Why is Shopify processing PayPal payments...???

[TGGP]

"Beginning the week of Oct 7, 2024, Shopify Payments will process all of your new PayPal transactions."

Why is this happening...??

What happens with our stores PP acct...???

What happens if we have vendor payments set up thru PP....such as UPS, USPS etc...???

What happens with our PP acct debit cards usability???

[Marcus_Frasier]

Good luck getting an answer on this. I had a very long chat with a close-to-useless agent who first assured me this wasn't the case, then told me it's happening but I can opt out, then told me there was nothing I could do about it. Asked about removing PP and just running my own button or other options and was told it would be escalated. I've heard nothing since.

We've been teetering on ditching shopify for a bit now, but I think we may be able to work around this by going full Hydrogen and ditching shopify's UI all together. We'll see.

[NowAngryBird]

Ive been having issues getting my credit card money from Shopify . It's taking 5-7 days from sale to bank. PayPal funds are at least in my account instantly. Does this mean that is being hijaacked by Shopify too now and we will be at their mercy and take 5-7 days for our PayPal funds now too?  As always, getting anyone at Shopify to be helpful or accountable is a waste of time. 

[Need2know]

This is my exact concern. Very annoying. 

[ayrity]

Did you ever get any further on this issue? I have some automation downstream from my paypal account and with shopify payments doing the processing, the money no longer funnels to where it needs to go! I want to opt out / revert back to the way it was. I even checked apps to see if there was a way to manually add it back in, or get around it. If anyone has any insight into this, especially a Shopify employee, please chime in ASAP.

[Marcus_Frasier]

Per shopify, the only option is to disable shop pay. That will of course also disable the Affirm/pay in 4 thing my customers love AND get you higher fees... So gotta decide if it's worthwhile.

[TGGP]

This is the exact reply a Shopify chat person gave me.

" I understand now that you wish to continue using PayPal as a payment
method for your customers while maintaining control over your funds for
other business transactions. You can keep PayPal integrated in your Shopify
store to allow customers to pay using PayPal. This doesn't change;
customers can still choose PayPal at checkout. When you use PayPal with
Shopify, Shopify does not take over your entire PayPal account. Shopify
only processes transactions that occur through your store’s checkout. Funds
from Shopify sales go into your PayPal balance just like they normally
would. You have full control over these funds to use them as needed,
whether for vendor payments or other expenses."

[TGGP]

...one other part of the chat with Shopify gave me this below.

...but that may end up "removing" PayPal as a payment option for customers.

...so....not sure this below is good....it might remove PP from ones store.

can we opt out of Shopify doing PayPal payment processing

17:43 Help Center Assistant: Yes, you can opt out of Shopify processing PayPal payments. To do this, follow these steps:

1. From your  , go to Settings > Payments.
2. In the Additional payment methods section, find PayPal.
3. Click Deactivate to stop using PayPal through Shopify.

[NowAngryBird]

That Is similar to what I learned. I do not want to remove shopify completely. I simply do not want Shopify hijacking my funds and funnelling it thru their bank then charging me for the priviledge of waiting several additional days for my proceeds. I need a solution to simply put Paypal back to directly working thru my own account! Anyone figure this out?

[ayrity]

What they told you here is incorrect. There is nothing listed under "additional payment methods" because paypal is now under the shopify payments section. All I can do is turn on or off accepting Paypal or not. I want to keep paypal as a payment method for my customers, but do NOT want it lumped into my regular shopify payouts. It's unacceptable that they have forced us to do it this way now.

The only option (as mentioned by @Marcus_Frasier above) is to disable Shop Pay. However my store also uses Shopify POS in our physical location and to use the POS and card processor hardware etc, you effectively have to use Shop Pay. Otherwise the POS stuff loses much of its functionality.

I had my own chat with Plus support, and they basically said the Devs say this is better, and we will log your issue and see if anything comes of it. Yeah, sure.

I wonder, maybe it's possible to manually add in a paypal checkout button to the checkout page's code? Or a redirect button? It's frustrating that they keep touting new and better checkout stuff, but then remove functionality and options. They love using the word 'streamline' but what they really mean is 'fewer choices'.

I'll keep checking around and seeing what's possible to do/change, but if anyone else finds anything out, please update us all here too!

[NowAngryBird]

That is NOT true. Paypal funds are now taken by Shopify and then paid out on their schedule which is slow and cumbersome. I want to find a way that all of our paypal funds deposit instantly into our paypal account as they always have as this suggests.

[ayrity]

Any update on this? I have checked with shopify support twice over the past month and they just keep saying untrue things or tell me they will let the "teams" know and then who knows what.

I need my paypal payments to go to my paypal account! So frustrating! Anyone know of an app or method to get the paypal payments paid the the paypal account? I never thought I would have to put so much time and energy into  trying to fix something like this.

[TGGP]

I have come to the understanding that....the only way to accomplish the PP
money to go to the PP acct is by stopping the use of Shop Pay....and go 3rd
Party for ALL payments.
Separating it as it was before will not happen now.
It is all done thru PP Wallet vs PP Express as before.
I assume it is so that Shopify can [grab] a % of PP payments that they were
not getting before.
One can "transfer" $$ to ones PP acct via the transfer in ones PP acct.
I did a transfer from Shop acct to my PP acct....and it transferred with no
fee.
But one will have to be in ones PP acct to initiate that transfer from Shop
to PP.
That works....I did it.

[ayrity]

I came to the same conclusion after exhaustive research and discussion with support as well. Thanks for the input, I can NOT turn off Shopify Payments as it would render my POS systems almost useless (been down that road before!).

Would you mind explaining how you did that in a bit more detail? It would at least be a bandaid to the issue if I could transfer $ from Shopify to PP. I just don't see how to make that happen since the payouts go directly to my bank account. Are you using the Shopify "Balance" feature to make that happen? I understand you said you have to initiate the transfer from within PP, that's no problem for me, and I will poke around and see if I can figure it out, but I'd love a bit more help if you don't mind please.

If I figure it out on my own before you get back to me, I'll post what I did as a reply to myself here to hopefully help others.

[ayrity]

Update: I looked all around and couldn't figure it out... When I click "Add Money" in my wallet on PP, my only option is to add a bank account. I await your help, and appreciate it!

[TGGP]

Yes....the "Add Money" button is the correct way to have the money move
from ones Shopify Balance acct to the PP acct.
One MUST use the acct # and the routing # from ones Shop Balance acct.
You get those #'s from Shop Balance in Shopify admin.
Apply those #'s into the PP "Add Money " form....it will be retained/saved
there.
Then....one can....via ones PP "Add Money" button have PP capture the
desired amount into ones PP acct.
Then....one can use PP to make payments etc etc.
I did my "experiment" transfer without any fees associated.
This is the work around conclusion I have settled on.

[image: image.png]

[TGGP]

...one other thing that could "hinder" you.

Are you using the Evolve Bank of Shopify...???

If ALL of your $$ captures go straight to your own Bank....then you'll have to use your own bank acct and routing #'s to have PP capture $$ from your bank to your PP acct.

Then you just click the "Add Money" button....and execute the $$ move from your bank to your PP.

[texaspokemart]

Since November 1st, 2024 we haven't seen a single penny from customers that checked out with Paypal. The only payments pending in my payout for the last month is Paypal. Whatever they did just messed up their system and of course I'm getting no resolution from Shopify's support. I spoke with Paypal and they said this is purely on Shopify.

[TGGP]

Yes....
All PP money is going into Shop Balance now.
It I suppose is a money grab by Shopify.
They force all PP captures into Shop Balance and get the fees.
Before....they got no fee from a PP sale thru a Shopify site.
So....they force all $$ to Shop Balance.
If one wants to have $$ go to PP acct direct....one will have to close ones
Shop Balance entirely and use 3rd Party payment apps.
Then one can use a PP acct as intended.
PayPal Wallet payments do go into the Shop Balance now.
You can identify PP paid monies in Shop Balance by finding your View Order
Transactions button at top right of the PayOuts.
Finance > Payouts > View Order Transactions
There it gives/shows each method customers paid with.
Then one would have to do a funds capture done via ones PP acct....to take
funds from ones Shop Balance to PP acct.

[DestinyLynnn]

I am dealing with this as well. Paypal orders stuck on Pending since November, and not receiving any help. Did you possibly get this figured out? 

[TGGP]

I have never had the issue of the PP orders being "stuck" on Pending.
All of my $$ captures are being done when I manually execute the
capture....I don't do auto capture.
But as I am experiencing right now is that all $$ captures Shop and PP go
into the Shop bank....which I can put up with.
None....go to my PP acct....if I want $$ in my PP acct I have to execute a
$$ transfer via my PP acct....then PP grabs the $$ from my Shop bank at
whatever amount I say.
Shopify did not handle this "cross-over" very well IMO...!!!
I do wish Shop would ID the PP Wallet transactions better...!!!
IMO they do a VERY poor job of giving that PP Wallet info.
It is in the admin....but it has to be dug for.
The only way around this Shop/PP issue that was created is to drop the
Shopify handling of all $$ via 3rd party App.
***IMO it seems to just be a money grab by Shop....they wanted a piece of
the PP $$ going thru OUR stores.***
So....they force all captures to go thru Shopify.
If one does not like that....one must default to a 3rd party App/s to
handle the $$ captures.
So....if you are having stuck/pending "things"....there may be a different
issue that is popping up on you.
✅👍💯

[LPB1]

This is crazy. I noticed this was happening because after October 18, 2024 we did not have a single deposit into your PayPal account. 

When I contacted Shopify about it after the holiday rush, when I had time. 

They tried to tell me that somehow my PayPal direct pay had been turned off. So I went in and turned it back on, but still did not see any deposits and I know customers have used PayPal to pay. We have been in business using Shopify for 10 years. 

Reached out to support and they are acting like they don't know what I am talking about, and just keep saying that Paypal is working.  So I did a test order on my website using my PayPal account for payment. First I had to log out and checkout as a guest in order to select PayPal as a checkout option and when the order was processed it still processed thru Shopify payments gateway not the PayPal gateway like it used to before mid October 2024 and that is why I am not receiving deposits into my PayPal account. Shopify Help acts like they don't know this is happening this was their explanation of what was going on: "Thank you for your patience. Essentially, PayPal Express Checkout and PayPal Wallet are two different things. PayPal Express is when your customer clicks from your store, which opens a window for them to log in to PayPal and pay for your product using PayPal. On the other hand, PayPal Wallet is similar to Apple Pay and Google Pay; it’s an integrated wallet that was launched in October 2024, around the same time you stopped receiving direct payments from PayPal.

It’s possible that your customers are preferring to pay with PayPal Wallet instead of PayPal Express, which is why you are seeing orders with PayPal Wallet. However, even though you are still receiving payments from PayPal, it’s not the same as before since it’s through the integration of PayPal Wallet via Shopify Payments."

This is very strange and we were never made aware this would be happening. 

This has to be hurting Paypal. Does anyone know anything more about this?