The best payment system for a very profitable dropship store?

[Enki]

Thank you for the tips Alex. I appreciate it. Keep them coming

 

[Buzzika]

For me the 21 day holding period lasted for about a month, after which I got all my payments available for direct withdrawal.

BUT, I did not have a single dispute/chargeback during that period. I have clean history and all my customers were happy.
If you have an occasional chargeback on your paypal account, that might be the issue. If this is the case, try looking for another provider like Stripe or Authorize.net

 

[cuerVo]

I've been looking for paypal alternatives but this option for a direct deposit to my bank account just might be the solution to have a faster cash flow. Do you use your personal bank account though? I don't want my customers to know my real name in case they deposit to my bank account.

I was selling legitimate items, no one was getting scammed, I opened up a new e-mail for my store and your bank account isn't released to your customers (ONLY SHOPIFY). Basically shopify will hold your money for 2-3 days then send a transfer to your bank. The customer pays with credit card through normal checkout process. To me that was a great system in case PayPal doesn't work for you.

Hey, first 1500 euros went smoothly (first few days), then I was recognized as a new seller. After 50 orders.

After 3 successful years of using PayPal in the U.S. today I got asked to put my SSN/DOB/TAX information. They said it's because I went over 200 orders or $20,000 within a year. Now my PayPal account will be limited until I provide them this information. This kinda sucks I'm probably gonna have to pay taxes on this income...

By the way, you should NEVER use a "recent" PayPal account when you're going to receive a lot of funds quickly. I am a established seller on eBay and opened up a second PayPal account, I received two sales of $300 and $400 within the same day as I opened the account and PayPal put a red flag on my account and asked for all types of information. If you're going to be selling online you need to "break in" the account. Start off with a few sales of $20-30 a month and then escalate. There is absolutely NO WAY for a brand new PayPal account to receive LOTS OF MONEY and be under the radar. The first 6 months they will be looking at your account VERY CLOSELY. Trust me.

PS. I'm on my 6th PayPal account, I can't even use my name and DOB anymore because they'll block me within a few days. I've been using my family names/information and changing my IP to work under the radar lol. Look up "eBay/PayPal stealth guide" that's where I learned how to prevent PayPal from linking you to your old (limited) accounts.

 

[Alex023]

Everybody is learning here

 

[Loops32]

Wait, are you saying you can structure your business so that you don't pay tax? What about PayPal accounts? I keep reading that conversation rate lowers 50 percent without one.

Wrong! A lawyer is necessary of course, but an US company is NOT. In fact, it's totally the opposite. In cases where the product is entirely produced outside of US borders (producing includes manufacturing the product, doesn't matter if it's physical or virtual like software + customer support/maintenance), you are not liable to any tax. Now, the selling part is a bit problematic and it depends on the specific case, because technically selling is not producing, so you don't have to pay taxes according to the law, but more often than not, you will have to. I will give you 2 examples:

1) You are selling a SaaS (software as a service) product and are meeting clients in the US to close sales, especially if the price is mid XXX to 4 figures per month. You are also maintaining an office in the US to handle sales and/or customer support. In this case, leveraging the tax directive I mentioned above is not possible and you will be liable to tax. Even if you don't have any offices in the US and are just coming to close sales and then leaving (say with a tourist/business visa or ESTA) and customer support agents are located outside the US, you will still have to avoid the Substantial Presence Test and while most countries have a simple system of not being in the country for more than 180 days, US of course has a different system (hell, they even measure their shit totally different than the rest of the world, so of course you would expect this in taxes).

You can read the formula in the IRS page I linked. Best option in such cases is incorporating a company in Cayman Islands or any other offshore island - lots of headache and you will definitely need a good and experienced lawyer to tell you what's the best option for you and how to implement it.

2) You are selling a virtual product, closing sales online and are not maintaining any offices in the US at all. In this case, you pay 0 taxes to the IRS. You pay taxes based on the system the country where you incorporated your company has. Territorial taxation is of course the best, because you pay only for services/goods sold within that country's territory. This is the reason why you hear Hong Kong & Singapore being talked a lot as offshore options to incorporate your company, especially if it's an online-based one.

There are also lots of other cases completely different and in-between. I mentioned these 2, because I have experience in them. I am not a lawyer, but I have met with few of them and everything I told you above can be confirmed easily. However, in any case, I strongly recommend you to contact a lawyer ASAP as your country of citizenship, double tax treaties, etc... might affect your case. Choose a lawyer that knows a good deal about International Law and is experienced in such tax issues. I'm also assuming that you don't have an US citizenship, otherwise that will complicate things 10x more.

Anyway, your business model (and dropshipping in general) can be included under case 2 in most circumstances. That means you don't need a company in the US. You only need to incorporate outside in a tax-favored country. That will also allow you to use local merchant accounts in those countries - maybe not the best, but definitely better than PP. Also, 2Checkout is a trusted global company, but be warned that they don't handle disputes/chargebacks very well unless you have very clear and specific TOS, which you should. Their $25 fee might kill your profit margins. I have used them for SaaS though and never had any real problems.Other merchants include: Authorize.net, Stripe & Bluepay (not all are global though).

 

[soa0611]

Everybody is learning here

btw probably i missed smth about this , but why you cant use direct payments to your bank account? it's even easier than PP for most people?

 

[Nyczonestar]

lots to learn here thanks. is stripe preferable over paypal?

 

[Alex023]

btw probably i missed smth about this , but why you cant use direct payments to your bank account? it's even easier than PP for most people?

wait wait wait - you want to tell me that it is possible? Please explain

 

[soa0611]

wait wait wait - you want to tell me that it is possible? Please explain

maybe this proccessor would be good for you http://www.flagshipmerchantservices.com/faqs.php#q03

• Internet environment-Customer provides your Web site with card identifiers (i.e., card is not present).

Step 2 - Real-time authorizing, which reduces chargebacks and catches card-entry errors:

• Credit card number is entered.
• Terminal or software transmits the credit card number and expiration date and sales total.
• Data is transmitted to customer's credit card-issuing bank.
• Customer's issuing bank approves or declines the transaction.

Step 3 - Completing the transaction:

• Merchant's terminal or software transmits transaction details in a batch at the close of the business day.
• The transactions are forwarded to each credit card company, which redirects the transactions to appropriate banks.
• Bank debits credit cardholder's account.

Step 4 - Receiving your funds:

• Your bank account is then credited with the appropriate dollar amount, usually within two business days.

 

[judaculla]

First, my profit margins are enough to refund if needed. 2nd, my customer are women so I can send them money from my personal paypal and say that it is refund (while no official refund happend, but they got the money) - I have still good reputation and they got the money.

idk what your country's liability laws are, but from a purely legal standpoint that's likely a bad idea. I imagine it might throw some flags up in PayPal's system as well. In the US, if you're company is sued, actions like that allow the prosecuting party to 'peirce' the barrier of legal liability and come after personal assets. In other words, piss off a customer and they could be awarded your car.

In the past, I've worked directly with payment processors such as Authorize.net for credit card payments and it has been pretty easy. I've heard too many horror stories from PayPal to even slightly be interested in working with them on a large scale. PM me if Gxxgle doesn't answer you're questions about that

 

[MeisMJ²]

Hey Alex, 3 quick questions for you:
1.Do you serve/promote only to Italians?
2.a.If yes, aren't they annoyed by an English shopify store? Or did you translate it to Italian?
3.b.If no, do you serve the entire EU?

Thanks in advance and good luck!

 

[Tien Bac]

Did you just start targeting with WC ads? I thought your pixel needs some data first before it can start optimizing with WC ads.. What am i missing?

 

[Sean Elliott]

That's what i was thinking as well after reading the thread. If you really believe in your product, then the 21-day hold from PP won't be a problem. You can always get investors since you know anyway that you have a sound business plan. Otherwise, you are just looking for ways to run your customers' money and not giving them access to refunds.

 

[sanzious]

Damn some of the great information have been shared in this thread. Good luck with PP OP. Hope you'll find a solution soon.

 

[Alex023]

Hey Alex, 3 quick questions for you:
1.Do you serve/promote only to Italians?
2.a.If yes, aren't they annoyed by an English shopify store? Or did you translate it to Italian?
3.b.If no, do you serve the entire EU?

Thanks in advance and good luck!

Hey,
1. US, Uk, Can, Australia only
2. read 1.
3. read 1.
Hope I helped

 

[Alex023]

Did you just start targeting with WC ads? I thought your pixel needs some data first before it can start optimizing with WC ads.. What am i missing?

Simply create ad, and clicl WC type. Easy as that After a week or 2 it is getting smarter (or Im just trippin')

 

[RightFootFanatic]

Checkout Amazon Payment, maybe that's an option-

 

[SEMWORLD]

Many people today do you PayPal to carry out their transactions. I was thinking if you implement something that makes good use of this, then you will surely get the best results. I am thinking that we need not to frustrate the user of the systems in place. You can as well do a test on several of them or research on the top most methods in usage today.

 

[soa0611]

Many people today do you PayPal to carry out their transactions. I was thinking if you implement something that makes good use of this, then you will surely get the best results. I am thinking that we need not to frustrate the user of the systems in place. You can as well do a test on several of them or research on the top most methods in usage today.

i always like your WTF comments that promote your signature

 

[Alex023]

i always like your WTF comments that promote your signature

Please report him, lets keep BHW clean