Monzani
BANNED
- Jun 3, 2019
- 1,510
- 2,088
Mainly intended for dropshippers, ecommerce owners and sellers of online services in general.
There are two models of payment processors in ecommerce.
1) Start now: Model practiced by Shopify Payments, PayPal, Stripe...it's quite tempting, you create an account, send a picture of your driver's license, register your bank, your phone/email and five minutes later you can already start selling and processing payments. It sounds perfect because in a few minutes you are already ready to start making money. But don't be fooled: someday you will need to go through a review and possibly your money will be held for months.
In the beginning, your sales are all approved, and you are making a few hundred dollars, your payment processor takes the fee for each transaction, and everyone is happy.
It is very common that after a few sales, before your first payout, payment processors like Stripe and PayPal ask for documents, proof of address, proof of inventory, tracking codes, social media links and a lot of additional documents. Meanwhile, your money is still stuck and depending on the approval of a review that should have already been done.
Conclusion: if your documents are rejected, your business will be considered high-risk and you will be told that the business model you practice is not compatible with PayPal/Stripe/etc. policies. Your money will be held for months and your cash flow will go to shit. And don't be deceived, this is VERY common, especially for those who do dropshipping or sell digital products.
2) We will analyze your business first:
that sounds boring, you create an account with the payment processor and it initially asks you for a ton of personal/business documents and makes it clear that this will need to be approved (it will take up to 3 business days in most cases) before you can process a sale.
After approving your documents, the processor will still need to approve your website, your business model, etc. However, trust me, it is worth it.
Although annoying and more time consuming, this payment processor model wants to get to know the customer BEFORE collecting payment fees from customers who will be rejected in the future. If you are rejected, you have no loss, your money is not withheld, you have not spent hundreds or thousands of dollars on ads previously.
If you are accepted, your payment processor will be much more loyal and reliable, they already know who you are, what your website is and how your business works. And they have accepted you. You will hardly have any problems with these payment processors in the short term. Your biggest problem will be disputes/chargebacks that will take weeks to start appearing and you will probably have a better chance of being heard.
Conclusion: it is better to spend a few weeks talking to a payment processor, even pay a set-up fee, and actually be APPROVED than to be in a hurry and be ''accepted'' without being able to make the payout and have your money locked for months.
There are two models of payment processors in ecommerce.
1) Start now: Model practiced by Shopify Payments, PayPal, Stripe...it's quite tempting, you create an account, send a picture of your driver's license, register your bank, your phone/email and five minutes later you can already start selling and processing payments. It sounds perfect because in a few minutes you are already ready to start making money. But don't be fooled: someday you will need to go through a review and possibly your money will be held for months.
In the beginning, your sales are all approved, and you are making a few hundred dollars, your payment processor takes the fee for each transaction, and everyone is happy.
It is very common that after a few sales, before your first payout, payment processors like Stripe and PayPal ask for documents, proof of address, proof of inventory, tracking codes, social media links and a lot of additional documents. Meanwhile, your money is still stuck and depending on the approval of a review that should have already been done.
Conclusion: if your documents are rejected, your business will be considered high-risk and you will be told that the business model you practice is not compatible with PayPal/Stripe/etc. policies. Your money will be held for months and your cash flow will go to shit. And don't be deceived, this is VERY common, especially for those who do dropshipping or sell digital products.
2) We will analyze your business first:
that sounds boring, you create an account with the payment processor and it initially asks you for a ton of personal/business documents and makes it clear that this will need to be approved (it will take up to 3 business days in most cases) before you can process a sale.
After approving your documents, the processor will still need to approve your website, your business model, etc. However, trust me, it is worth it.
Although annoying and more time consuming, this payment processor model wants to get to know the customer BEFORE collecting payment fees from customers who will be rejected in the future. If you are rejected, you have no loss, your money is not withheld, you have not spent hundreds or thousands of dollars on ads previously.
If you are accepted, your payment processor will be much more loyal and reliable, they already know who you are, what your website is and how your business works. And they have accepted you. You will hardly have any problems with these payment processors in the short term. Your biggest problem will be disputes/chargebacks that will take weeks to start appearing and you will probably have a better chance of being heard.
Conclusion: it is better to spend a few weeks talking to a payment processor, even pay a set-up fee, and actually be APPROVED than to be in a hurry and be ''accepted'' without being able to make the payout and have your money locked for months.
