If you're running a Shopify store, Shopify Payments makes it simple to accept payments from your customers. However, sometimes issues can arise that lead to payout failures. In this article, we'll take a closer look at the common causes of these failures and how to resolve them.
What Are Payouts?
Payouts are your earnings from your Shopify store, transferred directly to your bank account. If you're using Shopify Payments, these funds are sent to you automatically. However, occasionally, payout failures can occur, leading to unexpected delays. Let's take a look at some common reasons behind payout failures:
- Incorrect Bank Account Information
- Account Currency Mismatch
- Invalid Account Type
- Incorrect Beneficiary/Recipient Name
- Insufficient Funds to Cover a Negative Payout
Reason 1: Incorrect Bank Account Information
This issue typically arises when the bank rejects the payout due to the account being non-existent or closed. More often than not, it’s due to incorrect bank details. You can easily update your bank information in the Shopify Admin, and Shopify Payments will attempt to process the payout again within 3 business days.
Reason 2: Account Currency Mismatch
Banks usually accept payments in one specific currency. If your Shopify Payments currency doesn’t match the currency of your bank account, the payout may fail. For instance, if you try to send a USD payout to a CAD account, it won’t go through. To fix this, either add a bank account in the appropriate currency or change your store's currency to match your bank account’s currency. Alternatively, you can choose to sell and receive payments in different currencies, although a conversion fee may apply.
Reason 3: Invalid Account Type
Shopify Payments requires a checking account in your local currency that’s eligible for local transfers. Savings accounts, flex-currency accounts, and wire-only accounts are not supported.
Reason 4: Incorrect Beneficiary/Recipient Name
If the beneficiary name on the Shopify payout doesn’t match the name on your bank account, the payout can fail. For sole traders, the payout is made in the owner's name, while for corporations or other business types, it’s made in the business name. If this happens, reach out to Shopify Support for assistance.
Reason 5: Insufficient Funds to Cover a Negative Payout
If there are insufficient funds to cover a negative payout, Shopify will attempt to deduct the amount from your bank account. This applies to stores in Australia, Canada, and the USA. If the deduction fails, the payout will also fail. In other regions, any necessary refunds will be deducted from future payouts.
Next Steps
Unless the issue is related to your bank account, Shopify will typically include the funds in your next payout, which usually occurs within a few business days. However, if there is a bank account issue, a 'hold' banner will appear, indicating that the payout won’t be automatically retried. In this case, it's best to contact Shopify Support for assistance.
If the customer paid via a third-party payment provider, the payout will be directed to that provider’s account. Any issues related to these payouts should be addressed directly with the provider.
We hope this article helps ensure your payouts continue smoothly. Shopify Support is always here to assist with any questions or concerns regarding Shopify Payments.
