The Journey: Shopify Set Up & Bank Accounts

if your new here and want the previous "The Journey" post find it HERE

Opening A Bank Account For Your Business

Opening a business account for your Shopify store is a crucial step in establishing your online business. As a Canadian entrepreneur, my recent experience delving into cross-border banking shed light on the complexities and considerations involved. Here's my journey and the insights gained along the way.

Initially, I recognized the importance of tapping into the vast market of US clients. With their larger population, targeting US customers could significantly boost sales for my Shopify store. After thorough online research, I concluded that opening a US bank account would facilitate transactions with US customers seamlessly.

My investigations led me to discover that as a Canadian citizen, I could indeed open a business account capable of accepting US transactions. Online sources, including Google websites and blogs, recommended the RBC US business account as an optimal choice for my needs.

However, upon delving deeper into the account's terms, I discovered potential drawbacks. For newcomers to e-commerce like myself, the account incurred a monthly fee of nine dollars, in addition to charges for each deposit and outgoing transaction in US dollars. These fees threatened to eat into profits, especially considering the frequency of transactions typical in e-commerce.

The realization prompted me to reassess my banking strategy. Consulting with an RBC bank representative and conducting further research, I explored alternative options. Given my status as a sole proprietor, I found that opening a checking account offered a more cost-effective solution.

The checking account allowed for up to 10 transactions per month, with additional benefits for existing bank services. By leveraging this option, I could minimize monthly fees and streamline my banking operations. Furthermore, signing up for a US business Visa provided a convenient avenue for conducting supplier transactions in US dollars.

In essence, I opted for a personal US cross-border bank account capable of handling up to 10 transactions monthly, complemented by a US Visa for supplier purchases. With this approach, I aimed to strike a balance between transactional convenience and cost-effectiveness.

As I embark on this banking journey, I remain mindful of the evolving nature of e-commerce and the importance of adapting to meet its demands. While this plan represents my current strategy, I remain open to adjustments and refinements to optimize my Shopify store's financial operations.

In conclusion, navigating cross-border banking for a Shopify store as a Canadian entrepreneur entails careful consideration and strategic decision-making. By evaluating available options and tailoring solutions to specific needs, one can effectively manage transactions and maximize profitability in the dynamic world of e-commerce.

Sidenote: Because I signed up for the Visa, the account that typically costs $100 a year, offering unlimited transactions, was free for the first year. This prompted me to opt for that account, with the option to downgrade to a basic plan before the renewal if needed.

So, the next step on my journey is to create my Shopify account and connect my new US cross-border bank account to it. Despite being new to Shopify, I've done extensive research, watched numerous YouTube videos, and it seems like a straightforward process. I anticipate it'll take around 30 minutes to an hour to complete everything.

After that, it's onto website development. Better get started!

I’ll see you in the next blog post!

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