how to avoid shopify transaction fees

hey guys what is going on in this video,I'm covering a quick topic that all of,even jobs should be need to hear if,you're brand new and haven't started yet,but you think people getting started,also watch us but if you are experienced,if you're currently actively,dropshipping this is a deathly must,watch even if you're not skill anything,definitely to sell that's what I cover,him is exactly what a payment processor,is how they actually work and how to,avoid a lot of the issues that many,people whose skill to big numbers,experience stay tuned,alright guys welcome back into this,video if this is your first time,visiting econ Street welcome to the,channel be sure to subscribe,again we cover all kinds of e-commerce,and business topics every single week,this is not your first time you've been,here a couple times seen your videos,thank you for coming back we really,appreciate you and welcome to the family,so payment processors what are they what,do they do primarily when you start off,your dropshipping store and actually set,up your payment provider it's going to,multi sleeve you Shopify payment which,is powered by stripe and so I feel like,a lot of people have the misconception,of that it's actually their processor,when actually Shopify payments just,opinion aggregator so anyone that's,actually applied for a processor before,they understand there's actually a whole,application you have to go through which,cover five payments there isn't really,an application you just enter your,address and you're good to go you can,additionally accept payments so that's,totally fine it makes sense how they,call for that but I want you just to,make sure that this is not a payment,processor it is simply a payment,aggregator so if you've realized after,you begin doing a good amount of money,every single day on your store they're,gonna start asking for additional,documents like they're gonna start,asking you you know for a business,address what's going on all the kind of,products you sell and here's anyone,actually experience some holes so I know,endless amounts of people that have used,Shopify payments and never really looked,into getting a new processor and as it,can scale until you own you know 510k,day they experienced some major issues,some major holds and that leads to so,many headaches because imagine owning,your supplier all this money,imagine having to pay off your credit,card for the facebook ads and having all,that money but you're not gonna be paid,out by your company so you have no money,you want to jump into your personal,funds or even take out a loan right who,wants to do that,nobody fortunately there are solutions,to this primarily the main reason why,all these holds happen on top of five,payments and a few other processors is,that drop shipping is label there's a,high risk business model so Shopify,knows that a lot of their merchants are,most likely selling items from China and,drop shipping and they label that as a,high risk because number one since their,shipping times are so long it could,increase your chance of a charge back,and when customers are opening charge,box it is so you go to their bank and,report that like they never received,their item and you get their money back,and no processors want to have,super-high chargeback it's like the main,processors like they want to like keep,the experience with their customers as,low as possible and not support,merchants that are labels high-risk so,that's why a lot of times they'll hold,your money to make sure that you,actually like doing logistics correctly,and shipping out orders on time and,everything and so the whole lot of your,money for at least 90 to 180 days just,to make sure that you're doing that and,if you know if there's still more is,using your tribe back rate doesn't,actually drop below 1% for most,processors they'll hold your money for,even longer or perhaps even ban you from,their services and just you know give,you the boot but fortunately there are,some high risk processors out there that,allow you to have a higher charge back,rate they understand what drop shipping,is it's kind of tailored towards,dropshippers just like us so they,understand that you're getting items,most likely from China's shipping,overseas all that and then times are,usually longer and so they're gonna,offer you a much better quality of,services sometimes they do charge you an,upfront fee again some processors are a,lot cheaper to sign up with but they,might you know give you the boot later,on so that's why I strongly recommend,having a high risk processor I can only,use one and again they allow up to a,three percent charge back rate and,overall they won't hold your money so,but the biggest reserve you can,experience with them is maybe 10% 15%,sometimes how the five payments will,hold like 25% of all your transactions,and any money that you have like not,paid out yet for 90 days,so I've experienced that before I've,also been banned from strength so,unfortunate now when I start all my,stores I can even use Hubble five-day,winter strike right away to my high risk,processor which you know I'm totally,fine with right there's no issues there,I get paid out on time I can still buy,my head and pay my suppliers there is no,issue when you're brand new and starting,out it's not going to be a huge deal you,can use hub five payments yes,they're gonna be powered by stripe but,just remember that they're not a,processor they are a payment aggregator,and there is a difference between using,stripe and Shopify Dana's there is a,difference,just to clarify that but when you're,starting out I'm doing your first couple,of sales a day totally fine they're not,kind of bad and I you it's totally fine,but once you start doing a couple grand,in sales every single day say your,customers are from a different country,besides of the US they might ask for,some additional documentation and once,you see that red message on your top of,my dashboard,you really don't want to be on top of,like having a plan B and having that,high,processor you know on the back end so,we're gonna refer a couple in the,description below we really do recommend,you check it out there's no affiliate,program going on here I have no,correlation with them at all I know they,are good I know many people in the space,who do high-volume using these,processors so we're gonna drop them all,below you can check all of them out,again,depending on where you live their,services may or may not be available to,you but regardless is just good to know,and have see what the rates are right so,bottom line here guys yes as you begin,to scale it's a very good idea if you're,shipping from China to you know go and,figure out a good payment processor to,use besides how about five payments,again like like I mentioned there's,gonna be hold there's gonna be reserves,they might do the boot so high-risk,processors for dropshipping is just a,must if you found any value in this,video guys please be sure to give it a,like or comment below if you had any,experience with any of these processors,you know feel free to leave your opinion,you know there's a huge community here,that we're slowly building so we,believed you appreciate you guys I will,see you in the next video,you

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