When it comes to hosting your eCommerce store online, there are several options you can choose for your chosen platform. One of the most popular, though, is Shopify.
This is because it comes with a wealth of features and integrates well with many other sites and services. However, even though it’s a very user-friendly platform, some questions may arise.
This is especially true when it comes to your funds. After all, you’re using this platform to make money, and the last thing you want to do is have to deal with holding your funds. So does Shopify hold funds? And if it does, why?
The answer is both yes and no. Shopify does not hold funds regularly, as the transactions automatically get downloaded into the bank account attached to your shop. However, if things like shopping in a country.
The platform offers shop payouts, or if there’s something that seems a little off about the transaction, Shopify may hold funds until everything can be cleared up.
Take a deeper dive into this, so you understand the whole process in its entirety. This should make any situation a little less stressful.
What Do You Do If Your Shopify Payment is On Hold?
There are multiple reasons why your payments may be on hold. No matter what, though, your store will still be able to accept payments. You will just have to provide the documents that the platform requires.
Typically you’ll get an e-mail or a notification on your dashboard stretching you of what they need to unfreeze your payments. If the documents are appropriate, then they will be removed from on-hold status.
How Long Does It Take Shopify to Release Funds?
Once you’ve received the email, as we said, and you’ve submitted the documentation, we’re sure you’re wondering how long it’s going to take before your payments and funds are released.
After you have submitted these, it usually takes 24 to 72 hours for the team to verify all the documentation.
If it persists longer, you can always reach out to customer support to see what is taking so long. Typically they respond very quickly, and they should be able to help you resolve the issue or at least give you some clear idea of how the funds will be on hold.
When Does This Happen?
So what causes Shopify to hold funds? There are two main reasons. First, if the purchase was made through a country that allows for shop payouts, the funds of those transactions might be put on hold until the platform can pay them out.
The other reason that buttons are put on hold on Shopify is if there seems to be some sort of fraudulent activity. This is not only to protect them but also to protect your customer as well as your business.
Putting and holding until proper documentation is provided ensures that there is a reduced chance of scams.
How Often Can It Happen?
The truth is that Shopify can put funds on hold as often or as infrequently as they need to. The process of putting a hold on funds is to make sure that all parties are protected. When it comes to how long they can hold it, Shopify can hold funds for up to 120 days.
That being said, that time frame can change if you’re dealing with third parties like banks and credit cards. There have been situations where holds on the money were executed for up to six months.
Who Processes Payments For Shopify?
Shopify is a global platform that many people use to house their online commerce businesses. Because it is so versatile, it has to have a wide range of payment gateways available. That means that multiple companies process payments for Shopify.
Some of those are:
- Shopify payments
- Stripe
- Worldpay
- Amazon pay
- Skrill
Final Thoughts on Why Does Shopify Hold Funds
Shopify is not in the business of holding funds too often. However, there are occasionally issues with accounts and documentation, as well as potentially fraudulent transactions occurring.
At these times, Shopify will hold funds until they can clear up the situation. Though this may be an inconvenience, it is a security blanket for the business owner, the processing companies you use, and their customers.