My Shopify account has been deemed unsupportable by Shopify's banking partners

Shopify Discussion
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Topic summary

A Shopify merchant is facing severe financial difficulties after Shopify Payments imposed a 20% reserve hold on December 31, triggered by a single chargeback out of 2,000+ orders (0.052% rate—well below the 1% industry threshold). Despite the low chargeback rate, the situation escalated to a full account hold, freezing over $10,000 in payouts.

Current Status:

  • Merchant cannot access earned funds critical for business operations
  • Shopify Support redirects to legal team, which provides minimal communication
  • No clear explanation provided for the severity of the hold

Key Issues Identified:

  • Banking partners may flag accounts based on factors beyond chargeback rates (sales spikes, high-risk product categories, internal risk assessments)
  • Shopify has limited control when banking partners deem accounts “unsupportable”
  • Holds can paradoxically cause the chargebacks they’re meant to prevent by preventing order fulfillment

Recommended Actions:

  • Escalate through Risk Operations team rather than standard support
  • Request specific timeline for fund release (typically 90-180 days)
  • Consider switching to third-party payment processors (PayPal, direct bank transfers)
  • Document all communications for potential dispute resolution

One commenter successfully reduced their hold by persistently messaging chat support multiple times daily. Another is migrating to BigCommerce to avoid ongoing issues.

Summarized with AI on November 1. AI used: claude-sonnet-4-5-20250929.
1

I wanted to share my experience with Shopify Payments, as I’ve been hitting a wall for weeks and hope someone here has advice or has gone through something similar.

On December 31, Shopify Payments applied a 20% reserve hold to my account. This was due to one chargeback out of over 2.000 orders, which translates to a chargeback rate of just 0.052%—far below the industry standard threshold of 1%. I couldn’t understand why this hold was necessary given such a low risk.

I immediately contacted Shopify Support to ask for clarification and explained that this reserve was severely affecting my cash flow. I even mentioned that I might have trouble paying my Shopify fees because of it. Despite my efforts, I didn’t receive a clear explanation or solution.

Recently, Shopify escalated the issue by placing a full hold on my account. Now, I have over $10,000+ in reserved payouts that I can’t access. This is money that I earned, and it’s critical for my business to survive.

What’s frustrating is that I’ve been in constant contact with Shopify Support. The agents are polite but repeatedly tell me they can’t help because the issue is being handled by the legal team. I’ve been told to wait, but the legal team barely responds to my emails. I’ve sent countless messages explaining how this situation is killing my business, but I’ve received no concrete answers.

The longer this goes on, the worse it gets. I’ve built a business I’m proud of, and this situation is putting everything at risk.

Any insights or suggestions would be greatly appreciated.

2

I had a complete hold put on my account and was able to get that brought down to a 20% reserve only after bombarding their chat with messages several times a day for a few days. Don’t even bother trying to email them.

It’s funny how they put a hold on your account because they think you’ll get chargebacks. But the chargebacks only happen once they freeze your funds and you can’t ship your orders anymore. But they probably don’t care about your customers if they don’t even care about their own. I do not understand how they are getting away with this.

Personally, I am switching to a different payment provider for the short term in order to avoid the 20% hold. In the meantime I’m switching my store over to bigcommerce.

3

Hi @Ltpeper

I hear your frustration loud and clear, and I can only imagine how difficult this situation must be, especially when your business depends on those funds. Dealing with Shopify Payments holds can be incredibly stressful, particularly when communication from Shopify’s side is slow and unclear. Here’s what I’d recommend based on your situation:

1. Understand Why Shopify Payments Applied the Reserve Hold- A 20% reserve on your account due to one chargeback out of 2,000 orders (0.052%) is definitely unusual, considering the industry threshold is 1%. However, Shopify Payments (which relies on banking partners like Stripe) applies reserves based on perceived risk factors beyond just chargeback percentages.

  • Some potential reasons:
  • A sudden spike in sales or high transaction volume (even if legitimate).
  • Selling in high-risk categories (e.g., supplements, digital goods, electronics, or dropshipping).
  • Banking partners’ internal risk assessments, which aren’t always transparent.

2. Why Was Your Account Fully Frozen?- If Shopify escalated from a reserve hold to a full hold, it usually means their banking partner has flagged your business for risk concerns.

  • Shopify Payments operates under strict financial compliance regulations, meaning if their banking partner considers your business high risk, Shopify has little control over the final decision.

3. What You Can Do Right Now- Escalate Your Case Through the Right Channels

  • Shopify Support is often limited in what they can do. Since they mention the legal team is involved, this is a serious review.
  • If support isn’t responding, try contacting Shopify’s Risk Operations team directly by replying to emails you received about the hold.
  • Another option: Request a call with Shopify’s Risk & Compliance team—sometimes phone escalation gets faster responses.- Reach Out on Social Media
  • Shopify’s Twitter (@ShopifySupport) or LinkedIn support team might respond faster than email.- File a Formal Complaint
  • If you’re in the U.S. or Canada, you can file a complaint with the Better Business Bureau (BBB) or your local financial regulatory authority.- Consider Alternative Payment Gateways
  • If Shopify Payments isn’t releasing your funds, set up a backup processor like PayPal, Stripe, or Authorize.net ASAP to keep your cash flow running.

4. If Shopify Payments Is No Longer an Option- If Shopify deems your account “unsupportable” by their banking partners, you may need to switch to a third-party payment provider.

  • Go to Settings → Payments in your Shopify dashboard and check what alternative payment processors are available in your country.
  • If Shopify has already removed your access to Shopify Payments, you can still process payments via other gateways like PayPal or direct bank transfers.

5. Request Shopify to Release the Funds- Since this is money you already earned, ask Shopify for a clear timeline on when/if the funds will be released.

  • Some merchants have had success getting Shopify to release payouts after a certain period (e.g., 90-180 days), so it’s worth asking.

I know this is incredibly frustrating, and you’re not alone—many merchants have faced similar situations. Your best bet is to escalate aggressively, keep all communication documented, and if necessary, explore alternative processors.

If you need any other assistance, I am willing to help.
Best regards,
Daisy.