Merchant Processing for Drop Shipping

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Crafting your dropshipping website can be a fantastic avenue to boost your earnings. Nonetheless, establishing this endeavor demands dedication and diligence. It is crucial to grasp the intricacies of the business model and comprehend the essential elements that contribute to a drop shipper’s success.

A significant hurdle new dropshipping enterprises encounter is acquiring dependable credit card processing. The perils of fraudulent transactions and elevated chargeback rates render traditional payment processors less than ideal. However, a dropshipping merchant account can be instrumental in overcoming these challenges.

The Advantages of Running a Drop Shipping Business

There are numerous business ventures that one could pursue to boost their income. So, what makes dropshipping an attractive option? Why opt for dropshipping over other business models? Let’s explore the benefits:

No Inventory Management: Merchants traditionally had to manage their inventory, which increased the cost and complexity of their business. As a drop shipper, you can choose which products to sell on your eCommerce site and keep a percentage of each sale.

No Shipping Responsibilities: Apart from delegating inventory management, as a drop shipper, you won’t have to worry about shipping either. The manufacturers and warehouses you collaborate with will take care of shipping and tracking every order your customers place.

Automation of Most Workflows: Once you have developed your brand, you can automate most of the workflows related to your dropshipping business. Automation can help you manage tasks such as sales reporting, email marketing, and website scaling. This is possible because most aspects of the company you are responsible for exist online, where automation is becoming more prevalent. Therefore, you can focus on expanding your business and generating new ideas.

Drop Shipping Payment Processing Risks

Indeed, every business venture carries inherent risks. Running a dropshipping business is no exception, with several challenges, such as limited control over the supply chain, relatively low profit margins, and intense competition that can hinder brand development.

Considering the benefits of dropshipping, these drawbacks are understandable trade-offs that business owners must weigh. If you embark on a dropshipping venture, you must factor these trade-offs into your business plan.

Fraudulent charges: Excessive fraudulent charges or fraud reports can lead payment processors to perceive your business as high-risk.

Chargebacks: Payment processors may also label your business as high-risk if you operate in an industry with a chargeback rate exceeding 1%, which is often the case in dropshipping due to suboptimal customer service and inadequate refund policies.

A risky dropshipping merchant account can lead to payment processor denial or account termination, which can fail to process card payments and satisfy customers.

A dropshipping payment processing service can be a great option when accepting card payments for your company’s online store. However, this also means you must stay compliant with your acquiring bank, which can be challenging due to the risks involved. To make things easier, it’s recommended that you look for a high-risk payment provider that specializes in the dropshipping industry. This will help you avoid unnecessary risks and protect your drop ship merchant account.

Benefits of Working with a High-Risk Merchant

Employing credit card processing for dropshipping offers numerous advantages. By utilizing merchant services for dropshipping, you can accept a wide variety of credit cards as payment options, which expands your revenue potential and business growth opportunities. After successfully applying for and obtaining the high-risk merchant account you need, you can enjoy the following benefits:

Swift Transactions and Deposits: High-risk merchant accounts facilitate faster payment processing, allowing you to access your funds more quickly.

Seamless and Secure Payment Gateway: These accounts have an easy-to-use payment gateway that enables you to accept a wide range of credit and debit cards online, ensuring a smooth and secure transaction process.

Industry Expertise: High-risk merchant account providers have established relationships with multiple high-risk merchant banks and possess extensive industry knowledge. By collaborating with the right provider, you gain the advantage of their connections and add a payment processing expert to your team.

Frequently Asked Questions

Moneybox Merchant Services supports the following payment gateways Authorize.net, NMI , TSYS, and Firstpay.

What industries does Moneybox Merchant Services accept as clients? Moneybox specializes in mid-risk as well as specific high-risk industries (the terms “mid-risk” and “high risk” are used here from the perspective of the merchant services industry). We are proud to serve the following industries:

  • Accounting & Tax Prep
  • Adult
  • Airlines
  • Alcohol
  • Antiques & Collectibles
  • Apparel & Clothing
  • Automotive
  • B2B
  • Bad Credit
  • Bail Bonds
  • Bar & Restaurant
  • Cigars & Tobacco
  • Cleaning Service
  • Clothing & Apparel
  • Collectibles
  • Continuity / Subscription Products
  • Continuity-Subscription
  • Credit Monitoring
  • Debt Consolidation
  • Dental
  • Digital Downloads
  • Digital Streaming
  • Document Preparation
  • Drop Shipping
  • Ecommerce
  • Educational Seminars
  • Electronics
  • Events
  • Furniture & Home Furnishings
  • Guns & Firearms
  • Gyms, Fitness & Yoga
  • Hair & Beauty Salon
  • Health & Fitness
  • Healthcare
  • High Volume
  • Hotel & Hospitality
  • Hotels & Lodging
  • Hunting & Outdoor Equipment
  • Insurance
  • Insurance / Warranty
  • Jet Charter
  • Law Firms
  • Legal Services
  • Magazine Subscriptions
  • Medical Billing & Coding
  • Medical Supplies
  • Membership & Recurring Billing
  • MLM Companies
  • Moving Companies
  • Nonprofit
  • Nutraceuticals & Supplements
  • Online Dating
  • Pawnbrokers & Pawn Shops
  • Pet Products
  • Precious Metals
  • Property Management
  • Real Estate
  • SaaS Companies
  • Self Defense, Tasers & Stun Guns
  • Seminars & Coaching
  • SEO & SEM Services
  • Smoking Accessories
  • Survivalist & Tactical Gear
  • Taxes and Accounting
  • Tech Support
  • Telemedicine
  • Ticket Agencies
  • Tobacco & Cigar
  • Transportation & Moving
  • Travel & Timeshare
  • Travel Agency*
  • Utility
  • Vape / e-Cig / eJuice*
  • Veterinarians
  • Web Design Services

Please note, this is NOT a complete list; Moneybox Merchant Services Inc. serves hundreds of additional mid and low risk industries, too. We do not have a full list of industries we can work with, instead we keep a list of business that we currently can not support. See our FAQ page for more info. If the opportunity is right we will of course try to be considerate.

Sorry, we are unable to provide merchant services for foreign or offshore businesses, or any company that is headquartered, or operates, outside of the USA. We are also unable to provide merchant services for any business whose owner does not have a valid SSN and US issued identification (driver’s license, US passport, etc). That said we are working to fix this issue and should have a solution early 2025.

Yes, your startup or new business can be approved by Moneybox Merchant Services for a merchant account. We love startups! While newer businesses without processing history sometimes encounter hurdles when it comes to approval, Moneybox has helped many brand new businesses get their start in payment processing.

A high-risk merchant account is designed for businesses deemed as “high-risk.” These types of businesses have a greater likelihood of chargebacks, fraud, or other financial risk factors. High-risk businesses require such accounts to be able to accept credit and debit card payments.

Various industries are considered high-risk because of their inherent attributes. Some examples include CBD (Cannabidiol) products, e-cigarettes, vape products, stun guns, credit repair services, multi-level marketing, adult products/services, pawnshops, dietary supplements, SEO services, and tech support.

No central authority determines a business’s high-risk categorization. Every payment processor or bank sets its own standards, often based on internal risk management criteria. Providers assess businesses based on several detailed information bits to ascertain risk levels.

Factors contributing to a high-risk business include being a new business, having poor credit records or low credit scores, operating in controversial or highly regulated industries, relying heavily on international sales, and previous placements on the MATCH list by payment processors.

High-risk merchant accounts differ from regular accounts in several ways such as having a longer application process, higher payment processing fees, cash reserve requirements, volume caps in credit card processing, higher chargeback fees, and additional requirements based on the business type.

A high-risk business should ensure it maintains healthy cash levels, tries to reduce chargebacks, discloses all relevant information during the application process, keeps its financial documents ready, and adheres to the guidelines set by its payment processor.

A high-risk business can find a suitable merchant services provider by researching and listing down payment processors that cater to their industry. Businesses should consider factors like the processors’ experience in their industry, processing fees, equipment provided, customer support, experience with businesses in the same industry, and support for diverse payment methods.

Moneybox Merchant Services Inc. may not cater to all high-risk businesses (e.g. CBD merchants). It offers an upfront underwriting process that identifies risk factors early, saving the merchant time and potential costs. However, if Moneybox cannot service a particular business, they may recommend a processor better suited to your needs.

Best Processing & Support

“We conducted thorough research and compared different pricing options before settling on a new provider. After careful consideration, we chose Moneybox. We have been happy with the results for years since using their services. We interact with the product daily through their website, and most of the payments are automatically processed using Authorize.Net. We find Moneybox to be a reliable and efficient company.”
– Tom
Tom Bostic
Happy Customer

Fast Service, Unmatched Customer Service

“We changed our website and needed to get a new processor fast. Their prompt service and secure system are unmatched. We have been using their services for a while now and have never had any issues. In fact, they even require us to call them once a year to ensure our system is up to date. As our business continues to grow, we are excited to explore the many options that Moneybox has to offer, including a point-of-sale. They have been our go-to solution for everything, from terminal issues to website processing security. We couldn’t be happier with their exceptional service.”
Valmore Forgett
Happy Customer

Simply Amazing Technical Support

We were starting a new business and needed a reliable company to process our credit card payments. After some research, we found Host Merchant Services and began working with them in January 2021. The staff has been very helpful, and we’ve had positive experiences with both the Compliance team and technicians. We process payments in person using a terminal, and the service and machine have been excellent with no issues.
Tony and Sherry
Happy Customers

Consistent Communication

I had a wonderful experience with this company regarding high risk merchant services. Their consistent communication and daily updates regarding my application status during the approval process were greatly appreciated.
Christian
Happy Customer

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