In 2021, around 48.9% of Shopify merchants used the in-house payment gateway, Shopify Payments, for business transactions. If you’re one of them, you probably use it for convenience or think that’s the best payment solution.
However, the reality is that Shopify charges could quickly eat away at your profit, especially when dealing with a large volume of sales. In addition, credit and debit card payments also carry chargeback risk from fraud, loss, or even expiry of the card.
Luckily, Shopify has integrations with more than 100 payment providers worldwide. Depending on your country, you might miss out on a better alternative for your business. Link Money - Pay by Bank is an open banking solution that offers direct bank-to-bank payments from the customer to the merchant quickly, securely, and just as easily as Shopify Payments.
Keep reading to learn more about how you could benefit by switching to Link Money - Pay by Bank for your Shopify transactions.
Upgrade your payment security with Link Money
Although card payments are quite popular, they come with the risk of delayed or fraudulent transactions that end in a merchant not getting paid on time—or not at all. In fact, according to a study by Lexisnexis, “60% of organizations lost customers due to failed payments.”
Consider a pay by bank solution like Link Money that directly transfers funds from the customer to the merchant’s bank account, which ensures you get paid and lowers the risk of chargebacks.
Here’s the skinny on chargebacks: When a customer occasionally requests a refund due to a lack of satisfaction with the product, that’s something you can handle. However, chargebacks often happen due to credit or debit card fraud. As a business, you stand more to lose than money and payment solution options.
“When a chargeback happens, the merchant is hit with a chargeback fee, which typically ranges from $20 to $100,” says Dawn Allcot in a CO article from the US Chamber of Commerce. “The more chargebacks you get, the higher the fee. If you have too many chargebacks in a short period of time, you could lose your merchant account that enables you to process credit card payments.”
You’d also carry the cost that comes with the return of the product or services provided. In such instances, a pay by bank solution, like Link Money, can be ideal.
With pay by bank, the money gets transferred from the consumer's bank account after the consumer's identity is verified and the availability of funds is confirmed. The pay by bank process lowers the risk of fraudulent transactions, so you don't have to worry about whether the customer's card details are safe or up to date.
For example, PayNow, which runs on the Fast and Secure Transfers (FAST) network, in Singapore is quickly becoming one of the most popular payment options for e-commerce merchants in the country, allowing shoppers to make an instant payment through the banking apps to any individual or business using the participating financial institutions.
Link Money offers a similar solution to merchants in North America. If you've ever used direct debit in your bank for business payments, they run on the Automated Clearing House (ACH) payment rail. Link Money runs on the same payment rail, ensuring secure and efficient transactions.
Improve your customer experience with a simplified checkout process
Link Money offers an intuitive payment solution that doesn’t require an individual to dig out their wallet from their bag, enhancing the online customer experience.
“The checkout customer experience is a crucial part of every ecommerce site. It’s the point at which your customer decides whether or not to complete their purchase — so it should be as smooth and easy as possible,” as mentioned in CMSWire.
Consumers already use their mobile or online banking apps for various day-to-day purchases. With Link Money, all they have to do at checkout is sign into their bank account, and the transaction is done, without needing to enter lengthy payment details such as a card number or expiry date.
If an individual uses Link Money from an unknown device, they go through multi-factor authentication. This process creates a sense of trust and security with customers, as they can rest easy knowing their account details are secure.
Finally, with an optimized checkout process, you can see your cart abandonment rates decrease. According to recent research, 18% of consumers abandoned their carts because they didn't trust the site with their credit card details, and 17% did so because of a complicated checkout process.
The case for one-click checkouts has already been made online. A fast and easy payment option like Link Money will improve your conversion flow.
So how do you sign up for Link Money? Download Link Money in the Shopify app store and set up pay by bank through your dashboard—it’s pretty straightforward.
Pay lower fees for bank-to-bank transactions
Credit card transaction fees can take a big chunk of your profits, particularly in a large-volume business. Not to mention the annual cost your credit card company might charge you.
Like the CO article mentions, “As a business owner, you’ll want to do your due diligence by researching these potential charges, since credit card processing companies may not always disclose these fees upfront.”
Some other costs that come with credit card transaction fees include payment delays, or if you're paying a hefty amount in transaction fees, you might be forced to markup your product prices—this could affect your customer retention and bottom line. The benefits of low transaction fees are plenty:
Higher profit margin by reducing unnecessary payment processing costs
Competitive product pricing without markups
Better cash flow for the business
Keep in mind that the merchant is usually responsible for transaction fees. To put these charges into context, the credit card rates for Shopify Payments range between 2.4% to 2.9%, in addition to a flat rate. In contrast, Link Money has a low transaction fee of just 1.5% plus a flat fee of $0.30.
Pay by bank is similar to direct debit in your bank. There’s less risk involved. Since funds are verified in advance, the transfer from the customer to the merchant is usually faster and cheaper. It’s no surprise why alternative payment methods like bank transfers are quickly becoming popular in ecommerce around the world.
Set up Pay by Bank to achieve your business goals
Ultimately, offering multiple payment options to your customer can help you achieve your business goals. You might be doing everything right, from providing guest checkout to a mobile-friendly checkout page. But, unfortunately, if the payment process isn't simple and convenient for the customer, you lose them when they're two seconds from conversion.
Pay by Bank is an attractive alternative form of payment that can help you convert more customers and improve your bottom line. To sign up, contact Link Money now.