Loop + Stripe
What is Stripe?
Stripe powers Loop’s Shop Now: In App + On-Store experiences. This allows Loop to preserve a request for an exchange without creating the order in Shopify until the return is approved. This is the only way to collect up-sell payments from Shop Now.
In the Loop Admin, under Shop Now, the Stripe setup can be initiated by selecting "Connect Stripe" at the top of the page. This will direct to a secure page within Stripe where all relevant business details can be submitted to create a new account that will be attached to the Loop Instance for collecting Shop Now up-sell payments.
If there is already a Stripe account to be used, the "Sign in" link in the top right corner will direct to a Stripe login where that account can be connected.
Cost & Payouts
- Shopify does not collect an additional fee when exchanging for up-sell in Shop Now
- Stripe will collect 2.9% plus $.30 for each up-sell order captured
- The 2.9% only collects from the up-sell amount
- If a $50 item is returned for a $75 item, only the $25 is collected on
- Additionally: if a Shop Now order has no up-sell, no Stripe cost is incurred
- These fees are assessed and tracked separately within Stripe. Loop does not have this information.
- Cost and payment details are all tracked separately in Stripe. Loop has limited access to this data for security reasons from Stripe.
NOTE: Make sure to store the email address used for the Stripe account. Loop does not have access to this information.
Why Doesn't Loop Use Shopify Checkout?
- Going through Shopify Checkout would require an exchange to be seen as an immediate purchase, so the exchange order would be created before the item is returned.
- Going through Stripe allows us to preserve the “Exchange Request” by capturing payment through Stripe + Loop, and holding the new exchange order until you’ve approved the return
Shop Now ROI Details (Why this is worth it)
- We see an average reduction of 20% away from refunds toward Shop Now / Exchanges or Store Credit when activating a Shop Now Bonus and a Handling Fee
- Shop Now with a Bonus generally accounts for 5-10% of that reduced refund rate
- Shop Now with a Bonus generally accounts for $1.95 of new revenue on average, per return
What happens to the funds collected via Stripe? Stripe stores and distributes these funds per the settings you establish within your Stripe account.
How do I issue a refund on a Stripe charge? You can refund the entire up-sell charge by selecting "Refund All" in the Loop Admin beneath the charge, or you can log into the Stripe account and issue a custom refund on the charge if you don't want to refund the entire payment.
How does Loop refund items purchased using the Bonus Credit? Customers will only receive a refund for what they've paid. The total "cash value" paid will be recorded on Loop and assigned to the product purchased. Any bonus credits do not apply. Loop will refund the partial payment via Stripe and the remaining original payment via Shopify on the original order.
Can I use the same Stripe account for multiple Loop instances? Yes, and unless there is a specific reason for keeping them separate, we recommend using the same one.
Customer not able to complete purchase, why is there an error message? Error messages can be presented for a number of reasons, like the customer's card information is incorrect, the card is not valid, or Stripe is experiencing an issue. Please have the customer re-attempt, use a different card, or try again in a few hours. If none of those work, please email email@example.com with the order number and approximate time of the Stripe attempt.