payment methods can take a few days, while others, like card transactions, are typically settled within a day or two. That involves transferring funds from the payer's account to the payee's account. Settlement: The payment processor settles the payment upon receiving the authorization.If approved, they generate an authorization code for the acquirer. The bank confirms whether the payer has enough funds or available credit for the transaction. Payment Authorization: The payment processor seeks authorization from the payer's bank or card issuer for specific payment instruments, like credit cards.It validates the payment details, checks that the buyer has sufficient funds to handle the transaction, and encrypts the data to protect it from unauthorized access. This third-party service handles the transaction securely. Payment Processing Begins: Once the payer enters their payment details, the system transmits their encrypted payment information to the processor via the payment gateway, a technology tool for capturing and sending card details from the customer to the merchant acquirer or payment processor.Payer Selects Payment Method: At the checkout point, the payer selects their preferred Shopify payment method based on pre-programmed options.Customer Initiates Payment: The payment process starts when the customer, the payer, initiates the transaction on your Shopify store.Here’s a general overview of how payment processing works.

And there are several actors involved in each transaction.

While payment processing takes a few moments on the surface, the underlying architecture is extensive. These tools account for everything that goes into safely and successfully transferring electronic transaction data between buyers, sellers, and online payment service providers. We can define Shopify payment options (or payment methods) as the preferred payment system for managing customer payments. Understanding Shopify Payment Options: How Payment Processing Worksīefore we discover the best Shopify payment options, it’s helpful to understand the mechanics of payment collection on platforms like Shopify.įirst, you must know that in eCommerce terminology, the term Payment Processing is a set of systematic activities that help online business owners to collect and transmit payments for goods and services over the internet. Read on for an in-depth analysis of outstanding Shopify payment methods used by the best merchants. You’ll be flushing your hard-earned revenue down the pipe due to excessive fees, customer churn, fraud-induced chargebacks, etc. You don't have a business if you can’t collect payments from buyers without hassle.Īnd choosing the wrong Shopify payment method is like shooting yourself in the foot. If you want to join the growing Shopify merchant community, the first step is determining the Shopify payment method that suits your business model.Īfter all, payment processing is one of the traditional issues eCommerce merchants deal with. The eCommerce behemoth is home to some 4.12 million online stores as of July 2023. Shopify has cemented itself as a top-of-mind eCommerce platform. Looking for the best Shopify payment option for your store?

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