Shopify Holding ALL Funds over 120 Days due to "Risk of Chargeback"

[lifeboosstsss]

Just like the title says, they are holding payment funds over 120 days. This is absolutely crazy. Every single shopify store I open they will put this on there after a weeks worth. I am tired of Shopify doing this. The crazy part is, I have 0 chargebacks and 0 HIGH RISK orders. This is the most stupidest thing I have ever seen from shopify. After 5 shopify accounts have been locked due to this, I have decided to post on this forum to see what I should do from here on out. I need help, there has to be a way around this. Every time I email them, they will eventually say its a "final decision" 

BACKGROUND: Every store I start up eventually leads to this. Started one 5 days ago from todays date. FIRST they hit me with "business verification" in order to make sure its a legit business (holding payments) After I submitted the documents they wanted, they lifted my account. I was so happy. NOT EVEN 2 HOURS LATER. My account is now back on hold, and payments will be released in the next 120 days due to chargeback risk. Someone please help, Shopify WILL NOT do anything to fix this. NOR they will do anything 

[lifeboosstsss]

If anyone could help or need more information please reply, I want to get this resolved

[Shay]

Hi @lifeboosstsss, thank you for sharing this experience here. I definitely recognise how difficult it can be for a small business to have your payouts on hold for 120 days. While I can't change this decision, I am happy to share some additional details with you about how these decisions are made and alternative options you can use while this review is processing. 

Shopify Payments is a payment gateways provided by Shopify and powered by multiple banking partners (depending what country you are located in). During the KYC (Know Your Customer) process the banks that power Shopify Payments will provide an assessment of the merchant account and whether they believe it to be a high risk or well suited to the gateway. If the banking partners are concerned about a high risk of chargebacks, which can be decided based on the products you are selling or other risk factors, then a payout hold will be put in place. 

This decision is made by our banking partners and cannot be overturned by our support. Once the payout hold period is complete, all payouts held in reserve are deposited into the merchant account. 

Shopify Payments is only one payment gateway you can use, and if your business is not suitable for this gateway you can choose to use a different one. I recommend taking a look at the available payment gateways for your business and maybe choose one that is better suited: Shopify Gateways.

[Risktakerzz21]

I’ve had my funds held for 120 days now and they promised to release my funds and deposit them to my account April 4,2024 and they haven’t deposited my funds. I emailed them and all they told me is “we have escalated this for funds to be released” it’s completely ridiculous after I waited 120 days patiently to get my funds and to be hit with that . What can I do now . They don’t respond to my emails anymore and take forever to reply 

[RetroTrapHouse]

Still nothing? I’m over my 120 day too just waiting!

[joaofelipe]

Did you manage to solve it or have any answers?

[KrayzieBone420]

And even in 2024 the issue still progresses!!! I had 0 chargebacks I even got paid out once. I was waiting on the second payout (from the same customer I might add) after 10 days I asked customer service what the hold up was and what do ya know… same email as above… I seriously thinking about starting a class action. My brother ( class action attorney ) has had his hand in over 10+ class actions and has received settlements In 100% of them. My email is sloppyeaterzrox@yahoo.com email me if you want to start the class investigation against these tyrants. Btw I’ve tried over 10 times and after my claim has been escalated (lol) 10+ times. I still haven’t received a dime. 

[KrayzieBone420]

Well I haven’t hit the 120 days yet…. I think it’s really bs because I had a sale… payout went smoothly… had another sale … payout wasn’t put on hold or anything … it was taking longer than usual though… then all of a sudden I’m told business is “high risk” and account shut down with payout on 120 day hold… so I charged my customer, gave them their items, and now my business is F*CKED because I can’t get more inventory because of Shopify…. They think I’m playing about the class action.. I’m 110% serious. This is thievery.

[KrayzieBone420]

Well I don’t understand how it’s labeled “high risk” I never had any charge backs… no returns… no complaints…. NOTHING… I was all verified and everything. While waiting on my 2nd payout, it hit day 10 and so I asked in chat where it was. I then got an email saying I was high risk and my payout was now on hold for 120 days… WITHOUT ANY JUSTIFICATION AT ALL!!! So now I can’t purchase any supplies because they are holding $4,800 from me… Shopify has ruined me, my family, and my business.

[farihin]

Reserve time completion date was 3rd of this month so when you guys will pay me back my money?

[kidus1]

Hey bro if you don't mind me asking how much were they holding? 

[KrayzieBone420]

Only like 4k

[Olivia4]

The same thing is happening to me? Were you able to solve this? 

[Lucas7]

Hello,

I'm contacting you about my Shopify account, which has been pending verification for over a month now (since July 23). I sell yoga classes online, and despite a dispute-free business, I've been informed that I'm no longer authorized to use the platform without a clear explanation of the reasons.

What worries me most is that the sum of over $17,000 USD that was in my account has completely disappeared. I've tried to contact support several times, but to date I've received no reply. I find this situation extremely worrying and dubious.

I would be grateful if you could inform me of the current situation, provide me with a detailed explanation of the reasons for this suspension, and tell me where my cash is.

[farihin]

They took my money and also closed my all 3 shops no reason at all even couldn't give any conclusive answer and holder money for 120 days then after 120 day when i asked for my money said it's in reserve the. Send. Me reserve time date email 4 days ago reserve time completed still didn't pay back my money