Shopify Balance: The Ultimate Guide
This is a comprehensive guide on Shopify Balance, a fast and efficient financial solution for your ecommerce store offered by Shopify. In this blog post, you’ll learn:
- what Shopify Balance is?
- how to set up Shopify Balance step by step?
- whether you should use Shopify Balance?
What is Shopify Balance?
Shopify Balance is a business financial account that allows Shopify merchants to receive payments, pay bills and manage their money and business in one place.
To make it easier to understand: Shopify Balance operates as a separate bank account, but it is to manage money for Shopify businesses.
But as Shopify claims, Shopify Balance is better than traditional banks.
Shopify Balance vs Bank account: Similarities and differences
Shopify Balance and a bank account are both financial accounts that you can use to store and manage your money, but there are some key differences and similarities between them.
Similarities between Shopify Balance vs Bank account:
- Both can be used to receive and store money: You can receive payments into both a bank account and a Shopify Balance account, and use the funds for various purposes.
- Both can be linked to payment methods: A bank account can be linked to a debit card, credit card, or other payment methods, and so can a Shopify Balance account.
- Both can be used to make purchases: You can use funds from both a bank account and a Shopify Balance account to make purchases online or in-person.
Differences between Shopify Balance vs Bank account:
- Purpose: A bank account is typically used for managing your overall finances, whereas a Shopify Balance account is specifically designed for Shopify merchants to manage their online store sales and payouts.
- Availability: Bank accounts are widely available and can be opened at most financial institutions, whereas Shopify Balance is only available to Shopify merchants.
- Interest: Bank accounts may offer interest on the balance, whereas Shopify Balance does not offer interest.
- Regulation: Bank accounts are regulated by government agencies and must adhere to strict regulations, whereas Shopify Balance is not subject to the same regulations.
- Transfer speed: Bank transfers typically take longer to process than transfers between Shopify Balance and a linked bank account, which can be done instantly.
Pros and Cons of Shopify Balance
Like any financial service, Shopify Balance has its pros and cons. Here are they key pros and cons of Shopify Balance:
Pros of Shopify Balance
- Convenient and easy: With Shopify Balance, you can manage all your store’s financial transactions in one place, making it easier and more convenient to keep track of your finances. Just a few steps and you already have a Balance account ready.
- Faster payouts: Shopify Balance offers faster payouts compared to traditional payment methods. You can get your funds in as quickly as 1 business day, making it easier to manage your cash flow.
- Generous cashback programs: With 2%-10% cashback, Shopify Balance gives merchants such a deal.
- Secure payments: Shopify Balance is a secure payment solution that is PCI-compliant and protected by Shopify’s security measures. This means that your customers’ payment information is kept safe and secure.
- Secure money storage: Your Balance account is FDIC-insured, up to $250,000.
- Better control: With Shopify Balance, you have complete control over your store’s finances. You can see all your transactions in real-time, making it easier to track your sales and manage your cash flow.
- No transaction fees: Shopify doesn’t charge any fees for using your Balance card (but there may be ATM provider fees).
Cons of Shopify Balance
- Limited availability: Currently, Shopify Balance is only available to Shopify merchants who are based in the United States or Puerto Rico. This means that businesses located in other countries cannot take advantage of this feature.
- Limited usage: Though it works as a debit card, it is technically NOT a debit card – you can’t use Shopify Balance outside of Shopify transactions.
- Requirements: You have to use Shopify Payments in order to use Shopify Balance.
Who can use Shopify Balance?
You have to meet these requirements to be eligible for Shopify Balance:
- Your business is based in the United States or Puerto Rico.
- You have active Shopify Payments or have registered a Shopify Balance account before signing up for Shopify Payments.
- You have a US Social Security Number (SSN) that is valid.
- You own an account that has Shopify Payments.
- Your Shopify Payments account must be a single account holder.
- You are on any Shopify plan (other than Shopify Plus).
Key features of Shopify Balance
Shopify Balance offers a range of features designed to help businesses manage their finances more effectively. Some of the key features of Shopify Balance include:
Centralized financial management
With Shopify Balance, merchants can manage all of their financial transactions from one central location, making it easier to track their finances and keep their books in order.
Few limits, restrictions, and fees
Using Shopify Balance, there are only a few limits on how many transactions they want to make. There are no monthly account fees or overdraft fees, and many transactions, such as deposits and transfers, are free. Additionally, businesses can avoid costly foreign transaction fees, as Shopify Balance supports transactions in multiple currencies.
Shopify merchants can receive payments for their sales directly into their Shopify Balance account, which eliminates the need for time-consuming bank transfers. As payments are processed quickly, merchants can access their funds and start using them right away.
A debit card to use at stores and ATMs
Not only can you receive payments for your online sales, but you can also use Shopify Balance as a debit card to make purchases at physical stores and withdraw cash from ATMs.
Cashback from 2% to 10%
Shopify Balance allows merchants to receive cashback ranging from 2% of the amount they spend on Shopify bills, such as apps, themes, shipping, and ecommerce marketing on social media sites and search engines. You’ll get 10% cashback as you hire designers and freelancers in the Expert Marketplace.
- You can earn cashback only at a maximum of $2,000 per year.
Shopify Balance uses state-of-the-art security measures to protect merchants’ funds, ensuring that their payments are secure and their information is protected. With its bank-level encryption, you can be confident that your money is safe.
With real-time reporting, merchants can see their financial transactions as they happen, helping them to stay on top of their finances and make informed decisions.
Shopify Balance makes it easy for merchants to pay for their expenses, including their , shipping costs, and other business expenses.
Shopify Balance provides 24/7 support to help merchants with any questions or issues they may have, ensuring that their finances are always in good hands.
Set Up Shopify Balance
How to set up Shopify Balance?
Before you start
You must have a store on Shopify first before signing up for Shopify Balance.
- To those without a Shopify store: You should and create a store.
- To those with a Shopify store: Just log in to your account and then set up Shopify Balance.
On the Shopify Balance landing page, both ways are available for you, so just click here to go to the next step.
After that, follow these 6 steps to start setting up your Shopify Balance:
- Step 1: Log in to your Shopify account. Go to Finances > Balance. The Finances section is not visible on the dashboard until you sign up for Shopify Balance via the landing page.
- Step 2: Click Open account > Continue.
- Step 3: Fill in the fields to verify your information > click Verify.
- Step 4: Enter your SSN > click Confirm.
- Step 5: Read the Shopify Balance agreements > Accept the agreements > click Open account.
- Step 6: Set up 2-step authentication and then ready to use Shopify Balance.
How to manage your account?
If you want to adjust your account information or delete it, here is how to do it:
- Step 1: Go to Finances > Balance.
- Step 2: Click Manage account in the top right corner
- Step 3: Click Show details
How to view your Shopify Balance statements?
Here is how to view your Shopify Balance statements:
- Step 1 Go to Finances > Balance > Manage account.
- Step 2 Click View statements in the top right corner.
The View statements page leads you to a downloadable list of recent transactions on the Shopify dashboard.
How to request a physical Shopify Balance card?
When creating a Shopify Balance account, you’ll get two types of cards – virtual and physical. While the virtual card is activated and ready to use right away, you’ll have to manually request a physical card.
Here is how to set up a physical Shopify Balance card:
- Step 1 Go to Finances > Balance
- Step 2 Click Order a physical card
How to activate a physical Shopify Balance card?
To use your physical Shopify Balance card, you need to activate it. There are two ways to activate it: scan the QR code on your package or go to your Shopify admin and do as below:
- Step 1: Go to Finances > Balance
- Step 2: Click Manage cards > Shopify Balance Card > Activate card
- Step 3: Enter the last four digits of your Shopify Balance card > Next
- Step 4: Enter a PIN with 4 digits > Next
- Step 5: Re-enter your PIN > Confirm
- Step 6: Enter the confirmation code > Activate
How to view transaction and transfer limits?
Each Shopify Balance account has transactions and transfer limits. The limits vary depending on your transaction volume.
How to find Daily spending limit:
- Step 1 Go to Finances > Balance.
- Step 2 Click Manage Account > Card Management > Choose the card you want to check.
- Step 3 Find Daily Spending Limit.
How to find Daily transfer limit:
- Step 1 Go to Finances > Balance.
- Step 2 Click Move Money (in the top right corner) > Transfer Funds section.
- Step 3 Click Transfer funds from Balance. Here you can see your daily transfer limit (under Amount).
How to transfer funds to or from your Shopify Balance Account?
How to transfer funds from other accounts to your Balance account:
- Step 1: Go to Finances > Balance > Move Money.
- Step 2: Click Add Funds To Balance > Show details > Copy the numbers.
- Step 3: Open your bank account or PayPal or whatever you want to send money.
- Step 4: Enter your Shopify Balance account number as the receiver.
How to transfer funds from your Shopify Balance account to other accounts:
- Step 1: Go to Finances > Balance > Move Money > Transfer Funds From Balance.
- Step 2: Choose your From Account (your Shopify Balance account).
- Step 3: Enter the routing and account details from your third-party bank on the To Account field.
- Step 4: Type the money you want to transfer in the Amount field > Next.
How to receive online store payouts to the Shopify Balance Account?
The answer is: you don’t need to do anything further!
As you set up Shopify Balance, Shopify makes it your default payout account. The new payouts flow into your account within 1 business day. However, if you add Shop Pay as a payment method and customers use it, it takes up to 3 business days to receive the new payouts.
How to change the payout account?
You can totally send payouts to other accounts other than Shopify Balance.
To change the payout account, here are the steps:
- Step 1: Go to Finances > Balance > Manage Account.
- Step 2: Click Change Payout Account (under your Account Details) > Replace Bank Account.
- Step 3: Enter New routing number and New account number. Select the payout currency you want.
- Step 4: Click Save.
How to view Shopify Balance insights?
To see how your Shopify Balance account is performing, here is how to do it:
Go to Finances > Balance. Here you can see the dashboard showing the money that is available to spend and is pending.
Other sections including your account insights:
- The Account Activity section shows transactions in your store.
- The View Shopify Payouts section presents the most recent payouts. View Transactions shows the actual transaction details from those payouts.
- The Overview (under Finances) shows insights for your Shopify Balance account and all finances – net sales, gross profits, margins, etc. You can filter these types of transactions.
Can I withdraw money from Shopify Balance to my bank account?
Yes, You can withdraw money from Shopify Balance to your bank account.
What are alternatives to Shopify Balance?
Here are several alternatives to Shopify Balance that Shopify merchants may consider:
- Shopify Payments
- Other payment methods like PayPal, Stripe, etc.
- Traditional bank
Is Shopify Balance a bank account?
No, Shopify Balance is not a bank account, though it does operate as a debit card. It only allows you to use it to transact and manage money in your ecommerce store on Shopify.
Are there Shopify Balance fees?
No, Shopify Balance is free – no hidden fees. If you’re charged, that’s the ATM provider that charges you.
Shopify Balance is a great option for Shopify store owners looking to simplify their financial management. With its easy setup, comprehensive features, and secure transactions, Shopify Balance is definitely worth considering for businesses of all sizes. Whether you’re just starting out or looking for a more efficient way to manage your finances, Shopify Balance has something to offer.