Need long-term payment processing for nutraceutical businesses?
Can’t get approved?
Consumers are purchasing nutraceuticals at very fast rate year over year, and more people are taking care of the demand for this market through e-commerce sites. Business is developing, however, credit card processing is slow to fully support this flourishing industry.
Sadly, many credit card processors would prefer not to work with nutraceuticals organizations. Without a merchant account, these organizations have no real way to acknowledge credit and debit card transactions. They also struggle to protect the financing they have to develop their business and take care of expenses.
There are two fundamental reasons behind this. Initially, the industry is regulated. The U.S. government directs nutraceutical organizations, which implies these organizations can’t make certain commitments about their items without having supporting clinical preliminaries. For traditional payment processors, this makes nutraceutical organizations “high risk” to work with. In order to offer processing services, a comprehensive survey of the Nutraceutical merchant account application must be done to guarantee compliance with these government directions; this requires additional underwriting due to the diligence by the credit card processor.
Second, nutraceutical organizations are powerless against high chargeback ratios. While most of the nutraceutical organizations maintain good customer relations, they are more helpless than a few industries to high rates of chargebacks (particularly those that work on the subscription-based model). With regards to health products and supplements, very few clients will be happy with their experience or results. This makes a financial risk for the credit card processor. Thinking about the majority of this, most of the merchant services providers basically decide not to work with the nutraceutical business.
Different elements that push an organization into a high-risk category include:
- Type of Industry
- Business Size
- Credit Card Processing History
- Credit History
- High Chargeback Ratios
- Whether a Business Exclusively Operates Online
- Business Location
Accepted Nutra Categories
Nutraceuticals is a wide umbrella term that is used to depict any product derived from food sources with additional medical advantages in addition to the basic nutritional value found in foods. They can be considered non-explicit biological therapies used to promote general well-being, control side effects and prevent harmful procedures.
As per the U.S Food and Drug Administration, unlike pharmaceuticals, nutraceuticals are tested and regulated under an alternate set of guidelines than those covering “conventional” foods and drug products. The distinction in regulations does not discourage iPayToTal, which offers solutions to fit a wide range of nutraceutical e-commerce businesses – from new companies to established businesses of all sizes. iPayTotal gives payment processing to organizations that sell the following products:
- Botanical ingredient medicines
- Dietary supplements
- Natural male enhancements
- Functional foods
- Hair and lash growth supplements
- Cognitive enhancers/nootropics
- Sports performance enhancements
- Weight loss supplements
- Herbal products
- Skin care and other topicals
- Other nutraceutical
Types of Nutraceutical Merchant Accounts
Different providers, on the other hand, have ventured in to fill this void. Seeing this industry requirement, high risk merchant provider like iPayTotal.com offer nutraceutical merchant account customized to meet these organizations particular needs. At iPayTotal, we know that nutraceutical merchant accounts are difficult to find. We offer our immense range of aptitudes and learning to help guarantee that nutraceutical entrepreneurs and their organizations have the specific best choices by offering reasonable rates and brilliant software, security, and terminals.
With iPayToTal, you secure a full suite of merchant account options, including:
- Retail – This choice permits your nutraceutical organization to acknowledge face-to-face credit and debit card payments by means of a credit card machine or point of sale system.
- Mobile – A merchant account that empowers you to acknowledge in-person payments via a credit card swiping attachment that rapidly connects to your iPad or mobile device.
- Virtual terminal – This option empowers you to acknowledge payment via phone, by means of mail, or by means of your PC.
- E-commerce – An Online platform will help you to take your nutraceutical business to the next level by offering products online through your website
iPayToTal offers merchant accounts to an extensive list of e-commerce, card-not-present organizations – regularly delegated high-risk. Learn more about our high-risk merchant accounts, or connect straightforwardly to talk with one of iPayToTal’s high-risk specialists.
Chargebacks: The 411
The nutraceutical business is prone to chargebacks for an assortment of reasons, causing merchant accounts for Nutra organizations to be viewed as high risk by banks and regulatory bodies.
The name “high risk” doesn’t really indicate unlawful or malicious activity; high risk basically implies that a merchant account needs extra supervision and management to keep the account healthy and active.
Chargebacks are a noteworthy weakness to the Nutra merchant account and can happen for a huge number of reasons.
Product not as portrayed or defective
» Nutra Products are not as directed as pharmaceuticals and the medical advantages are regularly unproven and generally disputed
» Dissatisfied customers who dispute credit card transactions.
Fraud is common for all classifications of card-not-present businesses just because of the absence of in-person, cardholder verification
» Actual fraud, where somebody other than the cardholder buys a product
» Friendly fraud, where the real cardholder makes the buy and later disputes the transaction
Canceled recurring transaction
» A merchant charges a buyer’s card after they have asked for a cancellation
» A buyer doesn’t know or forgets that their card was to be charged – as in cases with a free trial period followed by monthly billing charges – and wants a refund
Chargebacks can be destructive to a Nutra merchant’s business, however with the correct tools in place, can be effectively managed. The experts at iPayToTal have collaborated with an integrated, comprehensive suite of services to help avoid chargebacks, just as proposed business practices to limit disputed transactions.
Merchants not effectively anticipating and fighting disputed transactions are doing their Nutra business an unkindness. Keeping up a low chargeback ratio is critical to the long-term success and growth of a Nutra business.
Banks frequently terminate merchant accounts with chargeback ratios higher than card brand approved thresholds
Having a high chargeback ratio can badly affect future merchant account approval
Nutra Merchant Account Process
iPayToTal is the leading expert in Nutra payment processing and organizes a long-lasting, reliable merchant account. Nutra organizations don’t fit the cookie-cutter mold, and one-size-fits-all merchant accounts for these companies have turned out to be ineffectual for long-term progress.
Quick approvals are reliant on full packages submitted to iPayToTal’s underwriting team. The archives we need help to approve vital aspects of the business, and evaluate risk based on actual information and business history, rather than simply the business type.
Here’s what you’ll need to get started:
Offshore Nutraceutical Merchant Accounts (with payment processing history):
- iPayToTal requires 3-6 months of payment processing statements displaying your company name as well as total sales, chargebacks, refunds, and returns.
- 3 months of business banking statements
- Approvals: 5 business days to 2 weeks
Offshore Startup Nutraceutical Merchant Accounts
- 3 months of business banking statements or a business bank letter
- If no business banking statements, we’ll also accept 3 months of personal banking statements
- Approvals: 5 business days to 2 weeks
Domestic Nutraceutical Merchant Accounts
- Valid owner’s identification
- Business bank letter or a voided check
- 3 months of business banking statements showing company name, chargebacks, refunds, returns, and total sales
- Documents of incorporation
- Approvals: Up to 2 weeks
Virtual Check Solutions for Nutraceutical Merchants
- Application completed in full
- Valid owner identification
- Business bank letter or voided check
- Articles of association
- Approvals: 2-3 business days
Once the application is submitted, the iPayToTal underwriting process begins:
iPayToTal reviews the Nutra business and assesses its payment processing history
The team of experts at iPayToTal believe every business deserves a chance to develop, including nutraceutical companies. Our team has years of experience in offering solutions tailored to meet each business types’ unique needs – solutions that address each industry’s biggest challenges. With a nutraceutical merchant account, your business also gains access to other key tools and features, including:
- Online Payment Gateways
- ACH Processing
- Point-Of-Sale (POS) Solutions
- High-Volume Payment Solutions
- Mail Order/ Telephone Order (MOTO) Processing
- Built-in Fraud Prevention tool and other Prevention Programs
- Instant Check Processing Solutions
If you are looking for a reliable merchant account provider, you are in the right place, as IPAYTOTAL provides the best solutions for e-commerce businesses. We guaranty quick real-time credit card processing, top-notch services and at reasonable rates. Give us a call at +44 800 776 5988 or get in touch with us through our website.