If you are an ecommerce business person who operates on Shopify, having a Shopify Balance account can be very helpful for your business. However, getting started and using Shopify Balance account especially if you are new to it may not be easy. That is why this guide has been created to help novices understand everything they need to know in order to make the most out of their Shopify Balance.
BSS Commerce will explain what Shopify Balance is and how it differs from a regular bank. The steps to set up an account will be clearly outlined. You’ll learn how to view transactions, send and receive payments, get paid from your store, and more.
By the end, you’ll have a comprehensive understanding of how Shopify Balance works and how to utilize it properly for your business. Now, scroll down and let’s get started!
Contents
What is a Shopify Balance Account?
Shopify Balance account is an account that Shopify provides for financial management of merchants’ businesses. It offers a complete banking solution right within the Shopify environment, enabling users to receive money, monitor their income, and pay for things. Shopify Balance account allows sellers to obtain a physical or a virtual card to spend their balance, earn cash back on certain purchases, and have no monthly fees or minimum balance to meet.
This aspect of it makes the cash flow management easy for the Shopify merchants to handle as they concentrate on expanding the business.
Key Features of Shopify Balance Account
- Centralized financial management: Shopify Balance account enables the merchants to control all their financial activities within a single platform thus enabling them to monitor their accounts and financial records efficiently. Using this particular tool, all the sales, expenses, payments, and so on can be seen in one place.
- Faster payouts: Shopify Balance is much faster payout than the other payment methods available in the market. Direct deposits can be received by merchants in their Shopify Balance account and the access to the money can be obtained within 1-2 business days, thus improving cash flow management.
- Few limits and restrictions: When using Shopify Balance, the account does not attract any monthly fees or even overdraft fees. Another cost that merchants also do not consider is the foreign transaction fees because Shopify Balance allows transactions in different currencies. There are no restrictions as to the number of transactions that can be conducted.
- Debit card: Merchants get a physical or virtual debit card linked to their Shopify Balance account. This card can be used to make purchases at physical stores as well as withdraw cash from ATMs.
- Cashback programs: Shopify Balance offers cashback programs ranging from 2% to 10% on spending for Shopify services and hiring freelancers through Expert Marketplace.
- Security: Shopify Balance uses bank-level encryption and security measures to ensure customers payment details and funds are safe and protected.
- Real-time reporting: Merchants can view their financial transactions and account balance in real-time through the dashboard, helping them stay on top of finances.
- Automated payments: Payments for Shopify services and other business expenses can be automatically paid through Shopify Balance account.
- 24/7 support: Merchants get 24/7 support through Shopify to help resolve any issues regarding their Shopify Balance account.
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Shopify Balance Account Review: Pros and Cons
Pros:
- Convenient and centralized financial management: Shopify Balance enables merchants to process all the financial operations and payments in their store without the necessity to use other bank accounts as it is done with the help of Shopify Balance section added to the Shopify control panel.
- Faster payouts: Shopify Balance provides a faster way of transferring money than the normal bank transfer. The payout period of the sales is between 1-2 business days and merchants can get their amount directly into the Shopify Balance account.
- No fees: There are no transaction fees, monthly account fees, overdraft fees etc. for using Shopify Balance. Some transactions and transfers are completely free.
- High security: Shopify Balance uses strong security measures like bank-level encryption to keep merchants’ funds safe and protect their financial information.
- Real-time reporting: Merchants can view financial transactions and account activity in real-time through the Shopify Balance reports, helping them better manage cash flow.
- Ease of use: Shopify Balance seamlessly integrates within the Shopify admin panel, making finances easy to manage for Shopify store owners.
Cons:
- Limited availability: At the time of writing this blog, Shopify Balance is only accessible to merchants based in the United States and Puerto Rico. This service is not available for merchants from other countries.
- Not a bank account: Shopify Balance has features of a bank account but it is not a bank account. Till money cannot be transacted in other platforms apart from the Shopify ecosystem of transactions.
- Requirements to use: Shopify Balance is only available to merchants that use Shopify Payments and must meet other requirements such as having a US SSN.
- Limited card usage: The Shopify Balance card can only be used for Shopify purchases and withdrawals. It does not work like a regular debit card.
- Potential charges from ATM providers: While Shopify Balance has no fees, using ATMs may incur charges from the ATM provider that merchants have to pay.
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So in summary, Shopify Balance offers convenience and ease of use, but has limitations on availability and card/fund usage compared to traditional bank accounts. Merchants need to evaluate if it meets their specific business needs.
Differences between Shopify Balance Account and Bank Account
When trying to decide whether or not to use Shopify Balance or a more traditional bank account, it’s helpful to know what separates the two. Shopify Balance is designed only for Shopify merchants while a bank account offers multiple services in one. The following table shows the major differences between these two options, enabling you to decide on the best option for your business.
| Feature | Shopify Balance | Bank Account |
| Purpose | Specifically designed for Shopify merchants to manage their online store sales and payouts | Typically used for managing overall finances |
| Availability | Only available to Shopify merchants | Widely available at most financial institutions |
| Interest | Does not offer interest | May offer interest on the balance |
| Regulation | Not subject to the same regulations as bank accounts | Regulated by government agencies and must adhere to strict regulations |
| Transfer speed | Transfers between Shopify Balance and a linked bank account can be done instantly | Bank transfers typically take longer to process |
| Payment Processing | Ability to receive payments directly into the Shopify Balance account | Payments need to be transferred from external payment processors to the bank account |
| Expenses Tracking | Integrated with Shopify platform for tracking business expenses | Expenses need to be tracked separately using other accounting software |
| Reporting Insights | Provides real-time reporting and insights about sales, finances etc directly on Shopify admin | Separate login required to a bank portal for account details and statements |
How to set up a Shopify Balance Account?
Handling the finances of your ecommerce store is not a walk in the park especially if you don’t have the right tools. Shopify Balance claims to make this very easy by presenting the transactions, the expenses, and the transfers in one place. Now, let me guide you on how to create an account on Shopify Balance through the following process.
Step 1:
Firstly, you need to go to the Shopify admin dashboard, enter your username and password and then go to the Finances tab. Then go to the “Balance” button on the toolbar. Below, we’ll give you a brief of Shopify Balance and what it entails.
The first thing to check is that you meet the eligibility requirements. Your business must be located in the US or Puerto Rico. Additionally, you’ll need an active Shopify store with Shopify Payments enabled. You should also have a valid US Social Security Number saved in your Shopify profile.
Step 2:
After that, ensure that you check the requirements and then locate the green “Open Account” button on this page. Click that to begin the signup process. You will be then required to confirm your Shopify Payments details and make sure that all the details of your business are accurate.
Step 3:
Once you are sure that the personal information entered is correct, you will go to the next stage of entering your personal information. Be very cautious when entering your Social Security Number, full name, date of birth and address. It is crucial to have all the right details safely kept in the system.
Step 4:
After verifying your identity, read through the account terms and conditions. Look for the checkbox at the bottom to agree. Make sure to check this before proceeding further.
Step 5:
Lastly, click on the “Complete Account Setup” button to create your new Shopify Balance account. You may then have to go through the process of enabling two-factor authentication for your account in the event that you want to log in to the account.
And with that, your Shopify Balance account will be ready to use! You can start viewing your transaction history, transferring funds and more directly from the Shopify dashboard Finance section.
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Ways to Manage Your Shopify Balance Account
Accessing the Shopify Balance Dashboard
The first step is accessing your Shopify Balance dashboard. After logging into your Shopify admin, click on the “Finances” section from the left sidebar. Then select “Balance” which will take you to the dedicated Balance dashboard.
Here, you can gain valuable insights into your account balance and transaction history at a glance. The dashboard displays your current balance as well as a breakdown of recent deposits, withdrawals and pending transactions.
Viewing Account Details
To view details of each transaction, click on the “Account Activity” tab. This shows a ledger of all activity against your account including the date, description and amount for each transaction. You can also download monthly account statements from here for your financial records.
Viewing Transaction History
You can view all transactions associated with your account under the ‘Account Activity‘ section on the dashboard. Managing your finances involves keeping track of business expenses as well. The Balance dashboard allows you to categorize expenses under different tax and expense heads. This makes it straightforward to pull expense reports for bookkeeping purposes.
Transferring Funds
To transfer funds to/from your Balance account, click on ‘Move Money‘ and choose the ‘Transfer Funds From Balance‘ or ‘Add Funds To Balance‘ option as needed.
Setting Payout Preferences
One of the main benefits of Shopify Balance is receiving payments directly into your account. Ensure your Balance account is configured as the default payout method so sales proceeds are automatically deposited here. You can check or update these payout preferences anytime from the dashboard.
Updating Profile Details
It’s also important to keep your profile details up to date. Click on “Manage Account” to validate your business and contact information currently on file. Maintaining accurate KYC records assists in maintaining your account status.
You can choose to get notified via email or SMS when your available balance falls below a set threshold amount. Turning on these alerts ensures you are never surprised by low funds.
Physical Shopify Balance Card: How to Use and Set Up?
Using a physical Shopify Balance debit card allows you to access your funds anywhere and make purchases in person. Here are the steps to set up and use your Shopify Balance card:
Setting Up Your Card
- Log into your Shopify Balance account through your Shopify dashboard
- Click on “Cards” in the sidebar menu
- Select “Order a card“
- Choose between standard and express shipping for your physical card
- Confirm your shipping address
- Your card will be mailed to you within 7-10 business days
Activating Your Card
- Once you receive your card, peel off the backing and sign the signature field
- Log into your Shopify Balance account
- Click on “Cards” and select your new card
- Click “Activate” and follow the prompts
- Your card will now be ready for use
Using Your Card
- Your card can be used to make purchases anywhere Visa/Mastercard are accepted
- Swipe or insert your card and select “Credit” (even though it’s a debit card)
- Enter your PIN or sign the receipt depending on the transaction amount
- The funds will be deducted directly from your linked Shopify Balance account
Managing Your Card
- You can check your card balance and transaction history in the Shopify Balance dashboard
- If lost or stolen, log in and click “Lock Card” for security
- To receive a replacement, select “Order New Card“
- Additional cards can be ordered if needed for employees or owners
The physical Shopify Balance debit card allows you to easily access your store funds anywhere and makes managing finances more convenient. Just be sure to keep it secure like any other payment card.
Wrap Up
Finally, it can be concluded that the Shopify Balance account is an efficient tool for Shopify merchants to handle their business funds. It has features that include quick processing of payments, cash back on the products bought and no monthly charges and thus suitable for small business people. Both the physical and virtual cards enable you to monitor your earnings as well as spend it directly on the Shopify platform. If you are just starting or searching for a less complex financial management tool, Shopify Balance helps you to deal with your funds more efficiently.
