eCommerce Lifestyle
Shares
shopify deemed her business high risk

Shopify Payments Deemed Her Businesses “High-Risk”

Shares

​Some accounts are being flagged by Shopify as high risk. What should you do in a situation like this? Listen to today's episode of the podcast to know what you should do when it's ​high risk.

If you have any questions, feel free to tag me on social media! 

What's Covered in This Episode:


​Things to do when your account is high risk:

  • ​Reach out to Shopify
  • ​Open a merchant account
  • ​Use various payment processors
    (Local bank, Klarna, Paypal, Amazon Payments)
If you liked today’s show, please subscribe on iTunes to The eCommerce Lifestyle Podcast! The podcast is also available on all major podcast players including, Stitcher and Spotify.

Links From This Episode:

This ​podcast is also available in video form. Click ‘Play’ below to start watching. Make sure to subscribe to our YouTube Channel for weekly updates and insights!

Transcript

What's up everybody. Anton Kraly here from ecommercelifestyle.com, and welcome back to the podcast. If you are new here, just know that this show is created to help you increase your revenue, automate your operations and become the authority in your niche. So if you are running an eCommerce store, you're definitely listening to the right show. Now, the most recent episodes, what I've been doing is answering questions that are either submitted on any of our social media channels or even via email. And today's question actually was submitted via email. This came in from Tiffany and she said, "Love the podcast, I'm an avid listener." Awesome. Thank you. And she said, "I had some questions I'd like to submit." So she sent in two, I'm going to answer the first one because I want to break up topics specific to each episode. The second question is good too though, so I'll probably answer that in another episode. But question number one, "Alternative payment processors to Shopify Payments. Unfortunately, one week into sales, I had Shopify payments deem my account as a risk and they are forcing me to use a third party integration.

I feel like this is something that doesn't get talked about a lot, but I imagine it happens to high ticket dropshippers since Stripe is a low risk processor." Okay. Let me just connect a few things here. Saying Stripe is a low risk processor, that's true, but Shopify Payments is powered by Stripe. So if anybody's like, "What's the connection there?" So Shopify Payments is not Stripe, but that's what they use for their infrastructure. And what Shopify Payments is, is basically a simple way to connect your Shopify account to your bank accounts and allow people to pay with credit cards, debit cards, Apple Pay, Google Pay, and just have the money go into your bank. So it acts as a merchant account. I always whenever possible recommend that if people are selling on Shopify, that you use Shopify Payments because it's the easiest integration in the world. You get your money super fast and it's actually cheaper too, you save some money there. With that being said, there are scenarios where people cannot use Shopify payments. One of the big reasons is depending on what country you're located in.

I'm going to post a link in the description of this podcast that shows the countries where Shopify Payments is supported. It's a lot of them, I think it's between 15 and 20. But it's not everywhere in the world. Another reason why somebody wouldn't be able to use Shopify Payments would be if their credit, maybe it doesn't meet the criteria. I honestly don't know what the criteria is. But when you're signing up for any type of merchant account, they ask for things like your Social and your personal information, so that could be a reason. Another reason could be if you are selling products that Shopify Payments doesn't support. So they have it on their website of prohibited product types. But things like supplements, they don't want to be the processor for so you can't use it there. You'd have to find a third party integration. And then finally, another legitimate reason why somebody might not be able to use Shopify Payments is if they either have had an account in the past that has a bad history, meaning like a lot of chargebacks, unpaid bills basically. Or if you had your account set up already.

I know, Tiffany, I'm not sure of your situation. So hopefully you can follow up with more info. But if you had an account had sales coming in for a week, what happens with those sales? Did any of those customers file chargebacks? Were some of those sales fraudulent that weren't refunded? Things like that could put a flag up and have Shopify Payments or any merchant account reach out and close the account. So what I would say first of all, is ask Shopify or probably Payments specifically exactly what they deem as high risk. Because in my opinion, it's not the business model. At Drop Ship Lifestyle, we have over 10,000 students. And I've heard of this happening before, but literally a few times. I actually even went into our private Facebook group for members and I searched for keywords that would bring up posts and notifications about this. I think I found one other person that had the same thing happen to them, so I don't think it's common.

And again, I do think it's something that assuming your business doesn't fall into any of those categories that I just mentioned, I think it's something that you can get resolved. Now, how could you resolve it? Well, obviously it depends on why they deem it as high risk. So this is what you're going to want to communicate with them about. If it's something like maybe your information just isn't verified all the way, see if there's any documents you can submit to them. If it's because they're afraid, again, of fraudulent orders not being shipped out, just try to show them tracking numbers for every order you've processed, letting them know, "Hey, this is a real business. Look, my customers are getting what they ordered." And those things could help there. Now, if for some reason that's not enough, or again, if your business falls into one of the categories I mentioned earlier and you can't get it back, then you do have some other options and some things I would recommend you do.

The first thing is opening another merchant account, so the company that's going to replace the Shopify Payments allow you to accept credit cards and debit cards. Now, if you have a local bank ... and it doesn't have to be a local bank, just your local branch, whoever you bank with either for your business or personally. Reach out to them and say, "Hey, I own this business. I want to open a merchant account." And they'll put you in contact with the right person, or they'll give you the paperwork, or send you a link to where you can open a merchant account with that bank. Almost all banks have merchant account services, so you should be okay. You'll be able to open one of them. And then you'll either be able to integrate it directly with Shopify in the backend, or you'll be able to integrate it through authorize.net. I'm going to post the link in the description also that goes to Shopify Payment integrations because there are hundreds of them, so don't panic. I would say that's the first thing, you'll find someone. Sometimes different merchant accounts at banks offer a direct integration with Shopify.

And again, if they don't, then you can just use authorize.net, which basically works in the middle and glues your merchant account to Shopify together. That's going to allow you to continue to accept credit cards and debit cards from customers. Now, if your bank doesn't offer a merchant account services, you could still go to stripe.com, open an account there. Again, depending on the reason your account was deemed as high risk, it might get flagged again, or it might not. So something to keep in mind. The other thing that I'll say that's important, whether or not you get this resolved ... and really this is important for everybody listening, is you never want to put all of your eggs in one basket. You never want to accept all your payments through one processor. So you want to spread things out. One of the benefits of this is it gives your customers actual options. So if somebody is more comfortable paying a different way, then good, let them. And for you, it means if one payment processor goes down, you still have these other resources to accept money through.

So the first one that you should use, again, that's Shopify Payments. If it can't be them, have it be your local bank and set up a merchant account there. And that's still the first one, right? How you accept credit cards and debit cards. The next thing that you should do is accept Klarna. You can go to klarna.com and what they do is allow your customers to basically pay with financing. So they sign up with Klarna ... meaning your customers, Klarna gives you the money right away. So like a normal sale. And then the customer pays Klarna off over time. So another way to, again, increase your conversions and to diversify how you're accepting money into your business. So that's the first and the second. The third is PayPal. Everybody knows I'm not the biggest fan of PayPal, but some customers still do prefer to use it. So create PayPal, link it up to your store. Again, that shouldn't be your merchant account, but it should be an extra way that you can accept funds from customers.

Now, the fourth thing that I recommend you do is go into the Shopify app store and look for Amazon Payments, sign up with that, link it to your store. That allows customers to pay through their Amazon account if they feel more comfortable doing that. So you definitely do want to get a main primary merchant account as soon as possible. Ideally, that is going to be Shopify Payments. If it's not, again, it's not the worst thing in the world. But make sure you are also diversifying. In my opinion, this is something you could do today. Go to klarna.com, get approved there, link it to your store. Go to PayPal, create your business account, link it to your store. Go on Shopify app store and sign up for Amazon Payments, link it to your store. Keep those sales coming in, keep customers happy and you should do just fine. And also, Tiffany, if you can, seriously please reach out in a week or so. Send me an email, let me know what happened here, how this all got resolved and how the sales are going. Again, I'm sure you'll do just fine.

Also, the second question that Tiffany asked was in regards to Pinterest marketing for high ticket dropshipping stores, definitely have my thoughts and strategies on that. So again, I think it's a great question and I'll probably answer it in a future episode. So if you want to hear my thoughts on that, and you are not subscribed to the podcast yet, go to whatever podcast player you use, search for E-commerce Lifestyle, click Subscribe, and keep an eye out for future episodes. So as always guys, thank you, appreciate you listening in. Hope you got value, and I will talk to you in the next episode of the podcast. See ya.

>