The Shopify platform has long been an industry leader in eCommerce, and now the Shopify eCommerce platform is offering Shopify merchants something new, a business bank account.
While you might not think that a business bank account integrated directly with your Shopify store is something you want, the new service, called Shopify Balance, can help business owners with a Shopify store get paid faster and access exclusive perks and rewards.
This post will offer a detailed review of what your business can expect with a Shopify Balance account. While Shopify is one of the first major eCommerce platforms to offer business banking, it won’t be the last.
Banking as a Service is gaining momentum, and more non-financial institutions like Shopify will begin offering services typically associated with banks and credit unions.
As a result, it is important to understand what Shopify Balance is and what can be accomplished with a Shopify Balance account.
What Is Shopify Balance?
Shopify Balance is a business banking and money management account offered by Shopify to merchants with an online store on the platform.
What separates Shopify Balance from a traditional business bank account is that it enables a Shopify store to collect payments from customers and receive the funds the next business day without paying additional transaction fees.
In addition, the Shopify Balance account fully integrates with your online store so you can manage the checkout process, order management, Shopify payments, and your Shopify Balance account in one convenient place.
If you have a Shopify account, it is worth exploring whether a Shopify Balance bank account is right for your business.
Shopify Balance Details and Additional Features
When evaluating a potential bank account for your business, there are several facets to consider, from rewards and perks to costs and eligibility requirements. So let’s look at what a Shopify Balance can and can’t do for your business.
Shopify Balance Cost and Fees
Bank accounts typically cost money to open and maintain. However, a Shopify Balance account has no monthly fees or minimum balance requirements. In addition, Shopify Balance has no minimum deposit requirement, so you can start using your free Shopify Balance account as soon as your online store is live on the platform.
In addition, a Shopify Balance account has no ACH, wire transfer, foreign transaction, or ATM fees. As a result, Shopify Balance is the perfect business financial account for SMBs operating on the Shopify platform.
Shopify Balance Banking Features
Shopify Balance is a financial service, not a bank, so it lacks some of the features traditionally associated with a traditional savings or checking account. However, Shopify Balance is backed by two FDIC-member banks, which means your money is insured up to $250,000.
You cannot deposit checks or cash into your Shopify Balance account. There are no savings account options that generate interest, and Shopify Balance does not offer lines of credit.
However, you can get a Shopify Balance card that works like a debit card and can be used fee-free at ATMs in the United States. In addition, there are no charges or hidden fees to transfer funds from a Shopify Balance account to a linked bank account.
Additionally, you can use Shopify Balance to pay vendors and other merchants online. With Shopify Balance, funds from sales made on your Shopify store are made available the next business day, which is significantly faster than other banking options.
While it may be lacking some of the features you will find in traditional bank accounts, Shopify Balance offers businesses on the Shopify platform an unmatched cash flow.
Shopify Balance Eligibility Requirements
Shopify Balance is a great option for merchants on the platform. However, Shopify Balance is not available to every seller on Shopify. Businesses must meet the following requirements to be eligible for Shopify Balance:
- Businesses must be US-based; currently, Puerto Rico is the only US territory supported by Shopify Balance
- Businesses must use Shopify Payments
- There must be a valid social security number attached to the account
- There must be a single account owner shown on the platform
- Be on any Shopify platform plan, with the exception of Shopify Plus
- Two-step authentication must be activated
There are additional eligibility requirements for Shopify Payments as well, which can be strict and eliminate businesses considered high-risk. If you have already tried to sign-up for Shopify Payments but were ineligible, you won’t be able to access Shopify Balance.
Shopify Balance Rewards and Perks
Shopify Balance offers businesses a lot of different perks and rewards. The perks and rewards offered by Shopify Balance can be very helpful in growing your Shopify store and seeing immediate value in the service.
The top perks and rewards to highlight for interested businesses include the following:
- 2% cash back on eligible purchases when you use your Shopify Balance card
- Advertising perks from digital providers like Google, Facebook, Snapchat, Pinterest, and Instagram
- A discounted rate on a 12-month Google Workspace subscription
- 3% cash back on eligible purchases from Apple
- Discounted rates on Shopify shipping
- 15% discount on UPS services like printing, packaging, and business services
- 10% cash back when you hire services from Shopify experts
You don’t have to worry about redeeming cash-back rewards, as they are automatically added to your account. It should be noted that cash-back rewards are capped at $2,000 per year. However, with all of the discounts and advertising perks offered through Shopify Balance, Shopify makes it easy and affordable for businesses to grow on the platform.
Now that you have gotten an in-depth look at what Shopify Balance can do for your business, it is time to decide if this option is right for your business. If you operate on the platform and are eligible for Shopify Balance, it is a good deal since the service is free and gives you access to funds earlier.
If you want to learn more about Shopify Balance or any of Shopify’s other service and product offerings, contact an experienced Shopify Plus Partner like Koombea.