PayPal Wallet for the United States

When you create your Shopify store and set up Shopify Payments for the United States, you automatically receive a PayPal Wallet account. With PayPal Wallet, you manage your PayPal transactions, payouts, and disputes through the Shopify Payments section of your Shopify admin.

To use PayPal Wallet, you need to use Shopify Checkout. If you’re on the Shopify Plus plan, then you need to use Checkout Extensibility.

Key benefits and features of PayPal Wallet

The following are some of the key features of using PayPal Wallet:

All PayPal settings and transactions, including disputes and refunds, are managed within the Shopify admin.
PayPal Wallet transactions are bundled with your Shopify Payments transactions and paid out to your preferred bank account.
PayPal Wallet supports new subscriptions and recurring payments.

PayPal Wallet in the United States

PayPal Wallet is directly connected to Shopify Payments, and acts as a payment method within Shopify Payments, making it easier to manage your transactions.

If your business is based in the United States and you use Shopify Payments, then you can offer PayPal through the PayPal Wallet integration. If you use third-party gateways such as Adyen, Braintree, or Stripe, then you can continue offering PayPal Express Checkout in addition to those integrations.

For more information on PayPal, refer to the legal agreements for PayPal services that apply to merchants in the United States.

Managing PayPal Wallet transactions in your Shopify admin

Using PayPal Wallet with Shopify Payments means you can manage several important business tasks, directly from your Shopify admin:

Payouts: Payouts for PayPal Wallet transactions will be displayed in the Payouts section of your Shopify admin. You can filter payouts by payment method to view PayPal Wallet transactions.
Refunds: Refunds on transactions made via PayPal when PayPal Wallet is active in your Shopify Payments account, are managed and displayed directly in your Shopify admin.
Disputes: Disputes on transactions using PayPal Wallet are managed via the Shopify admin.
Reporting: You can access reports on sales, refunds, and disputes for PayPal Wallet transactions directly from your Shopify admin. You don't use PayPal Business Centre to review reports on transactions.

If you previously offered PayPal Express Checkout, then disputes on orders paid for with PayPal Express Checkout need to be managed in the PayPal Business Centre. You must maintain a balance in your PayPal Express account, and the connected bank account, for up to 180 days after enabling the PayPal Wallet in order to manage refunds or disputes on orders placed using PayPal Express Checkout. If a dispute is opened on an order paid for with PayPal Express Checkout and you don't have enough funds to cover the cost, your account will have a negative balance. If your PayPal account balance is negative, then you must top up the account. If the negative balance isn't addressed, then PayPal contacts the account owner to facilitate a resolution.

Using Venmo with PayPal Wallet in the United States

Venmo is an online money-transfer service that allows customers in the United States to make payments from the Venmo app on their mobile devices. Venmo is automatically available as a payment method in your PayPal Wallet. If you don't want to offer Venmo as a payment method to your customers when you have Shopify payment active, then you need to contact Shopify Support to have it deactivated.

If you want to offer Venmo to your customers as a payment method, but you don't want to use Shopify Payments, then you can offer the option to pay with Venmo by adding PayPal Express as a third party gateway. Learn more about PayPal Express and Venmo.

Only customers in the United States who have the Venmo app installed on their mobile device are eligible to use Venmo to pay for orders.

Managing PayPal Wallet transaction disputes

When a customer reports an issue in the PayPal Resolution Center, an inquiry is opened. You have 20 days to resolve the issue directly with the customer without any involvement from PayPal, and no fees or funds are withdrawn from your account. There are different ways to manage disputes in your PayPal Wallet:

Communicate through Shopify admin: All communication with customers should happen in your Shopify admin.
Resolution options:
- Issue a full refund: If you find the customer’s claim valid, then you can issue a full refund to close the inquiry.
- Discuss and persuade: If you believe the purchase doesn't warrant further action, then you can discuss this with the customer. If they agree, then they can close the inquiry or let it expire after 20 days.
Monitor for escalation: Customers can escalate the inquiry to a chargeback at any time within the 20 days, moving the resolution process to PayPal, similar to the chargebacks and inquiries procedure.

Enterprise resource planning (ERP) integrations

If you use an ERP or third party integration to manage your business, then you need to change the queries you use to pull transaction, payout, and dispute information from your Shopify admin.

PayPal Transactions

In your Shopify admin, PayPal wallet transactions display in the transactions page. You can filter for PayPal as the payment method to review any relevant transactions.
In GraphQL, you can run the following query:
- orderTransaction where paymentMethodName = PayPal Wallet and gateway is Shopify Payments
- This displays all PayPal Wallet transactions including fees, if the transaction was authorized or captured, or if the transaction was successful or failed.

PayPal Wallet payouts

In your Shopify admin, PayPal Wallet transactions are bundled with your Shopify Payments payouts. PayPal is displayed as the payment method.
In GraphQL, Query payouts and join to the OrderTransaction to get payouts that include PayPal transactions.

PayPal disputes

PayPal Wallet disputes only display on the Home Page, and by filtering on your Orders page. PayPal Wallet dispute notifications are delivered the same way Shopify Payments disputes notifications are delivered in your Shopify admin.

Considerations for using PayPal Wallet in your Shopify admin

Before you use PayPal Wallet in your Shopify admin, review the following considerations:

When you use Shopify Payments in the United States, PayPal Express isn't available as an additional gateway. With Shopify Payments active, PayPal can only be integrated through the Shopify Payments Wallet.
To use PayPal Wallet, you must use Shopify Checkout. If you’re on the Shopify Plus plan, then you must use Checkout Extensibility.
Returns and partial refunds aren't supported. You can issue only full refunds.
Decisions made regarding disputes can't be appealed.