Last updated on 5th October 2023 at 13:50 by Alex Nicholas
When running an eCommerce business on the Shopify platform, new users often ask the question, how often does Shopify pay out after they've made some sales?
The short and simple answer is that Shopify payouts can be set to occur on a daily, weekly, or monthly basis. It's up to you to choose how often you want to be paid.
Shopify payout report
To find out how much you were paid, including all previous payments, head over to the finance summary in the reports section of your Shopify dashboard.
From here you have the option to change the date range of the payments as well as where those payments came from, Shopify payments, Klarna, PayPal etc.
Your first few sales with Shopify
One thing you should note is that the 1st few sales you make with Shopify might take a little longer to be processed.
This is normal (although doesn't always happen) and is Shopify's way of making sure that they're happy with you, and that you're not a fraud risk.
Third-party payment providers
There are also several additional payment options available for accepting payments from customers (as I've just alluded to). These include using Shopify Payments, a payment gateway powered by Stripe, or third-party processors such as PayPal, Amazon Pay, Klarna, Apple Pay, Google Pay or Shop Pay.
The payment processor chosen will depend on various factors such as fees, accepted currencies, supported countries, chargeback management, and customer support.
It is important to note that if a store owner chooses not to use Shopify Payments, there will be an additional fee charged by Shopify, which varies based on the plan. Per transaction fees for sales across payment processors usually range from 2% + 20p to 1.5% + 20p.
When using third-party processors, it is important to keep customers on the store's website to minimize the chances of abandoned checkouts.
How long does it take third-party payment providers to pay
Once a customer makes a payment, it may take a few days for the payment to be processed by the payment provider. With Shopify Payments, the money will be automatically transferred to the merchant's Shopify account, and payouts can be set to occur on a daily, weekly, or monthly basis. For PayPal, the store owner must manually initiate the transfer, which can be difficult to track if multiple payment providers are used.
For new business owners, it is important to note that the first few sales and payments may take up to seven days to process due to initial checks by Shopify and the payment gateway provider. Additionally, some payment providers may not permit certain business activities due to high risk factors such as fraud or customer chargebacks.
Store owners should also be aware of cash flow considerations, as it can take up to four days for credit card payments to process in the UK and 1-3 days for automatic fund transfers from Shopify to the bank account. However, payouts are generally straightforward once the payment system is understood.
My advice to Shopify store owners is that you need to explore the payment system thoroughly to gain a better understanding of when and how funds will be received.