Managing your Shopify Credit account

Shopify Credit is a pay-in-full business charge card, requiring full payment of the statement balance within 10 months by the due date to keep your account in good standing. This article outlines account management tasks, including viewing statements, making payments, and handling bank account changes.

Overview of Shopify Credit

On the Credit page of your Shopify admin, you can complete the following tasks:

• view account activity
• access monthly statements
• make payments

There are no annual fees with Shopify Credit, and you can earn cashback on eligible purchases, which is automatically applied to your Shopify Credit account as statement credits.

Credit limit changes

Your Shopify Credit limit can change automatically based on your business performance. Your credit limit is regularly evaluated based on factors including your sales, card use, and repayment history to match your business needs.

When credit limit changes take effect

If you're eligible for a credit limit change, then your Shopify Credit limit is updated at the beginning of your statement period each month. You receive a notification in your Shopify admin and an email when your credit limit changes.

Credit limit increases

Your credit limit can increase automatically at the beginning of each statement period, when your business experiences factors such as growth, regular credit line use and on-time repayments. If you don't want a credit limit increase, then you can contact Shopify Support to have your limit reduced.

Credit limit decreases

Your credit limit can decrease automatically at the beginning of each statement period, if your sales decline, if you miss repayments, or have delayed repayments. To improve your chances of receiving a credit limit increase, you can complete certain actions. The following are examples of some the actions you can take:

• Improving your sales performance
• Using your credit line regularly
• Ensuring your repayments are successful with sufficient funds in your bank account

Your outstanding balance must be below your credit limit. If your credit limit decreases below your outstanding balance, then you must make a payment to bring your outstanding balance below the new limit. This lets you to continue using your Shopify Credit offer.

You can review your current credit limit and available credit in the Credit section of your Shopify admin.

Statement grace period

Each statement period is followed by a one calendar-month grace period. Similar to traditional credit cards, when you repay your full statement balance within the grace period, you won't pay fees or repay your statement balance from daily sales.

By default, you're opted into paying the full statement balance on the last business day of the grace period.

Payment options

By default, you're opted into the Pay in full repayment structure. This repayment structure means that you pay the full statement balance within one calendar month by an automatic debit from your linked bank account. This ensures you can avoid fees and lets you spend your funding, up to your credit limit.

If you need more time to repay, then you can change your auto-pay direct debit settings. You can make daily payments, and take up to 10 months to pay your statement balance for a fee, that's referred to as Pay over time. A percentage of your daily sales is automatically debited, as defined in your agreement, on each business day after the statement grace period until your balance is paid in full. Both the 11% fee on the remaining statement balance and daily payments deduct automatically from sales.

At end of each statement's 10-month repayment period, Shopify automatically attempts to debit any remaining statement balance from your linked bank account. If the debit succeeds, then your account remains in good standing. If the debit fails, then a 2% monthly late fee is applied to the past-due balance and your Shopify Credit cards are locked until the balance is repaid in full.

Payment processing

If a payment is processed before 2:00 pm Eastern Standard Time (EST), then the payment might require three business days to clear and display in your Shopify Credit account. If a payment is initiated later than 2:00 pm EST, then it might not process until the following business day and result in a slight delay before it's posted in your Shopify Credit account. Payments take longer to process over non-business days such as weekends and holidays.

Automatic payment details

Shopify Credit payments are collected depending on the following repayment structures:

• Pay in full: Payments are automatically debited from the bank account connected to your Shopify Payments on the payment due date each month.
• Pay over time: Daily repayments are deducted from your Shopify Payments balance before your payout is deposited to your bank account. If the repayment can't be collected from your balance after several attempts, then it's debited from the bank account connected to your Shopify Payments. If your business is located in Texas, then repayments are collected only from your Shopify Payments balance.

You don't need to take any action on the payment due date, but you need to ensure that sufficient funds are available to avoid issues. Learn about the consequences of non-payment.

Make a manual payment

As the primary cardholder, you can make a manual payment of any amount towards your outstanding balance at any time. For example, you can choose one of the following payment options:

• Remaining statement balance: This option lets you pay the remaining balance due on your account. If you pay the remaining statement balance, then you can avoid or resolve fees and daily sales repayments, if applicable.
• Current balance: This option lets you pay the full balance on your account. This includes charges that are posted to your Shopify Credit account within the current statement period.
• Other: This option lets you enter a custom amount.

Payments that you make apply towards your oldest statement balance first, and to your current statement balance. If you opt to pay in full monthly, then any remaining amount at the end of the grace period is automatically debited from your connected bank account. If you pay over time from sales for a fee, then any remaining balance is automatically debited from your connected bank account on the statement due date.

Learn more about payment processing times.

Steps:

Review your transactions

You can review any pending, failed, or posted transactions from the Credit page in your Shopify admin. The transactions table displays your Shopify Credit activity with status indicators to help you track payment progress. Click any transaction to open a detailed view of the transaction's status and repayment details.

Steps:

Statement fees

Review the following information on how statement fees are charged, how discount fees are applied, and how late fees are calculated.

Remaining balance fee

An 11% fee on the remaining statement balance is charged to your account one calendar month after the statement period ends. No fees are charged if the statement balance is paid in full within one calendar month.

If you make a partial payment during the one month period after the statement end date, then the 11% fee is charged on the remaining balance. The following example displays the calculation of the remaining fee balance on a spend of $1000 USD in one calendar month.

The remaining balance fee is charged only on the amount spent in the calendar month statement period and doesn't compound over the following months. The following is an example of how the remaining balance fee is charged across multiple months spending of Shopify Credit.

If you need more time, then you can change your auto-pay direct debit settings to make daily payments from your sales and take up to 10 months to pay your statement balance for an 11% fee. In the event of an automatic payment failing or being reversed after the statement period, you're automatically switched to paying over time from a percentage of your daily sales and charged an 11% fee on the remaining statement balance.

Fee discounts

Discounts are calculated based on how quickly you repay your statement balance and the associated fees.

For example, you have a statement balance of $1,000.00 USD for the month of February and you decide to pay over time using your daily sales. In this situation, an 11% statement fee is applied. Your balance is now $1,110.00 USD, which represents the total you repay over time.

Starting on April 1, 10% of your daily sales are automatically deducted to pay off your February balance. For example, if you have a statement balance of $1,000 USD for the month of February, and if 10% of your daily sales is always $7.25 USD, then by paying that amount each day, it takes 145 days to pay off your February balance which amounts to a total of $1,051.25 USD.

If you pay off your balance in less than 10 months, then you might be eligible for a fee discount. So, on day 146, your final payment is $3.84 USD instead of the usual $7.25 USD and you're credited $54.91 USD.

In total, you pay $1,055.09 USD on your February statement balance, instead of the $1,110.00 USD that was originally outlined.

You can view your agreement terms and available discounts at any time in your Shopify Credit account in the Shopify admin.

Shopify Credit has no annual fees and no foreign transaction fees.

Late fees

If you don't pay your balance in full by the 10-month repayment due date, then you incur a 2% monthly late fee on any past-due balances, in addition to the 11% fee on any remaining balance. To avoid a monthly late fee, if your daily sales are insufficient to repay in full within 10 months, then you can make a manual payment.

The 2% monthly late fee applies only in cases where the automatic debit attempt on the 10-month repayment due date fails. To avoid this, make a manual payment before the due date, or ensure your linked bank account has sufficient funds for the final automatic debit.

View your Shopify Credit monthly statements

If you're the primary cardholder, or a staff account with the View all Shopify Credit account activity and the Manage payment settings staff permissions, then you can view monthly account statements. These statements are also emailed monthly to the primary account holder on file. Secondary cardholders can't view monthly statements.

Your monthly statement includes important information about your account, including a summary of all spend, payments, credits, and refunds that occurred on your account within the monthly statement period. It also includes details about your minimum payment due as well as the associated due date:

Steps:

1. In your Shopify admin, go to Finance > Credit.
2. Click View statements.
3. Select a statement to view.

Change your payout account

Payments towards your Shopify Credit business card are taken from the account that's connected to your Shopify Payments account. To change the account that you use with Shopify Credit, change the bank account that you use with Shopify Payments.

Consequences of non-payment

Shopify Credit operates as a pay-in-full charge card, requiring the statement balance to be settled either in full each month, or over a 10-month period. Consistently failing to clear your Shopify Credit balance by the due date each month, or by the end of the 10-month period, could affect your eligibility to use this product. When repaying your balance with automatic, monthly debits, non-payment will lead to your card being locked and might limit your access to additional financial services offered by Shopify.

When you fail to pay your statement balance in full, it triggers a series of actions that impact your account status and payment processes:

1. Automatic payments based on daily sales: If you fail to make a full payment, then daily payments are automatically deducted from your account based on your daily sales volume and used towards your statement balance. These automatic payments are calculated based on your daily sales volume. Your remaining statement balance is debited from your linked bank account on a monthly basis when you select the Pay in full option, and until the statement balance is paid in full. You can change your repayment settings at any time to the Pay over time option, to stop automatic monthly payments of your statement balance.
2. End-of-repayment-period debit and card locking: If the automatic debit attempt at the end of the 10-month repayment period fails, then you enter a state of delinquency and your Shopify Credit charge card is locked. You can't make further purchases on the card until your balance is repaid in full.
3. Manual payment and recovery process: Despite the delinquency status, you can make manual payments to resolve your outstanding balance. By making manual payments, including partial payments, you can work towards resolving the outstanding balance and unlocking your account sooner.
4. Account unlocking and payment resumption: After you fully pay the outstanding balance, your Shopify Credit account is unlocked and your payment schedule returns to normal.

Remittances for Shopify Credit

When you repay through Pay over time, a percentage of your daily sales goes toward your Shopify Credit repayment. This amount is deducted from your Shopify Payments balance before your payout is deposited to your bank account.

If the repayment can't be deducted from your Shopify Payments balance after several attempts, then it's debited from the bank account connected to your Shopify Payments. If that bank account debit also fails, then the day's payment is considered failed.

If your business is located in Texas, then repayments are collected only from your Shopify Payments balance, with no bank account debit. If a repayment can't be collected from your balance, then the day's payment is considered failed.

This applies only to Shopify Credit accounts making daily payments where a percentage of your daily sales is automatically collected. Monthly Pay in full payments continue to be debited from your bank account.

When repayments are collected from your Shopify Payments balance, you can view the transactions in the following locations in your Shopify admin:

• Payouts page: The deduction is displayed in your payout details, in the Adjustments section.
• Credit transactions: The repayment is displayed in your Credit transaction history, showing the amount repaid from your daily sales.

If you need to make a manual payment toward your outstanding balance, then the payment is debited from the business bank account linked to your Shopify Payments account.

Cancel your Shopify Credit account

For information on how to request cancellation of your Shopify Credit account, including important considerations before cancelling, refer to Section 7.2 of the Shopify Credit Program Terms.