Help
Log in

PayPal Wallet for the United States

You can accept PayPal payments while managing transactions, payouts, and disputes alongside your other payments in Shopify using PayPal Wallet, which can simplify your payment operations. When you create your Shopify store and set up Shopify Payments for the United States, you automatically receive a PayPal Wallet account. With PayPal Wallet, you manage your PayPal transactions, payouts, and disputes through the Shopify Payments section of your Shopify admin.

To use PayPal Wallet, you must use the most upgraded version of Shopify Checkout.

On this page

Key benefits and features of PayPal Wallet

The following are some of the key features of using PayPal Wallet:

  • All PayPal settings and transactions, including disputes and refunds, are managed within the Shopify admin.
  • PayPal Wallet transactions are bundled with your Shopify Payments transactions and paid out to your preferred bank account.

Considerations when using PayPal Wallet with Shopify Payments

Before you use PayPal Wallet with Shopify Payments, review the following considerations:

  • If you're based in the United States, and using Shopify Payments, then PayPal isn't available in the Additional payment methods section of your Shopify admin. PayPal can only be integrated through the Shopify Payments Wallet.
  • To use PayPal Wallet, you must use the newest version of Shopify Checkout.
  • If a dispute has been opened on a PayPal Wallet transaction, then you can issue only a full refund. Partial refunds aren't available on disputed transactions.
  • When a dispute inquiry is opened, the disputed funds are placed on hold in your account until the dispute is resolved.
  • Decisions made regarding disputes can't be appealed.
  • PayPal Wallet supports new subscriptions and recurring payments.
  • If you accept payments in a currency that's different from your payout currency using PayPal Wallet, then a 3% currency conversion fee is applied. Review fees and costs for more information about currency conversion fees.

PayPal Wallet in the United States

PayPal Wallet is directly connected to Shopify Payments, and acts as a payment method within Shopify Payments, making it easier to manage your transactions.

If your business is based in the United States and you use Shopify Payments, then you can offer PayPal with the PayPal Wallet integration.

You can review the fees associated with PayPal Wallet transactions in the Payments section of your Shopify admin.

For more information on PayPal, refer to the legal agreements for PayPal services that apply to merchants in the United States.

Managing PayPal Wallet transactions in your Shopify admin

Using PayPal Wallet with Shopify Payments means you can manage several important business tasks, directly from your Shopify admin:

  • Payouts: Payouts for PayPal Wallet transactions are displayed in the Payouts section of your Shopify admin. You can filter payouts by payment method to review PayPal Wallet transactions.
  • Refunds: Refunds on transactions made with PayPal when PayPal Wallet is active in your Shopify Payments account, are managed and displayed directly in your Shopify admin.
  • Disputes: Disputes on transactions using PayPal Wallet are managed in your Shopify admin.
  • Reporting: You can access reports on sales, refunds, and disputes for PayPal Wallet transactions directly from your Shopify admin. You don't use PayPal Business Centre to review reports on transactions.

If you previously offered PayPal Express Checkout, then disputes on orders paid for with PayPal Express Checkout need to be managed in the PayPal Business Centre. You must maintain a balance in your PayPal Express account, and the connected bank account, for up to 180 days after activating the PayPal Wallet in order to manage refunds or disputes on orders placed using PayPal Express Checkout. If a dispute is opened on an order paid for with PayPal Express Checkout and you don't have enough funds to cover the cost, then your account has a negative balance. If your PayPal account balance is negative, then you must top up the account. If the negative balance isn't addressed, then PayPal contacts the account owner to facilitate a resolution.

Using Venmo with PayPal Wallet in the United States

Venmo is an online money-transfer service that allows customers in the United States to make payments from the Venmo app on their mobile devices. Venmo is automatically available as a payment method in your PayPal Wallet.

If you don't want to offer Venmo as a payment method to your customers when you have Shopify Payments active, then you need to contact Shopify Support to have it deactivated. This option is available only when you're using the PayPal Wallet integration with Shopify Payments.

If you use PayPal Express Checkout as a third-party gateway instead, then Shopify doesn't control the payment options that display within the PayPal checkout experience. To change Venmo availability for a PayPal Express Checkout integration, contact PayPal directly.

If you want to offer Venmo to your customers as a payment method, but you don't want to use Shopify Payments, then you can offer the option to pay with Venmo by adding PayPal Express as a third party gateway. Learn more about PayPal Express and Venmo.

To pay for their order using Venmo in your checkout, customers must meet the following eligibility criteria:

  • Customers must be located in the United States.
  • Customers must have the latest version of the Venmo app installed on their mobile device.
  • Customers must use their connected browser in the Venmo app, with cookies accepted. Venmo doesn't support private browsing or incognito mode.
  • Customers must have activated the online purchases setting within their Venmo app.

Managing PayPal Wallet transaction disputes

When a customer reports an issue in the PayPal Resolution Center, an inquiry is opened. You have 20 days to resolve the issue directly with the customer without any involvement from PayPal. When the inquiry is opened, the disputed funds are placed on hold in your account until the dispute is resolved.

There are several steps you can take to manage a dispute:

  • All communication with customers should happen in your Shopify admin.
  • If you find the customer's claim valid, then you can issue a full refund to close the inquiry.
  • If you believe the purchase doesn't warrant further action, then discuss this with the customer. If they agree, then they can close the inquiry or let it expire after 20 days.
  • Customers can escalate the inquiry to a claim at any time within the 20 days, shifting the resolution process to PayPal, similar to chargebacks and inquiries procedures.
  • Orders purchased with PayPal Wallet on Shopify Payments are eligible for PayPal's Seller Protection.

Troubleshooting inquiry chat form errors

If you receive an error "message failed to be sent" when attempting to reply to a dispute inquiry chat with a customer, then contact Shopify Support. This error can occur when an inquiry is escalated to a chargeback but the system hasn't updated to display the chargeback form. Shopify Support can help you identify the current status of the dispute and provide guidance on the next steps.

Enterprise resource planning (ERP) integrations

If you use an enterprise resource planning (ERP) tool or third party integration to manage your business, then you need to change the queries you use to pull transaction, payout, and dispute information from your Shopify admin.

PayPal Transactions

In your Shopify admin, PayPal Wallet transactions are displayed in the transactions page. You can filter for PayPal as the payment method to review any relevant transactions. You can use the following queries in your ERP tool to pull PayPal transaction information from your Shopify admin:

  • In GraphQL, you can run the following query:
  • orderTransaction where paymentMethodName = PayPal Wallet and gateway is Shopify Payments
  • This displays all PayPal Wallet transactions including fees, and if the transaction was authorized, captured, successful, or failed.

PayPal Wallet payouts

In your Shopify admin, PayPal Wallet transactions are bundled with your Shopify Payments payouts. PayPal is displayed as the payment method. You can use the following queries in your ERP tool to pull PayPal payout information from your Shopify admin:

  • In GraphQL, Query payouts and join to the OrderTransaction to get payouts that include PayPal transactions.

PayPal disputes

PayPal Wallet disputes are displayed only on the Home Page, and by filtering on your Orders page. PayPal Wallet dispute notifications are delivered the same way Shopify Payments disputes notifications are delivered in your Shopify admin.