Important Things to Know About Shopify and PayPal

Shopify

Shopify is designed to work with a number of different payment platforms for the convenience of both store owners and their customers. PayPal is one of those platforms. PayPal is a globally accepted platform that really set the bar when eBay adopted it as their default payment method.

The good news for Shopify users is that integrating PayPal payments is incredibly easy. Just activate the PayPal option in the payment section of Shopify’s admin and you are good to go. Having said that, there are some things to know about PayPal and its integration with Shopify.

Shopify Support of PayPal

PayPal

Shopify supports PayPal payments in four ways: PayPal Standard, PayPal Express, PayPal Website Payments Pro, and PayPal PayFlo Pro. Shopify recommends using the Express option rather than Standard. How long this recommendation remains intact remains to be seen. According to Shopify’s own documentation, they will be removing support for PayPal Express at some point in the future.

Shopify says that the advantages of the Express option make the best choice right now. Among those advantages are detailed order summaries, automatic order cancellations, and greater reliability.

Shipping Addresses with PayPal

Merchants new to PayPal are often confused over how shipping addresses are collected. Under normal conditions, a customer choosing to pay via PayPal will enter shipping information during the PayPal checkout process. This process completely bypasses the Shopify checkout.

There are only three scenarios under which Shopify would collect shipping information from PayPal users:

  • A customer does not use quick checkout by clicking the appropriate PayPal button on your shopping cart page;
  • You have multiple payment options selected for your shop; or
  • A customer does not select PayPal Checkout on the first page of your checkout system.

In all three cases, shipping information is requested before final payment determination is made. That is why the customer must enter it into the Shopify system.

Billing Addresses

By default, PayPal makes the billing address the same as the customer shipping address. This is extremely important to remember for obvious reasons. Unfortunately, there is no way to change this as the Shopify platform can only work with a single address when communicating with PayPal. Merchants who find this to be the source of ongoing conflict can upgrade their PayPal accounts to include the Website Payments Pro option. This option is much more flexible than the Express option where billing and shipping addresses are concerned.

PayPal Fee Calculator

Lastly, all PayPal transactions are subject to certain fees. This can make it difficult for merchants to know their true profit on transactions completed through PayPal payments. Fortunately, Shopify offers a free tool that instantly calculates PayPal fees and helps merchants set retail prices high enough to cover those fees. The tool is offered as an app.

If you are using PayPal as one of your payment options in Shopify, you are not alone. Shopify supports PayPal because it is one of the most recognized payment systems in the world.

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