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How to Manage Partial Payments for Draft and Manual Orders on Shopify

Category: Shopify Support
Date: November 14, 2024
Author: UpWeb Studio

Introduction

Many Shopify merchants face the challenge of accepting partial payments for high-ticket items, custom orders, or products on a payment plan. Shopify currently does not offer a native solution for handling partial payments on draft or manual orders. This guide will help you understand available workarounds, solutions using Shopify’s Point of Sale (POS) system, and third-party app options for managing partial payments.

Why Partial Payments Matter in Shopify

Partial payments can be essential for businesses that require deposits, custom orders, or flexible payment options. This functionality allows merchants to break down payments, reducing the burden on customers and increasing purchasing flexibility. Whether it’s a deposit or a balance payment, partial payments make managing high-value orders simpler and more efficient for merchants and customers alike.

1. Current Limitations of Shopify Draft Orders

Shopify’s native checkout and draft order systems currently lack an option to split payments for online orders. This limitation means that merchants cannot set up partial payments on draft orders directly through the Shopify admin or through emailed invoices. While Shopify POS supports partial payments, these options remain unavailable on draft or manual orders created online.

2. Workarounds for Managing Partial Payments

There are a few workarounds that merchants can use to create a partial payment system:

  • Create Incremental Draft Orders: Manually create separate draft orders for the deposit and remaining balance. However, this workaround complicates accounting, as it divides the order into separate records, which may lead to inventory tracking and financial reporting challenges.
  • Use Payment Due Dates: Set an initial due date for a deposit and another date for the final payment. Send an invoice with each draft order, specifying in the notes the amount paid and the remaining balance due.

3. Using Shopify POS for Partial Payments

Shopify’s POS system can be an effective tool for merchants to collect partial payments. Here’s a step-by-step guide on how to accept deposits or partial payments through Shopify POS:

  1. Open Shopify POS on your mobile device.
  2. Create a draft order and mark the initial payment as “due later.”
  3. Send an initial invoice to the customer for the deposit or first payment.
  4. When the remaining balance is due, open the order again in POS and collect the final payment. The POS system will show the order as partially paid until the remaining balance is fulfilled.
  5. This method allows for tracking payments within a single order, although it requires using Shopify POS instead of Shopify’s standard online draft orders.

Note: This workaround is effective for in-person or phone sales, but requires manual steps for each partial payment.

4. Third-Party Apps for Partial Payments

If Shopify’s native tools are not meeting your needs, several third-party apps may offer the features you’re looking for:

  • Split Payment: This app allows customers to pay with multiple payment methods or split their payment across different cards. However, its functionality may be limited depending on your Shopify plan.
  • Advanced Pre-Order (Partial Pay): This app allows merchants to set up partial payments or deposits for pre-orders, which may suit businesses selling custom or high-value products.
  • Wholster: Created for B2B transactions, this app includes options for partial payments on draft orders, allowing merchants to track partial payments in a way that integrates directly with Shopify’s admin interface.

Each app comes with a subscription fee, so evaluate which option best aligns with your business needs before committing to a solution.

Future Solutions and Shopify Feedback

Many merchants have voiced the need for partial payment functionality on Shopify. While this feature is currently unavailable, Shopify has acknowledged user feedback and may consider implementing partial payments for draft orders in future updates. Merchants are encouraged to continue sharing feedback with Shopify, as user input is often considered when the company develops new features.

Conclusion

While Shopify’s existing tools for handling partial payments are limited, there are several workarounds and third-party apps available. By using Shopify POS, draft orders, or third-party apps, you can manage deposits and balance payments to accommodate your customers’ needs. Keep an eye on Shopify updates, as enhanced partial payment functionality may become available in the future. For now, these methods can help bridge the gap.

FAQs

  • Can I accept partial payments through Shopify’s online draft orders?
    Currently, Shopify does not offer a native solution for partial payments on draft orders through the online interface. However, Shopify POS offers a workaround for in-person sales.
  • What third-party apps are best for partial payments?
    Apps such as Split Payment, Advanced Pre-Order (Partial Pay), and Wholster offer partial payment solutions. Each app has different features and may require a subscription fee.
  • Will Shopify add partial payments in the future?
    Shopify has acknowledged requests for partial payment functionality and may consider adding it in the future. Merchants are encouraged to continue submitting feedback to Shopify’s support team.
  • Is the Shopify POS workaround effective for remote orders?
    The Shopify POS workaround is best for in-person or phone orders, as it involves manual payment tracking for each installment. It is not ideal for fully automated online transactions.


Posted in Shopify Support
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