Shopify Payments Suspended? How to Appeal

Why Shopify Suspends Payment Processing

Shopify Payments (powered by Stripe) has stricter policies than standalone Stripe accounts because Shopify is liable for merchant risk. Common triggers:

What Happens When Shopify Suspends Payments

Reserve Hold (7-120 Days)

Shopify holds a percentage of payouts to cover potential chargebacks:

• 10% reserve: Mild risk (chargeback rate 0.65-0.85%)
• 25-50% reserve: Moderate risk (chargeback rate 0.85-1.2%)
• 100% reserve: High risk (chargeback rate >1.2% or prohibited products)

Reserve periods: 7-120 days depending on risk level.

Payment Processing Disabled

You can no longer accept credit card payments through Shopify Payments. Your options:

• ✅ Keep your Shopify store active
• ✅ Use third-party payment gateways (PayPal, Authorize.net, etc.)
• ❌ Cannot reactivate Shopify Payments on same store
• ❌ Shopify charges 2% additional transaction fee for third-party gateways

Complete Account Suspension

Worst case. Shopify closes your entire store (not just payments). Common reasons:

• Selling explicitly prohibited items after warning
• Repeated chargeback violations (3+ months >1.0%)
• Fraudulent activity or customer complaints to Shopify Trust & Safety
• ToS violations (fake reviews, misleading advertising, trademark infringement)

How to Appeal a Shopify Payments Suspension

Step 1: Understand the Specific Violation

Check your email from payments@shopify.com or risk@shopify.com. Common messages:

Step 2: Fix the Issues

Before appealing, make these changes (Shopify's review team will check):

For High-Risk Products:

• Remove prohibited items completely (don't just unpublish—delete)
• Update product descriptions (remove health claims, income promises, etc.)
• Check collection names (generic names like "Accessories" instead of "CBD Gummies")

For Chargebacks:

• Enable Shopify's fraud analysis tools
• Add clear shipping timelines to product pages
• Send tracking numbers automatically
• Improve customer support response time (<24 hours)
• Update refund policy to be customer-friendly

For Policy Violations:

• Add comprehensive refund/return policy to footer
• Include physical address and phone number in Contact page
• Remove countdown timers that reset or fake stock warnings
• Update Terms of Service to match actual business practices

Step 3: Submit Your Appeal

Email payments@shopify.com with subject: "Appeal: Shopify Payments Suspension - Store: [yourstore.myshopify.com]"

Step 4: Timeline & Expectations

• Initial response: 3-7 business days
• Review period: 7-14 days after submitting evidence
• Success rate: ~30-40% for first-time violations with corrective action
• Permanent bans: Almost never reversed (need to migrate to new platform)

Shopify Payments Alternatives

If Shopify denies your appeal, you can still use your Shopify store with third-party payment processors:

Standard Risk Alternatives (2% Shopify Fee)

• PayPal: Easiest integration, 2.9% + $0.30 per transaction + 2% Shopify fee = 4.9% total
• Authorize.net: $25/month + 2.9% + $0.30 + 2% Shopify fee
• 2Checkout: International-friendly, 3.5% + $0.35 + 2% Shopify fee

High-Risk Friendly Alternatives

If you were banned for prohibited products, you need high-risk processors:

• PaymentCloud: Accepts CBD, supplements, subscription models (3.5-6.9%)
• Easy Pay Direct: Offshore processing for highest risk (4.5-8.5%)
• Durango Merchant Services: High-ticket, info products, coaching (3.95-7.5%)

Note: Third-party gateways add 2% Shopify transaction fee on top of gateway fees.

Alternative to Shopify Entirely

If you want to avoid the 2% fee or were completely banned:

• WooCommerce (WordPress): Full control, no platform fees, accepts any gateway
• BigCommerce: No transaction fees, accepts high-risk gateways
• Custom solution: Build on Stripe/PaymentCloud directly (hire developer)

How to Avoid Future Shopify Suspensions

1. Monitor Shopify Policy Updates

Shopify updates their Acceptable Use Policy monthly. Missing a policy change = suspension.

2. Keep Chargeback Rate Below 0.5%

Don't wait until 0.65% to act. Best practices:

• Use Shopify's fraud detection (enabled by default)
• Enable Order Protection (Shopify's chargeback insurance)
• Clear billing descriptors: Use your store name (not "Shopify *StoreName")
• Tracking for everything: Even $5 orders (prevents INR chargebacks)
• Fast customer service: Respond within 12 hours to prevent disputes

3. Audit Your Product Descriptions

Shopify uses AI to scan for prohibited keywords. Red flags:

• ❌ "Cure," "treat," "heal" (medical claims)
• ❌ "Guaranteed weight loss" (unsubstantiated health claims)
• ❌ Income promises for courses ("Make $10k/month")
• ❌ "100% THC-free" (CBD/hemp references)
• ❌ Brand names you don't own (replica goods)

4. Maintain Compliant Policies

Shopify checks these pages during reviews:

• ✅ Refund/Return Policy: Must be visible in footer, clear timeframes
• ✅ Shipping Policy: Accurate delivery estimates (7-14 days for drop shipping)
• ✅ Terms of Service: Updated to match your actual practices
• ✅ Contact Page: Physical address + working email/phone
• ✅ Privacy Policy: GDPR/CCPA compliant

Get Expert Guidance

Dealing with Shopify suspensions, appeals, and payment alternatives can be overwhelming. Use AI to get instant answers:

Key Takeaways

• ✅ Fix issues before appealing—Shopify reviews your live store during appeal
• ✅ Appeals take 7-14 days and have ~35% success rate for first-time violations
• ✅ Third-party gateways work but add 2% Shopify fee on top of gateway fees
• ✅ Monitor policy changes with free alerts to prevent future suspensions
• ✅ Keep chargeback rate <0.5% for safety buffer (threshold is 0.65%)
• ✅ Have backup plan ready—know which high-risk processors accept your products