What are liens and levies, and how do you resolve them?

Lien

A lien is a legal claim placed on the funds in your Zoho Payments account to secure repayment of a debt. When a lien is placed, payouts from your Zoho Payments account will be paused until the debt is resolved. Liens can be placed by creditors or government agencies for funds you owe them. If multiple liens are applied, the creditors or agencies will decide the repayment order and notify Zoho Payments.

Resolving a Lien

Zoho Payments cannot release funds until we receive a release document from the creditor who placed the lien. You’ll need to work directly with the creditor to settle the debt and obtain the release. Once we receive the release document and confirm there are no other holds on the account, your payouts will resume.

Levy

A levy is a legal seizure of funds by a government agency to satisfy a debt owed by your business. Upon receiving a levy notice, Zoho Payments is required to block payouts and will reserve the amount you owe from your account balance. Levies may apply to all your Zoho Payments accounts matching the levy details. Multiple levies can also be applied to the same account.

Resolving a Levy

To lift a levy, the debt specified by the government must be fully paid. The government agency must send a release document to Zoho Payments confirming that there are no pending dues. Zoho Payments will resume payouts and release the reserved funds only after receiving this confirmation.