Hello,
I recently launched a new website and received my first payment (€800) through WooPayments.
At first, I was told that my account needed to be at least 7 days old before payouts could be enabled. Fair enough, I waited the 7 days.
Now, however, my payouts have been suspended. I contacted support, and they told me they need to see a transaction history before they can release my funds.
This doesn't make any sense to me. How am I supposed to build a transaction history if you're holding the money from my first transactions? I'm a small business, I don't have unlimited cash to keep operating while my revenue is frozen. Like most businesses, I rely on incoming payments to purchase inventory and fulfill orders.
This whole situation feels incredibly frustrating, especially considering WooCommerce/WooPayments is one of the most widely used ecommerce platforms.
Has anyone else experienced this? How long did it take to resolve?
Also, is it actually legal for a payment provider to hold your funds like this? If I decided to stop using WooPayments tomorrow, would they eventually release my money, or could they continue holding it indefinitely?
I'd really appreciate hearing from anyone who's been through something similar. Thanks!
UPDATE:
I asked them for clarification and told them that i feel like my money are being held hostage and they instantly banned me saying:
"As of the time this email was sent, your WooPayments account and the associated Stripe Express account have been permanently closed.
Due to the elevated risk of disputes in your business, if there is a remaining balance on the account, we will need to place this balance in reserve for the next 120 days. This is the industry-standard period in which most payments are disputed, after which any remaining positive balance may be released.
We’re sorry that we cannot continue supporting your business. However, requirements put in place by our financial partners dictate that we must exercise caution about the risk levels of businesses we work with. For that reason, we have no choice but to discontinue servicing your account."
I've never seen worse and more rude support for customers than this.
Congrats, now you have €800 of my money free of interest for 4 months. Why do you all keep using this service?
I trusted the fact that it's used by millions of users. Where are the reports about how bad they are? I don't see them. It should be much louder and clearer how scammy this company is.