Withholding or Account Holds (When & Why)
When funds may be withheld
Kapsule may withhold part or all of your payout in the following cases:
- High refund or dispute rates: If many customers request refunds or raise disputes, Kapsule may hold funds until issues are resolved.
- Ongoing investigations: If there are claims of counterfeit goods, safety concerns, or repeated policy breaches.
- Chargebacks: When chargebacks are filed, the disputed amount may be held until the case is settled.
- Large or unusual transactions: Significant spikes in sales may trigger a temporary review for fraud prevention.
Funds on hold cannot be released until investigations are complete or required evidence is provided.
When account holds may apply
In rare situations, Kapsule may place your entire vendor account on hold. This means you cannot receive new orders or payouts until the issue is resolved. Reasons include:
- Non-compliance with Kapsule policies (e.g., selling prohibited or dangerous goods)
- Legal or regulatory requirements (e.g., sanctions, court orders, anti-money-laundering checks)
- Failure to provide documentation (e.g., identity verification, bank account confirmation)
- Serious customer complaints (e.g., repeated failure to ship or fulfil orders)
Account holds are a last resort and are only used when necessary to protect the platform and its users.
How to resolve a hold
Check your dashboard: Notifications will outline the reason for the hold.
Provide documentation: Upload any requested ID, invoices, or order evidence promptly.
Address customer issues: Resolve disputes, refunds, or delayed shipments as quickly as possible.
Contact support: If you need clarification, open a ticket with Kapsule Support.
“Most holds are resolved quickly once vendors supply the requested information or address the underlying issue.”
Preventing holds
- Keep refund and dispute rates low by maintaining high service standards.
- Ensure your product listings meet Kapsule’s guidelines.
- Provide accurate, up-to-date bank details.
- Ship orders promptly and enter tracking numbers in the system.
- Respond quickly to customer queries and disputes.
FAQs
1. How long do holds usually last?
It depends on the issue. Some are cleared in a few days, others may take longer if regulatory checks are involved.
2. Will I lose my money if funds are withheld?
No. Funds are held temporarily and released once the issue is resolved, unless chargebacks or legal obligations apply.
3. Can I keep selling while funds are withheld?
Yes. Fund holds do not usually stop new orders, unless your entire account is on hold.
4. How will I know if my account is on hold?
You’ll see a notification in your Vendor Dashboard and receive an email from Kapsule.
5. Can I appeal an account hold?
Yes. You can contact Kapsule Support and provide additional information for review.
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