Tag: online payments

How to Protect Payment Gateways for Your Dropshipping Business

by Peter PruSystems & ProcessesLeave a Comment on How to Protect Payment Gateways for Your Dropshipping Business

Empire builders, you already know that there is a lot to learn when it comes to starting your own ecommerce business. One of the things I had to learn the hard way was the importance of having multiple payment gateways available for a dropshipping business. Many dropshippers, myself included, have gotten their Stripe or PayPal accounts shut down and have been left with no way to accept payments from customers. Through trial and error, I have picked up some tips for how to protect payment gateways. Read on to learn how to avoid getting your payment accounts suspended, as well as what to do should you ever find yourself in this situation. 

Backup Plans Are Key in Business, Especially to Protect Payment Gateways 

If you’re new to dropshipping, I’m not here to scare you. What I am here to do is to prepare you for the hiccups that happen in business. 

Starting your own dropshipping business comes with some risk. One risk is having your PayPal or Stripe account shutdown. This has happened to tons of dropshippers before you, all for various reasons. These things happen. However, expecting these hiccups isn’t quite enough. You also need to make a plan of action on handling these situations before they actually arise. You can’t just close up shop when things don’t go your way. Running a successful dropshipping business will require you to develop creative solutions to make things work over time. You always want a backup plan in place. 

When I started out dropshipping, I wish someone would have told me the importance of having a backup plan to protect payment gateways when it came to accepting payments from customers. When I first started using Stripe, I thought I would never get shut down or banned. I played by the rules and had no worries. But if you think something could never happen to you, think again. 

One too many chargeback or refunds, and then poof, there goes your account. Just imagine that you’re finally making $100,000 a month, and then your payment processing account gets shut down. You never set up a backup account, so you’re instantly losing thousands of dollars for your business. This would be devastating. Don’t let this happen to your business. Always have backup plans in place to protect payment gateways for your payment processing. 

Every Dropshipper Needs a Stripe and a PayPal Account 

Screen grab of discussing the benefits of Stripe

Even though we’ve all heard the horror stories of Stripe and PayPal accounts being shut down or suspended, I still recommend that every dropshipper have a Stripe and PayPal account set up for their business. Stripe is simply the best payment processor for any dropshipper to get started with. At Ecommerce Empire Builders, we use Stripe for every funnel we set up. While any Stripe account can get suspended, the platform still provides many perks. 

The Benefits of Stripe

Stripe is incredibly easy to set up, and you can start accepting payments from customers in just a few minutes. When I first got started in ecommerce, setting up a payment processor was not this easy. You used to have to go through large amounts of paperwork and legal work to simply get your ecommerce store off the ground. When Stripe came into the picture, the ecommerce world was made a lot simpler. 

However, Stripe will always have its brand and its best interest in mind. So when your account starts getting too high of a refund or chargeback rate, your account will be shut down. If you play by the rules, your account will most likely remain secure. However, things come up even when you play by their rules. So having a second payment processor setup is key. 

The Benefits of PayPal

After you have your Stripe account setup, go ahead and make a PayPal account as your first backup method. Stripe and PayPal are simply the best payment gateways for any beginner in the dropshipping industry to get started with. Both platforms are incredibly simple and quick to set up. Just like Stripe, PayPal has rules you must adhere to. When your dispute percentages reach a high rate, your PayPal account will most likely have a hold placed on it. 

When this occurs, you’re going to want to have another payment processor readily available to your business. This is when knowing about alternative merchant accounts becomes important.

Great Alternative Merchant Accounts for Dropshippers 

Screen grab of discussing the benefits of Easy Pay Direct

While you could simply bypass Stripe and PayPal and go straight to the alternative merchant accounts, that wouldn’t be my first suggestion. Both Stripe and PayPal are extremely user-friendly and quick to set up. They allow every new dropshipper to start accepting payments almost instantly. For these reasons, I would always set up a Stripe and PayPal account and then look into setting up alternative merchant accounts. The two alternative payment gateways that I have found success with are Easy Pay Direct and Gateway Funnel Pros. 

Easy Pay Direct

Easy Pay Direct is a great alternative payment gateway for established dropshippers who want more options to protect payment gateways for their businesses. Think of a payment gateway as a dashboard. Within this dashboard, there are a number of different merchant accounts available for you to use. Essentially, when you sign up with Easy Pay Direct or any other payment gateway, they can help you open multiple merchant accounts that will allow you to accept payment from customers. So, if one account gets shut down, you can easily and efficiently open another one without slowing down your sales. 

Keep in mind that with Easy Pay Direct, you will need to be making a decent amount of money with your business and have some sales history before they approve your account. But once your business is built up and you’re generating a fair amount of income, having merchant accounts through Easy Pay Direct is a must. 

Gateway Funnel Pros

For those of you just starting out but who still wanting to set up alternative merchant accounts, Gateway Funnel Pros is the way to go. Gateway Funnel Pros will work with new dropshippers and will help with setting up an NMI account. Just like any payment gateway, Gateway Funnel Pros will be able to help you set up multiple merchant accounts for your business under a single gateway. 

Regardless of which route you choose, I can’t stress to you enough the importance of having multiple backup plans in place to protect payment gateways for your overall business. 

Consult With the Pros 

dropshipper setting up accounts to protect payment gateways for his business

I hope this information will help you in efficiently setting up payment methods and backup plans for your dropshipping business. If you feel like you need a little more guidance in setting up your own profitable ecommerce business, feel free to reach out to us today. At Ecommerce Empire Builders, we can help you build, launch, and scale your own profitable dropshipping business. To get the ball rolling, sign up for access to our exclusive free webinar today. Be sure to check our YouTube channel for even more free resources and insights into the dropshipping and sales funnel industries. Remember, your empire starts now!

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Top 4 Dropshipping Payment Processors for US and Non-US Residents in 2020

by Peter PruSystems & ProcessesLeave a Comment on Top 4 Dropshipping Payment Processors for US and Non-US Residents in 2020

One of the most important aspects of a dropshipping business is payment processing. However, it can be difficult to choose the right payment processor for your business — whether you’re a US or non-US resident. You may also experience problems with processors such as PayPal and Stripe, which may lead you to turn away from those and seek alternatives. Check out these four dropshipping payment processors and find the right one for your business.

How Stripe Changed eCommerce

Before the introduction of Stripe, which made it easy for ecommerce business owners to set up payment and get approval, there were many steps involved in setting up payment processing. Some of these steps included:

  • Setting up merchant accounts
  • Handling payment gateways
  • Organizing and maintaining sufficient documentation

All of these steps made it a daunting task to set up payment processing. With the advent of Stripe, business owners (including dropshippers) could easily accept online payments via credit card and other methods. 

However, with more simplicity comes more responsibility: Stripe can easily shut users down for violations or customer mistrust. Stripe, like other payment processing platforms, has the best interest of the customer in mind, which can lead to shutting you down if your dispute rate or chargeback rate is too high. 

If you’re just starting out in dropshipping and need a reliable dropshipping payment processor that can give you the best results, you may want to use Stripe. But there are also other options, depending on your needs and preferences. The following are our picks for the top four dropshipping payment processors available for both national and international users.

1. Stripe

screen grab discussing Stripe and its benefits as a payment processing platform

Although certain caveats come with using Stripe, we still recommend this for both new and veteran users. The main reason we recommend Stripe is because it takes no time to get approved, and you can begin taking payments immediately after setup.

As your business begins to grow, managing Stripe could become more complicated. For instance, Stripe may begin holding your funds if your dispute rate exceeds one percent. Eventually, this could lead to shutting you down.

While you may risk having funds withheld and your account closed if you experience too many issues, Stripe is still one of the most reliable payment processors out there. You just need a solid plan so you can manage disputes and chargebacks. 

Even if you are in another country where Stripe isn’t supported, you may still be able to set up an account.

2. PayPal

We also still suggest you use PayPal, simply because of the boost in conversions that it can give you. This is because while you can still get conversions if you set up Stripe and a sales funnel, you can gain more credibility if you take the time to set up a PayPal account and include that badge in your sales funnel.

A lot of people also prefer to pay with PayPal because of its dependability and security. It also tends to make it easy for customers to make a purchase. You can even integrate Clickfunnels and Paypal, which I go over in this step-by-step video.

On the other hand, many people are hesitant to use PayPal because of certain issues that can happen. After all, PayPal has been known to withhold funds in many cases, slowly paying users in small increments. Regardless, it’s still worth having PayPal for the sake of boosting credibility and conversions. 

However, we do recommend that before opening up a PayPal account, it’s best to set up your sales funnel and Stripe account first. Ensure it’s all working the way it should. Then you can add PayPal to the mix.

If you’re a non-US resident and can’t get approved for Stripe or PayPal, there are a couple of alternatives that we recommend.

3. Payoneer

In some cases, you may not be able to set up Stripe. If you can set up a PayPal account, it’s perfectly possible to use this platform without Stripe and build your business that way. But it’s best to have both, particularly if you’re just getting started in the dropshipping business.

Keep in mind that, like with other dropshipping payment processors, you will have to deal with certain processes on Payoneer that can make setting up a little tricky.

A few of the steps involved in setting up Payoneer and connecting it with Stripe will include:

  1. Signing up for a Payoneer account and linking it to your bank account
  2. Setting up a business LLC
  3. Using your LLC to create a Stripe account

We understand that the very thought of going through the process of setting up a business LLC may induce some eye-rolling. But there are certain steps that business owners need to take, and doing so will be worth it in the long run.

What happens when you create an LLC for both Payoneer and Stripe? 

You can then connect that Stripe account with your Payoneer account. This step will enable you to receive payments in your local bank account. The entire process can take a few weeks to complete, but it will be more than worth the effort in the long run.

Once you have all of this set up and you’re ready to go, we can’t emphasize enough the importance of having backups in the event that something goes wrong and puts your business at risk. This leads us to our next recommendation.

4. Easy Pay Direct

screen grab of Easy Pay Direct, one of the four dropshipping payment processors that acts as a backup system

If you don’t have sufficient backups in place for your payment processing accounts on PayPal, Stripe, or Payoneer, this can leave your business vulnerable. If Stripe or another processor shuts you down for any reason and you have no backup solution, then you won’t receive payments. Subsequently, neither will your employees, leading you to essentially shut down your business.

Easy Pay Direct is a great way to make sure you have backups in place. It’s basically a payment gateway, which is a kind of portal that can give you insights into multiple merchant accounts. Using Easy Pay Direct, you can be comfortable in knowing that you’ll always be in business even if something happens to your Stripe account or another account. Accidents can always happen in business, which is why it’s best to be prepared, and Easy Pay Direct is crucial to keep you protected.

You may need to build up some sales volume before you can get approved for Easy Pay Direct. Because of this, we recommend you set up your Stripe, PayPal, and Payoneer accounts first. Then scale your business before turning to Easy Pay Direct as a backup. You may also wind up paying fees upwards of a couple hundred dollars per month for Easy Pay Direct, but think of it as insurance that’s worth the investment.

Each of these dropshipping payment processors and gateways can help you only receive payments quickly and easily. They can also make sure that your business is consistently protected in the event of any issues with your accounts. Another great way to make sure your business is as consistently profitable as possible is to automate your order fulfillment process.

Consult With the Pros

dropshipper considering the four dropshipping payment processors

Setting up dropshipping payment processors is just the start of your ecommerce journey. Learn more about how to build and grow your dropshipping business — reserve your seat at the free Ecommerce Empire Builders masterclass. We’ll teach you everything you need to know about starting a successful dropshipping business.

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