Learn more about managing your payments while running your Shopify store in the UK.
This thread is part of the Regional Support threads offered for merchants in the United Kingdom. To see which other topics are available, you can visit the UK hub here.
Shopify Payments is available for businesses that operate in the United Kingdom and can be used to accept payments made by customers with Visa, Mastercard, and American Express debit and credit cards.
The cost of using Shopify Payments is dependent on which subscription plan you have chosen, with higher plans offering lower credit card processing rates. A full breakdown of these fees can be found on our pricing page.
To receive payouts, merchants will need to connect an account that:
Some types of businesses and services are not permitted to use Shopify Payments. Prior to signing up, review our list of prohibited businesses to confirm whether your business is eligible.
If you do not believe your business is eligible, or if you want to check alternative options, you can view the full list of integrated payment gateways for merchants in the United Kingdom. Orders processed via third-party payment gateways are subject to transaction fees, unless you have these gateways activated alongside Shopify Payments as your primary gateway.
If you have a question or comment to make about processing payments on Shopify in the United Kingdom, please post it below.
Where can I ask specific support related questions about Shopify Payments? I have a customer who has provided proof that her bank account has been charged. However, my Shopify account is showing the card transaction (powered by Shopify Pay) failed. I am unable to do anything because it does not appear the sale went through and I really don't want a chargeback.
How can this specific issue be investigated?
Thank you for reaching out with your question. This thread has been created to offer a place for UK-based merchants to ask any payment-related questions, including those for those related to Shopify Payments.
In terms of this issue, however, I will need to authenticate you on the account and take a closer look at this. It's possible that a charge is appearing on the customer's account and that it will soon be removed - this can sometimes happen when a card payment is authorized but the funds are not captured. In order to authenticate you, I will send an email to the email address linked to your Forums account, and then I can take a look at this situation for you in more detail.
Victor | Shopify Social Care
My name is Lynn from Oceanpayment - Shopify official payment providers
Have you integrated with Shopify payment already?
Normally payment will require an actual bank account in your registered country. and as long as you have pre-agreement with your payment providers, you can settle the money in any supported currency.
Hope this may helps
If you are based in the United Kingdom and don't have a presence in the United States - such as having a Social Security Number and a full checking account with a US banking institution - then you would not be able to receive payouts in USD. This is the case for the vast majority of countries where Shopify Payments is available, and works both ways (e.g. a merchant in the United States with no presence in the UK could not receive payouts in GBP).
As you've alluded to, you can charge customers in USD before then having the funds converted to GBP before they are paid out to you. For merchants in the UK, a conversion fee of 1.75% would apply for each transaction processed in a different currency to the one you are receiving payouts in. You can read more on this process here.
This does mean that for paying suppliers in USD, for example, you would need to convert the funds received from orders from GBP to USD if you're using this money for this purpose. I'm not familiar with all the different methods and services that can be used for currency conversion but, from personal experience, Transferwise is certainly one of the most popular and best-valued options when it comes to this.
I hope this clarifies things but please let me know if you have further questions.
Victor | Shopify Social Care
No unfortunately I'm even more confused.
You say, "This does mean that for paying suppliers in USD, for example, you would need to convert the funds received from orders from GBP to USD if you're using this money for this purpose."
I'm getting customer payments in USD, so does that mean I can hold those funds with shopify in USD and then pay suppliers directly from my shopify account in USD? If not, and the only option is to remove funds to a UK bank account (in GBP) then there is no way I can avoid conversion fees both ways.
Also are there any plans to allow payments in USD to say a transferwise account? It is after all 2020 and we live in a global economy. Amazon have been doing this for me for the last several years so I wonder when shopify intends to catch up?
What is the best Shopify Payments setup for UK stores selling to the US?
I have a UK bank account but my store currency is in USD, as most of my customers are in the US. I am therefore charged currency conversion fees on my payouts to my GBP bank account.
Now that Shopify accepts payments in multiple currencies, would it be better to enable this feature and switch my store currency to GBP?
As I understand it, my US customers would still be able to pay in USD at checkout, but the fees would be added to the price they pay?
There is no "Shopify account" which can be used to pay suppliers with; this would be handled externally from Shopify. The option I recommended would involve you charging your customers in USD, but when it comes to you receiving the funds, they would be paid out in GBP. The currency conversion from GBP to USD, which it seems you are doing as you say you pay your suppliers in USD, would happen outside of Shopify (and as mentioned Transferwise could be used for this purpose, as I'm sure you're aware).
I appreciate why this is disappointing given that you are having to convert the funds twice in this scenario, which of course incurs fees. However, it is not currently possible for us to allow merchants in the UK to accept payouts through Shopify Payments in a currency other than GBP. I do not know if this is something that can be changed in future, although I will submit your feedback to our development team incase it's something that might be feasible down the line. We have expanded the functionalities of Shopify Payments in recent years in numerous ways, such as offering multi-currency checkouts as an option, so hopefully this is something that may be possible.
In terms of the type of bank account that deposits can be paid into, there are certain requirements that apply for each country where Shopify Payments can be used - for example, merchants in the UK must connect a valid current account held with a UK-based banking institution. Virtual bank accounts, such as the ones offered by Transferwise, could not be used in place of an account held with a physical bank in the UK.
Victor | Shopify Social Care
Thank you for reaching out with your questions. You are correct in saying that conversion fees when multi-currency checkout is enabled would be added to the total cost of the customer's order, as opposed to them being an additional cost on the merchant's end. There is no right or wrong way to approach this, but from a consumer's perspective, offering multiple currencies on a storefront is a good way of encouraging sales from different regions from around the world.
If, for example, you are focusing on bringing in customers from the USA, UK and Europe, there would be a significant benefit in offering at least USD, GBP and EUR as supported currencies on your site. If you were to go down this route, you could indeed then look to switch your store's currency from USD to GBP (as the fee for the USD to GBP conversion would be passed onto your customers). Be aware though that as this change would see customers paying in USD pay slightly more, this could have a potentially adverse affect on sales coming in from the USA.
If you're open to accepting multiple currencies via Shopify Payments, I'd recommend checking out our documentation on enabling your store to sell in multiple currencies, as well as the potential risks and consequences you will want to consider.
If you have any further questions on this topic, please let me know.
Victor | Shopify Social Care