Shopify Payments is one of the most popular payment processing services used by merchants today. However, sometimes Shopify Payments may hold funds for various reasons. Here are some of the most common reasons why Shopify Payments may hold your funds:
Shopify Payments performs a risk assessment prior to approving your account. This is to ensure that they feel comfortable doing business with you. If Shopify Payments believes that you may be a high-risk merchant, they will hold your funds until they are certain that you are a legitimate merchant.
Shopify Payments also may hold your funds if you have not completed the necessary verification steps. To protect their customers and keep their platform safe, Shopify Payments requires merchants to verify their identity and business information. If you have not completed the verification process, your funds may be held until you do so.
Shopify Payments may also hold your funds if they detect suspicious activity on your account. This could be anything from unusual purchases to suspicious logins. If they detect any suspicious activity, they will hold your funds until they are sure that the activity is legitimate.
Shopify Payments also holds funds to prevent fraud. They use sophisticated fraud detection algorithms to identify and prevent fraudulent transactions. If they suspect that a transaction is fraudulent, they will hold the funds until they can verify that it is legitimate.
Finally, Shopify Payments may also hold funds for manual reviews. Manual reviews are conducted when Shopify Payments needs to verify that a transaction is legitimate. This could be anything from verifying the customer’s identity to confirming the shipping address. If they need to conduct a manual review, they will hold the funds until the review is complete.
Overall, Shopify Payments holds funds for a variety of reasons. The most common reason is to ensure that they feel comfortable doing business with you. They also hold funds for verification, fraud prevention, and manual reviews. Ultimately, Shopify Payments holds funds to keep their customers and platform safe.