I often get many financial questions, one of them being “Which Shopify payment gateway should I set up?”
My answer is – as many as you can.
Setting up Shopify’s payment gateway options is a very important aspect of setting up your store because it’s how you’re going to get your customer money direct into your bank account. Obviously you want all that hard earned cash straight into your bank!
The first thing you need to do, or I recommend you do, is set up a seperate bank account. You never want to muddle your personal finances with business as this completely complicates cash flow. So go ahead and head to your local bank branch and open a new general account – that’s the first thing.
So back to my answer of “as many as you can”, I mean exactly this. There’s a whole range of options Shopify provides when it comes to payment gateways and the less gateways you set up, the less nets you’re casting to catch the fish essentially. However, not all payment gateways are created equal and there’s a few personal recommended gateways I prefer.
First things first, I’d recommend all beginners go for the default Shopify Payment option.
Shopify Payments is a payment processor that allows you to accept customers’ payments securely. Shopify manages these transactions in the backend, although factually they’re processed through Stripe and Wells Fargo. Shopify Payments simply partners with these companies to bring the solution of Shopify Payments.
Shopify Payments is already integrated into your Shopify account, so it requires very little setup and that’s a major perk when it comes to Shopify Payments. There is no need to integrate a third-party processor or manage payments with a separate company, while also going through a range of processes simply to set up the payment gateway. All you have to do is select Shopify Payments in your admin and add your banking information. Read Shopify’s setup instructions here.
Shopify Payments also provides you the seller with some nifty features including chargeback management and fraud analysis.
When you use Shopify Payments, Shopify will waive their usual shopping cart transaction fees. The only transaction fees you’ll need to pay are those associated with payment processing.
PayPal is a commonly accepted payment method when shopping online, perhaps the most popular method after Shopify Payments / Credit Cards.
In order to accept PayPal on your Shopify store, you first need to sign up for a free account and no, you don’t need to set up a business account and this is extremely important.
Once you have a PayPal Personal, Premier or Biz account, you can choose between the 3 PayPal payment methods provided, namely:
- Express Checkout
- Payments Advanced
- Payments Pro
The various PayPal methods will be shown to you.
In my following example, I’ll be using the Express Checkout method. (which has no monthly fees, but only per transaction fees on each sale).
On clicking Activate, you’ll be prompted to log in to your PayPal account.
You’ll be asked to grant permission to Shopify in order for PayPal to be accepted on your Shopify store. Click Grant Permission.
That’s it! It’s really easy to get started to accepting PayPal Express on your Shopify store!
Other Payment Options
Like I said, setting up as many payment gateways is vital to boosting your conversions. Take a look at Shopify’s “Alternative Payment” options and allocate additional payment options to set up. I highly recommend After Pay due to its increasing popularity. But at the end of the day, the additional payment gateways you set up is up to you.
If you’re looking to start dropshipping and establishing a passive income stream today, be sure to check out the free Dropshipping Bible for Beginners eBook here and the complete complementary video tutorial series here, also completely free.
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