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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?
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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.
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Jasoh | Community Moderator @ Shopify
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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.
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."
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!
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.
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.“”
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.
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.
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