If you use Shopify to sell products online, one of the most important things you need to know is when and how you’ll get paid. Even though Shopify makes it easy to set up a store and start selling, understanding how payments work can be confusing. So, does Shopify pay you instantly?
Shopify doesn’t pay you instantly. With Shopify, you can use multiple payment gateways. If you use Shopify Payments, you must wait up to 3 days before the funds are available to be paid to your bank account. However, if you use PayPal as a payment gateway for your Shopify store, the payments are deposited into your PayPal account instantly.
Keep reading for a detailed explanation of how payments work on Shopify, as well as information about other popular online payment methods.
Shopify Payments gateway pays within 1-3 business days
When you use Shopify Payments as your gateway, your customer’s payments are collected by Shopify Payments and held until they pay them to your bank account.
However, you can’t withdraw the money you earn from sales before it has been transferred to your bank account. In most cases, this will take anywhere from 1-3 business days. Specifically, Shopify needs time to process the payments before transferring them into your bank account.
Another factor that may extend the waiting time for your payments is your store’s location. For example, Shopify states that if you’re in Australia, it will take 2 business days for your payments to be transferred. If you’re in Singapore, it will take up to 4 business days.
You can set your payout frequency using Shopify Payments too. You are able to set it to pay every business day, week, or month.
You can set this by:
- Go to the Shopify dashboard
- Go to “Settings” > “Payments”
- Click “Manage” in the Shopify Payments section
- Scroll down to “Payout schedule”
You can use Paypal to receive payments instantly
If waiting 1-3 business days isn’t an option for you, don’t worry! You can get paid instantly by using the PayPal gateway instead of Shopify Payments.
With this method set up, customers will be directed to checkout with PayPal instead. Then once they have made the purchase using their PayPal account details, the money will go directly into your PayPal account. That way, payments arrive in real-time—no more waiting for 1-3 business days!
The benefits of using Paypal with Shopify
Using PayPal with Shopify has several benefits that are great for both shoppers and store owners alike. Here are some of them:
- Security: Payment processing through PayPal offers more security than other methods since it is encrypted and secure. That keeps sensitive customer data safe and secure while also helping build trust between customers and store owners.
- Convenience: It’s much easier and faster to pay with PayPal than other payment methods like direct deposits or checks that require clearance before processing the order. Plus, it takes minutes to log in or create an account, so checkout times are super quick.
- Global reach: With PayPal available in over 200 countries worldwide, customers from all over can make purchases quickly and securely, no matter where they live or what currency they use.
Shopify makes it easy and convenient to receive payments from your customers. If you’re using Shopify Payments, you will be paid within 1-3 business days.
However, if the 24-72 hours time frame isn’t ideal for you, use PayPal as a payment gateway instead. With PayPal, payments are sent instantly, so there’s no waiting to receive your earnings.