Will my dropshipping business thrive with just Paypal as a gateway

terinah14 · Apr 28, 2020

I live in a 3rd world country and there are not a lot of payment gateways available. Some that I checked out need me to register my business but due to lockdown that is impossible to do.

Someone of you guys succeeded with just paypal? I have been with paypal for like 10 years, is my merchant account at risk for funds being on hold?

ContentExpert · Apr 28, 2020

If you have a ten-year-old account and are making trackable sales, you should be alright, although, one never really knows when it comes to PP.

I've had both great and horrible experiences with them.

umpteen · Apr 28, 2020

ContentExpert said:
If you have a ten-year-old account and are making trackable sales, you should be alright, although, one never really knows when it comes to PP.

I've had both great and horrible experiences with them.

This is really true.
I am just making some precautionary measures, like - do not leave big balances in your paypal accounts. I always withdraw them every week.

canweoffshoreit · Apr 28, 2020

Better the devil you know. I dislike Paypal but there are few better alternatives.

Here's my experience with a new Paypal account and I'm sure the same rules apply to other providers.

It's a slow game.
The 3rd world country is a big problem with trust. If you can get an account, the "safety" algorithm will ping at the slightest provocation - temporarily locking up funds.
I live in a developed economy and I was still very careful. After 12-18 months Paypal trusted me and now they even want to lend me "Working Capital" at crazy interest rates.
This is what worked for me.
!. Consistent information: Your bank/ebay/paypal Address, Legal Name, Contact details ect - Need to be the same.
2. Increase sales slowly. High sales at the start or big jumps will trigger the algorithm.
3. NEVER withdraw all your money. Always leave 20-30%.
4. If you have problems, be EXTRA nice to call centre staff. Try the US number during US business hours and maybe you can get an American who is more helpful and open minded.
5. Give good customer service and be proactive. Sometimes it's better to refund and lose early instead of wasting your time. High dispute rates will cause you problems.

Now I have no problems and the rules don't really apply to me.

To reduce currency conversion fees, also consider:
Accepting Multiple Currencies in Paypal
A virtual bank account with Transferwise to bypass those ridiculous Paypal currency conversion fees.

terinah14 · Apr 28, 2020

canweoffshoreit said:
Better the devil you know. I dislike Paypal but there are few better alternatives.

Here's my experience with a new Paypal account and I'm sure the same rules apply to other providers.

It's a slow game.
The 3rd world country is a big problem with trust. If you can get an account, the "safety" algorithm will ping at the slightest provocation - temporarily locking up funds.
I live in a developed economy and I was still very careful. After 12-18 months Paypal trusted me and now they even want to lend me "Working Capital" at crazy interest rates.
This is what worked for me.
!. Consistent information: Your bank/ebay/paypal Address, Legal Name, Contact details ect - Need to be the same.
2. Increase sales slowly. High sales at the start or big jumps will trigger the algorithm.
3. NEVER withdraw all your money. Always leave 20-30%.
4. If you have problems, be EXTRA nice to call centre staff. Try the US number during US business hours and maybe you can get an American who is more helpful and open minded.
5. Give good customer service and be proactive. Sometimes it's better to refund and lose early instead of wasting your time. High dispute rates will cause you problems.

Now I have no problems and the rules don't really apply to me.

To reduce currency conversion fees, also consider:
Accepting Multiple Currencies in Paypal
A virtual bank account with Transferwise to bypass those ridiculous Paypal currency conversion fees.

Thanks! This is very helpful, I never thought of transferwise

wanderer101 · Apr 28, 2020

Thanks for the valuable share - canweoffshoreit - All the best OP

canweoffshoreit · Apr 28, 2020

terinah14 said:
Thanks! This is very helpful, I never thought of transferwise

Now that i remember, you may have a problem transferring choosing the country to transfer to (eg virtual US Bank Account). You may need to change one of your addresses (only country important). It's not the admin address. It's the address you get your orders sent to, if I remember correctly.

It violates rule 1 but I never had a problem.

Spacecop · Apr 28, 2020

Since you're account is pretty old you should be fine. Just make sure to not to withdraw really high amounts too frequently

canweoffshoreit · Apr 28, 2020

wanderer101 said:
Thanks for the valuable share - canweoffshoreit - All the best OP

i'm getting distracted here but you are welcome

terinah14 · Apr 28, 2020

canweoffshoreit said:
Better the devil you know. I dislike Paypal but there are few better alternatives.

Here's my experience with a new Paypal account and I'm sure the same rules apply to other providers.

It's a slow game.
The 3rd world country is a big problem with trust. If you can get an account, the "safety" algorithm will ping at the slightest provocation - temporarily locking up funds.
I live in a developed economy and I was still very careful. After 12-18 months Paypal trusted me and now they even want to lend me "Working Capital" at crazy interest rates.
This is what worked for me.
!. Consistent information: Your bank/ebay/paypal Address, Legal Name, Contact details ect - Need to be the same.
2. Increase sales slowly. High sales at the start or big jumps will trigger the algorithm.
3. NEVER withdraw all your money. Always leave 20-30%.
4. If you have problems, be EXTRA nice to call centre staff. Try the US number during US business hours and maybe you can get an American who is more helpful and open minded.
5. Give good customer service and be proactive. Sometimes it's better to refund and lose early instead of wasting your time. High dispute rates will cause you problems.

Now I have no problems and the rules don't really apply to me.

To reduce currency conversion fees, also consider:
Accepting Multiple Currencies in Paypal
A virtual bank account with Transferwise to bypass those ridiculous Paypal currency conversion fees.

Sorry I can't edit my post but wanted to add a question, sorry still a newbie after 10 years.
5 years ago I had problems with abandoned checkouts due to not having more payment options like direct credit card payments. My customers seem to not like PayPal, is this still an issue nowadays?

canweoffshoreit · Apr 28, 2020

terinah14 said:
Sorry I can't edit my post but wanted to add a question, sorry still a newbie after 10 years.
5 years ago I had problems with abandoned checkouts due to not having more payment options like direct credit card payments. My customers seem to not like PayPal, is this still an issue nowadays?

What cart are you using? I'm using WP+Woo+PP plugins and you just need to configure it correctly to show the card option.
These days more people trust PP (buyer protection) than dislike it anyway.

terinah14 · Apr 28, 2020

canweoffshoreit said:
What cart are you using? I'm using WP+Woo+PP plugins and you just need to configure it correctly to show the card option.
These days more people trust PP (buyer protection) than dislike it anyway.

Im using Shopify now. I used to have woocommerce but it didn't work due to too much abandoned carts. Im thinking some people dont like to sign up to paypal if they don't currently have it then just abandon their cart.

carlostorch · Apr 28, 2020

Spacecop said:
Since you're account is pretty old you should be fine. Just make sure to not to withdraw really high amounts too frequently

like how much is high amounts?

terinah14 · Apr 28, 2020

carlostorch said:
like how much is high amounts?

I read somewhere that Paypal gets suspicious when you're banking 3,000USD per day. I used to withdraw 2,500USD per month and I was fine. I think new paypal accounts that are withdrawing thousands right away is suspicious to Paypal, making them freeze your account for a good amount of time

jozvaldo · Apr 28, 2020

Just be aware that some people I know have had issues with paypal restricting their accounts and timing issues with getting the funds released.

BillyTheKid001 · Apr 28, 2020

PayPal is awful with customer service. But if you are not scamming people it should be fine. Remove the money as frequently as you can.

Will my dropshipping business thrive with just Paypal as a gateway

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