Shopify Payments disabled

Payments + Shipping & Fulfilment
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Topic summary

A merchant’s Shopify Payments account was disabled on October 1st after receiving a warning on September 19th about a high chargeback rate of 3.26%. The merchant attributes approximately 50% of chargebacks to fraud and the remaining 50% to shipping delays caused by tariff issues in China, which have since been resolved.

Current situation:

  • Funds are being held for 120 days
  • Cannot access Shopify Payments
  • Unable to switch to third-party payment providers due to an outstanding Shopify Credit balance and a recently paid Capital loan
  • Still responsible for shipping and production fees despite frozen funds

Actions taken:

  • Submitted documentation including shipping records, supplier invoices, and business identification to support
  • No response received from Shopify support team
  • Chat advisors only advise waiting for a reply

The merchant is in financial difficulty, unable to pay operational expenses or the credit balance due to the fund hold, creating a worsening situation.

Summarized with AI on October 24. AI used: claude-sonnet-4-5-20250929.
1

My shopify payments have been disabled . i received an email on september 19th stating that my store’s shopify payments was at risk of being disabled due to high charge backrate . i responded with all necessary information on how i was going to solve this and do better . now i will be honest my charge back is at. 3.26% . about 50% of those chargebacks are fraudulent and the other %50 are just delays in shipment from my suppliers due to tariff issues in china which i have since resolved .

fast forward to monday october 1st i received an email that my shopify payments have been disabled and my funds will be held for 120 days . which makes it difficult because i still need to pay shipping fees and production fees. so this is actually putting me in a much worse position. ive emailed documents to support i ship my packages , supplier verified invoices and even state business identification information to prove im a legit business . i get no response from shopify and the chat advisors just tell me to wait for a reply.

they are holding my funds for 120 days

i cannot use shopify payments

i cannot switch to a third party because i had a capital that was recently fully paid just from one release and i had a shopify credit balance that i usually pay from my balance account. i now cannot pay that because of the holds on my funds

5 Likes
4

Same happened with me just few hours ago

My store was just created and activated the shopify payments. Id and business had been verified. But received an email that my business is risky due to chargebacks! I never received a single order on my store even never added the products, just activated the shopify payments and even after the verification my account has been disabled. Just submitted an appeal with all the required documents. Now let’s see what happens

It’s really frustrating! BTW did you receive the response from the team or reactivated your shopify payments?

1 Like
8

Try to integrate Stripe instead of Shopify Payments.

2 Likes