Wellness Merchant Account: Insiders Guide
What is a wellness merchant account?
A wellness merchant account is a specialized credit card processing solution designed to meet the unique needs of businesses operating in the wellness industry. This type of payment processing account is ideal for businesses that offer nutrition, mental health, holistic, alternative medicine, sleep recovery, and corporate wellness-related services.
Most wellness-related businesses are considered high risk by sponsor banks because of factors such as recurring billing, regulatory scrutiny, and the risk of high chargebacks. These factors make it extremely difficult for businesses operating in the wellness industry to find credit card processing companies. Wellness merchants should look for payment processors that work with high-risk merchants. These processors understand the risk involved in onboarding a wellness merchant and take all necessary steps to keep their risk under control.
At QuadraPay, we have been working with a variety of merchants from the wellness industry since the year 2016. We understand the challenges faced by such entrepreneurs. This is why we have created this guide for you. We are confident that once you finish reading this guide you will find it easy to locate the right credit card processor for your wellness business. Let’s begin.
Why is the Wellness Industry Considered High-Risk?
The health and wellness industry is considered high risk because of a variety of reasons. If you understand these factors, then it will become easy for you to take necessary steps and increase your chances of approval.
Regulatory Compliance: Many wellness products and services must meet strict regulatory guidelines before they can be sold to customers. A few examples of such products include CBD, supplements and alternative therapies. The rules and regulations related to the sale of such products and services can be complex, and many providers may find this discouraging and avoid working with merchants from such industries.
Chargeback Risks: Another challenge is the risk of high charge back. When disputes and chargebacks increase, then it also increases the credit risk on the merchant acquire. in the Wellness industry It has common for people to be dis satisfied by the result of product. Unsatisfied customers may raise disputes and charge backs. Banks don’t like it, and that is why many stay away from the wellness industry.
Subscription Models: Many products in the wellness industry are sold using subscriptions. Examples of such products include slimming tea, dietary supplements, and weight loss programs. Many of such subscriptions may have free trials, and customers may forget that they ever subscribed to the product. After seeing the debits on the credit card statement, customers may raise disputes.
Fraudulent Claims: The biggest problem in the wellness industry is that of fraudulent claims. Many businesses claim highly inflated results. Search claims demotivate the underwriters to onboard wellness merchants.
Because of all the risks mentioned above, traditional low-risk payment processors generally hesitate to approve wellness businesses for merchant accounts. However, specialized high-risk payment processing companies offer better results.
Benefits of a High-Risk Wellness Merchant Account
Reliable Payment Processing: Getting a dedicated merchant account. Wellness companies can accept all kinds of credit and debit cards. A stable credit card processing account helps businesses to operate smoothly without worrying about payment holds and account shutdown.
High-Risk Friendly Approval: As we have discussed earlier, low-risk payment processes hesitate to work with wellness companies. The only options that we recommend are the high-risk processors. The on boarding for such accounts may take a bit longer than a regular lower is account. Once activated, these high-risk accounts can support the merchant for a longer time.
Chargeback Protection & Fraud Prevention: A low-risk payment processor may only offer basic differences when it comes to charge backs and fraud. These specialized higher processing companies have advanced features such as AI-driven fraud identification tools as well as charge back mitigation programs. Together, these advanced tools help merchants reduce risk on the account.
Multi-Currency & Online Payment Support: Most wellness companies offer their products and services to local as well as international clients. Only accepting local credit cards is not an option. A dedicated account allowed wellness businesses to accept payments from international customers in multiple currencies. The cost of the product is displayed in the customer’s home currency. It increases the comfort level and can have a significant impact on the conversion ratio.
How to Choose the Right Wellness Merchant Account Provider
While choosing a merchant processor for your wellness business, it is important for you to ensure that the provider has experience with high-risk industries. This doesn’t specifically have to be wellness, but it can be other related industries such as yoga studios, gyms, martial arts studios, directions, doctors, and telemedicine. Processors that have experience in working with similar merchants can offer you better services.
Competitive Processing Fees: The next thing you need to look at is the cost. At this type, you have to be very careful because the way payment processors present the pricing is complex. Some fees maybe listed on the term sheet, but many other costs may be listed in the fine print of the merchant account agreement. Carefully observe all the fees, including the penalties, and then make the decision.
Integration with Your Business Model: Depending on how you operate your business, your integration requirement will change. For example, if you run a Pilatus center, then you may need a retail credit card terminal, and if you have any commerce website that sells herbal products, then you will need an online payment gateway. You should choose the provider that offers solutions that can be easily integrated into your existing set up.
Customer Support: Try to work with a credit card processor that believes in offering 24/7 support to merchants. You never know when you need their assistance. The provider should offer you support through various channels, including phone, email, and chat. This way, you will be able to resolve payment-related issues quickly and minimize downtime for your business.
Steps to Apply for a Wellness Merchant Account
Before you apply for a Wellness merchant account, make sure that you are ready with the important documents. The payment processor will require these documents to evaluate the risk involved in on boarding your business. The business documents include your business licence, tax ID EIN/VAT, bank statement, utility bills, and website compliance check if you are selling online.
You will send these documents to the payment processor for review. Along with these documents, you will also submit a merchant account application form. The payment processor will review everything that you submit and perform a detailed risk evaluation.
It generally takes a few days to a week for the approval of a wellness payment gateway and merchant account. Once approved, the merchant processor will integrate details.
FAQs Wellness Credit Card Processing
Can I get a wellness merchant account with bad credit?
Getting a wellness merchant account is tough, but it becomes tougher if the merchant’s credit score is poor. For such merchants, we recommend bad credit merchant accounts. The specialized merchant account solutions are fit for those businesses that are struggling with their credit score. while some merchants may not qualify for credit card processing, but many do. For those merchants that don’t qualify for credit card processing, we recommend alternative payment solutions such as ACH and e-checks.
Conclusion about Wellness Merchant Services
A wellness merchant account can be the lifeline for your business in the health and wellness industry. This means you should work with the reliable payment processing company only. Whether you run an e-commerce store or have a brick-and-mortar wellness center or you have a subscription-based health service, choosing the right payment processor is crucial. With the right processor, you will be able to experience smooth transaction processing, faster settlement, and better defense against fraud transactions. Overall, such accounts can support bringing in financial stability to your business. If you have any further questions regarding Wellness Credit Card processing, send us an email at [email protected].
