How to Change Your Payout Account on Shopify
By Sam Thomas Davies Head of Content
@ Sleeknote

In the world of e-commerce, having control over your finances is crucial. This is especially true when it comes to receiving payments from your customers. Shopify, one of the most popular e-commerce platforms, provides a seamless process for managing your payouts. In this article, we will guide you through the process of changing your payout account on Shopify. By the end, you will have a clear understanding of the importance of a correct payout account and the steps to successfully update it.

Understanding the Importance of a Correct Payout Account on Shopify

Your payout account on Shopify is the bank account or payment processor that receives your funds. It serves as a critical link between your online store and your financial institution. The importance of having a correct payout account cannot be overstated. It directly impacts your ability to receive payments effectively and efficiently.

When your customers make a purchase on your Shopify store, the funds from each transaction are held temporarily by Shopify. These funds are then transferred to your designated payout account based on the payout schedule you have set up. If your payout account is incorrect or outdated, there can be delays in receiving your funds, which can ultimately affect your cash flow and business operations.

Additionally, having an accurate payout account is essential for tracking your revenue and managing your finances effectively. By ensuring that your payout account information is up-to-date, you can easily reconcile your payments and accurately assess the financial health of your business.

Furthermore, it is important to regularly review and update your payout account information on Shopify. This is especially crucial if you have recently changed banks or payment processors. Failing to update your payout account details can lead to funds being sent to the wrong account or payment processor, resulting in potential loss of revenue and complications in reconciling your transactions.

Step-by-Step Guide to Changing Your Payout Account on Shopify

Changing your payout account on Shopify is a straightforward process. Follow the steps below to update your account details:

  1. Log in to your Shopify admin dashboard.
  2. Navigate to the “Settings” tab and select “Payments.”
  3. Scroll down to the “Payout settings” section and click on “Edit” next to your current payout account.
  4. Choose the option to “Add a bank account” or “Add another third-party provider.”
  5. Enter the required information for the new payout account, such as your bank account details or payment processor credentials.
  6. Review the information you entered and click on “Save” to save your new payout account details.

Once you have completed these steps, your new payout account will be updated and ready to receive payments from your Shopify store. It is important to note that changing your payout account may take some time to process, so it is advisable to plan ahead and make the necessary updates in advance to avoid any disruptions in receiving your funds.

Additionally, it is worth mentioning that Shopify provides a feature called “Payout Schedule” that allows you to customize the frequency of your payouts. By default, payouts are scheduled to be sent automatically every 24 hours. However, you have the option to change this frequency to daily, weekly, or monthly, depending on your preference and business needs.

Why You Might Need to Change Your Payout Account on Shopify

There are several reasons why you might need to change your payout account on Shopify. Let’s explore some common scenarios:

1. Switching banks: If you have opened a new bank account or are moving your business to a different financial institution, it is essential to update your payout account accordingly. By doing so, you can ensure that your funds are directed to the correct account.

2. Using a different payment processor: Shopify offers various payment processor integrations. If you are switching from one provider to another, updating your payout account is necessary to align with your new payment processor.

3. Expanding internationally: If you are scaling your business and starting to cater to international customers, you may need to set up a separate payout account to handle different currencies or local payment options.

4. Fixing account discrepancies: In some cases, you may have encountered issues with your current payout account, such as incorrect banking information or account limitations. Changing your payout account allows you to rectify these discrepancies and continue receiving payments smoothly.

It is important to assess your specific situation and determine why you need to change your payout account. By understanding the underlying reasons, you can navigate the process more effectively and minimize any potential disruptions to your business operations.

5. Updating business ownership: If there has been a change in ownership of your business, such as a merger, acquisition, or change in legal structure, you may need to update your payout account to reflect the new ownership. This ensures that the correct individuals or entities receive the funds from your Shopify sales.

Common Issues with Payout Accounts on Shopify and How to Resolve Them

Although Shopify strives to provide a seamless payout system, issues can occasionally arise. Here are some common problems you may encounter with your payout account and tips on how to resolve them:

1. Delayed Payouts: One common issue that Shopify merchants may face is delayed payouts. This can happen due to various reasons, such as technical glitches, verification processes, or unexpected changes in payment provider policies. If you experience delayed payouts, it is recommended to first check your payout settings and ensure that all necessary information is correctly entered. Additionally, contacting Shopify support can help you identify the cause of the delay and expedite the resolution process.