I recently got a question from a subscriber who asked if I accept bank deposits on my stores. He was wondering if I could share my experience and talk about any downsides related to it.
Here’s the short version of the story:
Yes.
I’ve used bank deposits on my Shopify stores for a while. However, most people who placed orders per bank deposit never actually followed through and transferred the money. The just procrastinated and I had a bunch of open, unfulfilled orders in my Shopify store.
Even worse, I was constantly monitoring my business bank account to check if I got an incoming payment. When I did, it was always a lot of work because I had to login to my e-banking which always sucks.
There’s a ton of security stuff I need to do every time I login.
Plus, once I saw the payment I then had to go and figure out which order the payment was for. Some people didn’t write anything in the comment of the payment. And again others were paying for an order with the bank of their wives or husbands. So in the end I had to spend a ton of time researching which order the payment was meant for.
And it usually required quite a lot of back and forth with customers before they made the bank deposit and after the bank deposit.
It just wasn’t worth it, so I disabled bank deposits again.
I also believe having bank deposits enabled on my store lowered my credit card and PayPal checkout rate. A lot of people who checked out with the bank deposit option actually owned credit cards or had PayPal. But because there was also an option for bank deposit, they chose the bank deposit for security over credit card or PayPal.
But then once they placed the order, they might have gotten buyers remorse, or second thoughts or they might have just procrastinated.
“I’ll transfer that money in a few hours”.
Aka.
Never.
It’s better to disable bank deposits and only accept credit card and PayPal. This way you can close the deal and capture the money while people’s buying intent is spiking. Make the sale before people have second thoughts and don’t leave any room to procrastinate.
Save yourself the headaches of accepting manual payments or bank deposits and increase your conversion rate with CC and PayPal only.
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Andrew Oxley
Hi,
Thanks for sharing your experience.
Would one advantage of a bank deposit be that you don’t need to pay the 2.7% + 30c Shopify fee? Or do you still need to pay this fee for Bank Deposit?
Andrew