Understanding Shopify And PayPal In 5 Minutes

Shopify and PayPal are often mentioned as two giants in the global e-commerce industry. Shopify is so popular that everyone who wants to reach out to the international market wishes to open their own Shopify store, with PayPal and PayCEC being the two most trusted payment providers. This article will help merchants understand and personalize how to set up payment gateways according to their needs.

About PayPal and Shopify that you need to know in five minutes

Setting Up PayPal Express Checkout on Shopify and What You Need to Know

As a default payment method on Shopify, a PayPal Express Checkout account will be provided to sellers as soon as they open an account on Shopify, for PayPal is originally one of the most used payment methods of the platform.

In the creation process, PayPal will ask you to provide your email address. It's recommended that sellers enter the email address used to register with Shopify for easier management; however, users may customize this for other reasons.

If you've recently used a different PayPal account, the email for that account might already be filled in. Ensure you're using the correct email for the account you want to connect to your store. To find your PayPal account's email address, go to Settings > Store Details, then locate the Store Email in the Contact Information section.

Rules you need to pay attention to when participating in buying and selling on Shopify

Setting up your PayPal Express Checkout account on Shopify is simple as long as you concentrate enough to complete all of the steps one by one. There are 11 steps according to the below instructions; however, the whole process is indeed easier and more time-saving than it seems to be. 

11 Steps To Connect Paypal With Shopify

• 1. In your Shopify admin mode, navigate to Settings and select Payments.
• 2. Under the Additional Payment Methods section, find PayPal and click Setup incomplete.
• 3. Click Complete Setup to proceed with setting up PayPal.
• 4. Enter your PayPal account's email address, then click Next.
• 5. Input your PayPal account password, then click Next.
• 6. On the "Tell us about your business" page, fill in your business information.
• 7. Review and accept the policy and permissions statements, then click Agree and Create Account.
• 8. On the "Describe your business" page, do the following:
• Choose your business type from the dropdown list.
• Enter your business details.
• Click Next to proceed.
• 9. On the "Tell us more about you" page, enter your details and click Submit.
• 10. On the confirmation page, click Go back to Shopify to return to the platform.
• 11. Conduct a test transaction to ensure that the setup is successful.

PayPal allows sellers from around the world to process payments through credit cards, bank accounts, buyer credit, or PayPal account balances. You can use PayPal as a payment service provider to enable customers to make payments for your Shopify store. However, if users prefer another payment gateway, they can skip creating a PayPal account.

Shopify PayPal Fees - What Both Sellers and Buyers Care About

Here are all the latest PayPal fees for consumers and Shopify merchants, take a look at how we charge for credit and debit card transactions, and currency conversions, etc. We've compiled the latest information to allow readers to compare Shopify PayPal fees with other payment gateways.

PayPal fees are a collection of costs associated with using the PayPal platform to process payments, send, or receive money. These service costs are applied as a percentage of the transaction amount or as a fixed number, depending on how the user sends or receives money. Most of the fees charged by PayPal are for merchants using the platform, so these fees are added to the checkout process. In these cases, PayPal is providing its services as a payment gateway for merchants to help customers enjoy a smooth payment experience. Other fees charged by PayPal exist to cover operational costs and generate profit. PayPal does not charge fees for consumer-to-consumer money transfers.

Things to know when setting up PayPal on Shopify

Another benefit if you are a U.S. consumer: if users want to buy or sell cryptocurrency, send money internationally, or make credit card transfers, PayPal fees will be applied, which means for ordinary transactions, U.S. consumers are exempt from fees. Sellers of goods or services through PayPal must also pay fees, which PayPal charges as a percentage of the transaction amount plus a fixed fee. Users should understand that all PayPal fees vary depending on the type of transaction, currency, and location. When PayPal charges fees, it itemizes the costs on your invoice.

When a seller adds the PayPal payment method to their online store on Shopify, customers clicking this button will be taken to the PayPal payment page to make purchases using a credit or debit card. For cross-border transactions, PayPal charges 2.99% of the transaction plus a $0.49 fee. For example, a customer payment of $50 will be subject to a processing fee of $1.99 ($1.50 + $0.49). Make sure buyers include this fee in your product price so they don't lose out on profits. 

Particularly, detailed information about PayPal fees on Shopify includes:

Fees Charged On POS

Transactions made through PayPal's in-person point-of-sale (POS) system incur a fee of 2.29% of the transaction amount plus a $0.09 fee.

Fees Charged Through Online Checkout

Every time a customer chooses PayPal to make their purchase directly through a website’s checkout on Shopify without being redirected to PayPal's checkout page, PayPal defaults to charging 3.49% of the transaction amount plus fees of $0.49. Normally, purchasing users will choose other forms of payment to avoid losing too much money.

International Fees

If your business receives payments from outside the U.S., PayPal will charge you the standard domestic transaction fee plus an additional 1.5%.

Chargebacks

Chargebacks have a $20 fee for each instance for U.S.-based sellers. Dispute fees are $15 for each instance or $30 for high-volume disputes.

Payflow Fees

Payflow is PayPal's optional payment gateway that allows merchants to create custom checkouts. For sales processed through Payflow, PayPal charges a $0.10 fee per transaction. Additionally, there are monthly fees for this service: $30 for Payflow Pro, $10 for recurring billing, and $10 for enhanced fraud protection.

Shopify and PayPal's Ability To Resolve Complaints

Shopify and PayPal both have their departments with experts and support agents for reviewing and resolving complaints from their customers. Every question or issue collected from surveys, inboxes, emails, and other channels will be gathered and carefully checked, analyzed, and put into consideration for resolution, the outcome is then bound to be released as soon as possible, usually in less than two months. Normally, with strict policies and management systems, this process is always handled faster.

One thing to note is that the conversion rate while using PayPal might be lower compared to PayCEC. The reason is buyer credit is only available to PayPal account holders based in the United States or the United Kingdom, while PayCEC enables their partners and users to facilitate and accept online payment from more than 99 countries all over the world. Therefore, most large-scale sellers with wider reach might choose other payment gateways, like PayCEC, which offer lower international transaction fees.

In addition to other information about refunds, if the buyer wins the complaint process, the shop will be fined $10-15 per claim. This is one of the rules that PayCEC believes is reasonable for sellers. However, at PayCEC, this reimbursement fee may be lower or if the reason is minor or does not affect both parties too much, we will consider and handle it for free.

Rules that you need to pay attention to when participating in buying and selling

Coming back to PayPal and Shopify, if chargebacks and customer complaints become persistent, both the payment gateway and e-commerce platform will disable all activities of the store and the amount of money the seller has in the sales account indefinitely. Therefore, if you have participated in the shopping market of Shopify and PayPal, users need to be careful with the rules in communication, buying and selling, and the preparation and delivery stages to avoid being affected by strict regulations.

Some sources say that PayPal can pay higher chargeback costs and can process complaints over 3 months, and PayPal also limits the time to provide complaint documents to 10 days. It is known that PayPal charges a chargeback fee of $20. However, PayPal is similar to PayCEC in that if you are a loyal customer and have performed well during the cooperation period, PayPal or PayCEC can protect you and do not charge this reimbursement fee.

About PayCEC

PayCEC was established in response to the growing need for businesses to accept online payments more quickly and easily. In the new media era, our payment flow has evolved to work seamlessly and effectively across all platforms and devices. We pride ourselves on combining superior technology with first-class customer service.

PayCEC is a truly global payment platform that not only allows customers to get paid but also withdraw funds to their business accounts in various currencies.

We have created an open and secure payments ecosystem that people and businesses choose to securely transact with each other online and on mobile devices.

PayCEC Team

• [email protected]
• +65 6631 8332
• www.paycec.com