When you see the payout status Pending on Shopify, it naturally raises questions, especially if you were expecting a smooth transaction. This status is a temporary stage in the payout process, and Shopify is still processing this transaction.
There are several factors that might contribute to this status, and understanding what is causing the delay helps you keep your store running smoothly and reduce the stress of waiting.
What Does “Payout Pending” Mean on Shopify?
A payout pending status indicates that the process of transferring your earnings from customer orders has started, but the payment hasn’t been finalized yet. These funds are in transit between Shopify and your bank account, but have not been deposited into your bank account.
Common Reasons for Payout Pending on Shopify?
There are three reasons for payout pending on Shopify.
Verification Issue
Shopify needs an accurate and verified identity to process payments smoothly. If your identity or banking details are unverified or flagged, Shopify will pause payouts until verification is complete. They verify your identity to make sure the payouts go to real users. Double-check that your business name, tax information, and banking credentials exactly match your official documents.
Incomplete or Incorrect Account Setup
During payment setup, incomplete fields or mismatched submitted information that do not match your official records can cause delays in processing your payouts. Shopify requires accurate and complete banking details so that funds are transferred correctly. Shopify generally notifies you through the admin dashboard if action is needed to complete your setup.
Payment Provider Delays
Shopify generally processes payouts within 3 to 5 business days, but third-party gateways may take longer due to their processing times, additional verification steps, or regional banking delays.
How To Resolve Payout Status Pending on Shopify?
Fixing the payout pending status means taking action to identify and fix the issues that are preventing payout from processing. This will move the pending payout to complete, and funds will be transferred to your bank account. There are three steps to fix the payout status on Shopify.
- Payout Schedule
- Contact Shopify Support
- Verify Account Information
1. Payout Schedule
Ensure that your payout schedule is set up correctly. This can vary depending on your store location. In the Shopify admin dashboard, go to Settings > Payments > Shopify Payments and click on 'Manage' to review your payout schedule.
2. Shopify Support
Contact the Shopify support team through live chat or email to address to resolve issues related to the pending payout status.
3. Verify Account Information
All your account details are accurate and up-to-date, and confirm that your account is verified.
How to Prevent the Payout Delays on Shopify?
Avoid payout delays to ensure that the funds are transferred to your bank account on time.
Monitor Account Status: Review your account status for any errors, verification requests, or alerts. Properly configure your payment gateway and check for any issues with your bank account details.
Address Messages or Warnings: Check the Shopify admin dashboard for any messages or warnings related to the payout status. This provides insights that cause delays in the payouts.
Review Transaction History: Check transaction history for any pending transactions. This helps to identify any unfulfilled orders, refunds that affect the payout process.
What Is the Impact of Payout Status Pending on Shopify Store Owners?
Store owners face challenges when payment providers temporarily hold funds or do not immediately transfer them to their bank accounts.
No Access to Funds: During this time, store owners do not have access to these funds or transfer them to their bank accounts.
Customer Experience: Delayed payouts can slow order fulfillment and the returns process, resulting in longer delivery times and slower response to customer issues.
Fulfillment or Inventory Management: The store owner is unable to restock to meet demand, which delays delivery and causes customer dissatisfaction.
