Short answer: For full payment pre-orders, Shopify Payments releases your funds only after you've marked orders as "Fulfilled" - regardless of whether they're in "Scheduled" or "Unfulfilled" status. For deposit-based pre-orders, the initial deposit is paid out immediately according to your regular payout schedule, while the remaining balance is paid out after fulfillment.

This blog article covers how Shopify pre-order payments work and what affects your payout timing. (Skip straight to summary at the bottom of the page if you aren't keen to learn about the details.)

The Shopify order fulfillment status controls your payouts

Shopify Payments (and their banking partners) have a simple policy: funds are only released when orders show proof of fulfillment.

This means:

• Full payment pre-orders: Money is held until you mark the order as "Fulfilled"
• Deposit pre-orders: The initial deposit is paid out immediately, but the remaining balance is held until fulfillment

This is a Shopify Payments policy designed for consumer protection, not a limitation of pre-order apps. It applies to all merchants using Shopify Payments, regardless of which pre-order app you use (or if you're running pre-orders manually).

Why the Shopify order Status doesn't change your payout timing

Some merchants asked: "If I use the 'Scheduled' order status instead of 'Unfulfilled', will I get paid sooner?" Unfortunately the answer is no.

The "Scheduled" status simply signals to Shopify (and your shipping/3PL team if you have one) that the order will take longer than usual to fulfill. It doesn't trigger different payout behavior.

Think of it this way:

• "Scheduled" status: "Hey Shopify, this will take a while to ship"
• "Unfulfilled" status: "This order is ready to ship soon"
• "On Hold" status: "We're not sure when this will be shipped yet"
• "Fulfilled" status: "This order has shipped" (This is what triggers your payout)

"Scheduled", "Unfulfilled", and "On Hold" orders remain unpaid until they become "Fulfilled".

See our help article for more details on these order statuses: What are the differences between the Shopify order statuses "Scheduled" vs "Unfulfilled" vs "On Hold"?

How payment timing works for different pre-order models

Full payment upfront

When customers pay 100% upfront:

1. Customer completes checkout and pays full amount
2. Shopify Payments holds the funds
3. You fulfill the order (add tracking, mark as fulfilled)
4. Shopify Payments releases funds according to your payout schedule (typically 2-3 business days after fulfillment)

Timeline example: If a customer orders on January 1st but you don't fulfill until March 1st, you won't receive payment until approximately March 3-4th.

Deposits (Partial payments)

When customers pay a deposit first, and defer the balance to pay later:

Initial deposit:

1. Customer pays deposit at checkout (e.g., 50% or $100)
2. This payment is processed immediately
3. It's paid out according to your regular payout schedule (typically 2-3 business days)

Remaining balance:

1. Captured automatically at on the future fixed date you've selected (or after X days/upon fulfillment)
2. Held by Shopify Payments until fulfillment
3. Paid out 2-3 business days after fulfillment

Timeline example: Customer pre-orders a $100 product on January 1st with a $50 deposit. You receive the $50 on January 3-4th. The remaining $50 is captured on February 1st but held until you fulfill on March 1st, then paid out March 3-4th.

Some of our Early Bird merchants would use the deposit model as a workaround to access their pre-order payments earlier; before fulfilling orders. This way it provides partial cash flow earlier while still complying with Shopify's policies.

See our help article for a step by step guide on how to set this up: How do I access my Shopify pre-order payments before fulfilling orders?

Understanding the Payment Flow on Shopify:

This is what happens behind the scenes when a pre-order is placed on Shopify:

For full payment Shopify pre-orders:

1. A customer pays in full for their pre-order
2. Their order is assigned either the "Unfulfilled" status (or "Scheduled" status if you're using a pre-order app like Early Bird)
3. Shopify holds the funds for this order
4. You fulfill the order
5. The order status is updated to "Fulfilled"
6. Shopify releases the funds and you'll receive it in your next payout (typically 2-3 days)

For Shopify pre-orders with deposits:

1. A customer pays an initial deposit for their pre-order
2. The initial deposit is paid out first (typically 2-3 days)
3. On the future fixed date you've selected (or after X days/upon fulfillment), the deferred balance is automatically captured via an app
4. Shopify holds the deferred balance funds
5. You fulfill the order
6. The order status is updated to "Fulfilled"
7. Shopify releases the funds and you'll receive it in your next payout

How does card vaulting work on Shopify?

When customers pay a deposit, their payment information is securely stored (vaulted) by Shopify. When the remaining balance is captured:

• There is no additional customer action required. They don't need to re-enter card details or security codes
• This isn't a hold on their funds though. The initial deposit is a completed transaction; the balance is a separate future charge
• There is no timeout. The customer's card information will remain vaulted until the balance is captured or the order is cancelled

Refunds and Disputes

What happens if I need to refund a pre-order before fulfilling it?

Since Shopify Payments holds the funds, refunding is pretty straightforward. The held funds are returned to the customer, and you won't need to transfer money back from your bank account.

However, if you've already received a deposit payout and need to refund it, you'll need to have those funds available in your account or Shopify will deduct from future sales.

What if a customer disputes the charge?

If you use a pre-order app that uses Shopify Selling Plans (the same platform functionality for subscriptions), Shopify will automatically display a Purchase Agreement Option label as your seller protection, in cart and at checkout. By displaying this, it means customers have acknowledged they're paying for a pre-order item. But at the end of the day, your best protection is documentation:

• Product pages clearly showing pre-order details and expected ship dates
• Order confirmation emails mentioning pre-order status
• Updates sent to customers about fulfillment progress
• Manufacturer communications showing production timeline

Using a Built-for-Shopify pre-order app like Early Bird will help prominently display additional info as line items underneath your pre-order products in cart and at checkout.

See our help article for a step by step guide on how to edit the label: Why does it display “One or more items in your cart is a deferred or recurring purchase.” at my Shopify checkout for pre-order items?

What NOT to Do: Marking orders as "Fulfilled" before actually shipping

We've had merchant who attempted to do this before actually shipping to access funds early.

This violates Shopify's terms of service and can result in:

• Account suspension
• Payment holds
• Legal issues if customers dispute charges
• Loss of Shopify Payments access

The deposit model is a partial workaround for you to access pre-order funds earlier so you don't need to resort to this.

Frequently Asked Questions

Q: Can I use a different payment gateway to avoid these restrictions?

A: Shopify only supports Shopify Payments and PayPal for pre-order payments (unless you're running backorders). Stripe isn't supported as it competes with Shop Pay. So the deposit model through Shopify Payments is currently your best option for accessing pre-order funds earlier while staying compliant.

Q: Does this apply to all Shopify stores?

Yes, this is Shopify Payments policy and applies to all merchants using Shopify Payments as their gateway.

Q: What if my fulfillment date changes from 60 days to 90 days?

A: The key here is transparency. Just proactively communicate the delay to customers and document it. Keep Shopify Support informed too if it's a significant change.

Q: Will using Early Bird's deposit feature affect my account standing?

A: No. Early Bird uses Shopify's official Selling Plans API (the same functionality used for subscriptions). As long as you communicate clearly with customers and document your fulfillment plans, you're fully compliant.

Q: What payout schedule should I expect?

A: Most Shopify Payments accounts have payouts 2-3 business days after a transaction is processed (or fulfillment for pre-orders). You can check your specific schedule in Shopify Admin > Settings > Payments.

Q: Do I need Shopify Plus for deposit payments?

A: No, Early Bird's deposit feature works for all types of Shopify stores (Basic, Shopify, Advanced, and Plus), on our Launch Plan and above.

Summary

1. Order fulfillment is what triggers payout: Your funds are released when orders are marked as "Fulfilled"
2. The order status is informational: Neither "Scheduled", "Unfulfilled" & "On Hold" will affect your payment timing
3. Deposits provide earlier cash flow: Initial deposits are paid out immediately (2-3 days)
4. Order volume isn't the problem: Documentation and clear customer communications will protect your Shopify account
5. Never fake fulfillment: Use the deposit model to access partial funds earlier instead of marking orders fulfilled when you haven't actually shipped

Need Help?

If you need help setting up deposit payments for your pre-orders to access funds earlier, or want some guidance with your pre-order setup, connect with me on LinkedIn or get in touch with us at support@shopside.com.au.

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