How does payment with Affirm work in our store?

Shopify Apps
1

We see the option to use Shop Pay in our store. Powered by Affirm.

Checking out Affirm’s site, it looks interesting.

Questions they don’t answer well:

  1. Do we get paid in full - first. And the client then pays to Affirm?

  2. What if the client doesn’t pay their full balance to Affirm? Do we get penalized? Any fees?

  3. Is the merchant rate Affirm charges 5.9% + $.30 per transaction only? Any other fees?

Let us know. Interesting, but not explained that well - at least to us.

2

Hey, @PangoMarketing !

Julie here from Shopify Support.

It sounds like you’re referring to Shop Pay Installments, which is powered by Affirm. Shop Pay Installments is available for merchants who are based in the United States, selling in USD, and have both Shopify Payments and Shop Pay enabled.

You’ll find answers to most of these questions in the Shop Pay Installments FAQ, and I’d be happy to share them here with you as well.

1. Do we get paid in full - first. And the client then pays to Affirm?

Yes. You will receive full payment for orders upfront, excluding the fee incurred for using Shop Pay Installments. Payouts will be deposited within 1-3 business days and they will be sent to the same bank account that you use with Shopify Payments.

2. What if the client doesn’t pay their full balance to Affirm? Do we get penalized? Any fees?

You won’t be affected if a customer defaults on their payment. However, late payments and non-payments may affect buyers’ eligibility for making purchases through Shop Pay Installments in the future.

3. Is the merchant rate Affirm charges 5.9% + $.30 per transaction only? Any other fees?

You will pay a transaction fee on every order (not every installment payment) where the buyer paid using Shop Pay Installments. If you’re eligible for Shop Pay Installments, you can view your specific rate in your Shopify Payments settings, in Settings > Payments. Generally, it will be between 5-6% but is determined by various business factors and Affirm’s underwriting. It looks like you’ve already received your rate, which is excellent to see. Aside from the fee indicated there, you won’t be responsible for any further fees.

I hope this clears things up, but let me know if you have any further questions! Did you receive an email inviting you to sign up for Shop Pay Installments?