How does payment through Shop Pay function for merchants?

[NateBaby335]

My website offers gaming computers and I know that it can be a bit pricey to buy a system up front since they're $400 - $3500, I was wondering how Shop Pay works?

I have used Affirm in the past for personal orders and from what I'm assuming is that when someone orders from it, the seller receives 100% of the total order cost? Is that correct? 

I don't want to enable Shop Pay until I know how it works I use the money from the orders to buy the computer components and I'm afraid that if I use Shop Pay (Affirm) I would end up having to cancel the order due to not receiving the full payment to then purchase the parts.

Can anyone please incite me on how Shop Pay actually works on the merchants end? 

Thanks! 

[StephensWorld · Accepted solution]

Hey Nate,

"After the order is completed, you receive full payment for the order upfront, excluding the fee incurred for using Shop Pay Installments."

https://help.shopify.com/en/manual/payments/shop-pay-installments 

You wouldn't receive 100% of the total order cost (as there are fees that are deducted), but you would receive the full payout (you wouldn't have to wait until all payments are made to receive the money). 

[NateBaby335 · Accepted solution]

So say that someone buys a system that's worth $500, usually Shopify takes a small amount like $20~. How much would Shop Pay take from the order, do you know? I want to incorporate this into my store as like I had mentioned, buying a system up front is a little bit expensive and would like to offer something else to customers. 

[StephensWorld · Accepted solution]

Hey Nate,

"After the order is completed, you receive full payment for the order upfront, excluding the fee incurred for using Shop Pay Installments."

https://help.shopify.com/en/manual/payments/shop-pay-installments 

You wouldn't receive 100% of the total order cost (as there are fees that are deducted), but you would receive the full payout (you wouldn't have to wait until all payments are made to receive the money). 

[NateBaby335 · Accepted solution]

So say that someone buys a system that's worth $500, usually Shopify takes a small amount like $20~. How much would Shop Pay take from the order, do you know? I want to incorporate this into my store as like I had mentioned, buying a system up front is a little bit expensive and would like to offer something else to customers. 

[StephensWorld · Accepted solution]

I couldn't find any official documentation outlining the fees for using Shop Pay Installments (on the merchant's end, ie. your end). I did find this forum post though (https://community.shopify.com/c/shopify-discussions/shop-pay-installments/td-p/1182783) which says that the rates/fees you're charged varies for each individual store. It looks like it can be anywhere from 5% - 8%. It should tell you within your payments settings, once it's set up.