Understanding payout delays with Shopify Payments

As a Shopify merchant, it’s important to understand how payouts work, especially when you're setting up your store for the first time. This article breaks down the common causes of payout delays, what you can expect from your payout schedule, and what you should do if you encounter issues.

Processing time for Shopify Payments payouts

Payout timing depends on your location. The payout processing period is important for safeguarding the security of payments and maintaining customer trust, as it lets our banking partners verify your business details and mitigate risks associated with processing transactions from certain businesses. Payouts can’t be received instantly due to these necessary processing protocols.

Most merchants can select a payout schedule that works for them, receiving either daily, weekly, or monthly payouts. However, some countries, including France and Japan, have specific requirements that may limit the payout options available to you. Learn more about scheduling your Shopify Payments payouts.

Shopify Payments payout timeline to your Shopify Balance Account

After you sign up for a Shopify Balance account, your main Balance account is automatically set as your Shopify Payments payout account. This means that using your main Balance lets you receive money from your Shopify sales up to 7 days earlier than a bank.

Payouts from Shopify Payments can arrive in your Shopify Balance account in as little as 1 business day from the transaction processing date. In some cases, payouts for new merchants can take up to 5 business days. Learn more about payouts from Shopify Payments arriving in your Shopify Balance account.

Causes for payout delays beyond the initial period

If you find that your payout is taking longer than expected for your location, then several factors could be contributing to this delay.

Account reviews and holds

Payouts can be temporarily held while your account undergoes review. This review can be influenced by several factors, including, but not limited to, the following examples:

• Chargeback disputes
• Compliance checks or potential violations of Shopify Payments Terms of Service for your country
• Customer complaints
• High-risk orders
• Fraud or compliance investigations by our financial partners
• Fulfillment issues
• Onboarding processes that require additional documentation or verification

Note

The store owner receives notifications in their Shopify admin or by email if a payout hold is placed on your account. Review your Finance store role permissions to ensure that the correct users in your business also receive payout related notifications in their Shopify admin.

Failed payouts

A payout can fail due to incorrect bank account information or problems such as currency mismatch. If this happens, then you may not receive future payouts until you resolve the payout failure by following the instructions provided in the failed payout message. Always check your Shopify admin for notifications regarding failed payouts and follow provided instructions to resolve the issue, such as updating your bank account details.

Bank account issues

Ensure that your bank account complies with Shopify Payments’ requirements for your region. Problems such as an invalid account type or mismatched currency can lead to further delays.

If you recently updated your bank account details and haven’t received your payout, it could be due to factors such as processing time, pending payouts, errors in new bank account details, account review, minimum payout threshold, or account currency mismatch with the new bank account.

Issues with your tax details

Financial regulations require Shopify to verify appropriate tax identification numbers and other business details. If there are issues with your business information or tax identification numbers, then a hold on your payouts may be applied. Respond to any requests for updated information that may arise from notifications in your Shopify admin or by email.

Reserves in Shopify Payments

When you use Shopify Payments, a portion of your funds may be held as a reserve to cover potential losses from disputes or refunds. While reserves allow you to continue accepting payments, they can affect the timing of when you receive the full amount of your earnings.

Custom payout schedules

Your account might be placed on a custom payout schedule, which may result in extended payout periods ranging from 5 to 20 business days for accounts deemed higher risk.

Other factors affecting payout timing

The following are examples of factors that can contribute to payout delays:

• Adjusting your payout schedule: If you change your payout frequency (for example, from daily to weekly), then pending payouts may be delayed until the next scheduled payout date.
• Bank processing times: After a payout is issued by the payment processor, banks generally need 1-3 business days to process and transfer the funds to your account.
• Weekends and public holidays: Payouts aren’t processed on weekends or public holidays. If your payout is scheduled during these times, then it's processed on the next business day.
• Incomplete Shopify Payments setup: Delays will occur if you haven’t completed the entire Shopify Payments setup, particularly if your bank account details are missing.
• Minimum payout amount: If your To be paid amount is below the minimum payout amount for your region, then you may not receive your payout.
• Negative balances: If your account has a negative To be paid amount due to refunds or chargebacks, then payouts are delayed until this balance is offset by future sales, or if applicable, until your bank account can cover the negative amount.

What to do if you experience a payout delay

If you're experiencing a payout delay that exceeds what you expected, then begin by checking your Shopify admin for any alerts, banners, or notifications related to your account status. Additionally, check the store owner email address for any correspondence from Shopify regarding payout issues. If you can’t identify the problem, then reach out to Shopify Support. Shopify Support can help you understand the status of your account and provide guidance on how to resolve any issues that may be delaying your payouts.