Looking for information about a Shopify merchant account? Asking What is Shopify and what services do they offer? Trying to figure out if Shopify is the right choice for you? So many merchant accounts are available that it can be a tough decision. Here, we’ve researched everything you need to know about a Shopify merchant account. We aim to provide all the information you need to make an informed decision about Shopify. Keep reading to learn more!
What is Shopify?
Shopify Merchant Account Table of Contents
Shopify is an all-in-one e-commerce platform allowing businesses to create and manage online stores. It provides tools for creating and customizing a website, managing inventory, processing payments, and shipping orders. It allows businesses to efficiently sell their products online, in-store, and social media.
The Shopify platform has millions of businesses running their daily operations through the system. It was launched in 2006 as a web-based product. In 2010, Shopify launched an app to complement the web version of the software. Their payment processing arm was added in 2013, allowing businesses to use Shopify as a one-stop-shop without needing a third-party payment processor.
The Shopify business model has several other product lines, including publicly traded stock, various app integrations with mobile apps like Snapchat, a full-service production house called Shopify Studios, and much more. However, this article will focus on the Shopify merchant account and what is included.
How Does Shopify Work?
Shopify is a cloud-based e-commerce platform that allows users to create an online store to sell their products. It includes the following features and benefits for their clients:
- Web Design – Shopify offers a variety of templates for the design of an e-commerce website. Merchants can customize their site using these templates “as-is” or HTML and CSS. Merchants enjoy tech support throughout the setup process in case they get stuck.
- Web Hosting – Not only can you design your website in the Shopify portal, but you can also host it there. Shopify offers secure hosting for your domain to protect your business and consumers with state-of-the-art security features.
- Inventory Management – Once your site is set up, you can enter your inventory into the Shopify inventory management system. This system allows merchants to write product descriptions, add inventory numbers, include regular and sale pricing, and more. When a consumer purchases an item, it is deducted from the inventory, allowing the merchant to see how many items remain.
- Payment Processing – Shopify has an integrated payment processing system that eliminates needing a third-party provider. Merchants with a Shopify site can use their payment processor or opt-in to the Shopify processing system.
- Marketing and SEO – Merchants can take advantage of marketing and SEO tools provided by Shopify. This helps make your store more visible on the internet and helps increase your ranking in Google searches. It also includes tools to help you design a logo, a slogan, and a cohesive brand. This is included in what Shopify refers to as their “core product” and in all Shopify plans.
- Apps and Plugins – There is a robust app store full of features and plugins that can be used on your Shopify site. These apps are primarily built by third-party developers and integrate seamlessly with the Shopify web design and merchant account. They can be used to add extra functionality to your online store.
What Is Shopify Pay?
Shopify Pay is a payment gateway that is built into the Shopify platform. It allows merchants to process payments through their Shopify store without integrating a third-party processor. When a customer purchases on your Shopify website with Shopify Pay enabled, the payment is processed directly through the platform. This makes the shopping cart and checkout process simpler, faster, and more efficient.
The Shopify Pay processing system supports a variety of payment methods, including credit and debit cards, Apple Pay, Google Pay, and Shop Pay. It also includes fraud detection and prevention tools to help keep your transactions secure. Additionally, it can issue refunds and void transactions directly from the Shopify admin panel.
One of the major benefits of using Shopify Pay is the elimination of another third-party service. Using their merchant account, web design, and web hosting services can save your business a lot of money. Additionally, it simplifies the checkout process for consumers, as mentioned above. This can be a huge bonus for your customers and your business.
Do You Need a Merchant Account to Use Shopify?
You do not need a merchant account to start or use a Shopify store. Merchants can set up a merchant account directly with Shopify, which can be costly.
If you are an established merchant, you can bring your processor, and Shopify can likely integrate with them. Established merchants who want to utilize Shopify’s e-commerce platform might want to bring their existing merchant account to Shopify to reduce costs. Shopify merchant accounts are not the most competitively priced products, which can significantly cost all merchants, from small to large.
High Risk Merchant Accounts with Shopify
If you run a business that is considered high-risk, you may still be able to use a Shopify account. Shopify does accept some high-risk merchants, but there is a specific set of guidelines and requirements for these types of businesses. High-risk merchants are businesses more susceptible to chargebacks, fraud, and other risks to the account provider. Such businesses include CBD, online gambling, adult entertainment, many subscription-based companies, and businesses with a high average ticket amount.
Although Shopify has its payment processor, it requires third-party payment processing for these clients. Most merchants can bring in their payment processor or use Shopify Pay. However, high-risk merchants do not have Shopify Pay as an option. They must use a third-party processor and integrate it with their Shopify site.
To use the Shopify platform with a high-risk business, you should consult a Shopify expert first. Speaking with an attorney about your business model and the risks of selling your products or services online may also be wise.
Benefits of a Shopify Merchant Account
A Shopify merchant account can be a good option for many businesses. It allows merchants to set up and process payments through their Shopify store easily. Here are some of the key benefits of using a Shopify merchant account:
- Simplicity: Shopify Pay eliminates the need to set up and integrate a separate payment gateway, making it easy to start accepting payments.
- Security: Shopify Pay includes fraud detection and prevention tools to help keep transaction data safe.
- Cost-Effective: Using Shopify Pay can save money on transaction fees compared with using a third-party payment processor.
- Seamless Checkout: The user experience on any website is essential. Using Shopify Pay allows customers to complete the checkout process without leaving the store or being re-routed to another website, which can lead to higher conversions and fewer abandoned carts.
- Mobile Compatibility: Shopify Pay is mobile-friendly, which means customers can pay for goods and services directly from their mobile devices.
Every business owner has different needs and preferences for their merchant account. Shopify Pay may not be perfect for everyone, but it’s worth investigating while looking for the right processor.
Final Thoughts
If you’re looking for an all-in-one solution to run an online e-commerce store, Shopify could be a great option for you. The Shopify merchant account is a secure way to collect payment from your customers while using the other tools in the platform to grow your business. We recommend consulting with a Shopify expert to answer any questions you might have about your specific business, products, or services.
