Shopify Payments Holding Funds Unfairly

[Senodo]

I'm facing a major issue with Shopify Payments. They've been holding my funds for over a month with no resolution in sight. Has anyone else faced this issue and found a solution?

The problem started when I launched a new store. Despite having another store on the same Shopify account with over 500 sales and regular activity, they halted payments for the new store, claiming they needed to verify if I'm a real person and if my documents were authentic. After three weeks of submitting documents and waiting, they finally released a payment. However, after that single payment, they once again stopped my payment system, this time asking for proof of how I ship products to my customers.

I've provided shipping tracking numbers and continued to fulfill all customer orders, but it's been over a month, and my payments are still on hold.

I'm tired and frustrated with this process. Holding a store owner's funds with baseless doubts and disrupting cash flow during the early stages of building a brand is as good as killing the brand. This isn't just unfair, it's damaging.

There seems to be no resolution in sight. When I contact customer support, they give robotic responses, promising to resolve things "as soon as possible." When I email the expert team, I never receive a reply.

I've consulted with my lawyers and we are preparing to take legal action against Shopify soon. We’ve already started gathering the necessary documents. Before proceeding, I wanted to reach out and see if anyone has experienced and resolved a similar issue. I'd appreciate hearing about your experience.

Has anyone else faced this issue and found a solution?

[PlasticOddball]

Hey,
I'm really sorry you're going through this. Dealing with Shopify Payments can be frustrating, especially when you're doing everything right and they still hold your funds. I had a similar issue a while back, and it really felt like they were dragging their feet. What helped me was reaching out through Shopify's social media channels (like Twitter) and escalating the issue publicly. Sometimes, that pushes things along faster.

Also, make sure you're super clear with all the documentation they ask for. I know it's exhausting, but any tiny detail missing could delay things. In my case, after escalating and submitting every bit of proof they asked for, they eventually released the funds.

That said, if you've already consulted with your lawyers and it's dragging out this long, legal action might be the best route to protect your business. I hope this gets resolved for you soon. Keep us posted, and good luck! 

[Senodo]

Thanks! 

What they’re doing is honestly ridiculous and completely out of touch with real life! I have another store linked to the same account registered with them, and in the last two months, it has made over $50k in sales. All the products have been delivered to customers, and everyone is happy.

Yet, despite the same company information being provided for this account, they’re still creating problems and offering no solutions. Thanks for the Twitter suggestion, I’ll reach out to them through that channel.

[syzo]

Currently having the same exact problem been about a month now I've tried to contact Shopify in everyway possible and NO response at all, currently have 20k sitting right now in reserved funds not fun at all ....

[Senodo]

Once the issue is resolved, the only option left is to change the payment method at the first opportunity because this is a business, and the profit margins of online stores are generally not as high as traditional businesses. Sales are generated through daily ad spending, in most cases 99%. They are telling us to kill cash flow and spend out of pocket. Until you establish this business model, selling on marketplaces that offer an infrastructure for stocked trading is much more advantageous because the advertising cost is significantly lower.

[syzo]

Have you received funds?

[hannalemoine]

Currently dealing with the same issue. I've been with shopify for 5 years now and I even have a trophy from them for completing 10,000 sales. I have never had this issue before. I have had one accidental chargeback from a customer in 2019. They are withholding 2,500 in my funds. They told me I need to talk to their risk analyst team and that they sent me an email. But honestly so many of their emails look like phishing schemes that I'm a bit sketched out... I want to make sure I'm talking to the right person. Very frustrating.