Nutra & Supplement Merchant Account

The most common tier-one payment processors on the market include Square, Stripe, and Braintree. However, these processors do not support businesses in the high-risk space. That means, unfortunately, online supplement businesses cannot acquire accounts on these platforms to be able to accept credit cards. The nutraceutical industry is one of the many hard-to-place business types that doesn’t get much support from traditional banks.

Why Use a Nutraceutical Industry Merchant Account

As nutraceuticals are unfortunately considered high-risk, obtaining a standard merchant account is likely not possible. However, even if you do succeed in receiving a merchant account from a traditional payment processor, your business is still at risk of disruption. Selling nutraceuticals of any kind is against their service policies and will result in a closed account once they find out your business type. Choosing to obtain a high-risk nutraceutical merchant account helps ensure you are able to conduct business without the risk of losing sales opportunities or the ability to obtain new customers.

When you have a high-risk merchant account, promote your Nutra products, services, and subscriptions without risking your ability to generate sales or complete transactions. High risk merchant accounts are ideal for those who are interested in selling unique, one-of-a-kind, or alternative products that are not standard for the retail market. With the right payment processor, you will be able to conduct business as usual regardless of the industry that you find yourself in.

Reasons for Nutra Being Labelled High Risk

Running an online supplement business may not seem high-risk, but conducting business online proposes a greater risk than traditional, face-to-face transactions. Some reasons the nutraceutical market is currently considered high-risk to standard payment processors include:

• Chargebacks: The online supplement business and Nutra markets are known for higher chargeback rates. Unfortunately, when an industry has a chargeback rate that is higher than 3%, it is often labeled as ‘high-risk.’
• Fraudulent Charges: If fraud is an issue with any market or industry, it is quickly labeled as ‘high-risk’ by traditional banks. Due to the sheer size of the nutraceutical and supplement industry, the fraud rate is much higher than other standard markets.

In addition to these, many banks hold a weary stance on anything that is sold to be consumed by customers. Consumers hold expectations for the supplements that they take as well. This could lead to more complex issues if a customer reaches out to them for clarification or is upset about the product. Problems like this unfortunately happen to supplement and Nutra businesses more often than any other industry, leading to more hurdles and account concerns.

Applying for a High Risk Merchant Account

Before you begin the application process for your nutraceutical merchant account, it is important to gather the following information:

• Banking Information: Personal and business banking account information along with statements (up to 3 months) may be requested.
• Personal Details: Your Social Security Number (SSN) or Employer Identification Number (EIN) may be requested depending on how you intend to conduct business.
• Credit Score: You may be requested to share your credit score along with your credit history, especially if you are applying for a high-risk merchant account for the first time. Your credit history is a way for payment processors to determine whether or not you are qualified for a high-risk merchant account within the nutraceutical industry (based on a variety of risk and market factors).
• Industry Experience: If you have industry experience or experience with processing debit and credit card payments, this may help to get you lower processing rates.
• Online Presence: Share your business’ website when submitting your application so that the processor and the bank can be sure that you are compliant on all fronts.

Finding a nutritional supplement credit card processor is not only a way to maintain a fully operational Nutra business, but it is also a way to gain peace of mind each time a customer completes a transaction using their debit or credit card. With a high-risk supplements merchant account, focus on attracting new customers, stocking new products, and growing your business rather than worrying over the potential locking or loss of your merchant account altogether.

Finding a Supplements Merchant Account you can Trust

The majority of nutraceutical merchants that find their way to us have been recently shut down by their previous processor. This commonly happens because the other bank and processor didn’t properly underwrite your business, leaving you exposed to fraud and chargeback issues. Luckily, PaymentCloud isn’t like that. We have the banking relationships and underwriting in place to support nutraceutical supplement credit card processing.

We will provide an assigned account manager to help you stay compliant, get lower rates, and get you set up with a secure gateway. Our in-house risk mitigation and chargeback management tools are also available in case you struggle with these issues. If you have any questions before, during, or after the application process, feel free to reach out to us. We are here to see that your business thrives.