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So confused - Payment Method vs Payment Gateway

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WiggleWink
Tourist
5 0 0

I NEED HELP, PLEASE as I'm very confused about the payment method and payment gateway.

 

1- If I connect PayPal with Shopify, do I need to connect TrasnferWise with Shopify as well ???

 

2- How much time the Shopify Default Method takes for money available to withdraw'?

3- Does the default method take longer than PayPal Express Checkout, Wise, or Stripe?4- Please Please Please guide me in detail about Payment Methods and Gateway or share any article link with me so I may clearly understand how Shopify Payment Methods work and how much time these methods take. 

 

Kind regards,

Accepted Solution (1)

Accepted Solutions
Shay
Shopify Staff
Shopify Staff
1498 235 314

This is an accepted solution.

I am happy to help! These are all great questions, and ones that all new business owners need to know about.

 

You can have multiple payment gateways available on your store so that you can accept a range of payments. If eligible for Shopify Payments, then you will be able to accept all major credit cards as well as Google Pay and Apple Pay through the one gateway. 

 

You will want to tailor your payment options to best meet the needs of your customer base. Most merchants in North America find that one major payment gateway (Shopify Payments for example) that accepts most credit cards along with PayPal as a secondary gateway works very well for them. 

 

When you connect a major payment gateway like Shopify Payments or Stripe you will be creating a business account with the payment gateway. They will require some basic information about you and your business and you will connect your chequing account for your business as well. This is where processed payments will be deposited on your behalf. 

Shay | Social Care @ Shopify 
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 - Was your question answered? Mark it as an Accepted Solution
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Replies 3 (3)
Shay
Shopify Staff
Shopify Staff
1498 235 314

Hi @WiggleWink 

 

I'd be happy to help clarify some of your questions for you!

 

A "Payment Gateway" is the processing agent which you the merchant are using to process a customers payment. Generally powered by a range of banking partners like PayPal, Stripe, Shopify Payments, etc. Most standard gateways will accept payments by all/most major credit card companies. Some are exclusive to their own payment services, like PayPal.

 

A "Payment Method" is how the customer is choosing to pay. Visa, Mastercard, AMEX or through their PayPal account as an example. 

 

Question 1 - If you connect PayPal to your store as a payment gateway, then you will be able to accept PayPal as a payment method. I do not believe PayPal supports Transferwise as a payment method. If you wanted to accept Transferwise payments you would need to add their proprietary gateway or use another gateway that supports them. 

 

Question 2 - If you are using Shopify Payments as your payment gateway, then most payouts are processed within 3-5 business days. This can vary based on your personal bank and the credit card used by the customer. If eligible, you can enable Shopify Balance instead and the money is available right away!

 

Question 3 - I am not able to directly confirm the processing time for various gateways as they are each unique and managed independently. Generally speaking, unless clearly advertised otherwise, most payouts will take 3-5 business days to process. 

 

Our Help Center has a great breakdown of how you get paid and what payment gateways are generally available for you. You can review that info here: Getting paid · Shopify Help Center. 

 

Let me know if you have any additional questions about your payment options. 

Shay | Social Care @ 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

WiggleWink
Tourist
5 0 0

OMG! Thank you so much for the clarification 🙂

So, can I only use 'Shopify Payments' to run my store? At the moment, I don't have PayPal, Stripe, or Wise.

And if I use 'Shopify Payments', do I need to connect my bank account? As I'm confused, how will I withdraw my payments?

Thank you so much in advance!

Shay
Shopify Staff
Shopify Staff
1498 235 314

This is an accepted solution.

I am happy to help! These are all great questions, and ones that all new business owners need to know about.

 

You can have multiple payment gateways available on your store so that you can accept a range of payments. If eligible for Shopify Payments, then you will be able to accept all major credit cards as well as Google Pay and Apple Pay through the one gateway. 

 

You will want to tailor your payment options to best meet the needs of your customer base. Most merchants in North America find that one major payment gateway (Shopify Payments for example) that accepts most credit cards along with PayPal as a secondary gateway works very well for them. 

 

When you connect a major payment gateway like Shopify Payments or Stripe you will be creating a business account with the payment gateway. They will require some basic information about you and your business and you will connect your chequing account for your business as well. This is where processed payments will be deposited on your behalf. 

Shay | Social Care @ 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