Unfair Shopify Payments Termination – Seeking Advice

[OHKorucu]

Hello Shopify Community,

I wanted to share my recent experience with Shopify Payments in hopes of getting some advice and support from others who may have faced similar situations.

Background:

I have been using Shopify Payments for my store for over a year with no major issues. I maintain a low chargeback rate (only 1 chargeback in the last 3 months) and have clear policies for refunds, returns, and customer service.

What Happened:

A few days ago, I received an email from the Shopify Merchant Trust Team stating that my account had been flagged as an "elevated level of risk for customer disputes." As a result:

• Shopify Payments has been disabled on my store.
• My store is no longer visible in the Shop channel.
• Shopify is holding my pending payouts for 120 days (until June 29, 2025).
• I was given no prior warning or chance to fix any supposed issues.

Why This Feels Unfair:

• I have had only one chargeback in 3 months, which is well below industry standards.
• Shopify did not provide any specific reason or data to support this "high risk" claim.
• I have always complied with Shopify's policies and provided excellent customer service.
• Holding my funds for 4 months is a major financial burden on my business.

What I’ve Done So Far:

• I appealed the decision via the provided form but have received no response.
• I sent a follow-up email but still haven’t heard back.
• I am now looking for alternative payment providers, but this sudden disruption is costing me thousands in lost sales.

My Questions for the Community:

1. Has anyone else faced a similar Shopify Payments termination?
2. Were you able to successfully appeal? If so, how?
3. Is there a way to speed up the appeal process or escalate this issue?
4. Has anyone successfully reclaimed their held funds earlier than the 120-day period?

This decision is having a severe impact on my business, and I’d appreciate any advice or insights from fellow merchants. Thank you in advance!

[bryan76]

what products are you selling?

[OHKorucu]

Just regular clothing, no brands.

[bryan76]

the rule of thumb is 1.5% - 2% chargeback rate until they feel it is too high.

soory, this stinks.  not sure what they are thinking.  really hope you win the appeal!

[OHKorucu]

Thanks man, really appreciate it but 1 chargeback from 3 months ago is not even 1%..

[bryan76]

completely agree.  and for clothing with good policies.  makes no sense. 

[OHKorucu]

Yeah.. I guess we'll see.