Shop Pay installments enable merchants to buy now and pay later by paying for products in installments and not all up front. This gives both stores and customers the flexibility to pay and get paid in a more affordable fashion. It’s proven that stores that sell via Shop Pay installments have more sales, larger orders and fewer abandoned carts.
With this in mind. Do Shop Pay Installments affect how the payouts work for these orders? Do they come in as normal like any other payout or are they staggered in conjunction with customers' payments? In this article, we’re going to dive further into this and give you a clear understanding of all things payouts for Shop Pay Installments.
How Payouts work
After you’ve captured the payment from an order made via Shop Pay Installments you’ll receive the full payment within 1-3 days. This excludes the fee incurred for using Shop Pay Installments. You don’t have to collect the payments from the customers, you’ll receive the full payment of the order, even if the customer has only paid a part of it.
Payouts from Shop Pay Installment orders go to the same bank account you would have set up for Shopify Payments. However, you do not have control over the payout schedules as they are sent in batches separately from the regular Shopify Payment payouts. Because they are separate, it’s expected and normal to see more than one payout on the same date which might not always align with your custom payout schedule.
You can view your Shop Pay Installment payouts in your store admin just like you’d view your regular Shopify Payment Payouts:
From your Shopify admin, go to Settings.
In the Shopify Payments section, click View Payouts.
Click View Transactions.
In the Show all resources where field, select Payment Method.
In the Is field, select Shop Pay Installments.
Click Add Filter.
It will take you to a page that looks like this:
Note: If you have Shop Pay Installments set up you will no longer see the “Previous Payout” or “Next Payout” heading in your payouts page of the admin:
You’ll instead see a second source of payouts because the schedule is now difficult to predict (because the payouts with Installments are on a different schedule to your regular Shopify Payments schedule), the new look makes it easier for you to understand your payouts while using Shop Pay Installments. It will look more like this:
It’s also possible to view any sales information at a glance via Analytics:
Analytics > Reports > Finances: Finances Summary
If you click on Shop Pay Installments (Highlighted in the image below), you’ll be able to see a report of all the sales made solely via Shop Pay Installments.
Another way to view Shop Pay Installment sales data is via an actionable information tab in your store admin dashboard. It will show the total monetary value of sales and also the percentage of sales made by Shop Pay Installments in your store. If you click on View Insights as highlighted in the image below it will take you to the Shop Pay Installments sales channel where you’ll see the same metrics.
A negative payout occurs when there is a refund or chargeback on an order which originally happened by Shop Pay Installments. The money for these are usually cleared by future sales; however, if the negative balance is higher than $500 or older than 90 days then it will need to be investigated by the Shopify Recovery team to recuperate the funds. If you want to read more about this, please see the blog post on the Shop Pay Installments Refund process.
And that's it! This article has helped you understand how you will be paid when you make a sale via Shop Pay Installments. Feel free to comment below if you have any questions!