What is a payout?

A payout is the transfer of money from your Shopify Payments balance to your payout account, such as a Shopify Balance account or a linked business bank account. It represents the funds your business has earned from customer orders after payment processing, refunds, chargebacks, and other applicable adjustments have been accounted for.

When a customer places an order and pays through Shopify Payments, the money is not deposited into your bank account immediately. Shopify first processes the payment, and then, according to your payout schedule, transfers the available funds to your designated payout account. That transfer is called a payout.

How a payout works

The process generally follows these steps:

1. Customer pays for an order through Shopify Payments.

2. Shopify processes the payment and verifies the transaction.

3. Fees, refunds, chargebacks, or adjustments are applied if applicable.

4. The remaining available funds are transferred to your payout account.

5. The funds become available in your Shopify Balance account or linked bank account once the payout is completed.

Example

Suppose a customer purchases a product for ₹10,000.

• Order amount: ₹10,000

• Shopify Payments processing fee: deducted according to your pricing plan

• Any refunds or adjustments: deducted if applicable

• Remaining amount: transferred to your payout account

If the processing fee were ₹200, the payout would generally be ₹9,800, assuming there were no refunds or other adjustments.

What merchants can see

In Shopify, merchants can typically view:

• Pending payouts

• Scheduled payouts

• Completed payouts

• Payout amounts

• Payout dates

• Transaction details included in each payout

This information helps merchants track incoming revenue and understand when funds will become available for business expenses such as inventory, payroll, advertising, or supplier payments.

Payout schedules

The timing of payouts depends on factors such as:

• Your country or region

• Whether you use Shopify Payments

• Your configured payout schedule

• Banking processing times

• Whether payouts are sent to Shopify Balance or an external bank account

Some merchants may receive payouts daily, while others may receive them on a recurring schedule such as weekly or monthly, depending on their settings and eligibility.

Overall, a payout is the transfer of your processed sales revenue from Shopify Payments to your Shopify Balance account or linked bank account, allowing you to access the money your business has earned.