I wonder if this change is an indication shopify is having cash flow problems? It is highly suspect that it is happening all of a sudden. I can’t see why that should be the case, but you never know! And I hope I am just being a ‘crazy conspiracy theorist’ here!
Topic summary
Refunds issued via Shopify Payments are showing as “pending,” with refund notification emails not sent, causing delays, accounting/reconciliation issues, and frustrated customers. PayPal refunds generally process instantly.
Initial guidance: A Shopify Support rep stated refunds to the customer are immediate; “pending” means Shopify is reclaiming the funds on the next payout. Customers should contact their bank for deposit timing.
Merchant experience diverges: Since late 2022/Jan this year, many report Shopify Payments refunds are no longer instant, with delays from ~24–48 hours to several days. One case tied PayPal delays to “eCheck” and a zero PayPal balance; keeping a small PayPal balance helped.
Recent update: Shopify support communicated a default 24–48 hour processing time for Shopify Payments refunds; orders should switch to “refunded/successful” by the next day (e.g., by 6 pm). Several merchants confirm refunds eventually completed after ~24–36 hours, but some report longer waits and chargebacks.
Outstanding issues: No pending-refund email to customers, no way to filter/report pending refunds, and confusion when balances remain positive. One screenshot was shared to illustrate the pending state.
Status: Ongoing; no formal fix beyond waiting. Suggested actions include informing customers about the delay and advising them to check with their bank.