Nutraceutical Merchant Account
Today’s business environment has produced immense opportunities for growth in the nutraceutical industry. Daytime television personalities regularly sing the praises of natural remedies and supplements, and the internet both enables the rapid spread of new trends in natural health products and makes it much easier for customers to purchase them. That’s why it’s so important for nutraceutical merchants to have the ability to accept credit cards – being unable to offer customers the ability to use their preferred form of payment results in enormous missed opportunities to increase sales.
However, being approved for a merchant account isn’t always easy for health supplement businesses. The nutraceutical industry is considered “high risk” by credit card processing companies, and many traditional financial institutions won’t even talk to you once they hear what kind of products you sell. Looking at the few payment processors that are interested in your business, it can be hard for a start-up or growing business to find one offering affordable fees and favorable account terms.
Why is the Nutraceutical Industry Considered “High Risk”?
Payment processing companies classify certain types of businesses as “high risk” based on a number of factors, most of which boil down to the possibility that doing business with a merchant in that field will end up costing the financial institution money. There are a few reasons that nutraceutical merchant accounts are considered high risk.
- Natural supplements are not well-regulated. Manufacturers do not have to submit their products for testing in the same way that traditional drug companies do, so some remedies make it to the market without being proven safe, or even proven to contain what they claim to. This increases the risk of legal action against businesses that manufacture and sell these natural products, as well as the risk of chargebacks from unsatisfied customers.
- Several natural supplement companies have included continuity billing in their business model, in which customers authorize what they believe to be a small, one-time charge to their credit cards, only to discover later that they are being billed a much higher sum on a monthly basis because they failed to read the (deliberately well-concealed or absent) fine print. Businesses that utilize this business model have made payment processing companies understandably wary of nutraceutical merchants.
Not only do such fraudulent business practices increase the risk of chargebacks and legal action, but they also risk turning potential customers off of the industry in general, since consumers have limited means of telling apart the fraudsters from the honest merchants.
How Can a Nutraceutical Merchant Accept Credit Cards?
Despite having worked to maintain good credit and an honest business reputation, you may have trouble finding a payment processor. Still, the ability to accept credit and debit cards – especially through an online payment portal – opens a nutraceutical merchant up to a much broader customer base than he would otherwise be able to access. You want the greatest number of people to have the opportunity to benefit from your health remedies, and don’t want to be charged a high percentage rate and a higher than necessary reserve term. That’s why you need a nutraceutical merchant account provider who is not only willing to approve businesses in high-risk industries, but is also open to discussing with you what your business needs, and is invested in your success. Durango Merchant Services has a well-earned reputation for being responsive to our clients and working with them to find nutraceutical credit card processing solutions that fit their needs and will help their business flourish.
Durango Merchant Services is here to help secure your Nutraceutical Merchant Account
Our dedicated team has negotiated on behalf of more than 12,000 clients. We understand the back and forth and give and take of negotiating processing accounts for high risk merchants, including hundreds of nutraceutical merchant accounts.