So I got the sad message that my shop has too many chargebacks, (which I can not even control, it is people trying to scam my business), but Shopify said I can not use Shopify payments anymore, $3.5k is being held until February 2024. Very frustrating, but even more frustrating since my account is on hold I still have money in my balance and it will not let me transfer to another payment system until I get that money out but I can't get the money out because it is locked. So it just makes no sense, Shopify does not want me to use payments but they wont release the lock so that I can transfer??? Now people can only checckout using paypal or venmo, this seems ridiculous, I have contacted everyone it just drags out more and more I just want actual help, this is my life and business.
I am sorry to hear that your business has been deemed not a good fit for Shopify Payments. That is never a great situation to be in, and I fully recognize the impact this can have based on the shopping season we are entering right now.
In regards to your payouts and balance being held in reserve, this is something that is put in place by the banking institutes that power Shopify Payments to help mitigate chargeback risk through the banks. Holding the money in reserve means that if there is any additional chargebacks resolved in the customer's favor, the chargeback refund will first be taken out of the reserve funds being held. Once the reserve is over all remaining funds will be released back to you.
I would also be interested in knowing some more about the orders you received that ended up in chargebacks. What was the reason the customer provided for the chargeback and what kind of information were you able to send in response? Mitigating orders that could lead to a chargeback, as well as improving your response to chargebacks, can help you with your future gateways.
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