Silicon Valley Bank Closing

[Ulka]

What impact does the bank closing have our our Shopify stores?  Not finding much information on this but see that Shopify is a customer that continues to be listed in news related to the bank closing?  What guidance is Shopify giving us?  Should we temporarily shut down Shopify Payments?  

[Llj]

Does the SVB shutdown affect us as store owners?

[AshleyJ]

I’d like to know this too. Will payouts be held because of this mess?

[Llj]

That’s my concern as well. I have customers paying for their purchases. Do I need to stop?

[HUNTERK9]

I found an article on thehill.com saying the following:

"Silicon Valley Bank’s clients included brands such as Shopify, ZipRecruiter, Pinterest and venture capital firm Andreessen Horowitz, among others."

I was trying to find out if I should deactivate Shopify Payments and just use PayPal, not sure what to do right now.

[MNonlineseller]

I asked Shopify Support about this directly. They said:

"Upon checking, the payout functionality for both Shopify Payments and Shop Pay Installments is not impacted by the Silicon Valley Bank closures. Merchants who currently have a Silicon Valley Bank account on file for Shopify Payments have had their payouts paused temporarily. Payouts will resume automatically once the bank account on file with Shopify Payments account has been updated. Until then, accumulated funds will remain in your Shopify Payments balance. Please rest assured that we are actively monitoring this situation for new developments and working with our payment processing partners to determine how we can best support merchants impacted by Silicon Valley Bank closures during this time of transition."

[knoir1]

May be too early to tell however, the rumor is that Etsy, who also is backed by SVB, can not pay their sellers.

[Ryanp]

Noticed payments to my Shopify Capital loan have been paused.  Hoping it doesn't effect the ability to get capital cash advances.. I know it's too early to tell but this could probably be one of the negative ramifications moving forward..  Small businesses like mine reley on that advance every 5 months or so to bring new products to the marketplace.. 

Any insight would be great!

[knoir1]

I think it will be paused for a while. In addition, perhaps this will pose in even bigger issue that leads back to January & February when retailers were missing shop pay installment payouts. But something sellers need to consider, if they have a current Shopify capital loan, is that while you have a  loan you can not turn off shop pay as a payment processor. So, if this SVB issue really does trickle down to Shopify and they can not pay their sellers, like what is being rumored to be the case over at ETSY, those of us who have capital loans will not be able to turn Shop Pay off and will not have access to our deposits. I also found it interesting that last week I received an email saying that effective March 13th the 85% repayment requirement would be reduced to 65% to be able to apply for new funding. Shopify makes money off of these loans and in taking out a loan it will keep sellers locked in to shop pay. Just my observation of some facts. I could be completely paranoid of course, lol.

[Ryanp]

I never got an email like that.. What was the heading of the email? Ill look for it.. 

[knoir1]

Ironically it was sent on Friday, March 10. "Renewal funding offers now available after 65% completion."

[riverabe]

I received the same email regarding the repayment requirement reduction coinciding with the SVB issues and thought that was intriguing that they aligned. Wondering if it was to get people to pay the last part to get to 65% to apply for a new loan and then be denied i.e. they would get some quick funds of individuals doing that potentially.

[deeedra]

While you can't turn off ALL payment methods, you only need one.  See that "Diners club" option?  Select only that one and problem solved.  Revert all your payments to paypal instead.  That's what we did this weekend.  Problem solved.

[knoir1]

Excellent work around! Thnx!

[Ryanp]

Not sure you need to do anything. 95% of the liquidity in SVB is accounted for. However I did notice that Shopify Capital payments have been paused.  I just hope it doesn't affect the ability to get new cash advances moving forward as that was probably their main bank for supplying cash to loan customers. 

[Sj3designs]

I got this from a different post. this answer was posted about 15 minutes ago. 

“I asked Shopify Support about this directly. They said:

"Upon checking, the payout functionality for both Shopify Payments and Shop Pay Installments is not impacted by the Silicon Valley Bank closures. Merchants who currently have a Silicon Valley Bank account on file for Shopify Payments have had their payouts paused temporarily. Payouts will resume automatically once the bank account on file with Shopify Payments account has been updated. Until then, accumulated funds will remain in your Shopify Payments balance. Please rest assured that we are actively monitoring this situation for new developments and working with our payment processing partners to determine how we can best support merchants impacted by Silicon Valley Bank closures during this time of transition.“”

[PartsbyNC]

Are we sure more people are affected? I've had a payment from my Shopify payments account say "pending" since Wednesday night/Thursday even though I'm scheduled for daily payments it still hasn't gone through. And no, I don't use SVB.

[nomadicgraphics]

What a coincidence my payouts are on hold as soon as this news dropped... dealing with this is a nightmare whether it's because of this or not.

[gunners22]

Can somebody help please? I have a Shopify account, but I don’t bank with SVB my payments, go into a UK bank account. However, to Shopify hold all merchants money in the bank that has gone down.?? 

[Sj3designs]

It’s not about the bank you use. Shopify uses SVB. When a customer buys from your shop the money goes to SVB. Then is paid out to your bank account after Shopify removes their fee. So since Shopify uses SVB this is affecting your payments. Hope that helps. 

[organika]

Any more info on this? Also not using SBV and seeing fridays transfer as pending, which has never happened before.

[BBVT]

I received my Friday payout in my non-SVB bank account. I have an "in transit" payout for Monday, so we'll see if that comes through. So it seems like everything is ok, but it would be great to get an official statement from Shopify.

[knoir1]

Wrote this under another post, but reposting here as I think it definitely relates, mainly if you also have a Shopify Capital loan. The loan repayment feature has been paused making it virtually impossible to turn off Shopify Payments:

I think it will be paused for a while. In addition, perhaps this will pose in even bigger issue that leads back to January & February when retailers were missing shop pay installment payouts. But something sellers need to consider, if they have a current Shopify capital loan, is that while you have a  loan you can not turn off shop pay as a payment processor. So, if this SVB issue really does trickle down to Shopify and they can not pay their sellers, like what is being rumored to be the case over at ETSY, those of us who have capital loans will not be able to turn Shop Pay off and will not have access to our deposits. I also found it interesting that last week I received an email saying that effective March 13th the 85% repayment requirement would be reduced to 65% to be able to apply for new funding. Shopify makes money off of these loans and in taking out a loan it will keep sellers locked in to shop pay. Just my observation of some facts. I could be completely paranoid of course, lol.

[MoonBodySoul]

I have a Shopify loan and I was able to turn off shoppay installments. I was paranoid too those would be affected. 

[knoir1]

Interesting, this is the message I received and it was confirmed by shopify chat.

[deeedra]

As I've responded to other comments, you only need ONE payment method selected.  Uncheck everything except "Diners club".  No one has that!  Once you do that, all payments will go to paypal (assuming you have that set up).

[deeedra]

yes and no.  You have to have ONE payment method selected.  See that "Diners club"?  Who do you know with that option?  Select that and unselect the others.  Now, all payments go to paypal.  Problem solved.

[Jasonh · Accepted solution]

Hello, 

On Friday March 10, 2023, the United States Federal Regulators shut down the Silicon Valley Bank (SVB). Shopify knows that you might've been impacted, and we're doing everything we can to help you. You can use the information on this Silicon Valley Bank (SVB) FAQ page to find answers to specific questions that relate to how your business might've been affected by the shut down of SVB.

I've marked this message as solution for visibility. 

Thank you.