Partner Payouts only via PayPal - Does this mean we incur yet another fee?

Stephen_Gardner
Shopify Partner
29 0 10

Shopify takes 20% and pays out via PayPal.
PayPal then takes their traditional cut as well?

I noticed there was actually no possible way to set up a bank account for direct wire.  

Please let me know.

Thanks,
Stephen
Founder - apps.shopify.com/amp-google

Replies 65 (65)
Gavinator
Shopify Partner
1300 10 112

I agree. It would be awesome if there were other payout methods that didn't involve me paying PayPal such significant amounts (their forex rate is a joke).

Gavin.

www.bookthatapp.com
Nick
Community Moderator
Community Moderator
4510 433 980

Hi Stephen and Gavin, 

Nick here from Shopify. 

I investigated this for you with our Partner support team and I can confirm that Shopify does not take a cut, it would only be the fee from Paypal. What Paypal charge on their end is something that Shopify does not control in any way. It might be worth reaching out to Paypal directly about that part specifically. 

Hope this helps to confirm and clear this up for you both. 

All the best, Nick

Nick | Community Moderator @ Shopify 
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Gavinator
Shopify Partner
1300 10 112

Hi Nick,

The point is that there is only one way to get a payout and that is via PayPal. We would like to have more options.

Hope that clarifies and clears it up for you.

Gavin.

 

www.bookthatapp.com
Stephen_Gardner
Shopify Partner
29 0 10

Hey Nick, thanks for the support here.

I was referring to shopify taking the 20 percent cut, as I have no problem with that.

And I was also referring to PayPal taking their standard 2.9 percent cut. Of which I don't have a problem with in principle of course, I've used PayPal and I understand the fees.

My question is more of an observation that Shopify could 1000% absolutely no-doubt-about-it offer direct transfer of funds to partners bank accounts.

Instead, we as partners now incur double fees.

I won't speculate as to whether or not PayPal and shopify have a mutually beneficial agreement here. But when you consider the double (triple?) digit millions paid out to partners every year, it makes you wonder.

Shopify would save partners literally millions of dollars if they changed this - with all the amazing developers they employ, they are certainly capable of that! 

So I'd day that they certainly have a hand here.

Cheers,

Stephen

Nick
Community Moderator
Community Moderator
4510 433 980

Hi Stephen and Gavin, 

Thank you for your feedback. I will bring this back to the team and let them know for future consideration. Feedback like this from active partners is great as it helps the team be aware of what is and what is not working to improve it moving forward. 

Thanking you both again. 

Nick

Nick | Community Moderator @ Shopify 
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BogdanM
Shopify Partner
119 3 25

Hello @Nick ,

 

Do you have any updates regarding this?

 

I would really like to have an alternative to PayPal for payouts and I'm sure I'm not the only one.

With so many other online financial services available now, the almost 3% that PayPal takes is frustrating.

Bogdan | WebShopAssist
User friendly apps with top-rated support
- SKUGen the SKU generator
- DPD Integration
Nick
Community Moderator
Community Moderator
4510 433 980

Hi @BogdanM,

 

PayPal is still the only payout option for Partners. The only way a payout would be issued that isn't via PayPal is if a Partner is in a country where PayPal isn't eligible. I completely understand that you and many other Partners would like more options and will mention this again and put through another feature request on your behalf. 

Nick | Community Moderator @ Shopify 
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Jonathan-HA
Shopify Partner
224 10 66

Was just wondering about this today as we'd also prefer a direct bank transfer, especially as our revenue grows.

 

Sent a message to Shopify Partner support and got this response in case others are wondering:

 

Currently we only offer the alternative manual payment method for Partners accumulating a certain minimum revenue per payout. In the US, this minimum is$30,000 USD. Once your payouts reach this threshold, do contact us again though and we'll take a look!

We're a US-based company and nowhere near $60k MRR, however, so it will be quite a while before we can qualify. 🙂

 

I do hope Shopify reconsiders the threshold in the future and provide this option to Partners with less revenue as it feels $30k per payout ($60k/month) is really high.  It does make me curious how many app developers make this much through the platform, this page mentions the top 25% of app developers make $162k/year ($13.5k/month).

 

Co-Founder / Developer at Highview Apps
Our Shopify Apps: EZ Exporter | EZ Inventory | EZ Importer | EZ Notify | EZ Fulfill
My_Pap_Shopify_
Shopify Partner
32 0 7

Hi @BogdanM,

 

PayPal is still the only payout option for Partners. The only way a payout would be issued that isn't via PayPal is if a Partner is in a country where PayPal isn't eligible. I completely understand that you and many other Partners would like more options and will mention this again and put through another feature request on your behalf. 


Hi Nick,
Sorry to hijack this thread but is this still true? I am from a country where Paypal is not available(Nepal) and this is one of the reasons I have been put off from publishing apps to Shopify store. If wire transfer is possible for me as a Shopify partner, how do I activate this option? I only see an option to add a Paypal email for withdrawls in the settings. I would really appreciate it if you could let me know how I can go about adding a non - paypal option for withdrawl.

thanks
Bishal 

Nick
Community Moderator
Community Moderator
4510 433 980

Hi @My_Pap_Shopify_,

This is still true yes. For Partners who don't have PayPal as an option, there is a manual payouts option. There is a minimum payout threshold of $1,000 USD p/month and we would need to see this balance before it can be set up! Because this might involve having to get some sensitive information from your part to set that up, your best bet would be to reach out to our support team directly here

 

Nick | Community Moderator @ Shopify 
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kelseyjudson
Shopify Partner
42 1 39

@Nick, is there any chance that you could offer support for alternatives such as TransferWise? PayPal's fees really are exorbitant.

Nick
Community Moderator
Community Moderator
4510 433 980

Hey @kelseyjudson,

 

Thanks for reaching out about this. It's something a lot of our Partners would like to see and every bit of feedback like this helps the development team with future considerations, much appreciated. 

Nick | Community Moderator @ Shopify 
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e-infinitum
New Member
1 0 3

Greetings to the Partner Community and to Shopify,

As a partner running a business that has brought at least one client who is turning over more than $100k / month through Shopify,  and with more clients in development, it would be great if the commission payments could be paid directly to my company's business bank account.

I am not questioning why Shopify offers Paypal, I wonder why paypal is the ONLY option.  

Please provide an option to register my bank account details.

It should not be necessary for me to set up a new Paypal account purely to facilitate doing business with Shopify on an ongoing basis.

Shopify is excellent in all other respects, please don't let your community of partners down with the simple things.

I do appreciate you listening to our concerns.

 

Daniel Owens

bwhalley
New Member
1 0 5

Nick, how is it 2020 and there is still no option beyond Paypal for partner payouts? This feels like just pure laziness from the Shopify team with all the things you can build quickly, when you're forcing partners into someone else's billing system. I thought financial products were one of Shopify's core strengths.

kelseyjudson
Shopify Partner
42 1 39

I agree, it's disappointing but clear that Shopify doesn't prioritise its partners.

ErickLuis
Tourist
4 0 4

These discussions always remain unsolved,
They don't care, even taking 20% commission.

kelseyjudson
Shopify Partner
42 1 39

@Nick This has just become even more important for those of us without a US PayPal account. Previously I was able to withdraw to a US bank account (TransferWise) without a fee. Just recently I started seeing a fee of 3% to withdraw my USD balance to my US bank account. I asked PayPal for clarification about this and they had this to say:

Starting this month, there will be a charge of 3% of the withdrawal amount for withdrawals made to US bank accounts. This changes were updated on the User Agreement page of our website and an email update was sent as well. We started sending out email updates on October. You can check your spam and junk folder if the update didn't showed on your inbox. Withdrawal to local bank accounts will remain free of charge.

So, now we face a forced 3% fee even if we're not converting currency (which is essentially the same 3% fee, but hidden behind their exchange rate), if we're unfortunate enough not to have a US PayPal account. Shopify, can you PLEASE help us out here?

Nick
Community Moderator
Community Moderator
4510 433 980

Hi @kelseyjudson and everyone else, 

Currently, we only offer an alternative of manual payment method for partners. There are certain factors that would allow you to qualify for manual payouts, to determine your eligibility for this. Your best bet is to reach out to Partner Support within your dashboard to learn more. 

Nick | Community Moderator @ Shopify 
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kelseyjudson
Shopify Partner
42 1 39

@Nick I previously asked support about the manual payout method some months ago although I don't think I qualified because PayPal is available to me. It would be nice if I could use that though, as the 3% PayPal fee is going to end up costing me a lot. It would be nice if Shopify could make this option more available to those of us affected by PayPal's fees. Although the real long term solution would be to offer payouts to other providers like TransferWise.