Setting up auto-transfer rules for Shopify Balance

You can use auto-transfer rules to automatically distribute a percentage of every Shopify Payments payout across your Shopify Balance accounts and connected external bank accounts. Auto-transfer rules can help you cover recurring expenses, set aside funds for sales tax, and move money to an external bank account without changing your Shopify Payments payout account. For example, you can set aside collected sales tax in a dedicated Shopify Balance account, send a percentage of each payout to an external business checking account, or allocate funds to a separate Shopify Balance account for payroll or marketing.

Auto-transfer rules run each time you receive a Shopify Payments payout. After a payout arrives in your main Shopify Balance account, the following actions happen in order:

1. If sales tax set-aside is turned on, then the collected sales tax moves to your sales tax account.
2. Each distribution rule sends a percentage of the remaining payout to its destination account.
3. Any funds not allocated to a rule stay in your main Shopify Balance account.

Transfers to Shopify Balance accounts are instant. Transfers to external bank accounts use Automated Clearing House (ACH) and can take 1–3 business days to arrive, depending on the receiving bank. When an external transfer is pending, its estimated arrival date is displayed in the transaction details.

Requirements for using auto-transfer rules

You need to meet the following requirements to use auto-transfer rules:

• Your business must be based in the United States.
• You need to have an active Shopify Balance account.
• Your main Shopify Balance account must also be set as your Shopify Payments payout account. If you change your payout account to a different bank account, then your active auto-transfer rules become inactive. Learn more about Shopify Balance payout accounts.

Considerations for using auto-transfer rules

Before you use auto-transfer rules, review the following considerations:

• Auto-transfer rules apply only to Shopify Payments payouts. Payouts from other payment providers don't trigger auto-transfer rules.
• Auto-transfer rules are based on a percentage of each payout. Fixed-dollar amounts and time-based schedules aren't supported.
• The total of all percentages across active distribution rules can't exceed 100%.
• You can have up to 5 Shopify Balance accounts as destinations. There's no limit on the number of connected external bank accounts that you can use as destinations.

Setting up auto-transfer rules

You can set up two types of auto-transfer rules: setting aside sales tax, and distributing remaining funds across accounts. You can use either type on its own or use both together. The total of all distribution percentages can't exceed 100%. Any percentage not allocated to a rule stays in your main Shopify Balance account.

Set up the Set aside sales tax auto-transfer rule

You can automatically move collected sales tax from each payout to a dedicated Shopify Balance account, so the funds are ready when you file your sales tax. Learn more about how sales tax set-aside interacts with refunds and other payouts.

Steps:

1. From your Shopify admin, go to Finance > Balance.

2. Click Auto-transfer rules.

3. Activate the Set aside sales tax option.

4. From the To drop-down menu, select the Shopify Balance account that you want to use for sales tax. To create a new account for sales tax, click the .

5. Optional: To choose which regions are included, in the Regions row, click the icon, and then select your regions.

6. Click Save.

Set up the distribute remaining funds across accounts auto-transfer rule

You can send a percentage of each payout to one or more Shopify Balance accounts or connected external bank accounts. You can add an external bank account as a destination through Plaid, a third-party bank connection service.

Steps:

1. From your Shopify admin, go to Finance > Balance.

2. Click Auto-transfer rules.

3. Activate the Distribute remaining funds across accounts option.

4. In the To row, click Account.

5. To send funds to a Shopify Balance account, select an account in the Shopify Balance accounts section, and then enter a percentage.

6. To send funds to an external bank account, select an account in the Connected bank accounts section, and then enter a percentage.

   • To connect a new external bank account, click the in the Connected bank accounts section, follow the prompts in the Plaid dialog, and then select your connected account.

7. Click Save.

Edit or deactivate auto-transfer rules

You can change the destination account or percentage for an auto-transfer rule at any time. Edits apply to your next Shopify Payments payout.

Steps:

1. From your Shopify admin, go to Finance > Balance.

2. Click Auto-transfer rules.

3. Complete either of the following tasks:

   • To edit a rule: click the icon in the section that you want to update, update the destination accounts or percentages, and then click Save.
   • To deactivate a rule: turn off the Set aside sales tax or Distribute remaining funds across accounts option.

Cancel a pending auto-transfer to an external bank account

When an auto-transfer to an external bank account is pending, you can cancel it from the transaction details. Auto-transfers to Shopify Balance accounts are instant and can't be canceled.

Steps:

1. From your Shopify admin, go to Finance > Balance.

2. In the Transactions section, click the pending auto-transfer that you want to cancel.

3. Click Cancel transfer.

Auto-transfer failures

If an auto-transfer fails, then the rest of your payout still arrives in your main Shopify Balance account, and other rules in the same payout continue to run.

Common reasons for an auto-transfer to fail:

• Insufficient funds in your main Shopify Balance account when the rule runs
• The destination account is closed or invalid
• The transfer amount exceeds your daily transfer limit

When an auto-transfer fails, you receive an email notification with the reason. If the failure was caused by exceeding the daily transfer limit, then the email includes your current daily transfer limit.