Your Shopify Payments account is on hold

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New Member
2 0 1
The day payouts were supposed to be dispersed I woke up to my Shopify dashboard saying your Shopify payments account is on hold we need a little more information to verify your account. Documents requested Photo ID - Front, Photo ID - Back, Government Photo ID 2 - Front, Government Photo ID 2 - Back, Proof of address, Proof of business association, Proof of Inventory, Shipping information, Social media links (related to your business). The icing on the cake was the closing remarks of “During this time your payouts will be temporarily paused — but not to worry, your Shopify account will continue to operate as normal and customers will still be able to purchase products from your store.“ which more or less translates to feel free to spend more money on ads, and get sales but we won’t give you a set date you will receive your funds. At which point I sent the documents expecting the problem to be resolved.

Day 2, message requesting proof of address, and proof of inventory.

At what point does a payment processor/web hosting service hold payments for lack of proof of inventory?

After providing, proof of address and notifying them I wouldn’t be providing invoices/proof of inventory. I expected the payment hold to be lifted.

Day 3, my proof of address is not accepted and a different proof of address is requested. After providing a new proof of address, and a proof of address that is the type they requested (a utility bill) surely the payment hold will be lifted.

Day 4, “Previous proof of address isn't passing verification and cannot be accepted.” They request another proof of address, end the message with “We note none of your orders have been shipped yet - when do you intent to ship? Please provide answer below - we can only lift the hold once orders are shipped and with valid tracking.”

Granted my orders have been packaged and tracking numbers sent to customers they have been sitting on pre-shipment, while I worked out the payment issue. I have not seen anyone else experience a payment hold for this reason, nor does it seem rational to ship orders while a Shopify is holding my money, and put myself at risk of losing products, money while they add stipulations at their free will.

My favorite part of this all is, I set up my account, spent money on apps to compliment my site, purchased a url from Shopify, ran ads to my store, made sales was notified my payout was on the way, and the morning that the payout was supposed to reach my account this “standard review was initiated”
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Shopify Partner
50 10 21

Hey Glee,

Disclaimer: I'm not a Shopify employee, just another member of the ecosystem.

I understand it's frustrating to have a hold on your account. If I was in your place, I'd no doubt feel the same way.

But if you put yourself in Shopify's shoes, you can see their concerns, I hope. They're a publicly traded company with a $56-billion market cap. They've been in business for 15 years. Customers know their brand and trust them. Part of the value of being a Shopify merchant is knowing that customers will trust you by association.

In exchange for them extending that trust to you, Shopify needs to protect that trust by vetting its merchants. It may be frustrating to have to ship orders without having yet received payment for them, but this is something that all merchants face -- there is a cost of operating a business that involves things like carrying a float for the cash register, buying and storing inventory before it sells, etc.

Hopefully, you can be comforted by knowing that while this vetting is frustrating now, ultimately it vetting protects you, too. Other, future Shopify merchants are also vetted to ensure that the Shopify brand (and thus, your brand) stays strong, meaning customers keep feeling safe to return and spend more money.

Code 402 Inc - Ecommerce Consulting in Kitchener, Ontario, Canada
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New Member
2 0 1
I’ve run multiple Shopify stores, over the past 3-4 years, I can without hesitation say my experience with Shopify has progressively been getting worse.

To say customers know the brand and trust them is a far stretch, any branding indication of running a store on Shopify lowers conversion rates and results in customers asking for discount simply for the shopify brand being associated with drop-shipping regardless of if you’re dropshipping or not.

My problem comes from the vetting process being initiated, once Shopify and their apps have received $100+ in payments, as well as the time of the review. On top of that this would have been my first store being cash fellow positive during the trial period.
Put yourself in the shoes of the average consumer, most of which being small business owners or running a store as a side hustle for them losing that much time and resources is more than just a inconvenience.

As a company with a 56billion market cap, they should have the resources to be getting better not progressively getting worse.
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Tourist
9 0 2

This just happened to me, they are holding on to money for 90 days. Ruining my business operations of course. In my opinion I'm sure there is grounds for lawsuits for this if someone would be willing to take the effort. They state that Stripe/Shopify Payments can put your account at risk at anytime, and that's fine. It's their business, HOWEVER; this should not include any money that is to be paid out; that means Shopify is affecting my business but if I can't afford to purchase my customer's products and ship it to them, that affects the customer's money and products. That is in my opinion ILLEGAL. This money is not Shopify's, it is either mine as a store or the customers. I was unable to refund this money to the customer EITHER. This is insane, they do this with thousands of stores and MILLIONS of $ that Shopify holds for 6 Months+ that means that can use and invest in their business, as I'm sure no one regulates this money to be held in a safe account and not be used. This means unless customers chargeback, this money is held/ "kidinapped" for 6 months by Shopify. 

 

Lastly, Shopify says you can use other payment providers who would take this risk: HOWEVER, Shopify collects fees for Stores using any other payment providers as well. So these FRAUDSTERS collect your annual/monthly store fee, tell you to use other providers (who collect their own fees as well) and collect fees ON TOP OF THAT, and collect your domain fees. Do not use these guys, no money you make is worth allowing them to make money off of you and control your Store like they own it.

 

PLUS They have the AUDACITY to tell you to sell your store when you try and close it, so they can make some sort of fee on that.

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