Recommened payout period?


I recently had an order, my supplier told me it was out of stock and therefore I made a refund. 
Within this period of time my payout was on a daily basis transferal (which takes 3 days) but then the refund was mean to be paid out the same day as my payout.  Would the refund not be prioritised over the payout?  Because now I have a minus balance.

My point is, has the refund been made to the customer card already or does the refund not get made to the customer only until now there is a positive balance again in my shopify account and then it gets deducted.
Meaning, if I have no sales for 30 days, the customer will not be refunded for 30 days even if I have a 14-day refund policy…? As per UK law.

Lastly, what is the best option then for future occurrences like this to be avoided?  Have daily payouts or weekly payouts. (so within the week if there any refunds, it immediately gets deducted and refunded from my sales balance, from what I understand)

Ross M.
Shopify Staff
Shopify Staff
2290 243 477

This is an accepted solution.


When you process a refund, Shopify will front the cost of the order to ensure the customer is refunded immediately. Since you're based in the UK, Shopify can not debit your bank account for the refund, so refunds will be deducted from your current and future payouts to cover the cost. 

Whether you have payouts set up for daily, weekly, or monthly will not change how the refund process works. 

Let me know if you have any questions! 

Peter | Social Care @ Shopify 
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That answers my question, thank you so much! 

I was wondering for future reference and a bit in over thinking mode.  (if i do not have money or balance, how are customers going to be paid.) 

I think what would be a good option, which is possible, that for retailers which may be having a slow month but have arrears with shopify (such as refunds) maybe setup a wallet basis, we can atleast voluntarily put money into our accounts 'wallets' to pay back these refunds to make sure customers are paid the refunds etc. 

Thanks for your help! 

Ross M.