If you're running a Shopify store, Shopify Payments makes it a breeze to accept payments from your customers! However, sometimes issues can crop up leading to payout failures. In this article, we'll dive into common causes for these failures and how to troubleshoot them.
What Are Payouts?
Payouts are your earnings from your Shopify store, transferred to your bank account. If you're using Shopify Payments, you'll receive these funds directly. However, sometimes, these payouts can fail leading to unexpected delays. Let's identify a few main reasons behind payout failures:
1. Incorrect Bank Account Information 2. Account Currency Mismatch 3. Invalid Account Type 4. Incorrect Beneficiary/Recipient Name 5. Insufficient Funds to Cover a Negative Payout
Reason 1: Incorrect Bank Account Information
This usually occurs when the bank rejects the payout because the account is non-existent or closed. Most often, this is due to incorrect bank details. You can update your details in the Shopify Admin and Shopify Payments will try the payout again within 3 business days.
Reason 2: Account Currency Mismatch
Banks typically accept one currency. Mismatches — your Shopify Payments currency differing from your bank account currency — can cause a payout failure. For example, a USD payout sent to a CAD account may not work. You'll need to add an appropriate bank account to solve this issue or update the currency you're selling in to match the currency of your bank account. Alternatively, you can also sell and get paid in different currencies for a conversion fee.
Reason 3: Invalid Account Type
For Shopify Payments, you need a checking account in your local currency, eligible for local transfers. Savings accounts, flex-currency accounts, and wire-only accounts aren't supported.
Reason 4: Incorrect Beneficiary/Recipient Name
Mismatch between the beneficiary name on the Shopify payout and the bank account could also lead to failure. Shopify payouts for sole traders are in the owner's name. For corporations and other business types, it's in the business name. Should this error occur, contact Shopify Support.
Reason 5: Insufficient Funds to Cover a Negative Payout
If there isn't enough funds to cover a negative payout, Shopify tries to deduct the amount from your bank account. This applies to Australia, Canada, and the USA. If the deduction fails, the payout fails. For other regions, the refunds will be taken from future payouts.
Unless it's a bank account error, Shopify automatically includes the funds in your next payout, typically within a few business days. If there's a bank account issue, a 'hold' banner will appear, indicating that the payout won't be retried automatically. In such a case, contact Shopify Support.
If a customer pays via a third-party payment provider, then the payout goes directly to that provider's account. If any issues occur with these payouts, contact the provider directly.
We hope this article helps keep your payouts running smoothly! Shopify Support is always available for any of your queries or concerns about Shopify Payments.