These days, Dropshipping is the buzzword of ecommerce industry. Cashless economies are now becoming mainstream.
Easy payment methods like ePacket are available in almost all countries. Hence, most of the online marketers are getting ready for a whole new start over in dropshipping.
- What Are Ecommerce Payment Gateways?
- Why Dropshippers Need Ecommerce Payment Gateways?
- Criteria for Choosing a Payment Gateway for Dropshippers
- Best Payment Gateways for Dropshipping Stores
- Which Payment Gateway Is Easy to Use with Dropshipping?
- Dropshipping Payment Gateway Combos
- Frequently Asked Questions (FAQs)
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The 8 Best Payment Gateways of 2021
Best Connections With Merchant Account Providers: Authorize.Net
Best New Payment Gateway: Stripe
Best for Ecommerce: PayPal
Best for International Selling: 2Checkout
Best Security Protocols: Apple Pay
Best for Faster Processing: Google Checkout
Best for Crypto Investing: Skrill
Best Customization Options: WePay
We have already discussed how users can start their dropshipping businesses with zero money. So, let’s go in detail and find out the top payment gateways for dropshippers.
What Are Ecommerce Payment Gateways?
Let’s say that you have come across an ecommerce store with a clear intention to buy something from it. You add the product to your cart and navigate to checkout. To do so, you will need to choose the best online payment gateway for your store.
An ecommerce payment gateway is responsible for all transactions of the store.
All you need to do is to enter the details of your credit card on the payment gateway page and make the purchase. The payment gateway will deduct the amount from your credit card and send it to the dropshipper’s bank account after deducting some fees. The dropshipper can then transfer this to his/her bank account. The gateway makes ecommerce payment processing easier and convenient.
Why Dropshippers Need Ecommerce Payment Gateways?
Dropship stores work just like ecommerce stores. The only difference is they don’t sell products from their warehouses directly. To sell products of manufacturers, they need a payment gateway to make transactions.
Please note: Payment gateway providers are different and people prefer the ones that they are familiar with. So, when looking for the best ecommerce payment gateway, choose one that your audience is likely familiar with.
For example, in the United States, PayPal is the most commonly used ecommerce payment gateway. In Canada, Payoneer and Stripe are mostly used. Even in Ukraine, Stripe is the most used online payment gateway. So, while targeting a country, choose a payment gateway that is already prominent or go with a combo of the two – we will discuss this later.
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Criteria for Choosing a Payment Gateway for Dropshippers
Let’s suppose you have established your ecommerce dropshipping store and are now looking for a payment gateway. Here is the criteria that you need to follow:
- Select a payment gateway that is popular in the country where you are targeting your products.
- Ensure the online payment gateway offers a low transaction fee.
- Check if it is compatible with dropshipping stores. Most ecommerce gateways don’t prefer dropshippers because of higher refund rates.
- Check if you can use the gateway, once you plan on expanding in the global market
- Check if it offers a good shopping experience to the customers
Best Payment Gateways for Dropshipping Stores
I have curated list of the best payment gateways that dropshippers use the most. From the list, you will get to know what countries are supported, and how much transaction fee they charge.
PayPal is the most commonly used payment gateway for ecommerce stores. It is an accepted payment gateway in more than 203 countries. It supports all prominent credit cards: Visa, Mastercard, American Express, Citibank, and more. To start dropshipping, you will need a business PayPal account.
PS: It is not supported in all countries. This eligible countries list tells if it is available in your country or not.
Stripe is a US-based payment gateway that’s available in more than 25 countries. It supports all major credit cards. But, it is mostly used in Canada, Australia, and United Kingdom. It offers WooCommerce integration as well. It’s ideal if you sell on Facebook Marketplace as well.
2Checkout is another payment gateway that’s available in more than 87 countries. It supports all major credit cards such as Visa, Mastercard, Diners Club, American Express and others. It is available in many third world countries, where it is used in combination with another payment gateway. See the list of preferred payment gateway combinations below.
Authorize.net is currently available in more than 33 countries. It is one of the oldest and most trusted online payment gateway providers. It also features multiple extensions for easy integration with WooCommerce stores. Authorize.net also has the lowest transaction fee or 2.90 + $0.30 for ecommerce and dropshipping stores.
Finally we have Skrill, a payment gateway available in over 40 countries. It charges 1.9% checkout transfer fees. It also offers an official extension for integration with WooCommerce-based dropshipping stores.
WePay is an online payment option for dropshippers who would like to add a seamless and fast payment gateway to their website. Although WePay is a customizable payment solution it has a limited number of payment options available at this time.
7. Google Checkout
Google Pay is another great option for ecommerce store owners in western region. Many people in the US and Europe use Google wallet for storing money. Since they shop online, they can easily pay with Google checkout option. Not on this option is faster than other dropshipping gateways, but also much more reliable. Google checkout also deducts the least amount of money since the payment holder also works as a bank account.
8. Apple Pay
Apple Pay is one of the most widely used contactless payment gateways in the market. So, you can also use it for your dropshipping store. With Apple Pay, customers can easily pay with the click of a button. The contactless payment gateway accepts Visa, Master Card, American Express, Union Pay, QUICPay, and Suica.
Which Payment Gateway Is Easy to Use with Dropshipping?
It is a tough question. The selection of a payment gateway depends on the owner’s preference and his target market. PayPal is the most used payment gateway. So, we recommend that dropshippers that are in the initial stage, should start their dropshipping business with it.
Dropshipping Payment Gateway Combos
It is better to select at least two payment gateways, if you are dropshipping for the first time. It is hard to find a checkout method that works best for users. Experiment with at least two checkout methods at a single time and then decide which one is better.
Here are the best payment gateways for dropshipping.
- Stripe and PayPal
- 2Checkout and PayPal
- 2Checkout and Stripe
- PayPal and Skrill
- 2Checkout and Skrill
You can increase potential sales by using a payment method that suits your customers.
A payment gateway is an essential part of any ecommerce business. However, finding the right one is a problem. So, test with different payment gateways and choose the one that works the best.
If you are just starting out, go with popular ecommerce payment gateways such as Paypal, Stripe, and 2Checkout to decrease the risk of losing relevant customers to your ecommerce stores.
Have anything to add to this article? Or, have a question in mind that you want to ask? Simply comment below with your query and we will get back to you as soon as possible.
Q1. What are the best payment gateways in terms of availability across the world?
Here’s our list of the top 8 payment gateways and their availability across the world:
|Payment Gateways||No. of Countries|
Q2. Is the payment gateway supported on your ecommerce platform?
All the platforms that we have provided in the list are supported on WooCommerce. However, if you are using any other ecommerce platform, there is a chance that the payment gateways will not support it. It is better to check first before setting up your store.
We recommend to choose a payment gateway that is already available with the platform.
Q3. Are you in a ‘high-risk’ business?
Some businesses are high risk because of many factors attached to them. These include business volatility, high turnover rate, more upfront investment, public image issues. So, if your business is a high-risk one, then most payment gateways will be reluctant to work with you. In such a case, verify early so that you find a payment gateway that’s willing to work.
Here are some high-risk businesses:
- Debt Collection
- Diet Programs
- Credit Repair
Q4. Does the payment gateway support the payment methods your target market uses?
Before adding a payment gateway, ask yourself: Does it support the payment method of your target market? Is the currency supported? Let’s say you are targeting Ukraine. So, you need a payment gateway that supports Ukrainian currency. Paypal supports Ukrainian Hryvnia but Authorize.net doesn’t. This can become a real hurdle when processing payments in real-time. Ensure you have setup relevant gateways properly.
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