I just found what I think is a flaw in Shopify Payments.
I have a shop in DKK (Danish kroner). I use Shopify Payments multi-currency.
I have a PayPal account connected to my shop. It is in DKK (as this is also my payout currency).
When a user from e.g. The US enters my shop, he sees my prices in USD.
The USD amount is slightly higher than DKK because of the currency rate and fee Shopify applies to handle the exchange rate.
When the user chooses PayPal Express in checkout, it seems Shopify sends the already rasised USD price to PayPal.
PayPal then adds another 2,5% to cover their currency exchange - and suddenly the item is quite more expensive than originally on my site.
Am I wrong - or shouldn't Shopify really send my base DKK price to PayPal? Then PayPal would add their 2,5%. The amount would still be slightly higher than in my shop (as Shopify seem to charge less than 2,5% to multi-currency auto-convert) - but at least the customer would not have to pay double fees!
I'll send this mail to Shopify Support too - but they are extremely long answering times at the moment.
I've just received a reply from Shopify.
As it has happened more and more the lastest years, they just give me some corporate inc. ..... sentences and claim it's not their fault.
Instead I should contact PayPal and have them change their system. Obviously this is a Shopify issue, as PayPal is in their right to charge a currency exchange rate fee (like Shopify does when selling in multi-currencies using Shopify Payments).
So - I switches to Shopify Payments and their multi-currency-feature to make it EASIER and BETTER for my foreign customers.
Instead - it's now MORE EXPENSIVE for my foreign customers and I really consider switching back.
It seems Shopify by all means try to get merchants onto the Shopify Payments platform and then makes it an uneven match for other payment providers.
As you can see from the Shopify support answer below they actually acknowledge it's a problem for the customer.
Here is the quoted response:
If I were in customer position, I bet I'd have the same concern. Customers should not be billed twice if Shopify Payments and Paypal are activated at the same time.
In this case, wherein customers are being billed twice for the conversion fees, our Billing Team responded that it would be best that you’ll reach out with Paypal directly as they have their own conversion system that might be adding their own charge because of that. Unfortunately we don’t have direct access with the Paypal system to troubleshoot it further so it would be best to reach out to them as well.
Let me just elaborate on the extremly poor integration with PayPal Express and Shopify Payments.
A European customer visits my site and visits a product that costs 430 DKK.
They see the price in euro - let's say €58.95.
Then they choose to pay with PayPal.
The price in PPE window is exchanged back to my shop currency - but from the euro price what is inflated with Shopify exchange fees.
Now the DKK price in the PPE window is around 437.76 DKK.
In the PPE window this is then exchanged back into euro - including PayPal fees, so the total amount in euro is now around €61.54.
That is 4,3% higher than the shop price (in euro!)
The customer proceeds with PPE - and the window is closed. The customer is then back in the Shopify checkout to submit the order.
In the Shopify checkout €58.95 is shown.
But €61.54 is captured from the customer.
So Shopify does not send the correct base price to PayPal - nor do they state the actual price, the customer is paying once they have gone through PPE.
In Denmark that's illegal. PayPal doesn't care. Shopify doesn't care.
1. Deactivate Shopify Payments and use national PSP
>> Cons: More expensive and not able to let customers shop in their local currency
>> Pros: PayPal integration will actually work with national PSP as intended and the stupid 7 day authorization rule no longer applies
2. Deactivate PayPal as payment solution
>> Cons: Loss in revenue as most foreigners pay with PP in my shop and they don't understand the weird pricing because of the above mentioned issue
>> Pros: End of wrong and double-inflated prices
3. Shift to another shop system
>> Cons: Huge effort, time consuming, SEO will be hit
>> Pros: Clean installation with a national provider who actually cares, is much cheaper, much quicker on load time and much more adaptable