20% hold on all income from Shopify PLEASE HELP

20% hold on all income from Shopify PLEASE HELP

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I started a new store on the 11th of September. The store is branded with a single product for sale.

On my first live day of the store, I sold $212 worth of product. Average order is $50.

On the second live day of the store, I sold $10,026.09 worth of product.


I guess some red flags went off at Shopify which caused them to do a review of my account, which resulted in them determining that due to the nature of my business model (dropshipping) they need to hold 20% of my income in case of a high rate of chargebacks for 120 days.


Before the hold, I had a 28.52% profit margin... you can do the math. I now only have an 8% profit margin.


Shopify has given me the option of using a third-party payment processor as a way to work around the 20% hold.


Any words, advice, comments, ANYTHING would be appreciated. If one of you gives me advice which ends up helping me get rid of this 20% hold you will be compensated well.


TLDR; I have a 20% hold on all my income and want to know how I should get rid of this hold.

Replies 3 (3)

Shopify Staff (Retired)
3408 463 991


If a 20% hold has been placed on your account when using Shopify Payments, then it wouldn't be possible to remove the hold until 120 days have passed. However; as our Risk team has mentioned, you are able to use a third-party payment provider instead of Shopify Payments should you wish to avoid the hold on future sales. If you disable Shopify Payments, then you will incur transaction fees on each order, which is on top of the fees you'll incur from your third-party payment provider. You can view a full list of available payment providers by selecting your country here

Trevor | Community Moderator @ Shopify
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We have the choice of pay 20% in fees or freeze your store for 120 days.


thank you 

New Member
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This problem seems to be happening to a lot of people... I do not know how Shopify expects everyone to conduct business this way. I have already paid out of pocket and delivered product to customers weeks ago and they are holding my funds until February of 2022! They are holding over $1200 worth of funds and expect me to continue doing this for every product! Everything I sell is in the $1000 range and up. I have been converting all of my stores over to Big Commerce as well as doing the same to other stores I help people run. This is HORRIBLE business practice for Shopify to do to the customers that pay THEM! I never leave bad reviews or bash companies but I have made sure to go out of my way to warn as many people as possible about this. Good luck!