Risks and requirements associated with selling NFTs using Shopify Payments
Shopify requires pre-approval in order to sell NFTs through Shopify Payments.
NFTs are a new product type, and there is a higher risk associated with these sales. Some risks are inherent to blockchain technology, while other risks are specific to NFTs.
For example, after an NFT has moved to a buyer’s wallet, that buyer has the right to move that NFT or resell that NFT on existing third-party marketplaces. This means that if a chargeback is created, or a fraudulent credit card is used to purchase an NFT, the chances of recovering an NFT from the customer are very low.
The buyer verification process is an important tactic to mitigate losses. Certain blockchain app partners can help with NFT sale risk mitigation, and you should also review general information about preventing chargebacks.
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Shopify Payments requirements
After you are approved to sell NFTs on Shopify, you can accept payments from your customers using Shopify Payments in order to complete a sale of an NFT on your Shopify store. As an approved seller, you should carefully review and ensure your compliance with the Shopify Payments Terms of Service for your region.
Prohibited businesses
When you sell NFTs with Shopify Payments, the following business types and practices are prohibited:
| Type | Description |
|---|---|
| Intellectual property rights infringement | You must own or have all requisite intellectual property rights to the content that'll be minted in the NFTs being sold or used to advertise the sale of such NFTs. |
| Gambling | You cannot sell NFTs in the form of lotteries, bidding fee auctions, contests, sweepstakes, games of chance, or raffles. |
| Hateful content | You cannot sell any NFTs that contain content deemed hateful, as described in the Shopify Acceptable Use Policy. |
| Adult content | You cannot sell any NFTs that contain pornography or other obscene materials, including but not limited to literature, imagery, and other media depicting nudity or explicitly sexual acts. |
Reserves
If your business model, NFTs, and/or previous processing history is determined by Shopify to be higher risk, then Shopify and/or our banking partners may set a reserve balance to hold back a portion of your payouts to cover any potential losses due to chargebacks. This can be a set dollar amount or a percentage of the sales transacted. You will be notified by email if any reserves are set on your account.
Chargebacks
You are responsible for any chargebacks that occur against your orders. While Shopify provides automated chargeback responses with basic information about orders, you're encouraged to submit additional evidence in support of each chargeback response.
In the event that contesting the chargeback is ultimately unsuccessful, you are responsible for any debits to your account and/or fees associated with the chargeback. A high overall chargeback rate, and/or any outstanding negative balances on your Shopify Payments account may result in action being taken on your account, including additional reserves or termination.
Termination
Shopify and/or our banking partners have the right to hold funds, suspend payments or terminate your Shopify Payments account as a whole, for any reason and at our discretion. Common reasons for termination include:
- Increased chargebacks, whether due to an increased percentage, rate and/or amount.
- Increased unattended fraudulent orders.
- The addition of products or services to your store that are against the Shopify Payments Terms of Service, the Shopify Acceptable Use Policy, or any other terms that you're required to comply with as an approved seller of NFTs on Shopify.
If a decision is reached to terminate your Shopify Payments account, then you will be notified by email.