Nutraceutical Merchant Accounts & Credit Card Processing
The nutraceutical industry has rapidly grown over the past decade along with the number of nutraceutical websites. The merchant accounts required for nutraceutical businesses however are considered high risk by most banks and payment processors. Nutraceutical merchants must work with a payment company that specializes in this niche industry to provide reliable and affordable merchant services.
Why Are Nutraceuticals Considered High Risk?
Nutraceutical merchants have been troubled with the task of being approved for a credit card processing account for years. Many merchant account providers avoid working with nutraceutical merchants since there is an increased amount of risk on the side of the payment processor. Nutraceuticals are not FDA approved and the industry is plagued with nutraceutical businesses fabricating false claims that lead to unhappy customers. As in any industry, if unhappy customers are unable to return the products they have purchased and receive a prompt refund, they will inevitably chargeback the sale.
Nutraceutical merchants are notorious for their aggressive and unforgiving sales tactics. Some nutraceutical merchants will sell their products in the traditional “straight sale” style where a customer makes one purchase and receives the product one time. Other merchants employ the recurring or continuity sales method, where the customer purchases the product once and agrees to the rebilling and reshipment of the product (usually monthly). Lastly, the free trial strategy is the most aggressive of all. The free trial method advertises a free trial of a product (usually the customer is just paying a nominal fee for shipping) and they are entered into an automatic rebilling if the “subscription” is not cancelled within the allotted time. A $5.95 trial could easily become a $79.95 a month subscription. As you can imagine, this sales method generates a number of unhappy customers that are ready to chargeback their orders. It is not uncommon for some online nutraceutical businesses to operate with multiple sales strategies; possibly one website to show a bank during the approval process and another one for marketing to customers.
Nutraceutical Credit Card Processing
The number of nutraceutical companies has increased exponentially over the past few years. Online nutraceutical merchants are selling all types of products including; diet pills, supplements and weight loss items. Nutraceutical businesses are considered high risk for a number of reasons, primarily because nutraceutical products are not FDA approved and there is no government regulation associated with them. Some nutraceutical products are sold with claims that cannot be proven or justified; both of these reasons increase the risk of chargebacks. Nutraceutical merchants looking to accept credit cards MUST work with a high risk payment processor that specifically handles high risk.
Global Pay LTD is a high risk merchant account provider and specializes in setting up nutraceutical companies with payment processing. The application process is very straightforward and underwriting is normally completed within one week. Businesses complete a short application and submit it in with; the owner’s ID, utility bill, voided business check and a copy of the corporate documents. Once the application has been sent to underwriting it normally is approved within 72 hours. Approvals are faster for application packages that are complete.
Domestic and offshore payment solutions are available. If you are a non-US based merchant or an international merchant, Global Pay has a solution for you. Larger merchants are capable of opening multiple merchant accounts to spread their volume. Our cutting edge payment gateway allows merchants to load balance their different payment accounts.
Nutraceutical Merchant Services
Nutraceutical merchant services are a difficult service to obtain in today’s business environment. Most banks do not want to deal with these types of businesses for a number of reasons including the fact that they potentially pose an elevated risk to the bank. Nutraceutical merchants on the other hand want to accept payments for their business and have to search and apply with a number of different payment processors to make sure they can do this, hoping to be approved somewhere.
Most payment processors today do not offer high risk merchant services, even though they may advertise that they do. Global Pay LTD is different from other payment processing companies. We currently process for all types of nutraceutical merchants in addition to most other high risk companies.
We Process Payments For Nearly Every Type Of Nutraceutical Product, Including:
• Dietary Supplements
• Functional Foods
• Vitamins and Minerals
• Herbs and Botanicals
• Skin Care Products
• Nutritional Beverages
• Blood Sugar Balance
• Cardio Metabolic Health
• Immune Health
• Metabolic Detoxification
• Natural Colon Cleanse
• Musculoskeletal Health
• Sexual Enhancement
• Stress Management
• Weight Loss
• Workout Supplements
• Natural Hormone Supplements
Competitive Rates and Terms
• Retail Rates Starting at .25%
• Internet Rates Starting at 1%
• Daily Payouts (Domestic) – Weekly Payouts (Offshore)
• Multiple Currencies Available
• Direct Merchant Accounts Available
• API (Processing Transactions On The Merchant’s Website)
• Virtual Terminal For Phone/Email Orders
Global Pay’s Stable and Reliable Payment Solutions Offer:
• Competitive Pricing
Aggressive pricing is the cornerstone of our business and will help increase your company’s bottom line every year.
• No Volume Limits
Your business growth will never be an issue. Every gateway account is setup without any type of monthly volume cap.
• Acceptance For All Cards
Merchants are able to accept all major debit and credit cards from their customers. Never turn away a customer’s payment method again.
• Virtual Terminal
All merchants are setup to accept payments through their website or by manually inputting their customer’s information into the virtual terminal.
Nutraceutical Credit Card Processing Account Approval & Setup
Even with the small percentage of deceptive nutraceutical businesses operating today, there are still a handful of banks and payment processors interested in accepting merchants selling these types of products. High risk banks, similar to all payment processors, prefer merchants with previous processing history but, it is not a requirement.
Nutraceutical merchant accounts differ from regular or low risk merchant accounts in a few different ways. Similar to other high risk businesses, there is normally a rolling reserve (usually 10%) for 6 months. This protects the bank from losses due to chargebacks. Secondly, rates for recurring type nutraceutical businesses will be slightly higher compared with the rates of a company selling their products with a one-time sales model. The higher rate coincides with the heightened risk that recurring billing bears.
The application and approval process is similar to other merchant accounts. The application covers the business and the owner. There is a checklist of supporting documents including; owner’s ID, voided check, business bank statements and processing statements. Some businesses that are startups will not have all of the supporting documents. The owner should submit everything they have available. After approval, the merchant will be setup in a gateway and their tech people will be able to complete integration with their shopping cart and website.
Advantages of Using Global Pay
Global Pay LTD is able to approve your nutraceutical business for a credit card processing account no matter what your sales model is. Currently we have nutraceutical merchants selling with one-time sales models as well as recurring and negative option sales models. Either way, our company will be able to approve and set your company within one week.
Global Pay specializes in providing domestic and offshore merchant accounts to nutraceutical businesses. Our team’s banking network focuses on high risk payment processing. Your nutraceutical business will not need to fill out application after application trying to be approved at banks that don’t even work with your industry. Accounts are available for companies selling through; straight one-time sales, recurring sales and free trial offers. Global Pay works with a network of banks that actively accept nutraceutical merchants throughout the world. Accounts are normally approved within a few days and setup same day credentials are issued from the bank. Already running merchants and startup companies are encouraged to apply. Contact Global Pay today to see what we can do for your business.