Shopify Payout holds and stocks crashing related?

Shopify Discussion
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Recently our Payouts are being held (like so many others) without any reason or explanation. As days turn into weeks without any reason and tens of thousands of dollars held, we decided to investigate if this has happened to anyone else. Apparently, with a easy internet search it is happening to everyone as Shopify attempts to keep businesses money, so we wanted to figure out why. After talking to some people very active in the stock market, they have all informed us that Shopify stocks are currently crashing. I can only guess at this point that Shopify is holding everyone’s’ Payout in an attempt to show profit or “cook the books”.

Many people are claiming that they have now lost their business and Shopify is holding Payouts for 120 days and still not paying. When i say holding payout money, I don’t mean a few payments in question of a dispute. I mean all of the sudden Shopify holds every single penny in sales for weeks upon months until there is no blood left. You can’t even pay the Sales Tax due that was collected because they hold your tax money also, which is a criminal offense to the business (some states call it tax evasion). Shopify is holding Payouts for every payment you will receive during this time so i would suggest stopping any and all transactions immediately if this happens to you like it did to us.

We are trying to move back immediately to the other systems that are not crashing in the stock markets and holding people’s money in what seems to be an attempt to “cook the books” and would love to know who everyone is using for POS.

Our heart pours out to all of the businesses that have shared their stories on here and the internet about losing everything due to this.

What are other businesses using for a more reputable POS system?

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I don’t know the details of any of the stocks. But I do know our account got a hold put on it last week (5/10) and we have yet to be able to get a straight answer. We finally got an email but it was just as unhelpful as all the replies from the live chat. It said their bank is reviewing our account. We have been running our store since 2019 with no hiccups and very few chargebacks. They are currently holding a pay out of a large amount. We have used capital with them and even though our pay out hasn’t come through they still did their daily pulls on the account. I’m sick to my stomach to think all the years of hard work starting and running our business is just going to be sent down the drain to an unknown cause. We tried to switch to a third party processor and it will not allow us to because there is still a balance. We need to find out how many businesses this happen to. If it’s as many as I have heard then this sounds like a class action law suit waiting to happen. I am shocked I never have had a bad experience with Shopify but if this doesn’t get resolved soon I don’t know what to make of it.

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Interesting thought and you may be onto something. Shopify has been chasing me around for the last dew days deleting this post as I have shared it with many others who are in similar distress. Deleting this post shows that Shopify complicit in this behavior- trying to keep us from solving a problem they created. Payment processors are governed by LAWS (in EVERY country btw).

However, It’s okay- my attorney is in possession of all of the screen recordings showing the deleted posts to further prove that Shopify is fully supporting the nefarious nature of these monies being withheld from so many small businesses- including me. I will keep recording & posting because what is happening to us is unjust.

Here is the post that has been deleted over 72 times- but I will keep reposting it:

This is called “money floating” and yes, it’s very illegal. Shopify uses our funds for their purposes (like a bank- but they are NOT a bank, and they do not have the rights to do so). The longer they have it- the more they can do with it. _as if YOU don’t need your own money for the same reasons.. Equally-_they are still bound by the law.

We are having the SAME PROBLEM: We built YOUR business, Shopify. WHY are you destroying OURS?

After opening our second store, we verified everything and were approved for Shopify Payments. After several transactions, I signed in to find that my payout of over 6k was on hold and I had to contact Shopify, which as we all know has migrated to a “chat bot”. This raises a RED FLAG. Why am I being asked to chase down a problem that I was never alerted to? I’m told they will “email me”. 2 days later without any response from Shopify, monies were still on hold, I’m getting frustrated.

Aren’t there laws surrounding the handling of monies?

YUP, there are- on both sides of the coin.
In this case: Shopify is the Payment Processor- while WE are the Consumer.
______________________________________________________________________________________________________________________________
US Electronic Fund Transfer Act (EFTA) and Regulation E
EFTA: The Electronic Fund Transfer Act (15 U.S. Code § 1693 et seq.) establishes the rights and liabilities of consumers and the responsibilities of all participants in electronic fund transfer systems.

  • Regulation E: Implements the EFTA and includes requirements for:
    • Disclosure of Terms and Conditions: Payment processors must clearly disclose the terms and conditions under which funds may be withheld.
    • Error Resolution: Procedures must be in place to resolve errors promptly, including those related to withheld funds.
    • Unauthorized Transactions: Handling and reporting unauthorized transactions and notifying the consumer promptly.
  1. Unfair, Deceptive, or Abusive Acts or Practices (UDAAP)
  • Enforced by the Consumer Financial Protection Bureau (CFPB), UDAAP prohibits financial service providers from engaging in unfair, deceptive, or abusive acts or practices. Withholding funds without proper cause or clear communication can be considered a violation

After finally getting a response, Shopify asked me to verify the same documents I had previously provided to open the account. This seems negligent, especially now that they have $6,300 of our funds. I provided the documents again, and Shopify confirmed the account was in “good standing” and payments would be processed. Yet, 15 minutes later, they sent another notification putting the account on hold again, blocking incoming payments as well as the payout.

For three days, I’ve been emailing Shopify “Customer Support” to find out what is needed now to resolve this issue. NO one can give me an answer. They have “escalated my request” yet cannot seem to get tot he bottom of it and deliver a direct response towards a resolution. Despite all of my emails and requests, I still receive the same false and inconclusive emails from Shopify:

"Hi there,

Thank you for reaching out. I understand the urgency of the hold on your payments. Two escalated tickets (Ticket #47680900 and Ticket #47610956) are actively addressing your concerns. Our specialized teams are working diligently on your case and will update you as soon as they have information."

This situation is debilitating and unreasonable. Shopify’s actions are unlawful and unethical. They cannot withhold our money without providing any response or actionable steps within a reasonable time frame. They are using our cash for their business needs, while harming ours.

Our money has been withheld. Just like yours Shopify REFUSES to deliver a response- of any kind towards clarity or a resolution (EFTA15 U.S. Code § 1693 et seq.E). Furthermore, they “resolved” the matter in my case and subsequently reversed it within minutes unceremoniously. This is fraud. This is deceptive. This is unjust.

After 8+ years with Shopify - what used to be excellent customer service has now become an absolute nightmare of seeming incompetence- or is it purposeful because they know we are small? Are we?

I’d happily start a class action suit, as I am clearly not the only one affected.

Shopify is BREAKING THE LAW.
Shopify’s actions are Unfair, Deceptive, & Abusive

This is absolutely unacceptable.

Have your attorney send an email & certified letter and let them know that you are aware of the above and demand that they respond immediately.

SENDING A FORMAL LEGAL FILING TO SHOPIFY:
legal@legal-mailer.shopify.com

Shopify Legal Department
150 Elgin Street, 8th Floor Ottawa,

Ontario, K2P 1L4 Canada

Solutions OUTSIDE of legal action :

  1. Consumer Financial Protection Bureau (CFPB)
  1. State Attorney General’s Office (not sure this one applies, but whynot?)
  1. Federal Trade Commission (FTC)
  1. Better Business Bureau (BBB)
  1. Online Consumer Review Platforms
  1. Financial Regulatory Authorities

Let’s at least do THAT so that Shopify is held to the standards to do better and STOP this chaos. We deserve better.

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8/2/24 - I am also going through the same thing as we speak. Shopify is holding over $4,000.00 of my payouts without reason. When I speak with an advisor in chat they tell me nothing is wrong with my account and they dont know why payouts are being withheld. This is destroying my business let alone it is my sole income. This is horrible. If anyone has any advise on how to navigate around this to reach someone and get things resolved immediately please share.

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Did you get your money deposited? I am going through the same thing and it is absolutely awful.