I am a fairly new merchant on Shopify (6 months) and we have been using Shopify Payments to process credit cards. We are a small business; we sell specialized business software and our volume is not as large as most eCommerce businesses. We have not had one single complaint nor return during the time we have been a Shopify merchant.
Late on Friday night (11PM EDT), I received an email from Shopify telling me that 'your business has been identified as presenting an elevated level of risk for customer disputes.' No mention of what that risk was. My ability to accept payments via Shopify Payment was immediately disabled.
I saw this message first thing on Saturday morning. I chatted with 2 different help desk people that both did not see why this was a problem. I'm not sure they were real people since there responses were almost the same. "This is not a problem, just set up a new payment gateway." They saw no problem in disruption of payments.
Today, I received another email from Shopify saying:
"Due to privacy and security reasons, we cannot divulge the findings of a Risk review. Once an account has been declined, the decision is final and we cannot release any of the information that lead to the decision."
So, they are saying, they have found a risk associated with doing business with my business, yet they refuse to divulge to me (the business owner) that that risk is. In doing so, they are potentially putting my business at risk. And, they are imposing additional expense on transactions that I had not planned on.
I did get a new payment gateway configured, though it took me all weekend. And, at additional cost to my business. But, I find this business practice appalling.
Is this the type of service I can expect in the future with Shopify? Are they going to impose additional fees without warning? What if they decide they are going to disable a new payment gateway that I have chosen to use? What if they decide to shut down my entire store?
The same thing happened to me this morning. I have emailed them back, but I haven’t received a reply yet.
I did call Shopify support but they said they don’t handle anything with the risk department and he also said that there is no number to call or way for him to connect me to speak with the risk department. I’m very upset about this, because just like you, I’ve never had any issues or problems - no refunds, no chargebacks, nothing! I’ve been selling on Shopify since June/July 2019, with absolutely zero issues! I’m dumbfounded as to why they would randomly disable my Shopify payments with no warning or even a reason why.
I'm sorry to hear you had the same experience that I had. It was very frustrating. Shopify refused to even tell me why my business was 'risky'. But, the continued to insist that everything was rosy and I could keep paying them the monthly fee for their service and all I had to do was switch to another payment provider. Rainbows and unicorns!!!
I reported this to their local Better Business Bureau and essentially got the same response that their Turning Test challenged bots in their Risk Department told me.
The end result, thanks to Shopify's "additional" fee to use an alternate payment provider and my new provider's (Authorize.NET) fees, my monthly costs are about 5% higher.
I like Shopify and they have a very rich eco-system of capabilities and third party providers, but I find this "bait and switch" tactic they did with me (and apparently you) to be very unethical and shady.
Essentially, there is *nothing* you can do except set up a new payment gateway and start paying the extra fees every month. It costs me about an additional 5% per month in fees now. Shopify refused to tell me why I was suddenly a high risk to them.
I have said it before, I think this is a bait-and-switch on the part of Shopify. I lodged a complaint with the Better Business Bureau in Ottawa, but it did no good.
I switched over to authorize.net. They are run by VISA and are a pretty good credit card processor.
Expect to pay about 5% more per month because you are paying the transaction fees from both Authorize.Net and the fees that magically appeared on my Shopify account after using an external provider. Even after 7 months, that still stings.
Hi. I also received a message about the same...What third party processor did you end up going with? I am looking into EMB, but the rates/monthly fees are pretty high for a small/side business.