Payment processors nightmare

TomTheCat said:

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.

Click to expand...

macdonjo3 said:

A whale? I went to Chase with $20k+/day in sales and trust me, I wasn't treated at all like a whale. Which bank are you treated like a whale?

Click to expand...

TomTheCat said:

He is located in Europe, so things are a bit different here. When they hear that you have a online store, they will say to you that you should process payments through them. I've had this experience, and the amount was way lower!

Click to expand...

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...

fragmonkey said:

I hope this isn't too off topic and I don't mean to derail the thread, but: if I already have a long-standing PayPal and eBay account for a legitimate registered business, would suddenly selling dropshipped items be flagged as suspicious? I don't see why it should as its just more selling like I have been doing for years

Click to expand...

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...