What is Shopify Credit? The Complete Guide to Shopify Credit

What is Shopify Credit, and is it something your business needs?

One of the things that makes Shopify so appealing to a wide range of ecommerce vendors, is how many features the company offers to help you manage, run, and grow your store. Shopify Credit, is just one new example of how Shopify is helping companies scale. 

Essentially, Shopify Credit is a new financing solution (credit card) designed exclusively for Shopify merchants. It’s the first pay-in-full business credit card offered by Shopify, powered by Stripe, and issued by the Celtic bank. It’s also accepted everywhere that accepts Visa payments.

Here’s everything you need to know about Shopify Credit. 

What is Shopify Credit? The Basics

Part of Shopify’s list of “financial services” solutions for business owners, Shopify Credit is a cashback rewards card, intended for ecommerce entrepreneurs. Currently, it’s only available to vendors in the US, who adhere to a variety of eligibility requirements. 

With Shopify Credit, there are no interest charges or fees on purchases – instead, you have to pay off your full balance each month. However, the card does offer access to rewards on eligible purchases, helping you to save money on business operations. 

Key features include:

• No interest or fees: No annual fees, foreign transaction, or setup fees, and no interest.
• Cashback: Automatically earn up to 3% cashback on top eligible spend categories. 
• Flexible repayments: Get up to 56 days to pay for every purchase, with no interest.
• No credit checks: Apply and get a decision from Shopify in seconds, without credit checks.
• Tailored credit limits: Receive unique offers based on sales performance. 
• Multiple cards: Create, manage, and issue multiple cards for your team members. 
• Visa perks: Manage transactions wherever Visa cards are accepted, with zero liability, and protection against lost, or stolen cards, and fraudulent charges.
• Physical and digital cards: Make payments with physical or online cards.
• ID Navigator: Track potential threats and manage your identity with ID Navigator

Who Can Get Shopify Credit? Eligibility Requirements

Shopify Credit gives companies an opportunity to access new ways of growing their store, and managing cash flow. It’s an excellent option for any business struggling to manage operational costs on a consistent basis, as it offers more payback flexibility than a standard card.

However, not everyone can access Shopify Credit. Currently, the solution is only available to eligible merchants in the United States. You also need:

• A Shopify Payments account
• An active bank account linked to your Shopify store
• A single store (multi-store businesses can’t apply)
• Two-step authentication on all cards
• A valid US social security number
• A store located in the US, or Puerto Rico

You can find out whether you’re eligible by visiting your Shopify admin, where you should see a banner inviting you to apply if you meet the criteria. Once you’ve determined you’re eligible, you’ll need to apply for approval by the Shopify team. 

Fortunately, the application process is quite straightforward. You can go to the “Finances” section in Shopify, and click on “Credit” then “Apply Now” to get started. You’ll need to review the agreements, enter some details, like your SSN, and submit the application. You should receive a response to your request pretty quickly. 

Managing your Shopify Credit Account

Once you’re approved for Shopify Credit, you can finish setting up your account in the “Credit” section of your Shopify admin center. You’ll need to activate two-step authentication, and you can add a virtual business card number to your mobile wallet if you want too. You’ll also be able to order a physical card from Shopify to use alongside your virtual card.

Once everything is up-and-running, you’ll have a variety of management options you can access on the “Credit” page. For instance, you can:

• Review automatic payment details: You need to pay your account balance in full each month with Shopify credit. Any outstanding balance will automatically be deducted from your connected bank account. Statements are issued on the first day of each month, and you can delay payment for up to 25 days. You can also set automatic payment days yourself.
• Make manual payments: If you want to get ahead of your payments, you can make additional manual payments before your automatic payment happens. You’ll be able to do this in the “Account summary” page of the Credit page. You can choose to pay the entire statement balance on your card, or a portion of it. 
• View monthly statements: Shopify Credit offers access to monthly statements, so you can keep track of how much money you’re spending, and reconcile payments with your accounting tools. You’ll find these within the “Monthly statements” section.
• Manage cards: Within Shopify’s Credit section, you can request a physical Shopify card, or re-order one if you’ve lost yours. You can also activate a card within your account, and view your virtual card information at any time, if you want to make a payment online. There’s also the option to link your Shopify credit card to a mobile or virtual wallet. 
• Manage security: If you lose your Shopify Credit card, or its stolen, you can freeze or lock the card, to prevent anyone else from using it. You can also change the monthly spending limit to $0, or change the PIN manually (although you’ll need to know your current PIN). You can also dispute any charges you consider fraudulent. 
• Manage card holders: If you’re issuing Shopify Credit cards to multiple people within your team, you can use your Shopify admin account to manage their accounts. You can also add secondary card holders to existing cards, change a secondary card holder’s spending limit, and accept invitations to become a secondary holder of another card.

The Rewards on Shopify Credit

Perhaps the biggest benefit of Shopify Credit for business owners is the ability to make purchases and pay off your balance at a later date. This can be crucial for smaller companies, where cashflow can often be tight through certain parts of the year. However, Shopify Credit doesn’t just give you convenient access to financing when you need it most.

As mentioned above, this is a “rewards” card. That means you can earn cashback rewards whenever you use your virtual or physical card for eligible purchases. For instance, you might earn cashback when spending money on marketing and advertising, shipping and fulfillment, or wholesale products. 

Shopify automatically applies a 3% cashback rate on your monthly “top spending category” for up to $100,000 in purchases. After that, you earn only 1% cashback for the rest of the year. The threshold resets annually on the first day of the month when you activated your account. 

This means you could earn up to $3000 back for every $100,000 you spend. It might not seem like much, but its more money in your pocket you can put towards growing your business. 

Notably, not all purchases are approved for cashback. Shopify offers a complete list of eligible cashback opportunities on its website. Fortunately, a lot of popular options are supported. For instance, for:

• Marketing and advertising: Google, Meta, Pinterest, Microsoft, Twitter, MailChimp, Shopify Email, Klaviyo and many others. 
• Shipping and fulfillment: DHL Express, USPS, UPS, Flexport, Shippo, Aftership, Shipstation, Shopify Fulfillment Network, and more. 
• Wholesale: Faire (currently the only option, with others potentially coming in the future). 

Should you Apply for Shopify Credit?

A business credit card can certainly be a useful resource for any company looking to scale its operations, or maintain a consistent cashflow during difficult periods. With your credit card, you can continue to buy the marketing solutions you need, shipment services, and more, without having to worry about making payments instantly. 

However, it is worth remembering there are other business credit card options and financing solutions available to Shopify merchants too. We’d recommend carefully evaluating all of your options before you subscribe to Shopify Credit.