There are many dropship payment gateways. I’d list the ones that could be connected to Shopify, Ecwid, Amazon and Woocommerce stores to receive money from customers globally.
A payment gateway is basically an online merchant account which you can integrate to your ecommerce website and receive online payments.
Payments received can then be transferred from your payment gateway account to your local bank account from where you can withdraw it.
Most payment getaways will only allow persons age 18 years and above or companies to open a merchant account
If you are less than 18 years, you can still open a merchant account through your parent or trusted guardian.
Here is a list of Payment gateways that have easy integration with Woocommerce, Amazon, Ecwid and Shopify stores.
- Paypal; PayPal has a high reputation and trust amongst its users globally. You can use PayPal to send and receive funds. What makes PayPal so secure is that customers do not have to put in their credit card details to make purchases, instead transactions are processed via the user’s “email”.
Paypal can be used to send and receive money in many countries such as North America and the EU. However in some countries especially in Africa, Paypal can not be used to receive money but only to send money. You can see a list of countries where Paypal services are available here.
What this mean is, if you live in a country where paypal can’t receive money then you won’t be able to integrate paypal as a payment gateway for your ecommerce store and receive money in that country.
The processing fee for transactions via PayPal getaway is pretty low. You can check out Paypal merchant’s fee rates here.
Paypal has a large integration. It easily integrates with Amazon, Woocommerce, ecwid, Shopify stores and many other e-commerce platforms.
- Stripe; Stripe is another payment gateway which you can use to receive money on your dropshipping website. Setting up a stripe account is quick, easy and free.
Stripe has a lot of integrations and so you can connect seamlessly on Shopify and Ecwid stores. You can also integrate Stripe on a Woocommerce store using the Stripe plugin amongst others ecommerce platforms.
Stripe is available in a number of countries in North America and the EU. Here is a list of countries where Stripe is available. Basically, if you live in a Stripe supported country, you’d be able to connect Stripe payment gateway to your ecommerce platform and receive payments from your customers online.
Stripe card and wallet processing fee is %2.9 of transaction amount + 30cents. You can see a full list of Stripe processing fee here.
- 2checkout; 2checkout is a payment gateway which you can use to receive payment on your ecommerce store. 2 checkout integrates with many e-commerce platforms including Ecwid, Woocommerce and Shopify stores amongst others.
2checkout has a large coverage and works in many countries in the Middle East, Asia, North America and the EU. You can see a full list of countries where 2checkout’s services are available.
If you reside in a country where 2checkout services are available, you’d be able to create a 2checkout account and integrate it to your dropshipping store to receive payment online.
2checkout has some processing fees you can see a list of their processing fees here.
- Paystack; Paystack connects Africa to the world. Paystack payment getaways integrates with many online stores like Shopify Woocommerce, Ecwid etc. Paystack is popular for helping African countries receive payment globally on their ecommerce stores.
African residents are able to charge fees in USD and receive this payment via Paystack on their ecommerce stores.
Although to charge USD on paystack, the merchant is required to have a domiciliary account. You can learn about the requirements for charging USD on Paystack here.
Paystack processing fees are pretty low. You can see a list of paystack processing here.
- Rave by flutterwave; Rave connects Africa to the world just like Paystack. Rave lets you receive payments on your ecommerce store globally. Their service is available in most African countries including Nigeria. Rave has integration with Shopify, Ecwid, Woocommerce etc
You can charge USD and other international currencies on your ecommerce store and receive the Payment in Africa using Rave. Unlike Paystack you do not need a domiciliary account to be able to charge and receive USD payments.Rave transaction fees are low. This means Rave only charges you a small amount for every transaction made via their payment gateway. You can see a list Rave processing fees here.
- Wise; this is a financial service site where you can open a bank account in the USA, Canada, UK, Australia etc entirely online even if you have never been to those countries. You then get bank account details which you can use to receive payments from your customers in those countries as though you were local business.
There are other financial service sites like Payoneer however, I highly recommend Transferwise for Dropshippers because it allows you to receive payment from individuals and businesses by simply giving them your account details. You can get paid by bank transfer or cash deposit just like any resident of that country.
Depending on which country you live in or what country your business is registered in, Transferwise has restrictions on how you can operate a USD bank account.
Since this tutorial is for Payment gateways, it’s important to note that Transferwise isn’t a payment gateway, it is a bank payment option which you can offer to your customers.
Recommendation
I do recommend having more than one payment option on your ecommerce website, so you can have 3 payment options or more.
For example, You can have a Payment gateway (like stripe, 2checkout, Rave etc) to process card payments.
You can include Paypal as a payment option because customers feel safer when they can complete payment with Paypal, knowing they don’t have to enter their debit card details on your website.
You can also have a bank transfer payment option by providing your banking details on your ecommerce store’s checkout page and if you’re dropshipping in a country where you are not a resident, you may open a bank account in that country via Wise.
Conclusion
Running an ecommerce or dropshipping business requires you to be able to set a price for your product and receive payment for your products online. When you are just starting out. You need dropshipping payment gateways to be able to process payment online and have the funds available in your local bank account.
This article list various dropshipping payment gateways which you can integrate into your online store. It’s important to choose a payment getaway that’s available to receive payments in your country of residence. This is because you’d want the payment processed online to be locally available in your home country. I hope this article guides you in choosing the right fit for your business.
This tutorial is part of our free dropshipping course. You can check our dropshipping course outline here.
