Dropshipping Merchant Accounts – Which Is Best?
Making money online has never been more prevalent than in the last few years. There are countless ways to do so, and one of the most popular ways is through dropshipping. While dropshipping can be highly profitable and convenient, accepting payments online is a must. This article will break down everything you need to know about dropshipping merchant accounts, including why we believe we are an excellent fit for your business.
Whether you are just starting or an established drop shipper, you have come to the right place.
At Corepay, we specialize in credit card processing for high-risk merchants who generally find it difficult to find payment processing.
We can help your business whether you are looking for a general eCommerce merchant account or a more specific dropping merchant account.
Many eCommerce businesses can benefit from also using dropshipping as another method to bring in revenue rather than focusing on it as their primary source of income.
While many websites/companies may claim they can offer your business a dropshipping merchant account, very few can follow through and give you what you need.
The main reason for this is that while dropshipping has many perks, it also has some drawbacks. Unfortunately, one of those drawbacks is the high number of chargebacks typically found in the industry.
To properly operate and continue to grow as a merchant, you will need processing tailored to your needs as a business and ways to reduce your chargeback ratio.
Corepay can not only reduce your chargeback ratio, but we can also assist your business with high volume processing and low fees that will help grow your business to the next level.
Applying For A Dropshipping Merchant Account
Having reliable credit card processing for your dropshipping business is the only way to make consistent sales, as all of your transactions will come online.
You will need the following when applying for your dropshipping payment processing:
In order to have your account proved swiftly, be sure to provide us with as much information as you can.
When done right, dropshipping can be a great side hustle that scales into a full-blown business. Dropshipping is practical as a merchant because a merchant just has to make the sales.
This can be done through an SEO campaign that targets specific searches such as “best drill for concrete.” The drop shipper ranks for that keyword and advertises products. Once the buyer chooses an item and orders, the merchant sends the order to the supplier, who then packs and ships the product.
Dropshipping is an innovative business model for those who understand SEO, but it can be difficult for those with no experience in SEO or paid ad campaigns.
Below is a list of 10 of the biggest drop shipping companies in the world today.
- Mega Goods
Why Are Dropshipping Businesses Risky?
Dropshipping businesses are deemed risky for numerous reasons. While chargebacks are one of the significant concerns, dropshipping companies often face even more risk for chargebacks.
Most of the sales for dropshipping companies are card-not-present transactions, which have a higher chance for chargebacks.
Below you will find the reasons why processors and banks consider dropshipping businesses to be risky:
Corepay For Your Dropshipping Payment Processing
Our goal at Corepay is to provide our clients with bespoke payment processing specifically tailored to your needs as a company.
We are proud to offer the following:
Dropshipping Merchant Account Fees
Below are some of the fees you can expect:
Pros Of Dropshipping
Let’s take a look at some of the pros of a dropshipping business:
Cons Of Dropshipping
There are several drawbacks when it comes to dropshipping. Below you can get a better understanding of these.
Paypal For Dropshipping Merchant Accounts
Surprisingly, Paypal is an option for your dropshipping merchant account. With this being said, you won’t be met with the anti-chargeback tools that other high-risk processors will be able to suit you with.
At Corepay, we are confident that we can reduce your chargeback ratio through our partner product, CB-ALERT.
While Paypal offers payment processing for dropshipping, that doesn’t mean you aren’t in danger of having your funds held or your account terminated. A simple search on Google shows that even though dropshipping isn’t against Paypal’s contract, they still have terminated many dropshipping companies.
Since dropshipping is a unique and different business model, there are many things that can discourage low-risk payment processors such as Paypal.
Let’s look at what you need to do to keep your account in good standing.
Quality Of Products
Many dropshipping businesses will sell products that they haven’t tested, leading to significant quality control issues. If your company has many customers unhappy with it, they could file a case with Paypal, getting your account in trouble.
You will need to have everything current and up to date on your company website to remain compliant with Paypal and most credit card processors. The information must also be valid and not false.
One of the big flaws in dropshipping is the legality. Should a dropshipping company be completing transactions for a previously trademarked product, not only can the drop shipper get into legal issues, but it can also affect the bank and the processor.
In efforts to reduce the chances of this, product quality control is an absolute must in this industry. This should be done frequently to avoid any surprises that could come your way in this industry.
Stripe For Dropshipping Payment Processing
Dropshipping is against Stripe’s terms of the contract and will result in a terminated merchant account. Since dropshipping companies typically have higher chargebacks, traditional banks and processors don’t like to take the risk of additional fees.
Dropshipping payment processing can come in different many different forms. At Corepay, we are committed to making sure all of our dropshipping clients succeed and grow their business to its full potential.
You can apply quickly at the link below and find out what we can do for your business today.