5 PayPal & Stripe Mistakes Droshippers Make - And How To Avoid Them!


01 Dec 2021, 10:50 AM

After Dropshipping for three years and doing millions of revenue across numerous stores via PayPal and Stripe, I have compiled the five essential requisites that lay the foundation for a better relationship with PayPal and Stripe.

It's the PayPal Server AI (Automatic Intelligence) that governs the decisions related to your PayPal account’s health, its limitations, in short, every outcome! (not a person like you or me)  And it only understands through data points.

Listen, if you do not do these simple things right, you might lose your business!

    And, it does not matter

  • How well you care about your customers!
  • How much inventory you have! 
  • How beautiful your website and models are!
  • PayPal & Stripe cares for their business reputation & better customer experience.

So, pay close attention to the checklist below and avoid PayPal compliance mistakes and future regrets… the solutions are straightforward to implement!


  1. 1. Never Assume PayPal and Stripe are banks.
  2. 2. Turn On - PayPal Seller Protection - Important.
  3. 3. Shipping and Privacy Policies.
  4. 4. Customer Support and Phone Number.
  5. 5. Stop Using Copyright and Trademarks.


1. Never Assume PayPal and Stripe Are Banks

Straightforward and simple - You need to protect your hard-earned revenue, so keep it in an actual bank.


  • Withdraw 80% of the Total Funds on your PayPal account daily to the Real Bank!
  • Apply for lower fees, the process is all automatic. Contact PayPal support And you'll end up profiting alot. (They won't cross question you, if your volume is Good!)


  • Do not hold more than $5,000 - $10,000 at any time on PayPal and Stripe.
  • Do not be a lazy freak on withdrawing your money daily.

In some countries, you can enable PayPal’s Auto-Sweep feature, which automatically withdraws your Paypal account balance daily. However, if your country does not support this option, I strictly recommend doing a manual withdrawal daily. (You can use your PayPal phone app to do withdraw daily).
This will for sure minimize your risk with Paypal if they decide to put a hold on your account.

2. Turn ON Seller Protection [ Important ]

Seller Protection is a feature by PayPal to protect sellers from frauds, and unresponsible customers.

To Turn ON Seller Protection on PayPal, you will need to submit proof of shipment to PayPal for each transaction occurring in your store (Basically, Feed Datapoint to PayPal Servers).

As soon as you submit the tracking numbers -  “PayPal Seller Protection Gets Turned ON”.

  • By synchronizing the courier tracking information with the PayPal servers, you are actually providing PayPal AI that you are a legitimate and serious business. Since you have already shipped the product, PayPal can directly verify it with the courier servers regarding delivery updates.


  • Sync Tracking Numbers to PayPal to Turn on Seller Protection.
  • Use Apps Like Uptrack to automate the process and avoid headaches. (Uptrack has a Free Plan)
  • The accounts syncing tracking numbers to PayPal had very few issues. The same is the case with Stripe.


  • Ignoring the Importance of Seller Protection

However, submitting courier tracking (proof of shipment) to PayPal is a tedious task. Therefore, at Proveway, we have created a wholly automated Shopify App that will Turn Seller Protection on for all of your orders entirely on autopilot. 

That will save you time, money, and ultimately your business.

And the BIGGEST ADVANTAGE of Uptrack is, it submits tracking numbers to Stripe also!

Completely Automate Tracking Information to PayPal and Stripe simply by setting - Proveway Uptrack for once. 

Simply set and forget!

Try 100% FREE - Proveway Uptrack for the Next 50 Days.
Grab Offer [Limited Period] - Get 50 Days Free
Shopify Store Link - Shopify App Store Link


3. Shipping and Return Policies

Let me keep this simple; you need to make sure you have the following:


  • A clear indication about the delivery time.
  • What happens if the customer does not receive the item in the mentioned time frame? - Have a clear solution for this on your return & delivery page.
  • Keep returns and refunds smooth so that your customers never directly hit a PayPal or bank chargeback.


  • No Shipping & Contact Us page on your website.
  • Not proper information, if a customer wants to return the item they purchased.
  • Not issuing refunds promptly even if it wasn't the customer's mistake.

If you are dropshipping and asks customers to return the item themselves by manually shipping it, you are killing your business.

  • A better idea would be to charge restocking fees for all returns and create a return label! Then, while refunding, you just deduct the restocking fees from the total amount, which is the easiest for customers. At least they will not be posting bad things about your store on Trustpilot or BBB.

    Do this, and you will get a better business reputation and fewer angry customers. Thus, a better PayPal and Stripe relationship.

Here is an App for generating cheap shipping labels: Shippo (find it on the Shopify App Store).


4. Customer Support and Phone Number


  • Reply to all customer's issues within 24 hours.
  • Have a customer support phone number.
  • Have at least 3 Channels for customer support.


  • Not resolving customer issues within a week.
  • Customers have fewer channels to contact you.
  • Not replying to customers within 24 hours.
  • Your website contact process is ambiguous.

You can get a customer support care number from Freshcaller!


5. Copyright & Trademarks

It’s not just Facebook and Shopify who do not like to entertain DMCA’s. If any other brand team DMCA’s PayPal for any copyright issues on your store and if PayPalfound them right. You’ll lose your PayPal access for life.


  • Use supplier’s product images only for low-volume products,
  • For Products doing with 50,000$ volume, get your product photos.
  • Once a product starts getting sales, rewrite the product description.
  • Before you scale any product make sure it’s not an exact copy of any other brand. Confirm this with your supplier multiple times.


  • Don't use any other brand or trademark keywords.
  • Don't scale products with your supplier images.

Disclaimer and References:

Courier Tracking numbers provided to PayPal, should also match the customer address mentioned on the PayPal transaction page. Therefore these tracking numbers should be 100% real.

PayPal Seller Protection - https://www.paypal.com/in/webapps/mpp/paypal-seller-protection