E-Commerce Payments

How to accept card payments as a dropshipper?

2020 November 20

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How to accept card payments as a dropshipper?

If some time ago one was considering dropshippers to be on a boom, now their number has skyrocketed. That alone isn’t a good or a bad thing in itself, that simply means that more and more dropshipping businesses are on a lookout for a payment service provider. However, finding it usually turns out to be quite a challenge. 

The challenge is caused by the fact that payment services providers do not trust dropshippers and consider them quite risky. The main reason for that is long delivery times which makes dropshipping business more prone to chargebacks. Some payment service providers might also mention poor communication with the buyers or low-quality products as some of the reasons why they find dropshipping businesses very risky. 

So, how to find a trustworthy payment partner in a time when most payment service providers don’t seem so dropshipping-friendly?

Be helpful and transparent

It is no surprise that the delivery times can be quite a pain in the neck when it comes to dropshipping businesses. Your buyers are as aware of that as you are, so there is no point in hiding how long it would take to deliver a certain product. Your payment service provider will also ask you to be absolutely transparent with delivery times, delivery confirmation receipts, etc. It proves that your business is reliable and trustworthy. It is essential when a payment service provider is considering whether to provide services for dropshippers. With complicated or long deliveries you are more likely to experience some issues with the customers (e.g. some buyers might file chargebacks), so it is necessary to always be helpful and provide as much information as you can. 

Keep your business intact

Gather all the documents and company information which is necessary to open a merchant account with a payment service provider. The company registration documents and director/UBO information are the most important but your payment service provider might ask to provide some additional information or documents as well. Also, have a functioning company bank account so the payment service provider can easily make payouts to you. 

Meet all of the website requirements

Simply check if all of the required policies (delivery, return, etc.) are available on your website. Also, a contact page is a must for every e-commerce business. If your online shop complies with all of the requirements, the registration process will be much smoother. You can find all of the website requirements on Cardinity website

No prohibited items

Another point to check before applying for a merchant account is whether you have any prohibited products on your e-shop. Most payment service providers have a prohibited products/activities list. For example, take a look at Cardinity’s prohibited products list. The products are prohibited because they are illegal or does not comply with Visa/MasterCard or payment service provider’s internal regulation or policies. 

Look for a high-risk friendly payment service provider

Firstly, look for a payment service provider which is able to work with high-risk businesses such as dropshipping businesses. Usually, if a payment service provider works with high-risk businesses, they will state so on their website. Keep in mind that you might experience higher transaction costs/fees or have to comply with more requirements because of the nature (i.e. risk level) of your business. 

A solution

If you are a dropshippers and your business is registered in one of the EU countries, one of the solutions for you is Cardinity. We are a licensed payment service provider that works with a variety of online businesses (including high-risk, e.g. dropshipping businesses). From low transaction feed to advanced security measures – we have it all! Check out our website for more information or contact our sales team here.

If you are just starting out, you might be interested in our 6 step guide on opening a Shopify store.


Open a merchant account for free
and start processing payments with Cardinity!