What is Shopify’s settlement cycle? How to calculate Shopify’s settlement cycle? The settlement cycle directly affects the capital turnover of cross-border e-commerce. The longer the cycle, the greater the pressure on capital turnover, which affects stocking and a series of subsequent work. The shorter the settlement cycle, the higher the capital turnover efficiency.
At present, according to the conventional industry standards, the settlement cycle is 15 days. If it is a merchant with a large transaction volume, this settlement cycle will be shorter. The order opening cycle is generally 30 days. Although you cannot choose the order opening date, you can extend the order opening cycle to a time interval of one, two or three years or more to obtain a discount. Because APPs use different order opening cycles, the order opening cycle may not necessarily match the order opening date of the Shopify subscription order opening cycle. If you want to suspend or close your store, you must also cancel your subscription to the APP application to avoid incurring additional charges in the future.
1. Independent station settlement
Independent station settlement refers to the process in which the bank pays the seller the payment according to the contract after the buyer purchases your product on the seller’s website and the seller delivers the product to the buyer according to the agreed time limit. There are third-party payment companies. Because most independent station sellers are not enough to cooperate directly with banks, third-party payment companies negotiate channels with banks and provide and use payment channels for independent station sellers. The bridge between the seller and the bank also bears transaction risks. In settlement, the third-party payment company needs to prepare settlement, also known as settlement conditions.
2. Third-party payment company
The third-party payment company is a bridge between banks and merchants. For the safety of funds, banks do not consider direct cooperation with merchants when the transaction volume and risk are uncertain. Therefore, banks cooperate with third-party payment companies, and the third-party payment companies guarantee the transaction risks. The third-party payment companies charge a certain transaction fee and then receive the transaction deposit. The transaction deposit is returned in a cycle during the refusal period. The third-party payment company does not participate in the flow of funds. The funds in the settlement are directly connected by the bank with the merchant.
At present, there are many companies in the market that make independent station credit card receipts. When choosing to cooperate with a third-party payment company, you should refer to the company’s length of service in the industry and risk control rules. Risk control represents the ability to bear risks, and length of service represents the industry strength accumulated by the company, which is mainly manifested in resource advantages such as qualifications, channels, and customers.
3. Settlement cycle calculation
The third-party payment company will comprehensively consider the consumer’s successful payment, merchant delivery, consumer signature, and the cycle of the entire process to determine the settlement cycle. It will adjust the settlement cycle according to the merchant’s investment time, capital flow, and historical situation to provide the merchant with the best settlement cycle.
Lianlian cross-border payment users can withdraw cash at any time 24 hours a day, 7 days a week. Based on the global payment network, Lianlian can help users to quickly arrive at their accounts, and at the same time, the real-time exchange rate of the bank is disclosed in real time, which is transparent throughout the process, truly achieving zero exchange loss, helping users reduce operating costs and increase profit margins. In addition, in order to continue to meet the different dimensional needs of cross-border e-commerce sellers, Lianlian Cross-border Payment has joined forces with well-known partners in the industry to launch a number of products to help sellers solve problems such as opening stores, Amazon claims, and domestic and foreign taxes.
Each product of LianLian Cross-border Payment is developed based on research into user pain points. We are well aware of the helplessness of B2C users with high transaction frequency and small transaction volume in the face of platform miscalculations, and the pain of being willing but unable to cope with the country’s tax refund policy. Therefore, we have quietly completed the development and helped them successfully obtain platform claims and successfully complete export tax rebates.
Shopify is currently one of the main platforms for independent stations. Many cross-border e-commerce sellers have chosen to set up their own independent stations. The payment cycle of the Shopify platform is mainly determined by the payment method you choose. It is recommended to decide the payment method according to your needs, and then consult the specific settlement and collection time, and make a choice based on the withdrawal fee rate, etc. I hope the above content is helpful to you!