Payment processors nightmare

X

xMalware

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Hello,

I've been doing dropshipping for a month now and I had a good success for a first shop (1500 to 2000 dollars a day). That's where the problems started. I sell electronic products (phone accessories, wireless headsets). I used to use Stripe and PayPal. PayPal banned me and Stripe blocked my accounts. I have created several and many times, and they get blocked after a few minutes or hours.

I'm losing a lot and I'm really hopeless at this point. I made requests wherever I could, I applied to 2Checkout and about 20 other payment processors, either I had no answer or they refused to deal with me. I am really desperate about this situation and I have even found scams like iPayTotal and others.

I know that there are many topics on this subject, but I have not been able to find any solutions for my business in the EU. I would like to ask for your help or recommendations so that I can continue to work on my project, to be able to continue process orders to my customers.

Thank you very much. (I don't know if this is the right forum where I post, sorry)
 
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1500-2000 per day is too much. The problem is created from here. You should create a LLC and register payment methods using that.
 
mastertanvir said:
1500-2000 per day is too much. The problem is created from here. You should create a LLC and register payment methods using that.
Click to expand...

If I register an LLC with Stripe Atlas ($500) are they able to ban me after?
 
Payment processors want you to work up towards a lot of sales. Some are more problematic than others.

Merchant processors deem drop shipping, services (like SEO), firearms, supplements, and gambling as high risk accounts. So in order to get good, consistent processing, you need to have a high credit score, a decent amount of business history, a decent amount of cash on hand, or some combination of those.

The reason these accounts are risky is because of chargebacks. Processors freak out about chargebacks. Mainly because if you are selling $2k per day, and 3 months later all of your customers do chargebacks, the processor is going to be on the hook for the money unless they can collect from you. They even have a blacklist that is shared between all processors. If you're on it you can basically never get a merchant account.

You're basically asking the processor to process $60k p/m right out of the gate. Stripe and Paypal will never go for that. Paypal doesn't even underwrite biz accounts until you start charging a certain amount. Then they start looking at your personal credit and history and decide whether or not to allow you to process payments. Stripe is the same way. Sure, you can sign up and start processing transactions, but they will quickly limit your account if you do too much too fast.

You have some options:
1. Partner with someone who has a strong credit score, business history, and relationships with merchant processing companies and who is willing to carry the accounts.
2. Sign up for multiple payment processors and balance the load between them.
Maybe you have other options but I can't think of any.

Here are some high risk merchant account companies: Authorize.net, Durango, Bankcard USA. There are also some blockchain payment gateways that some CBD companies are using. Although Square is now allowing CBD merchants so most are using that. I'd stay away from Stripe and Paypal for now or at least try to fly under the radar.
 
arc323 said:
Payment processors want you to work up towards a lot of sales. Some are more problematic than others.

Merchant processors deem drop shipping, services (like SEO), firearms, supplements, and gambling as high risk accounts. So in order to get good, consistent processing, you need to have a high credit score, a decent amount of business history, a decent amount of cash on hand, or some combination of those.

The reason these accounts are risky is because of chargebacks. Processors freak out about chargebacks. Mainly because if you are selling $2k per day, and 3 months later all of your customers do chargebacks, the processor is going to be on the hook for the money unless they can collect from you. They even have a blacklist that is shared between all processors. If you're on it you can basically never get a merchant account.

You're basically asking the processor to process $60k p/m right out of the gate. Stripe and Paypal will never go for that. Paypal doesn't even underwrite biz accounts until you start charging a certain amount. Then they start looking at your personal credit and history and decide whether or not to allow you to process payments. Stripe is the same way. Sure, you can sign up and start processing transactions, but they will quickly limit your account if you do too much too fast.

You have some options:
1. Partner with someone who has a strong credit score, business history, and relationships with merchant processing companies and who is willing to carry the accounts.
2. Sign up for multiple payment processors and balance the load between them.
Maybe you have other options but I can't think of any.

Here are some high risk merchant account companies: Authorize.net, Durango, Bankcard USA. There are also some blockchain payment gateways that some CBD companies are using. Although Square is now allowing CBD merchants so most are using that. I'd stay away from Stripe and Paypal for now or at least try to fly under the radar.
Click to expand...

Hello,

Thank you very much for this information, it is very helpful and informs me of some points. Indeed, Braintree confirmed to me that Stripe had put me on the file that is shared with all payment processors.

There was no problem with Stripe in particular, I don't owe them any money and I had only one dispute on 266 transactions, which is a tiny amount. Thus, I find myself instantly banned from all merchants and from elsewhere, knowing that I am in the European Union, they must theoretically provide me with total transparency in the sharing of my information and how it is processed.

I sent them a message about this, it is unacceptable to arbitrarily file someone for a single small dispute and to block the possibility of being able to continue working on his business without these pitfalls.

I would not hesitate to make an appeal if they do not delete me at least from this file, this is totally unjustified
 
xMalware said:
Hello,

Thank you very much for this information, it is very helpful and informs me of some points. Indeed, Braintree confirmed to me that Stripe had put me on the file that is shared with all payment processors.

There was no problem with Stripe in particular, I don't owe them any money and I had only one dispute on 266 transactions, which is a tiny amount. Thus, I find myself instantly banned from all merchants and from elsewhere, knowing that I am in the European Union, they must theoretically provide me with total transparency in the sharing of my information and how it is processed.

I sent them a message about this, it is unacceptable to arbitrarily file someone for a single small dispute and to block the possibility of being able to continue working on his business without these pitfalls.

I would not hesitate to make an appeal if they do not delete me at least from this file, this is totally unjustified
Click to expand...

I'm surprised they put you on that blacklist for such a minor infraction. Usually it takes a lot of chargebacks and shenanigans to get on that blacklist. There are people I know personally who have had accts terminated for lying to the processor (saying they were selling clothes but actually selling ED pills), and they didn't make it on that list.

You should do exactly like you said and fight it since you're in the EU and have some recourse to your info being shared.
 
You can ask your clients to pay you in gift cards.. then cash them in... Just an idea.. :anyway:
 
yea it might because chargebacks toward yer account. those who made chargebacks are scammer!
i knew some forums who expert in this method to get profit from chargebacks!
Paypal has articles google "Tips to help avoid disputes and chargeback"
 
arc323 said:
Payment processors want you to work up towards a lot of sales. Some are more problematic than others.

Merchant processors deem drop shipping, services (like SEO), firearms, supplements, and gambling as high risk accounts. So in order to get good, consistent processing, you need to have a high credit score, a decent amount of business history, a decent amount of cash on hand, or some combination of those.

The reason these accounts are risky is because of chargebacks. Processors freak out about chargebacks. Mainly because if you are selling $2k per day, and 3 months later all of your customers do chargebacks, the processor is going to be on the hook for the money unless they can collect from you. They even have a blacklist that is shared between all processors. If you're on it you can basically never get a merchant account.

You're basically asking the processor to process $60k p/m right out of the gate. Stripe and Paypal will never go for that. Paypal doesn't even underwrite biz accounts until you start charging a certain amount. Then they start looking at your personal credit and history and decide whether or not to allow you to process payments. Stripe is the same way. Sure, you can sign up and start processing transactions, but they will quickly limit your account if you do too much too fast.

You have some options:
1. Partner with someone who has a strong credit score, business history, and relationships with merchant processing companies and who is willing to carry the accounts.
2. Sign up for multiple payment processors and balance the load between them.
Maybe you have other options but I can't think of any.

Here are some high risk merchant account companies: Authorize.net, Durango, Bankcard USA. There are also some blockchain payment gateways that some CBD companies are using. Although Square is now allowing CBD merchants so most are using that. I'd stay away from Stripe and Paypal for now or at least try to fly under the radar.
Click to expand...
Just what a friend of mine wanted!

Going to pass on to him
 
Good success for a first shop? 2000 per MONTH is good for a first shop. 2000/day is extraordinarily well no matter what profession you’re in.
 
Yep you won't be able to of dropshipping with those processors unfortunately.
With PayPal people can ask for a chargeback even 180 days after they placed their order ,that's completely sick to allow such delays .
 
xMalware said:
Hello,

I've been doing dropshipping for a month now and I had a good success for a first shop (1500 to 2000 dollars a day). That's where the problems started. I sell electronic products (phone accessories, wireless headsets). I used to use Stripe and PayPal. PayPal banned me and Stripe blocked my accounts. I have created several and many times, and they get blocked after a few minutes or hours.

I'm losing a lot and I'm really hopeless at this point. I made requests wherever I could, I applied to 2Checkout and about 20 other payment processors, either I had no answer or they refused to deal with me. I am really desperate about this situation and I have even found scams like iPayTotal and others.

I know that there are many topics on this subject, but I have not been able to find any solutions for my business in the EU. I would like to ask for your help or recommendations so that I can continue to work on my project, to be able to continue process orders to my customers.

Thank you very much. (I don't know if this is the right forum where I post, sorry)
Click to expand...
i know that feeling .kinda annoying try payment wall,btc and 2checkout
 
why dont you set up a company outside europe ? But for the short term you may u may use wire transfer only, depending on your main customer base you may set out local payment processor, DOKU in my case
 
2checkout(( got paypal built in ))
with @secondeye helping you with documents and guidance.

of course cost but can be done.

pm him.

good luck

I am sure their others on the misc offer same help aswell.

you need to protect your self with adverts you need to specifically tell the people no returns on any products. we do not do returns what you see what you get.
we do not return any money from PayPal or banks you buy what you see.
all stock is cheek before sending to all customers.
buying anything from us breaks all PayPal and bank return policy guarantees.
please make sure what you see is what you want to buy.
if any product is faulty or not working we will provide an email from the supplier but we are not responsible.

this way the buyer is fully responsible for there own buying habbit .
 
Last edited by a moderator:
We ran well into 5 figures per day with out first store and processed with Glacier Payments as they gave us some incredibly low fees until later we worked a great deal with Stripe. Get your LLC setup - probably wouldn't use Stripe Atlas, and then hit them up.
 
Wow $1500 a day for the first store. Thats inspiring asf. But the problem has always been the damn payment gateways.
 
Why don't you go to your bank, and ask them for a merchant account? If you don't have a business, make one and get a merchant account directly from your bank. With those sales, any bank manager will take you as a whale.
 
IF you are doing 1500-2000 a day, buy your stock in, remove the drop-shipping element of it you will find getting a merchant account so much easier.

In fact take the proof of transactions to your bank and IF that charge back rate is as low as you claim they will offer you a merchant account - security deposit should be either very little or none if you have the stock here if you want to continue to drop ship and it's electronic items be prepared to give them 50k+ as a security deposit for 18months (minimum)
 
Behind the scenes, payment processors work closely with payment networks (such as Visa and Mastercard) and banking partners across more than two dozen countries. Each institution has strict legal regulations that govern them and specific rules about the types of businesses they do and do not work with. They must also uphold the laws of the countries they operate in.

Dropshipping is in the category of "Businesses that attract money-laundering or fraud". Financial institutions are obliged under US and international law to actively monitor usage to prevent money laundering and other criminal activity. That's why no-one wants to work with you. The origin and movement of funds is too unclear and so they are considered high risk. This applies to gift cards too.
 
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