Nutraceutical Merchant Account
The nutraceutical industry (“Nutra”) is no laughing matter. In fact, the industry is estimated to grow to a staggering $671 billion by 2024 worldwide. We know how difficult it can be to work with standard payment processors, especially when selling various nutraceutical products and supplements online. We help to provide those in the nutritional supplement industry with the nutraceutical merchant account they need to keep their business fully compliant and operational at all times.
Get a Merchant Account to Sell Supplements Online
Running a successful nutra business and building a brand is no longer possible if you choose to work solely offline. Building an online presence, launching a website, and selling products, subscriptions, or services with an eCommerce storefront is a must to maximize opportunities and your ability to generate revenue. Merchant accounts provide entrepreneurs and individuals alike the ability to generate revenue using their own website or preferred eCommerce solution. Stay processing and keep track of your processing with your nutraceutical 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 that 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 end up in a closed account once they find out your business type. Choosing to obtain a high risk nutraceutical merchant account is a way to ensure that 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 that, 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: SSN (Social Security Number) or EIN (Employer Identification Number) 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.
Let us show you how easy it is to get started.
Contact us at 1-800-988-2215 or by filling out our simple online form