When a customer checks out on my shop, who do they pay?

Your customer will pay you directly, via the payment provider you have set up - you can configure these in your admin area - Modules > Payment. Once the order has been confirmed you will then need to submit this order in your drop ship account (unless you have the direct order module). 

Here is a list of our payment provider partners we recommend- http://www.dropshipping.co.uk/catalog/gateways.php
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