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How Shopify Balance Can Save You $2000 Per Year [2023]

by Amelia Pahm
How Shopify Balance Can Save You Up To $2000 Per Year - OneCommerce

Do you want to take control of your finances and grow your online business faster?

In most cases, managing your Shopify store’s finances has been a complex and time-consuming process. You have to juggle multiple bank accounts, credit cards, and payment processors. Consequently, it’s easy to make mistakes and you might have difficulty getting a clear overview of your money flow.

But now, there’s Shopify Balance—a free business account that makes it easy to manage your store’s finances from one place. If you expect to know comprehensively about this fintech tool and how to set it up.

💡Recommended reading:

What is Shopify Balance & How Does It Work?

Shopify Balance is a money management account created by Shopify to give its users integrated control over payments and transactions.

You might think: “So basically, isn’t Shopify Balance the same as a banking account or checking account?”. That’s a no, and let us explain.

In May 2020, Shopify launched Shopify Balance for the first time as a merchant account for financial management purposes for businesses on any scale. Users can access it through their Shopify credentials, just as they do with other Shopify products. The tool requires no fees and no minimum balances.

With this new product, store owners are expected to experience a multi-functional business banking solution that would ease the job of superintending finances on Shopify.

It allows them to track their income and expenses, set up automatic payments, get insights into their spending habits, and more—all housed in one place. Merchants no longer have to “scratch their heads” due to the fragmentation in managing their money flow.

Over the past years, this digital system has held the trust of small and medium online sellers. Start-ups would leverage it to access funds faster, helping them speed up their businesses.

💡 Simply put, Shopify Balance is a tool to manage your money on Shopify, designed to help merchants simplify and optimize their money flow. Not a banking or checking account, but a business financial account.

Key Benefits Of Using Shopify Balance

1. Integrate with Shopify Admin

Business finances are connected with the online store and it happens in just one dashboard—from the Shopify Admin. This means no hassle in the workflow operations considering all aspects of your online stores.

shopify balance dashboard

For example, if you want to know how your order fulfillment habit has affected your financial state in a specific period, Shopify Balance can give you a detailed report that shows you:

  • How much you spent on shipping labels,
  • How much you earned from sales,
  • How much cashback you received from Shopify and its partners.

This advantage is, in fact, the primary reason people want to use the tool. From start-ups to long-standing sellers, they all desire to control their finances that way. It releases them from roadblocks in figuring out the ways for cost optimization.

2. No fees & fewer payment restrictions

One thing for sure about Shopify Balance is that it’s free (no monthly and hidden costs). Even a bare minimum balance isn’t required, as said. Besides, you can instantly sign up for it once you want to; there is no waitlist.

Furthermore, you’ll get payouts faster with a Balance account. It usually takes only one business day to complete a withdrawal, whereas it takes about five business days with traditional banking.

Generally speaking, this financial controller has fewer restrictions than standard banking solutions; however, there are particular requirements. To be eligible for an account, your business must be located in the US with a phone number and an SSN (Social Security Number) relatively.

shopify free trial

3. Virtual and physical business card

Continuous growth means continuous investment. With a business spending card, you’re able to turn on the automatic mode of product fulfillment, maintain Shopify subscription fees, or do anything to support your business.

A virtual card is available for all Shopify Balance merchants from the start. Thanks to it, you can also receive cashback and exclusive rewards from Shopify. Plus, you can integrate the card with third-party apps like Wise and Payoneer.

You can also order a physical card, which helps you deploy desired transactions with ATMs and make offline purchases.

Note: Shopify Balance has card control features, one of which allows you to lock the card in case it’s lost or stolen. You can re-order a new one.

4. Exciting cashback rates and rewards

Shopify Balance offers cashback ranging from 2% to 10%, which is great. How to earn Shopify cashback? You only earn cashback on purchases for Shopify products, including apps, management tools, shipping, themes, and other in-house solutions.

shopify balance rewards

Shopify Balance rewards

Businesses can earn up to $2,000 cashback every year with Shopify Balance by using their Shopify Balance card to make eligible purchases from Shopify and its partners. Here is a simple calculation and explanation:

Let’s say that a business spends $10,000 a month on Shopify products and services, including Shopify Shipping, Shopify Email, marketing ad campaigns, apps, themes, domains, and Shopify Expert assistance.

When using Shopify Balance, the company can earn 2% cashback on the majority of these transactions. This implies that the company could receive $200 per month or $2,400 per year in cashback benefits.

However, Shopify limits cashback payouts to $2,000 per year. This implies that regardless of how much the company spends, it can collect $2,000 in cashback benefits from Shopify in a year.

Additionally, the business can also get 10% cashback on some purchases from Shopify partners, such as marketing ad campaigns with Snapchat. These cashback rewards are not subject to the $2,000 limit and are deposited separately into the Shopify Balance account.

💡Ultimately, the total cashback rewards that a business can earn in a year with Shopify Balance can be more than $2,000, depending on how much they spend on Shopify and its partners.

5. FDIC insurance for higher security

When it comes to banking solutions, safety is an obvious priority. The more secure a finance tool is, the more it is entrusted.

With FDIC insurance worth $250,000, your account and business spending card are prevented from deceitful parties. This protection is all the rage in traditional banking, meaning Shopify Balance is also trustworthy as a safe money management tool.

6. On-the-go use with Shopify Balance mobile app

This fintech product also comes in a mobile app, allowing users to manage their money everywhere and every time. The app is free and contains all features as with the desktop version.

Depending on your mobile device system—IOS or Android, you can download the Shopify Balance app from Apple Store or Google Play.

7. No hassle in filling taxes

If you’re looking for a way to save time and simplify your taxes, Shopify Balance is an excellent option.

It categorizes your expenses as either business or personal. This can help you track your business expenses and ensure you only claim deductible expenses on your taxes.

Moreover, the finance tool generates tax reports, including information about your income, expenses, and deductions. It also allows you to export financial data to accounting software like Quickbooks, Freshbooks, Bench, and more.

All of the benefits above are enough to prove Shopify Balance is an intelligent financial service. And because it’s free, there’s no reason not to give it a try.

Nevertheless, not all individuals are eligible for this tool. The section below lets you know whether you meet the requirements to open such an account.

What are the Requirements to Open a Shopify Balance Account?

To be eligible for a Shopify Balance account, you must:

  • Based in the United States or Puerto Rico
  • Be a merchant on any Shopify plan except for Shopify Plus
  • Have a valid US Social Security Number (SSN)
  • Have Shopify Payments set up as a single account holder
  • Not be a prohibited business, as outlined in Stripe’s Prohibited and Restricted Businesses.

Once you meet all of those requirements, it’s time to set up a Shopify Balance account.

How to Set Up Shopify Balance

Step 1: Log in to Shopify

Go to the Shopify Balance landing page. This is where you can log into your Shopify account or create it from scratch if you haven’t had one.

Shopify Balance landing page

Log in from the Shopify Balance landing page to set up a Balance account

Step 2: Navigate the Shopify Balance tab

Once you’ve logged into your account through the Shopify Balance homepage, it will direct you to the Shopify Admin dashboard. There, you’re already positioned in the Balance section, where you’ll do a few basic steps to open an account.

The Shopify Balance page from the Admin dashboard

Shopify Balance page from the Admin dashboard

Note: If you’re on the Shopify Admin dashboard from the start, click Finances > Balance. This is another easy way to access Shopify Balance; however, the Balance section may not always appear. If this unfortunately happens, try the way mentioned above.

❗ If it leads you to a 404 error page or does not show the Open account button, it implies you miss at least one of the eligibility criteria to open an account. Reread the previous section if you forget what these requirements are.

The 404 error page appears as you don’t meet the requirements

The 404 error page appears as you don’t meet the requirements

Step 3: Open a Shopify Balance account

To continue, click Open account. Then, it will walk you through a setup journey with simple steps to create your account and then integrate it with your online store.

The Shopify Balance page with an Open account button

The Shopify Balance page with an Open account button as you meet all requirements

Take your time to read all the tabs on the setup page, beginning with the Getting started tab that tells how the tool works.

Then click Continue.

Shopify Balance account setup page

Shopify Balance account setup page

In the Verify your information section, carefully check the Legal name, Date of birth, and Address. This information is critical for receiving payouts and conducting other banking proceeds.

Ensure it’s accurate; if not, click the Pencil icon to change. As everything is accurate, click Verify.

 Verify your information in the Shopify Balance account setup section

Verify your information in the Shopify Balance account setup section

Next, fill out your Social Security Number (SSN). Shopify Balance needs this information to verify your identity, so you don’t want any mistakes there.

Then, Click Confirm.

Entering Social Security Number SSN to your Balance account setup

Enter your Social Security Number (SSN) and click Confirm

In the final tab, the Agree to terms section, check the box to accept all the Terms of Service. Finally, click Complete account setup.

Agree to Terms and complete account setup

Agree to Terms and complete account setup

That’s all you need to create a Shopify Balance account! You can now access its management module on the Shopify dashboard.

Bonus Step: Secure account with two-step authentication

You’ll be required to configure two-step authentication to get started with Shopify Balance. This is vital as an extra layer of security on your Shopify account overall.

Set up two-step authentication to secure your Balance account

Set up two-step authentication to secure your Balance account

To set it up, click the green Set up two-step authentication button.

Then you’re taken back to the log-in page one more time. Right here, click Turn on two-step.

The two-step authentication comes with three options. They include:

  • Security key or Biometrics: This is a fingerprint reader or USB key to verify your identity when you log in.
  • Authenticator app: You use an authentication app that generates a code to log in. (recommended)
  • SMS delivery: You receive a text message with a login code.

Once you’ve picked your authenticator method, you’ll gain some recovery codes from Shopify. These codes are like the “spare keys” when your authentication app is suddenly inaccessible.

Print, copy, or download these codes, and store them in a safe place. You might need them one day!

Managing your store finances has never been easier with a built-in tool that is free and reliable. Now you can access all Shopify Balance features to help you manage your finances.

We’ll show you how to use them in the section below.

How to Use Shopify Balance Account Features?

How good your management is depends on what level of your familiarity with all the features. Let’s tour every single one while learning how to administrate your cash flow with them.

1. Create and manage multiple accounts in one dashboard

Sometimes, you may need more than one account to separate your budgets and expenses.

For example, you may want to have an account for saving for taxes, another one for paying suppliers, and another one for investing in marketing. With Shopify Balance, you can create up to five extra accounts for different purposes. And you can access and manage all of them in one dashboard.

Having multiple accounts can also increase your total credit limit. This can be useful if you have a lot of expenses or need to finance a large purchase.

If you run multiple businesses, you can also create separate accounts for each one. This will help you track your spending and manage your finances more easily.

2. View Shopify Balance statements

Of course, you can view account statements, keeping you on track of financial happenings for the current month or the previous 12 months. To do this, follow these steps:

  1. Go to your Shopify admin.
  2. Click Finances > Balance.
  3. On the dashboard, click Manage account.
  4. Click the View statements button at the bottom right corner.
  5. Select the statement you want to view.

The statement will open in a new tab to show you the history of transactions, debit, credit, and balance. Shopify allows you to download a copy of your account statement by clicking the Download button.

The statements are updated daily and can be viewed for all your accounts.

3. Gain cash flow insights for a specific account

Cashflow insights can help merchants understand their financial health. For example, it helps you identify areas where you went over budget.

This information can be used to change your spending habits, such as negotiating better prices with suppliers or cutting back on unnecessary expenses.

To get cash flow insights for a specific Balance account, you can follow these steps:

  1. On the Shopify admin, click Finances > Balance.
  2. Select the account you want to view cash flow insights for.
  3. Under Cash flow this month, click View all insights.

This will open a tab with the following information:

  • Total income
  • Total expenses
  • Net cash flow
  • Top five spending categories
  • Upcoming Shopify bill

4. Managing your payment card

The Card management page includes all the needed features to manage your business payment card. You can:

  • View your card balance at any time
  • View your transaction history made on your card
  • Set spending limits on your card to help you stay on budget
  • Block your card immediately if it’s lost or stolen
  • Order a new physical card
  • Change your card details, such as your phone number or billing address

5. Checking cashback rewards

The Shopify Balance rewards page shows you all your eligible rewards. You can see how much cashback you have earned and how much you must spend to reach the next reward tier.

To access it, from the Shopify Admin, click Finances > Balances. Under Rewards, click View rewards.

6. Transferring funds

You can send money to or from your Balance account on the Transfer funds page. It’s perhaps the most high-traffic area from the account details page for its widespread usefulness.

To add funds to your Balance account:

  • Go to your Shopify admin page and click on Finances > Balance.
  • Choose the account that you want to deposit money into.
  • Click on the green Move money button in the upper right corner.
  • Optional: You can copy your Shopify Balance account details by clicking on the clipboard icon under the Add funds to Balance tab. You will need these details to transfer money from your other bank account.
  • Log in to your other bank account that you want to withdraw money from.
  • Follow your bank’s usual process to transfer money out of the bank using your Shopify Balance account details.

To send money from your Balance account:

  • Go to your Shopify admin page and click on Finances > Balance.
  • Choose the account that you want to withdraw money from.
  • Click on the green Move money button in the upper right corner.
  • Under the Transfer funds from Balance tab, enter the account number and routing number of the bank account that you want to send money to.
  • Then, enter the amount you want to send and a short description for your reference.
  • Click on Next and confirm your transfer details.
Note: The daily transfer limit of a Balance account is $5,000.

7. Changing payout account

Enabling Shopify Payments is one of the requirements to open a Shopify Balance account. Thus, it makes sense that you can change your current payout account to a different one that’s not your Balance account.

To do this, from your Account details page, click Change payout account. Under Replace bank account, fill in the New routing number and New account number from another bank account into relative fields. Choose your currency and click Save.

What a journey! That’s all there is to set up a Shopify Balance account and use it to support your business finance management.


To summarize, Shopify Balance is a powerful financial management tool that can help Shopify merchants improve their cash flow, track their spending, and earn rewards. It offers many features not available with traditional payment methods, such as faster payouts, cashback, and early access to new features.

If you’re a Shopify merchant looking to improve your financial management, consider using this banking solution. It’s a valuable tool to help you make better business decisions and avoid financial problems.

Don’t forget to stay tuned on OneCommerce Blog for more exciting reviews and insights!

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