As a business owner, you have a lot of things to think about. From products and services to marketing and sales, there’s a lot to keep track of.
One of the most important aspects of running a business is accepting payments. Customers need to be able to pay you for your products or services, and you need to be able to accept their payments. That’s where merchant accounts come in.
A merchant account is a bank account that allows businesses to accept credit card and other electronic payments. In order to set up a merchant account, you’ll need to work with a bank or other financial institution. Merchant accounts are different from regular bank accounts in a few ways. First, they typically have higher fees than regular bank accounts.
This is because merchant accounts come with additional risk for the bank. Second, merchant accounts are subject to additional regulations. This is again because of the increased risk for the bank. Finally, merchant accounts come with special features that allow businesses to accept credit card payments.
So, do you need a merchant account for Shopify? The short answer is no. Shopify has its own payment processing system called Shopify Payments.
Shopify Payments is integrated into Shopify, which makes it easy to set up and use. You don’t need a separate merchant account in order to use Shopify Payments. However, there are some benefits to using a separate merchant account with Shopify.
One benefit of using a separate merchant account is that you have more control over your payment processing. With Shopify Payments, you’re limited to the payment methods that Shopify supports.
If you use a separate merchant account, you can choose any payment processor that you want. This gives you more flexibility in how you accept payments from your customers.
Another benefit of using a separate merchant account is that you can get lower transaction fees. Shopify Payments charges 2% per transaction for most plans .
If you use a separate merchant account, you may be able to get lower transaction fees from your payment processor. This can save you money on each sale that you make.
The final benefit of using a separate merchant account is that it can help build your credit history . When you use Shopify Payments, Shopify pays your credit card processor for each transaction .
This means that your credit card processor doesn’t report your payments to the credit bureaus . However, if you use a separate Merchant Account provider , they may report your payments to the credit bureaus . This can help build your credit history , which can be helpful if you ever need to borrow money for your business in the future.
Do I Need A Merchant Account For Shopify?
The short answer is no – but there are some benefits to using one.
Shopify has its own integrated payment processing system called Shopify Payments. It’s easy to set up and use, and doesn’t require a separate merchant account.
However, there are some advantages to using an external provider:
- You have more control over payments. With Shopify Payments, you’re restricted to the methods supported by Shopify itself.
If you use an external provider instead, any payment processor can be used – giving greater flexibility in how customers pay.
- You could get lower transaction fees. For most plans,Shopify Payments charges 2% per transaction.
An external provider may offer lower rates – saving money on each sale.
- It could help build your credit history. Credit card processors usually only report transactions made through themto the credit bureaus.
If an external provider reports transactions made through them instead, this could help establish or improve your business’s credit rating – useful if borrowing in future.
In conclusion, whether or not using an external provider makes sense for your business will depend on factors like whether lower transaction fees or improved control over payments are more important.
