Hey guys, Charlotte Green here. Welcome back to the hair extensions business master class. I am the owner of white label extensions and we are out here empowering all of our viewers and clients to get them coins. Today we are continuing our super practical conversation on websites, landing pages and payment processors and all that good stuff, but the focus for today’s show is, is collecting them coins, how you will accept payments on your website. Now this is going to be really, really straight forward. There are a number of different options out there for you. I’m going to share my experience in hopes that it provides you a level of clarity so that you can decide what is best for your business. Let’s go ahead and get started. Give it up for the one and only, Charlo sticking iffy Greene, it’s money Monday! I am here for you, whatever you need, we literally got it. When you’re first getting started, the most easy, the most obvious, the most accepted version of a payment processor is PayPal.
And just to be clear, when we’re talking about payment processors, it’s literally what, what I, what I just said, a thing that processes payments for any of these things to exist, they have to have a ton of different security measures in place that will protect people’s card information and protect you from liability when anyone is visiting your site. If they were to enter information on your site and your site gets hacked, your payment processor is what protects all of that stuff. In fact, for our website, we don’t receive anyone’s card information. It’s not sent to us. It is totally handled completely separately from us, so we don’t have to feel that liability. We have worked with paypal, which I think is a great way for you to get started, especially if you are bootstrapping your company and by that I mean you are listing our items per sale.
When you get a sale, you’re using the money in your paypal account to place the order with us, for us to fulfill it, and then what is left in that account is what you keep at the end of the day. So if you’re bootstrapping, what makes paypal ideal for you is the fact that they allow you to hold your balance in that account. When it comes to stripe or square or any of these other payment processors, they, depending on what industry you’re in, they have different release schedules, but for us it might take up to seven days for our stripe account to release the funds to us, which if you’re trying to bootstrap, that means you have to continue paying for all of these orders out of pocket until you get the money back in seven days, which is not ideal. And then with other processors, they might hold onto your money for up to 90 days.
So paypal is great when you’re getting started out because it lets you hold that balance. You can use that balance to pay for your items and then you have that profit and it just keeps on building and building and building. And it might be tempting to pull it out there, but it’s not going to be worth it for you to do that. Continue reinvesting in your company and then when you have enough in your account that you can pull some out and leave enough for the orders you need to fulfill, then go ahead and do that. But um, the thing I know that you guys have heard, paypal isn’t ideal for here businesses. It is until you reach a certain dollar amount. I don’t know exactly what the dollar amount was when we got the email from paypal saying that they were going to start holding all of our money until they got shipment confirmation, not us adding shipping information, but then them being able to track the shipment and, and being able to tell that it was received.
So that was the first email that we got from paypal after we hit $100,000. And um, it was like, okay, well we ship out everything almost immediately so that isn’t going to be a problem. Then we got another email from paypal and they decided to switch things up. I guess they were like, oh, that didn’t phase her enough. What paypal does after you reach a certain dollar amount because the hair extensions industry does get a lot of charge backs because bitches be scamming because of that, it’s considered high risk when you are in a high risk industry and your processor acknowledges that. They also are aware of the fact that if someone does a charge back on your account, they have to hold the funds that are being disputed. If you don’t have any more money in your account and you don’t plan on putting any back in there, paypal is on the hook for all of that money, then they have to return to that customer.
I kind of get where they’re coming from, but we also have had maybe eight disputes out of the 1200 orders, which is less than a 10th of a percent and that’s still not good enough for them. So, um, it’s just something for you to keep in mind when you first get started. It is really, really useful. Then you start making money and they start playing with your money. Now, the second email that we got from paypal stated they would be holding 10% of all of our money and this is like you make you purchase something from us, they’re going to take 10% of that, not 10% of the profit, 10% of the entire order and they’re going to hold it for 90 days. And you think, oh well 10% that that, that doesn’t seem like too much, but if it was 10% of the profit that was left over might be workable.
It’s 10% of the entire order, which is like 20 30% of the profit. At the end of the day. It’s just we have literally thousands of dollars that paypal isn’t going to be releasing to us until it’s April, May, June, July until July. Um, and we’ve since switched processors. So now we’re with stripe. It’s a high risk industry and that is recognized across all payment processors there. Things says they release money 24 to 48 hours after it comes in your account. We are at the point where they aren’t releasing anything for at least a week and we expect things to just get worse because we just keep making more money and, and all of it’s considered high risk to them. So Stripe is another option for you square? Um, I don’t have much experience with that, but I do know we used them to sell tee shirts for one of my cannabis brands and even though it was just tee shirts, they considered that high risk.
And not only did they shut down our account, but they held every single dollar that we had in the account for, I think they said it was going to be 90 to 180 days or until they heard back from local police that there were no issues or because just the marijuana thing tied to the tee shirts just because it was like I don’t, I don’t know. I get it. They’re trying to protect their money and trying to protect their businesses, but on our end, a just sucks. What we are in the process of doing now is we’ve been in touch with our bank. We want to process the payments directly to us. The risk there is there is no seller protection that paypal provides or that straight provides. So if someone were to dispute something, it’s on us to give the proof to our bank that they have everything and, and, and just go from there.
So I think we’ll just have a policy in place where if we know that you’re trying to play with our money, we’re literally going to sue the shit out of you just because we can afford to and if we go ahead and make it clear that we are not the ones to fuck with, then I think we’ll be able to keep the same low rate of, of attempted scams thing. So this is um, it’s just a process that’s evolving. Again, we are four months in. We’re doing tremendously. Um, but like they say mo money Mo problems is facts when it comes to how you and who you choose to process your payments. For most of you, paypal is going to work just fine for us when we are doing tens of thousands of dollars a week. Um, and we’ll soon be doing hundreds of thousands of dollars a month really, really soon. Uh, it’s just so much of a liability to them.
Start off with paypal. If you don’t know where else to start, just so you can get started. It is totally fine for that. All of your vendors, all of your sources accept that as a form of payment. Um, once you start and use this time so that you understand, once you start making real coin, you will have an issue. Because we had an issue in spite of less than 10%, less than a 10th of a single percent of returns, you will have issues. So start with PayPal and then start looking into alternatives for your business because it, it’s good to start with like wix, but you’re going to get to a point where you just have to level up. Otherwise they’re just holding your money for so 90 days. Crazy. Oh, and another thing I want to say, do not, and I know people want to carry here on hand and blah, blah, blah.
Do not do cash on delivery without having someone send over a copy of their driver’s license that like matches the order or proof of who they are. People will rob you over some bundles. You might think that it’s not worth it, but I know someone that lost their life for $800 over $800. Um, so to think that someone isn’t going to run up on you for $300 worth of bundles for a $400 wig, just protect yourself. Do not put yourself in a position of liability for a little bit of change. The medical bills, the loss of your time at work, the threat to your life, the threat of your kids not growing up without the light. It’s, I know, I know. It’s tempting because someone wants these bundles and they want them right now and it’s going to be a huge sale. But if you don’t have any confirmation of who this person is, do not put yourself in a position to be robbed or hurt or anything like that over this here.
Don’t do it. Public place if you actually must really, really not a parking lot inside of a place being filmed, a place that has security also do not meet in the middle of the night. Like they’re just protect yourself to some, it might be just bundles, but to these people it’s hundreds of dollars and you know people that have been robbed for less than a hundred dollars. So don’t do that to yourself. All right. Today’s homework is, which process are you going to decide to go with? We’ll just keep it straight forward. Which processors have you worked with? Have you had a similar experience? Like ours initially when I heard all these people talking about PayPal, I was like, well, we’re not having any issues. Then we hit six figures and it’s like, oh [inaudible] oh, a play plain. Oh, okay. PayPal, see you, PayPal, deuces. Um, so yeah, so there’s that part. Um, but drop the comment section, let me know which PayPal process or which processors you’ve worked with, what you liked about them and what you didn’t help to educate other students in our community. And tomorrow we are going to regroup and talk about lead funnels, lead funnels, in case you don’t have time to build out your entire website. Um, this is what you put up so that you are still getting value out of the people that are attempting to connect with your cuss your company. Okay, I’ll see you guys tomorrow.