How Long Does Shopify Take To Pay? [What To Expect]

How Long Does Shopify Take To Pay

Have you considered opening your own Shopify store to sell products, digital products, or services? Well, before you do, you may be wondering how long it takes from sale to payment. Well, I’m here to walk you through exactly what to expect.

So, how long does Shopify take to pay? In most cases, your first Shopify payout will take about seven business days for processing. Once your store is established, you can expect payments to arrive within three business days after the credit card company has processed the order.

Waiting for payment can have a huge impact on cash flow, so knowing up-front how long it will be before Shopify sends you funds will help you plan more effectively.

This guide will continue to review how long it takes before your funds hit your bank account.

How Often Does Shopify Payout?

Shopify pays out every business day by default once your funds are available for payout. You can also set up monthly or weekly payout schedules if you want to receive funds at regular intervals.

If you update your payout schedule, you will see a delay in pending payouts until the next payout date on the schedule.

Your recurring date is not the date you’ll receive your funds.

Rather, this date is the date that Shopify begins the payout process. Your bank will likely take additional time for processing the payment.

Does Shopify Automatically Payout?

If you have set up Shopify Payments, you will receive automatic payments by default every business day as long as you have added a bank account to your account.

If customers buy your products or services through a third-party service such as Amazon Pay, PayPal, or Apple Pay, the amount of time it takes to receive your payments can vary.

For example, PayPal payments are available instantly, but it will take 2-3 business days to transfer the funds to your bank account unless you make an Instant Withdrawal.

How Long Does it Take to Receive Money After Shopify Payout?

When Shopify sends a payout, it typically arrives in your bank account within three business days. However, if you use Shopify Balance, you can receive payouts as early as one business day after the transaction processing date.

To qualify for a Shopify Balance account, you must meet specific criteria.

  • Store based in the U.S. or Puerto Rico
  • Shopify Payments set up
  • Valid U.S. Social Security Number
  • Single Shopify Payments account owner

Why do Shopify payouts take so long? Here is how the shopping and payment process works.

  1. The customer pays using a credit card via Shopify Payments or a third-party payment provider.
  2. The payment is processed immediately through their preferred payment provider.
  3. A time-lapse can occur between the card payment and when the money hits the provider account.
  4. The payment gateway determines how long it takes for funds to show in your Shopify account.
  5. Then, the money has to transfer from Shopify to your bank account.

Shop Pay Installments

If you have Shop Pay Installments enabled, your customer can make purchases on an installment plan.

When your customers take advantage of payment installments, you will receive your funds within about three business days.

Shopify Payment Holds

Keep in mind that payment times can vary based on a few factors.

Some new stores have been experiencing Shopify holding their funds for up to 90 days, although the hold is typically between 14 and 21 days. There are a few reasons this can happen.

The items you’re selling are in a high-risk industry.

There are some items that you’re prohibited from selling on Shopify.

If Shopify deems you to be a high-risk seller because of your products, they risk damage to their reputation as a platform. For this reason, they may disable payouts pending investigation.

Your credit or debit card needs verification.

If your method of payment is unverified, Shopify may hold your funds temporarily so that they verify the card. To do this, Shopify will send a small charge for verification authorization.

If the debit or credit card is declined, this can be seen as a red flag by Shopify, which will hold your money until they can verify your payment information’s accuracy.

You added a new bank account.

To verify your new bank account, Shopify will make two small deposits into the account. While waiting through this process, you’ll be unable to receive payouts until the payments are verified.

Shopify has to verify your identity.

When you initially sign up to use Shopify Payments, Shopify has to verify that you are who you say you are. To speed up the process, complete your account details as fully as possible.

Be sure to include a business email address and phone number in your Shopify account settings.

You live in a region or country that Shopify considers to be high-risk.

Unfortunately, a higher volume of potentially fraudulent activity originates in certain regions or countries. If you live in one of these regions, Shopify may subject you to its fraud prevention process.

To keep your account active and your payouts processing, take these steps and best practices.

  • Keep your chargeback ratio low.
  • Give prompt refunds as needed to avoid disputes with payment providers.
  • If Shopify has flagged your account as a high-risk account, stay in close contact with the company’s risk department.

How Do I See my Shopify Payouts?

To view your Shopify payouts, follow these steps.

  1. Log into your Shopify store and navigate to Shopify Admin.
  2. Click on Settings > Payments.
  3. Once you’re in the Payments section, click the button that says “View payouts.”
  4. On the Payouts page, you can see your previous and next payout, along with all transactions. On this page, you can also see your available balance and whether or not Shopify is holding any of your funds in reserve. If you have enabled scheduled payouts on your store, you’ll see the estimated date you can expect to receive your next payout.

In the All Payouts section, you can also see the status of your In Transit, Paid, or Failed payments.

  • In Transit payouts are in the process of going to your bank account.
  • Paid payouts are completed transactions that have been sent to your bank account. However, your bank may still be processing the payment before they can deposit the funds into your bank account.
  • Failed transactions indicate that your bank failed to process the payout. Therefore, your funds are not available. Failed payments are rare, but if this happens to you, get in touch with your bank.

Let’s say you want to view a payout from a specific month or several months. There are two ways to view individual payouts.

  • Method 1: Click the amount of the In Transit or Paid payouts.
  • Method 2: Navigate to All Payouts and click the payout date.

Finally

As you can see, it doesn’t take long for Shopify to pay.

So if this question was what may have been holding you back from opening your store, don’t let it.

Get on a free trial here, test the platform and see for yourself why it is the best eCommerce solution around.

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