Save 1% on Shopify Payouts with HedgeFlows

Shopify recently unveiled multi-currency payouts for select customer tiers, giving UK businesses a game-changing chance to save up to 1% on their international revenues.

This article shows you how to seize this opportunity, adapt it to your business flows, tackle potential FX risks, and take control with practical solutions.

Previously, Shopify users were required to convert their revenue into their primary currency, incurring a 2% conversion fee. However, with recent updates, users on the Advanced Shopify and Shopify Plus plans can now set up payout accounts in multiple currencies. This change allows them to save 0.5% and 1.0% on conversion fees, respectively. 

Below is the list of bank account locations and currencies available to Shopify UK shop owners (source: Shopify):

These are the relevant details for merchants based in the United Kingdom:

• You can only have GBP payouts issued to a bank account based in the United Kingdom (UK).
• You can receive Multi-Currency Payouts by using a European bank account with a supported IBAN that can be paid out in the selected currency.
• USD can be added with a US-based bank account.
• USD can also be added with a UK or European IBAN.

You can now link up to eight bank accounts in different currencies, which helps you save on currency exchange fees when managing payouts, processing refunds, or handling chargebacks. By connecting an account in the relevant currency, you can simplify transactions and eliminate unnecessary costs. The currencies available for payouts will depend on your store’s region and the selected bank account.

Connecting the HedgeFlows global payment account and treasury solutions helps streamline your process so you can:

• Save up to 1% by avoiding FX costs if you sell on Shopify and pay your suppliers in the same currencies.
• Save 0.25% - 0.75% vs Shopify by converting currencies at our market-leading FX prices.
• Fix your Shopify prices in foreign currencies for up 12 months using pre-booked FX rates via HedgeFlows.

The (almost) perfect world - Natural hedging

If your business can align Shopify revenues with expenses in the same currency, HedgeFlows payment accounts provide a smart solution.

You can simply collect and pay in the same currency, completely bypassing foreign exchange conversions. Previously, Shopify required you to convert your proceeds, only for you to repurchase the currency later—incurring foreign exchange fees twice in the process.

With HedgeFlows, you eliminate both transactions, saving time and money. However, the trade-off is that funds may sit idle in multiple currencies as you wait for payments to align, ensuring that conversions are avoided. Our treasury management solutions can assist in such a situation.

Payment costs and FX risks from avoiding Shopify conversions

Most businesses don’t have a perfect match between the currencies they earn via Shopify and spend elsewhere, which can lead to high FX (foreign exchange) conversion fees. Such businesses can still avoid Shopify's fees for converting currencies when payouts are made by opting out and converting it with HedgeFlows with our market-leading exchange rates.

However, there’s still a catch. By opting out, you expose yourself to the risk of FX rate fluctuations. For instance, if you choose monthly payouts to reduce payment fees, the exchange rate could change between the time of the sale and the payout, potentially costing you more than you save.

HedgeFlows offers a solution to this problem, too. With HedgeFlows, you can lock in FX rates as soon as your sales are completed, eliminating the risk of fluctuating rates. When Shopify sends your payout to your HedgeFlows account, you can use the prebooked FX rates to convert the funds into your home currency, ensuring predictable and cost-effective cashflows. HedgeFlows also lets you use local accounts, like a US-based USD account, to save even more on unnecessary fees.

Keep YOUR prices stable in multiple currencies in Shopify

One challenge of using multicurrency pricing in Shopify is the fluctuation of prices due to changing currency exchange rates. This can lead to issues such as frustrated customers who return to complete a purchase only to find prices have changed or losing a competitive edge in markets where products are more commoditised. With HedgeFlows, you can lock in FX rates and set stable, predictable pricing for your Shopify store in up to 35 currencies. This ensures consistent customer prices while giving you greater control and reliability in managing international sales.

To find out more about how HedgeFlows helps Shopify customers, please reach out to our sales team at hello@hedgeflows.com or book a demo.