How does Dropshipping handle payments for Bangladeshi customers?

When running a Dropshipping business in Bangladesh, dealing with local customers' payment issues requires a combination of the country's financial environment, regulatory constraints, and consumer habits. Here are the key strategies and solutions:

I. Integration of mainstream payment methods

  1. Mobile Wallet Priority

    • bKash (market share 47%): need to be signed up through a locally registered business or accessed in partnership with an aggregator platform such as Paymentwall
    • Nagad (government background): provides QR code payment API, suitable for micro-transactions
    • Rocket (DBBL Bank System): Support cross-border merchant application, need to submit the central bank of Bangladesh filing documents

  2. Bank Card Solutions

    • Local Acquiring: with Prime Bank or Eastern Bank, Visa/Mastercard acceptance rate around 28%
    • International Card Processing: Stripe does not support Bangladeshi card issuers, it is recommended to configure Checkout.com + 3D Secure authentication

  3. Cash payment networks

    • SSL Wireless' Rocket Cash on Delivery: Pre-Authorisation Mode Reduces 30% Rejection Rates
    • Pathao Logistics Collections: Integration of its API for next day settlement of COD funds

II. Compliance architecture design

  1. Exchange control response
  • Registration of LLC company using local entity (minimum capital of Tk. 50,000) with foreign exchange settlement through FCA licensed companies
  • BTRC import registration number is required for single transaction over $500.

  1. Tax optimisation
  • VAT registration threshold Tk 3.6 million annual turnover, 15% reverse levy mechanism applicable for cross-border e-commerce
  • Lower tax base by charging for technical services through Singapore holding company

III. Special measures for risk control

  1. Fraud prevention
  • Bangladesh IP segment mandatory SMS OTP verification (Airtel number segment check)
  • COD order withholding 20% deposit done via bKash

2.Matrix of options

Client Type Tier 1 cities Tier 2 cities Rural
<$50 order bKash Instant Payments Nagad scanning code USSD Code Payment
50-200 Visa instalments Agent network prepayment Post Office remittances
>$200 LC Follow-up Collections Escrow Hosting BTC OTC

Implementation of recommendations::
Initially, priority is given to docking bKash + SSL Wireless COD combination to cover 85% users; applying for local EMI licence after monthly water flow exceeds $50,000; using TransferWise Borderless account to handle multi-currency settlement.

Take care to avoid using PayPal personal account to receive payments - RBI Bangladesh to clamp down on such unauthorised forex outflow channels from 2023.

Fourth, advanced payment solutions and practical advice

1. Localised Acquiring (LAC)

Bangladesh's central bank has asked that international e-commerce transactions need to be processed through local banks or authorised payment service providers (PSPs) or risk freezing of funds.

  • Cooperation Recommendation::
    • Eastern Bank Limited (EBL) - Provide cross-border e-commerce acquiring, support instalment payment
    • Prime Bank PG - Visa/Mastercard direct billing, T+3 to account
    • SSLCOMMERZ - Largest local gateway with bKash/Nagad/card aggregation support

✅ cutting edge: Reduced rejection rate (can be controlled below 5%) and compliance with foreign exchange regulations.
⚠️ challenge: Local company registration is required (compliant agent is available), minimum monthly current requirement of $50K+.

2. BNPL (buy now pay later) strategy adapted to low credit card penetration rates

Only 11% Bangladeshis have credit cards, but BNPL is growing rapidly:

  • bKash FlexiPay → Allow customers to pay interest-free in 3 instalments (merchant whitelisting required)
  • DMoney PostPay → Dropshipping friendly, lenient review but higher rates (15%-20%)
  • International programmes such as Tabby/Aftersell are not yet on the market

📌 Operational Skills: Highlighting 'Interest-free by instalment' on the checkout page can increase conversion rate by 30%.

V. Logistics COD optimisation programme (key!)

Bangladesh 80%Dropshipping orders still rely on Cash on Delivery (COD) but have a rejection rate of 40%+. How to improve?

📌 Risk control measures 💡 Specific implementation modalities
🛡️ pre-authorisation deposit bKash charges 10%-20% (locks in customer intent even for COD orders)
📱 WhatsApp confirmed AI auto dialling voice confirmation order (local call rate <$0.01/call)
🚚 Logistics Co-operation Preferred Pathao better at recognising fraudulent addresses vs Sundarban Courier

💸 Accelerated return of funds: Choose the "Partial Settlement" mode - the logistics company pays 70% per week in advance and settles the remaining 30% after delivery.

VI. Alternative cross-border collection channels

If it is not possible to register a local entity, a workaround can be used:

1️⃣ 2Checkout → Disguised as a SaaS subscription model to avoid regulatory spot checks
2️⃣ Airwallex → HK demo account + Swift transfer to Bangladesh partner account
3️⃣ Wise Business → Local DetailsCash out in USD after receiving funds (daily limit $5k)

⚖️ Legal Tips: Avoid frequent large receipts with personal PayPal - sellers have already been blacklisted in 2024 for violating the Exchange Control Act.

VII. Practical Checklist List

✅ [ ] bKash Enterprise Account Application Completed + SSLCOMMERZ Sign Up  

✅ [ ] Shopify Shop Enable GeoIP Auto Switch Payment Methods Plugin 

✅ [ ] COD policy states "Three refusals will result in blacklisting" and a pop-up window confirms it 

✅ [ ] WhatsApp Business API Access Automated Order Verification

Need an in-depth implementation guide for a specific segment? Please advise on the direction of refinement 👇