Which Payment Gateway Can I Use for Dropshipping From India to USA?
If you are planning to dropship from India to the USA, one of the biggest questions you will face is:
Which payment gateway should I use to collect international payments safely and legally?
Choosing the right payment gateway is extremely important because it affects your conversion rate, payout speed, transaction fees, chargebacks, and overall customer trust.
In this article, you will learn:
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The best payment gateways for India → USA dropshipping
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Their pros, cons, and charges
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Which one is best for Shopify
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Whether Indian PayPal/Stripe works
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A simple comparison table to help you decide
Table of Contents
✅ 1. Stripe – Best Overall for US Dropshipping (But Needs US Company)
Stripe is the #1 payment gateway for Shopify stores targeting USA customers.
But there’s a catch:
👉 You cannot open Stripe with only an Indian business.
To use Stripe, you need:
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A US LLC
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US bank account (Wise/Relay/ Mercury)
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EIN (Tax ID)
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US phone number
Pros
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Highest conversion rate
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Trusted by US buyers
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Easy Shopify integration
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Faster payouts
Cons
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Not available for Indian entities
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Must maintain US LLC
If you are serious about scaling, Stripe is the best option.
✅ 2. PayPal (India Business Allowed)
PayPal is the easiest gateway for Indians who want to sell in the USA.
You can use a:
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PayPal Business Account (India)
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No need for US LLC
Pros
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Accepts international USD payments
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No approval hassle
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Easy Shopify integration
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Buyers trust PayPal
Cons
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High fees
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Higher chances of disputes
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Limited control over account holds
Still, PayPal works well for small to medium dropshipping stores.
✅ 3. PayU (With International Payments Enabled)
PayU India allows international credit card and USD payments once enabled manually.
Suitable for:
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Beginners
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Sellers with Indian GST and bank accounts
Pros
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Easy onboarding
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Stable payouts
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Low fees
Cons
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Approval for USD payments takes time
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Slightly lower conversion compared to Stripe
✅ 4. Razorpay International Payments
Razorpay is another Indian payment gateway that supports USD payments after activation.
Pros
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Works well for Shopify/WooCommerce
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Settlements in INR
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Supports American customers
Cons
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Strict compliance
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Risk of account hold if dropshipping disputes increase
Great for low-ticket US products.
✅ 5. Payoneer + Checkout Plugins
You can accept payments via:
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Payoneer Request Payment
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Payoneer Checkout (for marketplaces)
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Third-party Shopify apps using Payoneer merchant IDs
Pros
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Global payouts
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Good for B2B dropshipping
Cons
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Limited for D2C Shopify stores
✅ Comparison Table: Best Payment Gateways for India → USA Dropshipping
| Payment Gateway | Need US LLC? | Shopify Supported? | Fees | Best For |
|---|---|---|---|---|
| Stripe | Yes | ✔️ | Low | Scaling & high conversions |
| Indian PayPal | No | ✔️ | High | Beginners |
| PayU | No | ✔️ | Medium | India-based stores |
| Razorpay | No | ✔️ | Medium | Small stores |
| Payoneer | No | Limited | Medium | B2B dropshipping |
⭐ Which Payment Gateway Is Best?
If you are a beginner in India → USA dropshipping:
💡 Best for Beginners:
👉 PayPal + Razorpay International
💡 Best for Long-Term Growth:
👉 Stripe (Set up a US LLC)
🧾 FAQs
1. Can I use Stripe in India for USA dropshipping?
No. Stripe does not support Indian businesses. You need a US LLC.
2. Does PayPal India work for US customers?
Yes. You can accept USD payments directly.
3. Which gateway is best for Shopify dropshipping?
Stripe (best), PayPal (easiest), Razorpay (India-based).
4. Is dropshipping legal between India and USA?
Yes, completely legal with proper payment gateways and supplier compliance.