Release a payment hold in Shopify
When Shopify Payments pauses your payouts, the money is not gone: it is held while something is checked. The hold has a specific reason, and the reason is written in the notice in your admin and in the email sent to the store owner. The fastest way out is to give Shopify exactly what the notice asks for, from the store owner's account.
Written · Shopify admin, desktop steps · 5 minutes read
The worked example
| Sales in the hold period | $4,000.00 |
| Reserve | 10% for 120 days = $400.00 |
| Paid out as normal | $3,600.00 |
| Bank account change | Payouts paused 3 to 5 business days |
| Standard payout period | 3 business days |
| Who can resolve it | Store owner only |
Download the record: payout-hold-tracker.csv (186 bytes).
A tracker for the holds in this tutorial, with the amount held, the amount paid out, and the release condition for each. The held column sums to $400.00.
1Read the notice in your admin
Log in to your Shopify admin and open Settings > Payments. If your account is on hold, you will see a banner with specific instructions. The best source of information to resolve the issue is either the notification in your Shopify admin or the email that is sent to the store owner.
2Open Finance, then Payouts
Go to Finance > Payouts to see each payout and its status. A hold, a reserve, and a failed payout look different: a hold stops payouts entirely, a reserve holds a portion for a set period, and a failed payout means your bank rejected the transfer.
3Work out which kind of hold you have
Some possible reasons for account holds are related to information requirements, incorrect bank account details, and issues with product eligibility. A reserve is a temporary hold on a portion, in some cases a full amount, of the money you process through Shopify Payments, to cover disputes and refunds. A creditor or legal action hold is different again: the processor is legally required to place a hold for the amount in the notice.
4Give Shopify what it asked for
Provide the information requested and reply directly to Shopify's email. Supply exactly what the hold notice asks for, from the store owner's account. Only the store owner can access specific account details, and only the owner can resolve a hold on the account.
5Know what a reserve costs you
Shopify's reserves guide gives one example: a 10% reserve held for 120 days, with the other 90% paid out as normal. On $4,000.00 of sales that is $400.00 held and $3,600.00 paid out. Before a reserve ends, Shopify reviews your account and may keep, reduce or raise the reserve.
6Check the payout timing after release
The standard payout period is 3 business days in most countries, including the US, Canada, and the UK. If you changed your bank details, Shopify places an automatic 3 to 5 business day security hold on new payouts. Once a payout shows as deposited, banks need roughly 1 to 3 business days to post it.
The arithmetic
The reserve example is the one in Shopify's reserves guide: 10% held for 120 days:
| Sales | Reserve | Held | Paid out |
|---|---|---|---|
| $4,000.00 | 10% for 120 days | $400.00 | $3,600.00 |
| $4,000.00 | No reserve | $0.00 | $4,000.00 |
| $2,500.00 | 10% for 120 days | $250.00 | $2,250.00 |
The held amount is 10% of sales: $4,000.00 × 10% is $400.00, and $2,500.00 × 10% is $250.00. The paid-out amount is the rest: $4,000.00 minus $400.00 is $3,600.00, and $2,500.00 minus $250.00 is $2,250.00.
Held at the counter
The store keeps selling during a hold. In most cases, your customers can still check out if your payouts are on hold, however, you will not be paid out for the orders until the hold is resolved. Do not stop fulfilling orders because the payouts stopped: the hold is on the money out, not on the store.
A creditor hold cannot be lifted by Shopify. To resolve a creditor hold, contact your creditor directly. Shopify cannot remove this type of hold. Only the payment processor can remove it after receiving a release directly from your creditor.
Hold emails are a phishing lure. Payout hold emails are a common phishing lure, so open your Shopify admin directly instead of clicking links in an email you are unsure about. Confirm the banner is there in your own admin before you send any banking details anywhere.
Sources
- Shopify Payments account holds — Shopify's help pages: the reasons for account holds, the store owner rule, the creditor hold rule, and the note that customers can usually still check out.