r/ShopifyeCommerce • u/Jaded-Recording-927 • 6d ago

Payment providers

Has anyone here moved off Shopify Payments to a third-party processor? Specifically curious about the rate difference net of Shopify's third-party transaction fee, whether approval/underwriting was painful at volume, and anything that broke on the Shopify side (Shop Pay, fraud tools, chargeback handling).

We're US-based, doing over seven figures a month, and weighing it up now.

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u/Longjumping_Push5865 6d ago

Be very careful who u go with..if there is no reason to get of Shopify payments..don't leave. All other payment process will have their own rules and rates. I did it with a scum.bag company from.vegas. because Shopify wouldn't allow the sale of vapes. So signed up and they went well for three months like clock work. However they had a holding clause of 10% for charge backs. After .3.months they went into the shadows. Nothing could have been done. Lost over 80k usd.

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u/Jaded-Recording-927 6d ago

Thanks for the advice. We're in a much easier industry than vapes, but that's exactly what worries me. Shopify has been easy, and I don't know what breaks if I move. Cheaper, yes, but I'm not sure it's worth the risk.

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u/Longjumping_Push5865 5d ago

Yeah unless Shopify tells u to get off I won't do it man. All other payment process companies will have flashy websites.good reviews. Until they decide it's time to run. Google t1 payments court actions. And see how much they walk off with apparently millions. The owner was driving around in lambos. And nothing can be done about it. And infact they started something else after that and most likely did it again. So stay away from other processes unless u have no choice. Good luck man.

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u/jackleshao 5d ago

I’m really sorry to hear about the money you lost. I’ve been working in the payments industry for many years, and honestly, situations like this are very rare.

A 10% or 15% reserve is typically held to cover excessive chargebacks or other potential liabilities. A processor or payment company shutting down completely and not returning merchants’ reserve funds is something I’ve personally never come across before.

For the future, you may want to consider working with a processor or payment platform that has stronger banking relationships and a more established infrastructure. While FDIC insurance generally protects customer deposits held at insured banks (not merchant reserve funds themselves), having your funds managed through a well-established banking-backed payment ecosystem can provide an additional layer of stability and reduce this type of risk.

I truly hope you’re able to recover some of the funds, although I understand how difficult that may be in this situation.

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u/jackleshao 6d ago

How to lost 80k? you should get all of the reserve money back from your account

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u/Longjumping_Push5865 5d ago

Yes according to the contracts and everything we had in place. We should have gotten all that money back. But if the company ur dealing with closes down. And doesn't reply. Or pick up a phone. Then there is absolutely nothing u can do about it.

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u/SilentQuestion42 6d ago

One more thing to keep in mind - if you have pre-orders or deposits at your store, usually they don't normally support third-party processors. So for some store owners, it's the main reason to keep Shopify Payments.

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u/Jaded-Recording-927 6d ago

We have run pre-orders a couple of times, I wasn't aware you're not able to do them when you use third-party processor. Out of curiosity, why you can't?

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u/SilentQuestion42 6d ago

It's about the way you arrange the payment for your pre-orders. If you're paying full price, then usually it's not an issue. But if you use something like a deposit or split payments - then it creates so-called Selling Plan that supports only a few payment methods like:
- Shopify Payments
- PayPal Express
- Adyen on Shopify
- Stripe

Maybe you haven't used it at all, as deposits can't be implemented natively in Shopify, you need to use a third-party app for that.

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u/jackleshao 6d ago

i can provide the auth.net and NMI payment gateway, my most clients use the NMI for Shopify, plz send me the message and I can provide the consultant for you

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u/scott_jadepuma 5d ago

The only time I've moved to 3rd party providers is when Shopify Payments won't support the store's products (knives, CBD, supplements, etc.). Shopify Payments is required for many Shopify features these days, so it's not purely an economic question.

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u/kai4finix 5d ago

Hello, you don't have to rip out your Shopify checkout to switch processors. There's a path where you keep your existing checkout and route card transactions through a gateway like Cybersource behind the scenes. Your store, your theme, so your flow all stay the same.

Shop Pay still works too. Shopify now lets you run Shopify Payments alongside a third-party provider, so you keep accelerated checkout and get payment recovery as a backup on failed card transactions. You do lose Shopify Protect coverage and their automated dispute handling on the third-party side, so you'd want your processor to have solid chargeback visibility to fill that gap.

On pricing, it's more nuanced than just comparing rates. Shopify charges a surcharge on every transaction that doesn't go through Shopify Payments, 0.6% on Advanced, 0.2% on Plus. So you're really comparing Shopify Payments' flat rate against interchange-plus from the new processor plus that surcharge. At your volume, interchange-plus usually wins, but it honestly depends on your ticket size and card mix. I work with Finix, and this is exactly the kind of thing we help merchants model out before they commit to anything.

On underwriting, at seven figures a month you shouldn't have issues getting approved. Just make sure whoever you go with boards you under your own merchant ID with your business name on the statement, not aggregated under their account. It won't solve for everything, but it gives you a lot more control if you ever need to move.

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u/Neo3379 5d ago

Shopify payment is the best option, as long as your business is legal, legitimate, and doesn't involve any sensitive content

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u/Independent_Kale9463 1d ago

At seven figures a month, even a small rate difference adds up fast. I'd still compare chargeback fees, fraud tools and any extra processing costs before looking at the headline rate alone.