URGENT Help Needed! Shopify Payments Holding Payouts for Weeks!

Shopify Discussion
21

I am facing the same issue, I haven’t received an email from them yet, could you please tell me what documents did they required?

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22

I received an email with a secure link to answer their questions/submit documentation. In my case the document was a copy of my liquor license. However, I have no idea how you would submit documentation without a link since that dept is so well insulated. I’d start a chat with support if your payouts are frozen but you have no email explaining it.

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23

Thank you very much for your reply! :slightly_smiling_face: I’ve chatted with Shopify Supports, they just told me to wait…… And I’m really worried they’re not going to give me my money back…… Anyways, thank you very much for your sharing

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24

I am in the middle of the EXACT same process. Non-compliance and then ‘banking issues’. Has affected my livelihood, my mental health, my credit rating…

Am in complete despair at the situation. Who in trust and safety helped you??? I wonder what the actual reason is for it all?? Shopify in financial difficulties??? OWuldnt be surprised if we hear they are entering administration.

I am

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25

I am int he process of completing this complaints procedure;

https://www.shopify.com/legal/p2b

Oh and I am changing payment gateway and building a new site on Big Commerce. Which is a shame because I really like the Shopify’s platform. Have been using it without problem for years. Definitely raising questions about their viability and security as a company.

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26

Hello - I am interested in joining this class action. Shopify has held payments which includes sales tax withheld from payments. We have the obligation to remit these sales tax payments collected by Shopify.

It has been three weeks since payments have been put on hold. There was a request for documents, which I submitted, and then I was informed that the issue was escalated to the wrong team.

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27

I was told that the review of my account was complete and that the hold on my account was being removed. 24-48 hours. That was 4 days ago and obviously yet again, no change. Account still on hold and np payouts scheduled.

Now 6 weeks since my last payout.

I completed the P2B complaints procedure which Shopify provide on their own site; Unsurprisingly I got a standard response and don’t believe it is actually linked to the regulator at all. So am going to go directly to the P2B. Here is the link

https://digital-strategy.ec.europa.eu/en/policies/platform-business-trading-practices



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28

I am getting lawyers to get my money out. reach out and we can discuss soon. This is rididculous.

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29

i am currently reaching out to lawyers about my store. Reach out to me . They are holding 6 figures on my account and I am not happy about it.

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30

It’s been three months and now I am being asked for the same information AGAIN! Of course, it also has the threat that they’ll shut down my website if I don’t provide it. I’m tired of this harassment and had contacted an attorney who is willing to research a class action lawsuit. I will be reachign out to him again. If you’d like to join or have any additional information that may be appropriate, please reach out to me.

@minimalist3312 - I will reach out with the information early next week.

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31

Yes, I am currently experiencing the same situation. Please, please someone help resolve this!

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32

Hi !! Did you get any resolution?

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33

A class action lawsuit would be amazing.

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34

OMG!! I can’t believe this. Do you have your funds now?

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35

HI !! Please reach out to me as we are getting to a very big amount on hold as well. Lori@worthhp.com - Co-Founder of Worth Home Products

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36

Hello, how did this end up?

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37

I have read through every post…it is making me sick to my stomach. I just switched to Shopify and these complaints are shocking. I did not feel comfortable with no customer service to talk to and now my fears are vindicated with issues such as these. Wow…just Wow

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38

Very scary indeed and I wish you success in your launch. Shopify is an amazing platform, until it’s not.

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39

Yes customer service never used to be so terrible and now chat can do nothing for you. I have been with Shopify for 8+ years roughly and they held funds for no reason one day and with all the complaints this is unacceptable. I have Transfer my business to square space. So done with Shopify!

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40

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. Here is is the post that has been deleted over 72 times today:

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.

We deserve better.

If a payment processor is participating in Unfair, Deceptive, or Abusive Acts or Practices (UDAAP), there are several steps you can take to seek recourse:

The only solution OUTSIDE of legal action : This is what my attorney and I will be doing for the rest of the day.

  1. Consumer Financial Protection Bureau (CFPB)

  2. State Attorney General’s Office

  3. Federal Trade Commission (FTC)

  4. Better Business Bureau (BBB)

  5. Online Consumer Review Platforms

  6. Financial Regulatory Authorities

Summary

If you believe a payment processor is engaging in UDAAP, you have several avenues for recourse, including internal complaint resolution, external complaint resolution with regulatory bodies, legal action, and public recourse through online platforms. Taking these steps can help you seek resolution and hold the payment processor accountable for their practices.

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