Migrating from Volusion to Shopify - Pricing for Merchant Services

StarvinMarvin
New Member
2 0 1

I'm looking at migrating from Volusion to Shopify.

Currently we get a great rate from PayPal for merchant services at 2.15% for Visa/MC but it appears Shopify will charge us an additional 0.5% if we don't use Shopify Payments. We are ok with that. Currently with Volusion, we offer our customers Net 30 terms for established accounts. 

1. Does Shopify allow purchases with terms of Net 30 or Purchase Order #?
2. If customers do order via Terms/PO# does Shopify charge any percentage on these transactions.
3. What is the rate American Express payments - Shopify does not specify.

 

Nick
Community Moderator
Community Moderator
4126 397 841

Hi @StarvinMarvin,

Great to hear your interested in coming to Shopify! Let's look into your questions: 

  1. Net 30 isn't available on Shopify as of yet, but it is a requested feature that our development team is aware of for the future. It is however possible to edit, process and recieve purchase orders (PO) on Shopify. You can see the help guide for PO's hereIt's also possible to create a draft order within the Shopify admin via Orders > Draft Orders that allows payment terms to be added to draft orders. These are separate and distinct to Purchase Orders and the two features have no overlap.
  2. This is a great question, if funds are actually being processed through the Shopify platform then its expected there will be some kind of fee (transaction fee if you are not using Shopify Payments (SP) or credit card fee if you are using SP). Something I want to note is PO's and draft orders with payment terms are two distinct offerings. One exists within the Stocky app and the other exists within the Shopify admin. PO's are not customer facing objects. They are expected to be used as a way for ordering from Suppliers via Stocky. They also do not have any type of payment system associated with them. Going back to draft order payment terms, if you have Shopify Payments set up as your payment gateway and payment is made online by the customer, then there would be 0% transaction fees. If you're not using Shopify Payments then, depending on your ecommerce plan the transaction fee charged per orders which I touch on in answer 3 below. If payment is via cash, bank transfer or any other type of method that doesn't flow through the Shopify admin then no transactions fees would apply also. 
  3. The American Express payments would fall under online credit card rates as seen in the pricing and plans page here30-48-it16s-cmmct

Do you have any other questions about Shopify in the meantime? If so just let me know! 

 

Nick | Community Moderator @ Shopify 
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StarvinMarvin
New Member
2 0 1

@Nick - I think you misunderstood my comment regarding PO's. My question is can a customer place an order and provide a PO instead of credit card payment. Currently 15% of our orders are placed with a PO and Net Terms. I would be surprised that this sort of order wouldn't be supported. 

Regarding credit card transactions, Shopify charges the same rate for both Visa/MC and AMEX? If so, that's great. Normally we pay an additional 1% for Amex. Your pricing example was in Euro, is that also the same in the USA? Thanks!

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PaulNewton
Shopify Partner
3135 195 576

@StarvinMarvin wrote:

@Nick - I think you misunderstood my comment regarding PO's. My question is can a customer place an order and provide a PO instead of credit card payment. Currently 15% of our orders are placed with a PO and Net Terms. I would be surprised that this sort of order wouldn't be supported. 


Shopify wasn't initially built for B2B or with the contrivances of B2B processes in mind.

There is no native system for this out of the box without thinking of the base systems in different ways than their originally designed intent then using some combination of:

  • configuration|setup
  • apps
  • theme customization
  • and/or being on Shopify Plus

A big catch is with shopify-payments the capture time after payment authorization is only 7 days.

 

An example of an app based method is with something like the usemechanic app to create a draft order from the cart of PO-customers, or in a special order form, or custom contact form for stuff like CSVs/excel/pdfs.

https://tasks.mechanic.dev/create-a-draft-order-from-the-cart 

 

An example of an app-less method is

  1. Admin - tag customers with a string to indicate they can use PO's ("PO", "_vendor_with_purchase_orders",etc)
  2. Theme customization - make the front end to restrict areas of the store based on that tag.
    • Similar to a wholesale tag customization(see online tuts)
    • keep in mind the ajax api is still available
  3. Theme customization - Then for those customers show an order form customization
    1.  DEMO https://swiftype.myshopify.com/collections/quick-order-form 
    2.  https://community.shopify.com/c/shopify-design/forms-add-an-order-form-to-your-store/td-p/613671 
  4.  Theme customization - For staff QOL , also adding cart attributes or LIPS or cart notes to try and make it clearer it's a PO order order in the admins order UIs , or searches and api.
  5. Customize notifications - modify notification emails to check for tags to change notification email content for PO-customers
  6. No Collect - Optionally ,but potentially dangerously , use a discount to bring the cart cost to $0 so they are not asked for payment in checkout.
  7. Collect - On the day of NET date terms expiration, optionally edit the order and ping them for payment|additional-payment.

THE CATCH here is these PO's still go through the same checkout, and the same order process, thus would show up mixed in with "regular" orders in the orders admin or order management apps.

And these PO-customers are either: A) effectively pre-authorizing a payment with a 7 day limit,  B) your discounting their cart to $0, or providing them a subset of "free" products to just add to their order(also needing theme customization) with both paths really needing eagle eyes on the back to avoid fulfilling "free" orders, then editing the order to ask for remit of payment.

Unless your on Plus in which case you can modify the checkout  and/or use checkout-scripts to try and modify item prices in checkout with discounts-scripts.

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Nick
Community Moderator
Community Moderator
4126 397 841

Hi @StarvinMarvin,

@PaulNewton hit the nail on the head regarding the PO question. 

Regarding credit card transactions, apologies I'm in Ireland and it defaulted to € for me on the pricing. You can see the USA transaction fee's here or in the screenshot below: 

05-22-wfet0-byeah

Nick | Community Moderator @ Shopify 
 - Was my reply helpful? Click Like to let me know! 
 - Was your question answered? Mark it as an Accepted Solution
 - To learn more visit the Shopify Help Center or the Shopify Blog

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