Supplement Payment Gateway & Merchant Account for Shopify
Are you running a supplement store on Shopify? Then you have chosen a great e-commerce platform. With Shopify, supplement businesses can easily set up an e-commerce website and pretty much manage the entire business from one control panel. It’s a phenomenal tool.
However, sometimes a few merchants may face challenges such as not getting approved for payment processing or getting the account terminated or funds being temporarily held. Most of the time, these instances happen because of the merchant’s risk profile. In this guide, you will understand certain situations and ways to find a solution.
Traditional acquiring banks and low-risk payment service providers consider supplement businesses in the high-risk category because of elevated chargeback percentages and recurring billing.
In some cases, based on risk assessment, payment providers may take certain actions such as holding funds temporarily or restricting accounts, which can be extremely frustrating for business owners. Customers can get frustrated when their payments get declined, and they may hesitate to purchase from your store. It can impact the revenue of your business.
At QuadraPay, we connect supplement merchants with Shopify-compatible high-risk payment service providers that understand the industry and the risks associated with it.
Why Standard Processors May Decline Supplement Brands
1. Chargeback Risk From Subscription
The supplement business provides free trials or subscriptions, where customers are charged automatically every month. But some customers forget about the subscription and find it unusual when checking their statement. They may file a chargeback with their bank without contacting the supplement merchant.
If a bank or low-risk payment service provider identifies a high number of chargebacks, then it may place restrictions such as holding funds or terminating accounts.
QuadraPay, as it is a reputable high-risk merchant account solution provider. We will provide a supplement payment gateway compatible for Shopify, which can manage recurring billing effectively.
2. Product Claims And Regulations
Certain supplement brands claim to cure certain diseases. While this may be used for marketing, it can create legal and compliance issues. Traditional acquiring banks review your website thoroughly, and if they find such claims without proper approval from a recognized institute, then they consider it a red flag. The acquiring bank may place restrictions such as holding funds or terminating the account because of misleading claims on the website.
3. Shopify Payment Limitation
Shopify Payments works on a payment facilitator model. It operates as a shared system, which means many merchants are grouped together under one payment setup. Supplement businesses may require more specialized underwriting and risk management, which standard setups may not always support.
In some cases, if a business within a similar risk category has high chargebacks, payment providers may take precautionary actions such as holding funds or restricting accounts as part of their risk controls.
The Right Payment Infrastructure for a Supplement Shopify Store
Running a supplement A Shopify store requires specialized payment processing solutions. You require two things for proper payment setup in Shopify:
1. Supplement Merchant Account for Shopify
You require a dedicated supplement merchant account for running your business effectively. Acquiring banks carefully review your website, products listed, ingredients, subscription billing, and past processing history. If there are fewer refunds and the chargeback percentage is below 1 percent every month, then the bank is more likely to approve a supplementary merchant account for Shopify.
2. Shopify Compatible Payment Gateway
You require a supplement payment gateway that supports Shopify. It connects your merchant account with your Shopify store and provides secure and stable payment processing solutions.
QuadraPay offers merchant account and payments gateway solutions that are compatible with supplement businesses using Shopify.
How To Manage Chargebacks As A Supplement Shopify Merchant
1. Descriptor Clarity
The name of your supplement business should appear clearly on your customer’s bank statement. A clear description reduces unnecessary disputes and chargebacks.
2. Post-Purchase Communication
Supplement merchants must send an email to the customer after they purchase a product from their Shopify website. The merchant should mention the product name, quantity, and billing information in the email. It should also remind customers about billing frequency and how they can cancel their subscriptions.
3. Proactive Refund Policy
Supplement merchants should have a flexible refund policy to reduce chargebacks. Clear return instructions on the website can help reduce the chargeback percentage.
4. Dispute Response Protocols
Supplement merchants should gather important information like order confirmation, tracking information, and email logs and submit them to the acquiring bank. A timely and complete response can increase the chances of resolving disputes successfully.
Frequently Asked Questions
1. Can I use Shopify if Shopify Payments won’t approve my supplement brand?
Yes, you can continue using Shopify even if Shopify Payments does not support your business model. You may consider integrating a third-party supplement payment gateway for smoother payment processing.
2. What is the typical chargeback rate that supplement acquirers look for?
Most acquiring banks look for the chargeback percentage to be below 1 percent. If your supplement business exceeds this threshold, then it needs to be managed effectively.
3. Do I need to change my Shopify store to a third-party gateway?
No, you don’t need to change your Shopify store. You just need a third-party payment gateway that connects your merchant account with your Shopify store.
4. How long does approval take for a supplement merchant account?
It typically takes 3–7 business days to approve a supplement merchant account.
5. Will I face a rolling reserve?
Yes, rolling reserves are common in supplement businesses. Acquiring banks may hold 5 to 10 percent of monthly sales for 90 to 180 days as part of risk management.
Final Words
Are you running a supplement store on Shopify and in need of a stable and secure payment processing solution? If yes, then you can contact QuadraPay. Our payment processing partners aim to provide efficient onboarding for supplement merchant accounts on Shopify.