Shopify, Paypal, etc. Holding Funds/ Not Paying Out Money

[Sensational032]

I have been looking to get into E-comm for some local businesses I'm associated with. The one major concern I ran into is the holding of funds after a purchase is made for particular sites like Shopify, Paypal, etc. Some stories I've seen is people not getting paid 6+ months after sales have been made prompting them to close their stores. This is a major problem for me. How often does this occur and why? Is there any way to prevent it from occurring?

[Andrew]

Hi @Sensational032, 

That's a great question!

If a store is using Shopify Payments, which is our payment gateway, then we are legally obligated to conduct standard reviews and underwriting of payments being processed on our platform. We may request additional documentation for verification and authorization purposes, and timelines for this may vary as we also have to liaise with our banking partners.

We do work as quickly as we can to resolve the process as quickly as possible, and the length of time and outcome differ on a case-by-case basis. It also depends on whether we receive all documentation we require on time, in full, and that it is in accordance with all requirements and regulations.

Are you looking to become a Shopify Partner to help those local businesses? As in, are you looking to onboard them onto Shopify and help them build their websites? If so, for every client you refer, theme you design, or app you build, you'll receive ongoing monthly income from Shopify. There are some other benefits too, like early access to new features, marketing materials, and access to a collaborative community of other Shopify Partners around the world.

[Sensational032]

I was thinking of onboarding them onto Shopify, but have their current websites put links to my store where I would have their merchandise/products. I am unsure if this would be considered a referral, but I would be bringing clients onto Shopify doing this.

What documents do you typically request from a store first starting? How long does your standard reviews and underwriting take if you have to give an estimate?