Can Customers Pay by Credit Card on Shopify Invoice?

Table of Contents

1. Introduction
2. Shopify and Credit Card Payments
3. The Basics: Shopify Payment Gateways
4. Benefits of Accepting Credit Card Payments on Shopify Invoices
5. Potential Challenges and Solutions
6. Practical Example: Implementing Shopify Invoices for Credit Card Payments
7. Conclusion
8. FAQ

Introduction

Picture this: you've just made a major sale on your Shopify store, your customer is ready to pay, and they ask the inevitable question, "Can I pay by credit card on the invoice?" For many Shopify merchants, streamlining the payment process while accommodating customer preferences is crucial to ensure a seamless transaction experience. This blog post explores whether customers can indeed pay by credit card on Shopify invoices, the available methods, and how to set it up to optimize your business operations.

Shopify and Credit Card Payments

Shopify, a leading e-commerce platform, offers a variety of payment options, including credit card payments through its robust system. However, the specifics of paying by credit card on an invoice can be a bit more nuanced. To address these nuances comprehensively, it's essential to delve into both Shopify’s default settings and potential workarounds that you, as a merchant, might consider.

The Basics: Shopify Payment Gateways

Shopify supports numerous payment gateways, including Shopify Payments, Stripe, PayPal, and other third-party providers. When using Shopify Payments, merchants can accept major credit cards directly through their Shopify store. This seamless integration simplifies the payment process, providing a straightforward method for accepting payments.

However, the situation changes slightly when dealing with draft orders and invoices. Let's break down the steps involved in creating and paying invoices with credit cards.

Creating Draft Orders and Invoices

Draft orders in Shopify are essentially "pro forma" orders that you can customize with special terms, additional products, discounts, or unique shipping rates. These are extremely useful for handling custom orders or offering unique deals to select customers.

1. Creating a Draft Order:

   • Navigate to your Shopify Admin dashboard.
   • Go to the Orders section and click on Create Order.
   • Add products, discounts, and shipping details to the draft order.
   • Save the order as a draft.

2. Sending the Invoice:

   • Once the draft order is ready, you can send an invoice to the customer.
   • Within the draft order details, click on Email invoice.
   • Customize the email message, if necessary, and send it to the customer.

Paying the Invoice by Credit Card

When your customer receives the invoice email, it contains a direct link to a pre-filled checkout page. This is where they can enter their credit card information and complete the payment. Shopify supports the payments directly through the invoice link, which ensures that your customers can pay using their credit cards, provided you have a compatible payment gateway set up.

Considerations:

• If your draft order uses a different currency than your store’s default, ensure the payment terms are appropriately set to handle such transactions.
• Ensure that your payment gateway supports partial payments if needed, as this can affect how customers settle their invoices.

Benefits of Accepting Credit Card Payments on Shopify Invoices

Accepting credit card payments directly on invoices brings several advantages:

1. Convenience for Customers: A streamlined payment process encourages punctual payments and enhances customer satisfaction.
2. Improved Cash Flow: Quicker payments improve your cash flow, enabling you to reinvest in your business promptly.
3. Enhanced Professionalism: Offering polished and professional payment solutions can bolster your brand’s credibility and reliability.

Potential Challenges and Solutions

Despite its advantages, there are some challenges you might face:

Issue: Partial Payments

At times, customers might want to pay part of their invoice using one credit card and the balance with another. Shopify, by default, doesn’t support split payments on draft orders via the online checkout.

Solution:

• Draft Orders Workaround: Create multiple draft orders for the single transaction, splitting the amount across the orders. Customers can then pay each invoice separately.
• POS System: For in-person transactions, Shopify POS supports split payments, which can be more flexible.

Issue: Special Payment Terms

If you have customers who require special payment terms (net 30, net 60, etc.), managing these can be tricky through Shopify’s default settings.

Solution:

• Set clear payment terms and ensure these are communicated in the invoice. Shopify allows setting due dates on invoices which helps in tracking overdue payments effectively.
• Utilize third-party apps that integrate with Shopify to handle more complex billing scenarios.

Practical Example: Implementing Shopify Invoices for Credit Card Payments

Let’s walk through a hypothetical example:

1. Scenario: Sarah runs a Shopify store selling custom furniture. She receives an order for a handcrafted dining table, which requires a 50% deposit upfront and the balance upon delivery.
2. Solution:
   • Step 1: Sarah creates a draft order for the total amount.
   • Step 2: She sends an invoice for the 50% deposit using the draft order feature.
   • Step 3: Upon receiving payment, she marks the order as partially paid.
   • Step 4: After completing the table, she sends the final invoice for the remaining balance.
   • Step 5: The customer follows the second invoice link, enters their credit card information, and completes the payment.

This step-by-step process ensures Sarah can manage partial payments efficiently while providing her customer with a smooth payment experience.

Conclusion

In conclusion, Shopify does indeed support customers paying by credit card on invoices through its draft order and invoice features. By leveraging Shopify’s seamless payment gateway integrations, you can offer your customers the convenience of credit card payments, improving their shopping experience and aiding your business’s financial management. Should you face any specific challenges, such as partial payments or special terms, employing practical workarounds can help maintain a smooth transaction process.

FAQ

Q: Can customers pay a Shopify invoice with multiple credit cards?

A: Not directly through the online checkout. However, you can create multiple invoices splitting the total amount, allowing customers to pay each with different cards. Alternatively, use Shopify POS for in-person split payments.

Q: How do I set up my Shopify store to accept credit card payments on invoices?

A: Ensure you have a compatible payment gateway (like Shopify Payments) activated on your store. Then, create draft orders and email invoices to customers directly through the Shopify Admin.

Q: What if a customer wants special payment terms for their invoice?

A: Set clear terms in your invoice, and consider using Shopify’s feature for deferred payments or third-party apps to manage complex payment terms and due dates effectively.

Q: Are there any additional fees for accepting credit card payments through Shopify invoices?

A: Transaction fees depend on your chosen payment gateway. Shopify Payments often has a flat fee, while third-party providers might have varied charges. Always review the fee structure of your payment gateway.

By understanding and utilizing Shopify's flexible payment features, you can enhance your e-commerce business’s efficiency and customer satisfaction.