Processing terminated at Shopify Payments

What is happening

Reserve. Shopify holds some or all of your transactions for a set period and emails you the terms. A reserve can be a fixed amount or a percentage of each sale. Shopify's help page gives examples, such as 10% held for 120 days. These are examples only; your terms are in your own email. To see the held amount, go to Finance > Payouts in your admin and click Reserve. Before its expiry date, Shopify may lift, keep, reduce or increase it.

Payout delay or hold. In the US, the minimum settlement time is 3 business days. Some higher-risk accounts get a custom schedule of 5 to 20 business days, and Support cannot shorten it on request. Switching to a new external bank account pauses payouts for 3 to 5 business days. An account hold stops payouts until the issue is resolved.

Termination. The Shopify Payments terms say Shopify may close your account at any time, for any reason, with notice. Funds are then paid out under the payment processor terms, but a processor may keep holding funds it deems necessary until open obligations, such as chargebacks, disputes and refunds, are resolved. The terms set no fixed number of days.

Verification and address. Payouts might be held until your information and documents are verified. In the US, the business address must be the official physical address where operations primarily occur, in the 50 states or Puerto Rico. Individuals and sole proprietorships must live in the United States.

Common triggers

Reasons Shopify names for reserves:

• Long billing cycles, such as annual subscriptions
• High chargeback activity or a rising refund rate
• Long delivery timelines (events, custom orders, pre-orders)
• Sudden large increases in sales volume

Causes Shopify names for account holds:

• Missing business information or incorrect bank details
• Product eligibility, or a business type Shopify Payments does not support
• Sanctions linked to your location
• A creditor or legal notice
• A review of high-value goods, such as jewelry, art or watches

What to do in the next 72 hours

1. Find Shopify's email to the store owner's address. Check spam too. To confirm that address, go to Settings > Users and permissions and click the name under Store owner.
2. In your admin, check the banner, notifications and Finance > Payouts. Note the amount and expiry date.
3. If the email lists requirements for removal, meeting them removes the reserve automatically. If it allows an appeal, reply to that email within the timeframe it gives. Some reserves cannot be appealed.
4. Give exactly the information Shopify asked for. Be honest and consistent with the platform.
5. For a creditor hold, Shopify says to contact your creditor directly. Shopify cannot remove it.
6. If the notice is unclear, use Chat with a human at help.shopify.com, logged in to the store. Shopify Support does not make outbound calls, so be careful with anyone who phones you.

Documents to gather

Shopify may ask for more information at any time, even after verification. Its docs mention:

• A valid photo ID: passport, driver's license or state ID card
• For an EIN: your IRS SS-4 confirmation letter, IRS Notice CP575 or IRS Letter 147c
• Proof of business address, issued in the past 6 months: a utility bill, bank or credit statement, insurance statement, tax assessment notice or proof of business registration
• Your company registration number and financial statements
• For a high-value goods review: answers to the questionnaire and supporting documents

Send original photos of documents, not scans or screenshots.

Letter template (editable)

Copy it, replace the parts in braces, and send it yourself through the official channel. The free plan fills in your own facts.

Subject: Request for information about my Shopify Payments funds

Hello {platform} team,

I am writing about the store {business_name}, account email {account_email}.

Since {started_on}, {amount} has been held on my Shopify Payments account. The reason I was given is: {reason_given}. The release date I was told is: {announced_release_on}.

Please tell me:
1. The reason for the hold, if you are allowed to share it.
2. The exact amount currently held.
3. The expected release date.
4. Which documents or information would allow a review.
5. How and when the remaining balance will be paid out to me.

Thank you,
{your_name}

Keep selling while you wait

• You can still use your store during a hold. Customers can usually still check out, but sometimes the store cannot take new orders.
• If you need another way to get paid, choose a processor that accepts your real business profile and location.
• Tell your customers clearly if a payment method changes.
• Keep fulfilling orders and handling refunds on time.