Unfair Shopify Payments Termination – Seeking Advice

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?

  1. Were you able to successfully appeal? If so, how?
  2. Is there a way to speed up the appeal process or escalate this issue?
  3. 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!

what products are you selling?

Just regular clothing, no brands.

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!

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

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

Yeah.. I guess we’ll see.

Did you regain access to your store?