GoDaddy Payments

GoDaddy Payments Help

Why are certain types of transactions being held?

As protection against potential fraud or chargebacks, funds from certain types of transactions may be held for a specific amount of time before they’re released. For example, if there is a sudden increase in Virtual Terminal transactions, future Virtual Terminal transactions might be placed on a temporary hold to cover against any potential chargebacks or refunds. Funds from these transactions will be released on an ongoing basis after a specific period of time.

To learn more, select a question to see its answer:


When will my funds be released?

When a hold is placed on a specific transaction type (like Virtual Terminal or Online Pay Links), transactions processed that way may be placed on hold for a specific amount of time. Funds are released on a rolling basis once the hold period has passed.

For example, your hold time for Virtual Terminal transactions could be set for 30 days. This means that:

  • Funds held from Virtual Terminal transactions on day 1 will be released on day 31.
  • Funds held from Virtual Terminal transactions on day 2 will be released on day 32.
  • Funds held from Virtual Terminal transactions on day 3 will be released on day 33. This will continue until the hold is removed.

When the held funds are released, they are added to that day’s payouts.

You can continue to accept payments through the impacted transaction types in the meantime. Held funds will be released when the hold period is over for each transaction.

Does a specific type of transaction hold impact other types of transactions?

Transactions processed through other types of GoDaddy Payments transactions aren’t subject to the same type of hold. For example, if your Virtual Terminal transactions are currently being held, other types of transactions (like payments on a GoDaddy smart terminal) could still be paid out in full at the close of each business day.

How do I know if specific types of transactions are being held?

You will receive an email from GoDaddy Payments the first time a hold is applied to specific types of transactions in your account. Details, including the transaction type and hold time, will be included in the email and also visible in the Balance section of your Dashboard. (Select Payouts, then select Balance.)

How can I see the status of my funds on hold?

To see specific details about your held transactions:

  1. Go to the Dashboard where you manage your GoDaddy Payments account (log in with your GoDaddy username and password).
  2. Select Payouts, then Balance. Under Funds on Hold, you can see details about the transactions on hold, including:
    • Expected Release Date: The estimated date the money will be released.
    • Release Amount: The total amount expected to be released, along with the number of transactions.

How does GoDaddy decide when to hold funds?

Hold policies are determined on a case-by-case basis. We consider multiple factors when applying holds, such as industry type, chargeback and refund rates, transaction activity, financial health, and other factors.

How do I know if a hold has changed?

The transaction type and hold period may change throughout your time with GoDaddy. Any changes will be reflected in your Dashboard.

When the parameters of a transaction type hold change, past transactions will adhere to the previous hold policy. All transactions moving forward will have the new policy applied.

What happens if my hold is disabled?

If the hold is disabled, any currently held funds will be immediately released to your available balance and paid out during your next scheduled payout.

How can I view my payout reports?

Learn more about how to view your payout reports.

How can I avoid/prevent holds?

There are different reasons holds may be applied and not all of them are under your control. However, there are some best practices that you can follow.

  • Build up a history of positive payment transactions. Establish yourself as a merchant in good standing by fulfilling your orders and obligations as advertised.
  • Work with your customers to resolve issues. If multiple customers file chargebacks with your company, it can delay availability of your funds. The best way to avoid this is to follow up with customers and resolve issues before they result in a chargeback.
  • Keep your business in good health. All accounts are monitored for policy compliance. If your company engages in unusual, suspicious or risk-exposing activity, or if you begin selling prohibited products or services, related transactions in your GoDaddy Payments account will likely be placed on hold for additional review. For more information, please review the Commerce Services Agreement, Section 9.

More info

Share this article