Optimising the Bank Deposit Payment Method on Shopify

Introduction

Accepting bank deposits on Shopify is a reliable way to reduce processing fees and cater to B2B or high-ticket customers who prefer manual transfers. While Shopify provides built-in support for manual payment methods, managing how and when these options appear at checkout is essential for maintaining a professional storefront. Without proper control, showing a bank deposit option to every customer can lead to confusion, delayed orders, and increased administrative work for your team.

We designed HidePay on the Shopify App Store to help merchants take control of their checkout logic by hiding, sorting, or renaming payment methods like bank deposits based on specific rules. This article covers how to set up bank deposits in your Shopify admin, the operational workflow for managing manual orders, and how to use advanced logic to ensure the right customers see the right payment options. By the end of this guide, you will know how to implement a bank deposit system that protects your margins without adding friction to the customer experience.

Understanding Bank Deposits as Manual Payments

In the Shopify ecosystem, a bank deposit is classified as a "manual payment method." Unlike credit card transactions processed through Shopify Payments or third-party gateways, manual payments do not involve an immediate transfer of funds at the moment of checkout. Instead, the customer completes the order, and the transaction is marked as "Pending" in your admin.

This distinction is important for your inventory and fulfillment workflows. When a customer selects bank deposit, the order is created and inventory is often committed (depending on your settings), but you do not actually have the funds yet. You must wait for the customer to initiate the transfer from their bank to yours and then manually verify the receipt of those funds before moving the order to the fulfillment stage.

Why Merchants Use Bank Deposits

There are three primary reasons why an active Shopify store would choose to offer bank deposits:

1. Lower Transaction Costs: Credit card processors typically charge between 1.5% and 3.5% per transaction. On a $5,000 B2B order, that fee can exceed $150. Bank transfers usually have flat, low fees or no fees at all.
2. High-Ticket Security: For very expensive items, credit card companies may flag transactions as fraudulent or impose strict limits. Bank-to-bank transfers are often the only viable way to move large sums securely.
3. Regional Preferences: In many markets outside North America, such as parts of Europe, Southeast Asia, and Latin America, bank transfers (like SEPA or PIX) are the standard for both B2B and D2C commerce.

How to Set Up a Bank Deposit Payment Method

Shopify allows you to activate bank deposits through the "Manual Payments" section of your settings. You can either use the suggested "Bank Deposit" template or create a completely custom manual payment method. For guidance on creating rules and customizations with HidePay, see the HidePay documentation on How to create a payment customization in HidePay.

Using the Suggested Bank Deposit Option

To activate the standard bank deposit option, follow these steps in your Shopify admin:

• Navigate to Settings > Payments.
• Scroll down to the Manual payment methods section.
• Select Bank Deposit from the dropdown menu.
• In the Additional details field, enter information you want the customer to see during checkout (e.g., "Pay via secure bank transfer").
• In the Payment instructions field, provide the exact details needed to complete the transfer. This should include your bank name, account name, account number, and routing or IBAN number. These instructions appear on the order confirmation page and in the order confirmation email.
• Click Activate Bank Deposit.

Creating a Custom Manual Payment Method

If you want to use a specific name like "Wire Transfer" or "Proforma Invoice," you can create a custom method. Note that Shopify reserves certain names like "Bank Deposit" and "Cash on Delivery," so if you use the custom option, you must choose a unique label.

• In the Manual payment methods section, select Create custom payment method.
• Enter the name of the method (e.g., "International Wire Transfer").
• Fill out the Additional details and Payment instructions as described above.
• Click Activate.

Managing Orders Placed via Bank Deposit

Once a customer completes an order using a bank deposit, the order status in your admin will be "Payment pending." This is a critical stage where your operational efficiency matters.

The Verification Workflow

You must regularly check your business bank account to match incoming transfers with pending Shopify orders. Most merchants ask customers to include their order number in the bank transfer reference field to make this reconciliation easier.

When you identify a matching payment:

1. Open the order in your Shopify admin.
2. Click Collect payment.
3. Select Mark as paid.
4. Confirm the action.

Once marked as paid, the order status changes to "Paid," and you can proceed with fulfillment. If an order remains "Pending" for a set number of days (e.g., 5 or 7 days) without payment, it is standard practice to contact the customer or cancel the order to release the inventory.

Handling Multi-Currency Transfers

If you sell internationally, bank deposits can be complex. If you use Shopify Payments and international markets, the checkout will attempt to show the manual payment method in the customer's local currency. However, your bank may charge conversion fees if the customer sends Euros to a USD account. Clearly state in your Payment instructions whether the customer is responsible for wire transfer fees and currency conversion costs to avoid receiving short payments.

Strategic Placement: Who Should See Bank Deposits?

One of the biggest mistakes Shopify merchants make is showing manual payment methods to everyone. If a D2C customer buying a $20 t-shirt sees "Bank Deposit" at checkout, they might select it by mistake or become confused by the lack of an immediate "Buy" button. This leads to abandoned carts or "unpaid" orders that never get settled.

Hiding Bank Deposits for Small Orders

For most retailers, bank deposits are only cost-effective for larger orders. You can set rules to hide the bank deposit option if the cart total is below a certain threshold (e.g., $500). This keeps the checkout clean for small transactions while keeping the low-fee option available for high-value sales.

Targeting B2B Customers with Tags

If you run a "blended" store serving both wholesale and retail customers, you likely only want your wholesale customers to see bank deposit or wire transfer options. By using customer tags (e.g., "Wholesale" or "B2B"), you can ensure that retail customers only see credit card and express checkout options, while your logged-in wholesale partners get the manual payment terms they require. See the HidePay guide on Hide Payment Options by Customer TAG for step-by-step instructions.

Geographic Restrictions

Bank deposits are highly effective in some countries and ignored in others. If you ship globally, you may want to show bank deposits only to customers in specific countries where transfers are common (like Germany or the Netherlands) and hide them for customers in regions where credit cards are the exclusive standard. HidePay includes an organizer for regions — learn more in the help article How to organize payment methods by country or by Shopify Market.

Using HidePay to Control Your Checkout

While Shopify provides the ability to turn manual payments on or off, it does not offer built-in logic to show them only to specific customers or for specific products. Our app fills this gap by allowing you to create sophisticated rules for your checkout.

HidePay uses native Shopify Functions to interact with the checkout process. This means the app runs within Shopify's own infrastructure, ensuring high performance and reliability without the need for theme code edits or external scripts. For background on the move from scripts to functions, see the Nextools post about the SUPAEASY launch and codeless Shopify Functions.

With the app, you can:

• Hide Bank Deposits: Use rules based on cart total, customer tags, or country to remove the option when it isn't relevant.
• Rename Methods: If "Bank Deposit" sounds too formal, you can rename it to "Direct Transfer" or "B2B Invoice" to better match your brand voice.
• Reorder/Sort: You can move bank deposits to the top of the list for B2B customers to encourage its use, or push it to the bottom for retail customers to prioritize credit cards.

Preventing Fraud and Managing Risk

Bank deposits are generally very safe for merchants because the payment is "push-based"—the customer must send the money to you. Unlike credit cards, there is no traditional "chargeback" mechanism for a bank transfer. Once the money is in your account, it is yours.

However, there are still risks to manage:

• Fake Proof of Payment: Some fraudsters may send a doctored screenshot of a bank transfer confirmation. Never fulfill an order based on a screenshot; always wait until the funds are visible in your actual bank balance.
• Inventory Tie-ups: If many customers select bank deposit but never pay, your inventory remains "committed" and unavailable for other customers. Use a clear policy (e.g., "Orders will be cancelled if payment is not received within 48 hours") and use rules to hide the method from high-risk or first-time customers if necessary — you can also use a validation app such as CartBlock on the Shopify App Store to block or validate risky orders.
• Over-Choice: Offering too many payment methods can lead to "analysis paralysis." If you offer Shop Pay, PayPal, Apple Pay, and Bank Deposit, the checkout can look cluttered. Use sorting logic to show only the most relevant three options to most users.

Action Summary for Shopify Merchants

To effectively implement bank deposits on your store, follow these steps:

1. Activate the Method: Enable Bank Deposit in your Shopify Payment settings and provide clear, step-by-step instructions.
2. Define Your Rules: Decide which customers should see this option. Is it for orders over $1,000? Is it only for B2B tagged customers?
3. Implement Control: Use a tool to hide or sort the bank deposit method so it doesn't clutter the checkout for low-value D2C shoppers — if you need combined control over payments and shipping, read about the HideSuite bundle from Nextools.
4. Audit Your Workflow: Ensure your finance or operations team has a daily routine for checking the bank account and marking orders as paid in Shopify.
5. Refine Your Labels: If "Bank Deposit" isn't clear for your audience, rename it to something more descriptive, such as "Business Wire Transfer."

Conclusion

The bank deposit payment method is a powerful tool for Shopify merchants looking to support large orders and reduce transaction fees. While the setup in the Shopify admin is straightforward, the key to a high-converting checkout lies in how you manage that option. By showing bank deposits only when they are relevant—based on cart size, customer type, or geography—you protect your margins and provide a better experience for your shoppers.

Using a dedicated tool like HidePay allows you to automate this logic without touching a single line of code. Whether you need to hide manual payments for small retail orders or surface them for your biggest B2B clients, having total control over your checkout ensures your business stays efficient and professional. To start building custom rules, install HidePay from the Shopify App Store today.

• Set up your manual payment instructions clearly to avoid customer confusion.
• Match your payment options to your customer segments using tags and rules.
• Always verify funds in your bank account before marking an order as paid.
• Keep your checkout clean by hiding irrelevant payment methods for low-value carts.

If you want a deeper introduction to HidePay and why it was built, see the Nextools post Introducing HidePay for Shopify.

FAQ

Is there a transaction fee for bank deposits on Shopify?

Shopify does not charge a transaction fee for manual payment methods like bank deposits. However, your bank may charge a small fee for receiving wire transfers or handling currency conversions, especially for international transactions. Because the payment happens outside of the Shopify platform, it is considered a private transaction between the customer's bank and yours.

Can I hide the bank deposit option for specific products?

Yes, you can use the app to create rules that hide bank deposits based on the contents of the cart. For example, if you sell both services and physical goods, you might want to allow bank deposits for expensive services but require immediate credit card payment for physical products. You can set these rules based on product IDs, collections, or product tags.

Why is my bank deposit order showing as "Unpaid"?

When a customer chooses a manual payment method, Shopify cannot automatically verify that the money has moved. The order will remain in a "Payment pending" or "Unpaid" status until you manually verify the receipt of funds in your bank account. Once you see the money, you must go into the Shopify order admin and click "Mark as paid" to update the status.

Can I use bank deposits for Shopify B2B orders?

Bank deposits are one of the most common payment methods for B2B commerce. If you are using Shopify's B2B features, you can even set up "Payment Terms" (like Net 30), allowing the customer to check out without paying immediately. In these cases, the bank deposit instructions will be provided to the customer when it is time for them to pay their invoice.