Nowadays, Dropshipping is a trend in e-commerce business. Non-cash payment methods are becoming a common standard. In this article, I will introduce suitable payment gateways for Dropshipping.
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What is a Payment Gateway?
Imagine you visit an online store to purchase some items. You add items to your cart, review them, and proceed to payment. At this point, you use a payment gateway to pay for your cart.
You need to enter crucial credit card information into the payment gateway, which deducts the amount from your credit card and transfers it to the dropshipper’s bank account after deducting some fees.
Why is a Payment Gateway Necessary for Dropshipping?
Dropshipping stores operate similarly to regular e-commerce stores, but the key difference is that they don’t directly sell items from their own inventory. To sell products from manufacturers, they need a payment gateway to facilitate transactions.
A small note: Payment gateways vary, and people often prefer those they are familiar with. For instance, PayPal is widely used in the U.S., while Payoneer and Stripe are popular in Canada.
Criteria for Choosing a Payment Gateway for Dropshippers
Suppose you’ve built a dropshipping store and are looking for a suitable payment gateway. Here are some criteria to follow:
- Choose a payment gateway popular in the country where you want to sell.
- Ensure the payment gateway has low fees.
- Check if the payment gateway is suitable for dropshipping stores.
- Explore whether you can use the payment gateway for global transactions.
- Verify if customers are satisfied with the payment experience.
Recommended Payment Gateways for Dropshipping
I’ve compiled a detailed list of the best payment gateways commonly used by dropshippers. From this list, you can determine if your target country is supported and the associated service fees.
PayPal
PayPal is the most commonly used payment gateway at eCommerce stores in general and Dropshipping in particular. This is a recognized payment gateway used in more than 203 countries. It supports all major credit cards such as: Visa, Mastercard, American Express, Citibank and there seems to be no limit. To start dropshipping, you need a PayPal business account.
- Monthly fee: 0 USD
- Transaction fee: 2.9% + 30¢
- Countries not supported: Antarctica, Afghanistan, Cote D’ivoire, Cuba, Belarus, Bouvet Island, British Indian Ocean Territory, Cameroon, Central African Republic, Christmas Island, Equatorial Guinea, Haiti, Heard Island and Mcdonald Islands, Iran, Islamic Republic of Iraq, South Korea, Lao People’s Democratic Republic, Lebanese People’s Democratic Republic, Liberia, Libyan Arab Jamahiriya, Myanmar, Nigeria, Pakistan, Papua New Guinea , Montenegro, Sudan, Syrian Arab Republic, Zimbabwe
- Supported currencies: Australian Dollar, Brazilian Real, Canadian Dollar, Czech Koruna, Danish Krone, Euro, Hong Kong Dollar, Hungarian Forint, Israeli New Sheqel, Japanese Yen, Malaysian Ringgit, Mexican Peso, Norwegian Krone, New Zealand Dollar, Philippine Peso, Polish Zloty, British Pound, Russian Ruble, Singapore Dollar, Swedish Krona, Swiss Franc, Taiwan New Dollar, Thai Baht, US Dollar.
Stripe
Stripe is a US-based payment gateway accessible across 25 countries. It supports all major credit cards. Because of this, it is largely used in Canada, Australia and the UK. It also integrates with WooCommerce.
- Monthly fee: 0 USD
- Transaction fee: 2.9% + 30¢
- Supported countries: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Hong Kong, Ireland, Italy, Japan, Luxembourg, Malaysia, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, United Kingdom, United States.
2Checkout
2Checkout is another payment gateway that is accessible in over 200 countries. It can support all types of credit cards such as Visa, Mastercard, Diners Club, American Express and many more. Besides, it is also accessible in many underdeveloped countries where it will be used in conjunction with another payment gateway.
- Monthly fee: 0 USD
- Transaction fee: 3.5% + $0.35 (per successful transaction)
- Supported coins: 87
Authorize.net
Authorize.net can currently be accessed in over 33 countries. It is one of the most established and trusted payment gateways by credit card customers. Additionally, it also adds various features to support WooCommerce stores.
- Monthly fee: 25 USD
- Transaction fee: 2.9% + 30¢
Skrill
Skrill is a payment gateway accessible in more than 40 countries. It charges a 1.9% fee at checkout. It also offers integration features with dropshipping stores on the WooCommerce platform.
Pingpong
Pingpong was founded in 2015. Since that time, it has processed more than $10 billion in payments for e-commerce entrepreneurs. It has offices in many countries around the world: America, China, Belgium, Japan, India,…
- Monthly fee: 0 USD
- Transaction fee: 1%
