Shopify Balance Review

Pros

• No monthly fees
• Next-day payouts from online sales
• Up to $2,000 cash back per year
• Partner perks and rewards
• Visa ATM card

Cons

• No interest earned
• No checking, savings, or subaccounts
• No cash deposits
• Only for Shopify sellers
• Some businesses excluded

What Is Shopify Balance?

Shopify Balance markets itself as an “all-in-one financial management” tool that delivers many traditional banking tools and benefits to Shopify sellers. But exactly what is Shopify Balance, and is it right for you?

Already a top name in eCommerce, Shopify aims to become an all-in-one solution for online sellers with the introduction of Shopify Balance. Startups and small sellers, in particular, may find that Shopify Balance offers an easy way to manage cash flow and access money from online sales.

Keep in mind that Shopify Balance is a financial service, not a bank, and this is not a checking account but a money management service. Shopify Balance banking is backed by two FDIC-member banks: Evolve Bank & Trust and Celtic Bank. So though you may find some traditional banking features missing, such as the ability to deposit cash or write checks, your money is safe with Shopify Balance.

If you’re already operating an online store built on the Shopify platform, you’re probably already eligible for a Shopify Balance account. And that can save you some time and hassle compared to the requirements of opening a traditional business bank account.

If you’re not familiar with the platform, you might want to start by reading our full Shopify review to get a feel for it before considering Shopify Balance.

Services Offered By Shopify

Shopify is one of the biggest names in eCommerce, with a suite of products aimed at supporting businesses of all sizes. Adding Shopify Balance banking services to the mix offers small business owners another tool for managing their business. Keeping all your finances within the Shopify sphere can also help you separate your personal and business transactions. It will also simplify your record-keeping and might make tax time a little less troublesome.

Since Shopify Balance isn’t a “bank account” you won’t find traditional business checking and savings option, but you can still earn APY on your Shopify Balance balance and can open subaccounts to stay organized which is a nice touch.

Here are some other Shopify products you might be interested in using:

• Shopify Payments*
• Shopify Tap & Chip Card Reader
• Shop Pay
• Shopify Plus
• Shopify POS
• Shopify Capital

*Note: The use of Shopify’s in-house payment processor is required for those wanting to use a Shopify Balance account.

Shopify Balance Rewards & Perks

A Shopify Balance account delivers a wealth of valuable rewards and perks that compare favorably to both online and traditional banks, earning it a 4.2/5 rating for this section.

Opening a Shopify Balance business account can deliver serious value as you build and expand your Shopify store, especially if yours is a relatively new business that has yet to transition to business banking services.

Here’s what you can expect as far as Shopify Balance rewards and perks:

• Up to 2% automatic cashback when you use your Shopify Balance Visa card on eligible purchases
• Up to 3.86% APY
• 10% cashback on Snapchat marketing ad campaigns
• Special advertising perks from Google, Facebook, Instagram, Snapchat, and Pinterest
• Discount on your first 12-month subscription to Google Workspace
• Partner discounts on eligible Apple.com purchases

Of course, there are some fine-print details to these perks. The cash-back award tops out at a maximum of $2,000 back per year. You won’t have to worry about redeeming your cash-back award or letting it expire, as this reward is automatic.

Shopify Balance’s new APY earning option is a welcome addition since our last review, and the feature itself is quite competitive. There are no minimum balance or earning limits to Shopify Balance’s APY, which definitely sets it apart from other popular online banking options. APY is compounded daily and automatically applied to your account.

Shopify Balance Fees

With no monthly fees or minimum requirements, Shopify Balance can be an economical business banking choice. There’s also no minimum deposit required to open a Shopify Balance account, so you can start using it as soon as you set up your Shopify store.

Overall, Shopify Balance has fairly competitive fees earning it a 4.0/5 star rating for this section; however, many of the fees aren’t applicable because Shopify Balance isn’t a full-fledged bank account.

Other fees you might encounter are a $1.50 for paper checks.

Shopify Balance Eligibility Requirements

Finding the right bank account is an important step in growing and managing a small business. Shopify Balance is worth looking into if you’re already using Shopify to handle your eCommerce sales. However, not every Shopify account holder will be eligible for a Shopify Balance account.

Businesses that can use Shopify Balance must:

• Be US-based, with Puerto Rico as the only supported US territory
• Use Shopify Payments
• Have a valid Social Security number attached
• Show a single account owner
• Be on any Shopify plan except Shopify Plus
• Activate two-step authentication

Shopify Payments has additional requirements, and its terms of service include a lengthy list of prohibited businesses that are ineligible for the service. This list includes all businesses categorized as high-risk. So if you’re considering a Shopify Balance account for your business banking, we advise you to check the list and make sure your business will be eligible.

Shopify Balance Application Process

The application process with Shopify Blanace is quite simple and straightforward. Because Shopify Balance eligibility is tied directly to your Shopify account, Shopify will let you know if you are eligible or not — no need to fill out a lengthy bank application.

Shopify Balance Features

Many online-only banks offer services and features that are very similar to traditional banks’ offerings. Unfortunately, this is one area where Shopify Balance falls a little short. Although you won’t find checking options, a savings account, or access to lines of credit, one key feature — the speed with which funds are made available — may make a Shopify Balance account worthwhile.

The biggest perk of a Shopify Balance account is that you get access to your Shopify sales funds up to 7 days earlier than other banking options. Funds from the sales you make through your Shopify store will be available to you the next business day. That’s significantly faster than Shopify’s normal rate. Businesses that operate online probably won’t mind that they can’t deposit cash or checks into their Shopify Balance account, while other businesses may need those missing features.

Here are some other important Shopify Balance features to note:

• Nationwide ATM access
• Virtual cards & mobile wallet
• Free card with the ability to print business name on card
• Ability to lock & unlock cards from the Shopify admin panel
• Reporting
• FDIC-insurance
• Sub-accounts
• Set aside sales tax
• Accounting integrations

Like any banking service, Shopify Balance includes some limitations on when funds will be available. Notably, payouts from Shopify sales will happen the next business day. That means you’ll have access to your money significantly sooner than with other banking methods and faster than Shopify sales normally fund. If you don’t use Shopify banking services, you’ll wait at least five days from the time of the sale. There’s one notable exception: If you enable Shop Pay Installments, funds from those sales can take up to three business days to reach your account.

Here are some other funding limits:

Shopify Balance Sales & Advertising Transparency

Shopify Balance is upfront and transparent about how Shopify Balance works, which makes it easy to find details on Shopify Balance’s fees and rewards structures.

Shopify Balance Customer Service

Shopify Balance offers users access to the same support options that all Shopify users have. And fortunately, those options are extensive, such as direct support via phone, email, and live chat. Users can also access an impressive array of useful and easily accessible self-help options, including but not limited to a knowledgebase, community forums, a searchable encyclopedia, webinars, a podcast, and a blog.

We have consistently rated Shopify highly for its customer service, earning the company a 4.6/5 star rating for this section. In our experience, it has been easy to reach agents by phone, email, and live chat. And we’ve been able to access informed answers in a reasonable amount of time. We find the self-help resources more than adequate and certainly more extensive than those of many eCommerce competitors.

We do note that Shopify Balance does not offer any dedicated support resources for users of this banking service. When we contacted a rep with a question via live chat, he seemed less than perfectly informed about Shopify Balance. However, he was able to locate the answer we needed within a reasonable amount of time.

As Shopify Balance takes off, we hope to see some form of banking-specific support for the program’s users.

Shopify Balance Reviews

Shopify Balance is a relative newcomer both to the Shopify universe and to the field of business banking services. For that reason, we didn’t expect to find a whole lot of commentary from users online. It’s important to note that Shopify itself garners good reviews overall, with sites like GetApp giving the software 4.5/5 stars. And the absence of clusters of noisy complaints about Shopify Balance, minus a negative Reddit thread or two, can be taken as a relatively good sign.

Shopify has also even addressed some of the complaints from our last review like the lack of bookkeeping integrations by adding new accounting integration options for Shopify Balance users.

Negative Shopify Balance Reviews & Complaints

• Available only in the US + Puerto Rico
• High cost of using Shopify

Positive Shopify Balance Reviews

• Fast access to cash
• A clear view of business finances
• All-in-one solution
• Good rewards and cashback

Is Shopify Balance Safe?

It’s important to remember that Shopify Balance is a financial service and not a bank. Banking services are provided through a partnership with an FDIC-insured bank, Evolve Bank & Trust. That means the money you have in your Shopify Balance is insured to the legal limit and as safe there as it would be in the vault at your local branch bank. Shopify Balance also partners with Stripe and Celtic Bank to transmit money and issue services.

As part of the Shopify platform, Shopify Balance offers the same excellent security that the platform offers to all users. Shopify is Level 1 PCI-DSS compliant, the gold standard for eCommerce. Customer data is hosted on secure and well-maintained Debian Linux servers guarded by ultra-secure Open BSD firewalls. Shopify also employs white-hat hackers to test its security measures and offers users extensive resources for protecting their stores and data from hackers, ransomware, and viruses.

Final Verdict: Is A Shopify Balance Account Worth It?

For those already using Shopify to power their online sales, Shopify Balance may be the answer to your business banking needs. We think it would work best for smaller businesses with a simple structure and few (if any) employees. Shopify Balance is ideal if you need quick access to your Shopify funds and for businesses that operate primarily online and don’t need cash deposits.

Shopify Balance won’t be a good choice for your business if you make any significant sales in person, whether at a brick-and-mortar location or at festivals, markets, and the like. That’s because Shopify Balance works best with online payments rather than cash or checks, so you’ll have no easy way to deposit.

If your small business meets that description, and if you’d like fast access to the funds from your online sales, an easy way to pay your business bills, and cash back rewards when you spend money on expenses such as advertising and shipping, sign up for a Shopify Balance account!

If not, take a look at the other top online business banks or the best bank accounts for freelancers to find a better fit for your business.

Shopify Balance FAQs

Business Banking Review Methodology

Merchant Maverick has been researching and reviewing business banking services since 2015. Our writers have tested over thirty different banking products, including checking accounts, savings accounts, employee spending cards, and more. In each review, we evaluate rates and fees, services, rewards, features, eligibility requirements, application process, sales and advertising transparency, customer service, and user reviews.

Read more about how we rate business banking products.

When comparing different banks and banking services, we consider many data points, including the ease and transparency of the account application process, account fees, sales ethics, minimum deposit requirements, and revenue, time in business, and credit score requirements. Our lists of the best banking services include only those we’ve deemed worthwhile from multiple vantage points, and often share qualities such as widespread accessibility across fifty states, valuable rewards, numerous transaction options, and competitive APY.

We spend an average of 10-15 hours researching and updating each one of our lists, making sure the banking services included meet our internal standards for quality and reputation.

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