Let's start with the fact that any seller who is going to accept payments from customers from other countries for effective work should consider 2 types of payment on the site:
We will tell you why we have selected these services and if it is possible to connect only PayPal or only bank card payments.
The undisputed leader in payments industry, which has been on the market for over 20 years. Service allows merchants to easily accept online payments and allows consumers to make quick and safe purchases.
PayPal payment method anywhere in the world, on any site by itself is a guarantee that the user's payment data and funds will remain intact, and the seller will fulfill his obligations.
Let's see the key advantages of the system:
Easy payment method. Although clicking on the payment button redirects a person to the PayPal site, the checkout process is fairly simple and convenient. PayPal Express Checkout, when integrated with Shopify and other platforms, allows the customer to pay for the order in one click, with all contact information and shipping data being pulled up automatically (if the person is logged into the account on the device from which they visit the site).
Unfortunately, the positive aspects of the system stop there. Let's move on to why the system causes a flurry of negativity from business owners:
Freezing funds or completely blocking the account. PayPal has the strongest internal antifraud system, so even with the slightest security breach (or even without breaking it) you can face a balance blocking problem.
Funds hold for 21 days. Even if you follow all the rules of the platform, the first payments will in any case be withheld by the system for 21 days. In other words, you'll need to have spare funds to close a possible cash gap.
There is no way to scale quickly. As turnover and sales increase, PayPal may suspect suspicious activity on your account. It then starts requesting all sorts of documents, while freezing money on your balance.
If you find even the slightest violation, such as not attaching tracking numbers to your orders in time, or your customers opening disputes and requesting refunds, you could face a hold on your entire balance for 180 days. And what's worse, there's a chance that even after six months you can kiss your money goodbye, because PayPal may not return it at all.
High commissions. PayPal's Transaction Fee is higher than that of alternative payment systems, which we will discuss further. The amount of commission depends on the country of your account. For US it is 3.49%. If you add taxes to this, the final margin becomes even lower.
Let's summarize a little. For trust of buyers, increase of conversion, which PayPal gives, you need not only to pay higher commission, but also take risks of possible blocking, hold funds and other "surprises". If you want to connect PayPal, you must understand that you will have to provide the best possible service:
As you may have already understood, Paypal is a risky payment service that can work out for you both in good and bad conditions. If you still decided to connect it, then we recommend doing it only in conjunction with another payment system (preferably - stripe), so in the case of hold or blocking you can continue to receive payments, but not suspend activities indefinitely.
Also, before connecting, we recommend reading all the security rules and nuances of work to reduce the risk of problems, which we told you about.
Shopify Payments is a bank card processor from the Shopify platform itself, which allows you to accept payments without connecting third-party services. The system works on the basis of Stripe, but has its own rules of use.
Convenient Payment. The payment form is placed on the checkout page, meaning there's no redirect to a third-party site. In addition, the system offers a faster checkout when you click on ShopPay, which also provides a high conversion rate at the payment stage.
At first glance, a great option, but the system has a number of unpleasant features:
The risk of account blocking and cash hold. As with all payments, this option should be allowed, but the conditions of Shopify Payments are in any case more loyal than those of the same PayPal.
Not suitable for dropshipping in Aliexpress. ShopPay is easier to work with those who work with a dropshipping agent or a fullfilment center. The system does not accept dropshipping as a fullfilment model, so if you want to work with this payment system you have to add products manually and abandon any services that automate the import and ordering process (dsers / oberlo).
Stripe is one of the most popular payment gateways for accepting bank cards in the world. The system is distinguished by high speed of payment processing and security, and from the business point of view - very convenient integration with websites and online stores.
Stripe meets international security standards, with PCI Level 1 certification. This is the highest level of certification available in the payments industry. The payment processing fee is 2, 9% + 30¢.
To summarize. We definitely recommend to consider Stripe as the main payment solution and connect it in the first place. As for PayPal - it is a good option to work with and will absolutely increase the conversion rate of your website or online store. But, you should connect it only in pair with Stripe, to reduce any risks associated with holds and blocking the capricious system.
We've shared the advantages and disadvantages of payment systems, which were identified through our experience - trial and error, lots of tests, blocking, holds. You can try to work with other payment systems, but in the end you will come to what we told today, but losing time and money.