Payout status pending indicates that transfer of funds from Shopify to your linked bank account is being processed and has not been yet completed. This status occurs due to verification issues, account setup errors, payment provider delays, bank holidays, and currency conversion. Each of these factors affects managing operational expenses and maintaining smooth business operations.
To address the payout pending status keep your account details accurate and up to date. Regularly monitoring your account status to minimize the risk of payout issues and ensure reliable financial operations for your Shopify store.
What Are the Reasons for Payout Pending on Shopify?
There are Five reasons for payout pending on Shopify.
Verification Issue
Shopify needs accurate and verified information to process payment smoothly. They verify the account holder’s identity to make sure the payouts go to real users. Also, check that the bank account linked to your Shopify account is correct and active.
Account Setup Errors
Account setup errors occur when users leave required fields or documents incomplete, which are essential for payment processing. Fill up all details correctly to change the payout status from pending to approved.
Payment Provider Delay
The payment provider linked to the Shopify account determines the processing time for payout. However, when asking, “how long does Shopify take to pay merchants?” The answer is Shopify takes 3 to 5 business days to pay merchants.
Additionally, third-party payment gateways delay payouts due to technical issues or compliance checks by payment providers.
Bank Holidays
Transactions are not processed on bank holidays. Therefore, if your payout status on Shopify is pending, it might be because of recent or upcoming bank holidays.
Currency Conversion Delay
Shopify processes payments in the store’s location currency but if the store uses a different currency, the funds need to be converted before it can be deposited. This conversion takes additional time hence the payout status is delayed.
What Is the Impact of Payout Status Pending To Shopify Store Owners?
There are various consequences and challenges that a Shopify store owner faces when the funds from recent sales are temporarily held or not immediately transferred to users bank account.
No Access to Funds: During this time store owners are not able to access these funds for operational expenses or transfer to their bank account.
Business Operations: Pending status can restrict the store's ability to manage operational expenses and invest in marketing.
Customer Experience: Delayed payout can compromise service quality by causing slower response times and difficulty to handle returns and refunds. Customers expect timely solutions for their issues and delay in service becomes frustrated, leading to decline in service satisfaction.
Fulfillment or Inventory Management: Delayed payout can disrupt the cash flow and makes it difficult to restock products to meet the demand. For order fulfillment, insufficient funds due to pending payouts can cause delays in processing and shipping orders, as the store may struggle to cover costs for packaging, shipping or labor. This can result in longer delivery times and customer dissatisfaction.
How To Resolve Payout Status Pending on Shopify?
Fixing payout pending status means taking action to identify and fix the issues that’s 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 pending payout 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 Shopify support team through live chat or email to address and 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 from sales are transferred to your bank account timely. Monitor account status, keep up to date, see messages and warnings, and review transaction history.
Regularly Monitor Account Status: Make sure that all required documents and information are correct. Properly configure your payment gateway and check for any issues with your bank account details. Also, make sure that Shopify has not imposed any holds or restrictions on your account.
Address Messages or Warnings: Check Shopify admin dashboard for any message or warning related to payout status of your Shopify account. This helps to provide insights which cause delay in the payouts.
Review Transaction History: Review transaction history for any pending transactions that’s holding up the payout. Identify any unfulfilled orders, refunds that affect the payout process.
