Shopify Payments Paused Even After Identity Verification

Topic summary

Payments remain paused on Shopify Payments despite identity verification being approved, leading to repeated payout failures and operational disruption. The merchant’s bank account (Mercury USD checking) is active, yet the dashboard continues to show a red “payments paused” banner.

Timeline:

  • Feb 3, 2026: Identity verification completed and confirmed; payments still paused; payout failure notifications began.
  • Feb 4, 2026: Another payout failed (~$77.49 USD); dashboard cited banking payout failure.
  • Feb 5, 2026: Payments still paused with no root cause provided.

Actions taken:

  • Contacted Shopify Support multiple times; case escalated to Payments team.
  • Confirmed bank account status; preparing to submit bank statements.
  • Contacted Stripe to confirm verification status, as Shopify uses Stripe infrastructure for verification.

Impact:

  • Unable to receive payments; advertising paused, affecting store operations and order fulfillment.

Key terms:

  • Shopify Payments: Shopify’s built-in payment processing.
  • Identity verification: compliance check to confirm merchant identity.
  • Payout failure: unsuccessful transfer of funds to the merchant’s bank.

Status: Ongoing and unresolved. The merchant seeks similar experiences and typical resolution timelines.

Summarized with AI on February 5. AI used: gpt-5.

I am creating this post to report a serious issue I have been facing with Shopify Payments and to understand if other merchants have experienced something similar.

Over the last several days, my Shopify Payments account has remained paused, even though my identity verification was successfully completed. I received official confirmation that my verification was approved, but the system still shows the red banner indicating payments are paused.

Timeline of events:

  • Feb 3, 2026 – I completed identity verification and received confirmation that it was approved. Despite this, payments remained paused. I also experienced payout failure notifications.

  • Feb 4, 2026 – I received another payout failure notification (around $77.49 USD). The dashboard indicated banking payout failure, even though my bank account is active and working normally.

  • Feb 5, 2026 – Payments are still paused. The red banner remains in the dashboard even after verification is completed.

Actions I have already taken:

  • Contacted Shopify Support multiple times
  • Case was escalated internally to Payments team
  • Confirmed my bank account (Mercury USD checking) is active and operational
  • Preparing to submit bank statements to prove account status
  • Contacted Stripe to confirm verification status on their side (since verification is processed via Stripe infrastructure)

Business impact:

  • I have been unable to receive payments for multiple days
  • I was forced to pause my advertising campaigns, losing months of optimization work
  • My online store operations were directly impacted
  • Customer order fulfillment flow has been affected

This situation is extremely concerning because verification is marked as completed, but payments remain paused with no clear root cause explanation yet.

store: Vallum

If anyone has experienced a similar issue, I would appreciate hearing how it was resolved and how long it took.

Thank you.

If you search you’ll find hundreds of posts just like yours over the years. You’re not the first, probably not the last. This topic is posted at least 3 times a week. Just gotta deal with whatever it is and talk to Shopify Support.

I understand that I may not be the first person to experience this issue, and I probably won’t be the last.

However, I have already contacted multiple Shopify support agents over several days. If the problem had been resolved through support, I would not be here posting in the community.

This is a serious situation for my business, and I am here because I am still looking for a real solution.

just like @Maximus3 said, only Shopify can fix this issue for you. Timing for a resolution is different for everyone as many factors are invovled. To reduce the problem, you can always accept other payments like Paypal until Shopify resolves the issue.

Do you also have a Stripe account, what is its status, and are you receiving payments through your Stripe account without any problems?

Did you resolve this issue because happened to me today asked to verify identity i did it got email your identity is verified and still payouts with red

Hi everyone,

I’m currently setting up Shopify Payments for my US LLC and have completed all required verification steps including uploading my passport.

However, I’m facing an issue where Shopify requires both a first name and last name, and it keeps showing a “name doesn’t match” error.

My passport only shows a single name: Abdullah (no surname listed separately). Because Shopify requires both fields, I’m unsure how to correctly enter my name so that it matches my passport and passes verification.

Has anyone faced this issue before with a single-name passport?

What is the correct way to enter the name in Shopify Payments so it matches official documents and avoids verification failure?

Would really appreciate guidance from anyone who has resolved this.

Thank you.