When it comes to payment gateways for dropshipping, there are many options to choose from.
Which one is the best for you? What combinations should you use?
In this article, we will discuss some of the best combinations for beginners just starting in the world of dropshipping.
We will also provide a few tips on how to choose the right gateway combination for your business. Let's get started!
The best payment gateway combinations for dropshipping
Each payment gateway has its own advantages and disadvantages; hence it makes sense to use a combination of two.
Below you can find the best combinations to start with:
- 2Checkout and PayPal
- Stripe and Paypal
- 2Checkout and Skrill
- Authorize.net and PayPal
2Checkout and Paypal
There are several reasons why it can be advantageous for a dropshipping business to use 2Checkout and PayPal together as payment gateways.
Firstly, 2Checkout is an all-in-one payment processing solution that enables businesses to accept payments from customers in more than 200 countries.
This makes it a great option for businesses that want to sell products or services internationally.
Additionally, 2Checkout is a PCI Level 1 certified payment processor, which means that it meets the highest security standards in the payments industry.
Another reason why it can be beneficial for a dropshipping business to use 2Checkout and PayPal together is that this combination provides additional fraud protection.
PayPal is one of the world's leading online payment processors and has a high degree of trust among consumers.
If you are using PayPal to process your sales, not only do your customers know that they can pay with confidence because their details are safe, but if there is ever a dispute, PayPal's buyer protection ensures that the customer will receive either a full refund or be sent their order.
2Checkout works similarly, giving you and your customers peace of mind with its range of security features.
Pros of using 2Checkout and PayPal together as payment gateways
- Simple checkout.
- Security - PCI compliance.
- You can cover hundreds of countries.
- Both are well-known and trusted all over the world.
Stripe and Paypal
Some dropshipping businesses use both PayPal and Stripe because they have different target audiences.
For example, an ecommerce store might choose to use PayPal for European customers who are less comfortable with using card details online while using Stripe for American customers that are used to paying with credit or debit cards via their mobiles or tablets.
And by doing this, they can take advantage of each payment provider's offering (PayPal's features like recurring payments and subscription billing work better for ecommerce stores).
Because both Stripe and PayPal offer competitive advantages, using both together is a good idea, even if you are just starting your dropshipping business.
Pros of using PayPal and Stripe together as payment gateways
- PayPal is a well-known and trusted payment provider with over 200 million active users.
- PayPal is available in 203 countries, and Stripe is available in 26 countries. This means that businesses can reach a global customer base.
- PayPal and Stripe are both easy to use and have simple checkout processes.
- PayPal and Stripe offer a wide range of features, such as recurring payments and subscription billing.
- PayPal and Stripe are both PCI compliant, meaning that your business's payment data is safe and secure.
2Checkout and Skrill
There are a few reasons why it might be worth using both 2Checkout and Skrill as payment gateways for a dropshipping business.
First, 2Checkout is great for accepting payments from customers worldwide, while Skrill is great for processing payments quickly and easily.
Second, using both gateways together can provide your customers with a more seamless checkout experience.
And finally, using both gateways together can help you to reduce your costs and processing fees. The reason is, Skrill is providing a bit lower transaction fees compared to other payment gateways.
Pros of using 2Checkout and Skrill together as payment gateways
- You can accept payments from all over the world.
- Providing secured checkout to your customers.
- You can accept payments in multiple currencies.
Authorize.net and PayPal
There are multiple reasons why it can be beneficial for a dropshipping business to use Authorize.net and PayPal together as payment gateways.
For example, using both gateways provides merchants with the ability to accept payments from customers all over the world.
Additionally, Authorize.net is a well-established payment gateway that offers a wide range of features and benefits, such as fraud protection and the ability to accept recurring payments.
PayPal is one of the most popular payment methods online shoppers use, so using both gateways together can help boost your business's sales and revenue.
Pros of using Authorize.net and PayPal together as payment gateways
- The ability to accept payments from customers all over the world, from any device.
- Integrated fraud protection from both Authorize.net and PayPal.
- The ability to process recurring payments.
- Ease of use for online shoppers due to the familiarity of both Authorize.net and PayPal as payment methods.
- The opportunity to increase sales and revenue by offering a wide range of secure payment options to your customers.
The best payment gateways for dropshipping
Now that you know the best payment gateway combos, let's go over these payment gateways a bit more in-depth so you can make the right decision for your business.
Let's begin with 2Checkout!
1. 2Checkout
2Checkout's international payment processing platform allows you to accept credit cards on your online store seamlessly.
It's available in over 200 countries and allows customers to shop in their preferred language, pay by any method of choice (including local currency), and see prices on items in their currency.
Key benefits of 2Checkout
- Multiple plans to choose from.
- Accepted in 180 countries.
- Three Currencies.
- All major credit cards.
2. PayPal
There are several reasons why PayPal is a good choice for dropshipping businesses.
It's a very secure payment method. Your customers' financial information is encrypted and protected.
Easy to set up, you just need to open a business Paypal account, and you are ready to go.
It's quick and easy to use. Your customers can pay with just a few clicks.
And finally, it's very popular: over 200 million people worldwide use PayPal.
Key benefits of PayPal
- PayPal is the most popular online payment system in the world.
- It's easy to use- you don't need a PayPal account to pay with PayPal.
- PayPal payments are processed quickly.
- You can use PayPal to accept payments from customers all over the world.
- Customers feel safe and secure when paying with PayPal.
3. Stripe
This payment gateway is mostly used in English-speaking countries like the UK, the US, and Australia. (At the moment, it is available for businesses in 46 countries)
Not surprisingly, Stripe is one of the first choices when we mention payment gateways for dropshipping.
Stripe has a relatively low processing fee, which is great for dropshipping store owners that are just starting out.
Just don't forget to check out our article about dropshipping with Stripe here before using this payment gateway!
Key benefits of Stripe
- Stripe is easy to use and integrates with many shopping carts.
- You can accept all major credit cards.
- You can receive payments in over 100 currencies.
- Feel secure knowing your customers' payment information is safe.
- Offer a streamlined checkout experience for your buyers.
4. Skrill
Skrill is a payment gateway that has been around for over 20 years.
They are fully compliant with the Payment Card Industry Data Security Standard (PCI), which means that they meet the industry's high standard for storing and transmitting payment card data.
It supports more than 40 currencies and is well-known all around the world. That gives your customers security and confidence when paying, hence more orders for your store.
It is a safe payment gateway with many fraud protection tools.
Allows you to accept all major credit cards, Apple Pay and Android Pay, via mobile devices.
They also provide chargeback protection for their quick checkout service.
Skrill also offers a lower processing fee than some other payment gateways.
Key benefits of Skrill
- Forty countries are supported.
- Chargeback protection.
- Low transaction fees.
- +131 countries accepted.
5. Authorize.net
It is one of the most popular payment gateways, and many major ecommerce businesses use it.
One of the reasons why Authorize.net is so popular is because it is very easy to use.
It is also very reliable and has a very good reputation for security.
Authorize.net also offers a wide range of features, making it perfect for businesses of all sizes.
They are PCI compliant with the "highest level of security certification."
Authorize.net is available in over 200 countries and supports 26 currencies.
Key benefits of Authorize.net
- 200+ countries supported.
- Secure payment processing.
- Twenty-six currencies are accepted.
Related article: Looking for more payment gateways that you can use for dropshipping? Check out our other article here!
What is a payment gateway?
A payment gateway is a service that allows businesses to accept customer payments.
The gateway facilitates the transfer of money between the customer and the merchant; in other words, it will deduct the amount from the customer's credit card and send it to your bank account.
Best payment gateways also provide security for both parties involved in the transaction.
There are a few different types of payment gateways, but in this article, we focused on ecommerce payment gateways, especially for dropshipping.
The first one is "merchant account" gateways, which are designed to facilitate transactions between merchants and customers:
- These types of gateways usually require a monthly fee or transaction fees from both parties involved in the transaction (the merchant and customer).
- They also provide security measures such as fraud protection and chargeback prevention.
The second type of gateway is payment gateways, which are designed to be used by online businesses:
- They allow businesses to accept payments from customers without having to set up a merchant account.
- This type of gateway is usually free to use, but it doesn't provide any security measures like fraud protection or chargeback prevention.
Why do payment gateways matter when it comes to dropshipping?
The payment gateway you choose matters when it comes to dropshipping because it will be responsible for processing payments from your customers.
It's important to find a gateway that is easy to use, provides a wide range of payment options, and has low transaction fees.
When it comes to online transactions, security is really important.
So make sure the gateway you choose is compliant with the Payment Card Industry Data Security Standard (PCI), as this will ensure that your customers' payment information is safe.
Most known payment gateway providers are compliant, so it should not be an issue.
Can you have multiple payment gateways on Shopify?
Yes, you can have multiple payment gateways on Shopify.
This will allow you to accept payments from various sources, including credit cards, debit cards, and PayPal.
What's more, it is recommended to do that. Combining more payment gateways helps you accept payments from around the world.
And it's not just that you can accept the payment, but for the people from those respective countries, what they know and trust.
It is great if you can provide them with a way to process their purchase with what they trust and get used to.
Just make sure that the payment gateway you choose is compatible with Shopify and supports the type of payments you want to accept.
Tip: If you didn't sign-up for a Shopify account yet, then click this link here to get a free 3-day trial + pay $1/month for the first 3 months!
Can you use PayPal for dropshipping?
Yes, you can use PayPal for dropshipping!
In fact, PayPal is one of the easiest payment gateways to use when it comes to dropshipping.
This is because PayPal allows you to accept payments from a variety of different sources, including credit cards, debit cards, and even bank transfers.
It also offers easy checkout for your customers with their PayPal email addresses. You also have the option to use express checkout; however, it's recommended to be mindful of that.
The express checkout is a two-edged sword. It's good that your customers can checkout quickly; on the other hand, it directs them away from your page and can mess up your analytics.
For more information on PayPal for dropshipping, I recommend checking out this article.
How do I receive payments from dropshipping?
When it comes to dropshipping, the answer is through a payment gateway provider.
There are many different types of payment gateways available for use, but it depends on which platform you used to build your store and the country you are from.
For example, if you use Shopify to build your store, generally, you have over 100 payment providers to choose from.
Here's a nice infographic to see the journey that your customer's money makes:
The steps to getting paid from your dropshipping store are as follows:
- Sign up for a payment gateway account.
- Connect it to your store.
- Receive payment from one of your visitors.
- Your money will be released to withdraw in seven days, depending on the payment provider.
It's important to note that some gateways will require more steps for the setup process, and not all of them are available in all countries.
This is why it's recommended for you to check "which payment gateways are available in your country " before signing up with one of them.
After that, you're ready to accept payments! When a customer places an order on your website or app and chooses this payment method at checkout, the payment will be processed automatically.
Related article: Wondering how it works with paying your dropshipping supplier? Check out this in-depth article here!
Conclusion
So what's the verdict? What are the best payment gateway combinations for dropshipping?
The answer is, it depends!
It depends on your country, it depends on your business, and it depends on your customers.
But we hope this article has given you a good starting point and some ideas to consider when choosing a payment gateway for your business.
Have you tried any of these gateway combinations?
Let us know in the comments below!
Want to learn more about dropshipping?
Ready to move your dropshipping store to the next level? Check out the articles below:
2 Comments
It is known that: Stripe only supports low-risk ecommerce business. Dropshipping is considered a high-risk business model. Because you have no inventory and essentially act as a middleman between supplier and customer, there’s a lot that credit card companies and payment processor will say is “up in the air”
Does this apply to authorize.net also?
Great question, Faysal!
In general, Authorize.net will accept you if you’re a dropshipping store. The most important thing is to be a customer-focused dropshipping store, so making sure your customers are aware of your shipping times, keeping them updated, and giving prompt answers to their questions. If you minimize the number of chargebacks your store gets, the likelihood you’ll have issues with your payment providers is a lot smaller!
Also, keep in mind that dropshipping with Stripe is also possible by using Shopify Payments (which is powered by Stripe).
I hope that helps!
– Patryk