Last updated on February 22nd, 2025 at 10:18 pm
Merchant Services for Skin Care Products: Industry Guide.
A skincare merchant account is a special type of bank account that allows skincare companies to accept credit and debit card payments for the sale of skincare products.
Skincare businesses use such specialized merchant accounts to sell various products and services. These include items like cleansers, moisturizers, serums, masks, exfoliants, toners, sunscreens, and anti-aging products. Dermatological service providers also use this type of credit card processing account to offer services like skin assessments and laser therapy.
Payment gateways for skincare are also used by various spas to sell their services, such as facials, chemical peels, waxing, threading, makeup application services, eyebrow shaping, eyelash extensions, and acne treatment.
The skincare credit card processing specialist team at QuadraPay has written this extensive guide for your benefit. We are confident that after you go through this entire guide, you will be able to easily understand the requirements, application process, KYC requirements, rates, and integration for the skincare products merchant account. Let’s begin.
Processing credit cards for skin care products carries a high risk.
Traditional sponsor banks and payment service providers generally prefer to stay away from skincare product merchants. The key reasons included impact on skin, risk of chargebacks, and regulatory challenges. All these contribute to the classification of skincare merchants as high risk. Let’s examine some of the primary factors that compel merchant acquirers to avoid this industry.
- Fake Claims: Many skincare companies claim that their product enhances skin color, tightness, or reduces blemishes. However, these claims lack medical verification and may lead to chargebacks and disputes from customers. Merchants must ensure that they sell the products without making any inflated or fake claims.
- Regulatory risk: Skincare products are also subject to various regulatory standards set by different government agencies and industry bodies. Merchants should exercise caution, as any violation of these regulations and guidelines could potentially lead to account closures. This is especially important for CBD-based skin care companies, as it should only have a THC percentage under the approved limit.
- Fraud Transactions: The industry is also vulnerable to fraudulent activities such as duplicate products and unauthorized reselling. Credit card processors are always concerned about these, as fraudulent transactions and duplicate products can significantly increase the chargeback percentage. Merchants must closely monitor the quality of their orders. They should also ensure that they don’t sell any fake or duplicate products.
- Health Impact: The potential impact of the product on the skin or overall health of the user can also be a problem for the bank. If a merchant sells inferior quality products, it can attract reputation risk for the bank. Merchants can protect themselves by ensuring that they only sell genuine products that come with required industry certifications. Good-quality skin care products are generally safe.
- Geographical Legal Variation: In different countries, the regulations to sell skincare products vary. Some countries may have smaller requirements for certification, while some may have extended requirements. Merchants must have access to all certifications and licenses that may be required by the processor.
Multiple Merchant Services Solutions for Skincare Businesses
At QuadraPay, we believe in improving the transaction processing capabilities of our skincare merchants. This is why we offer various types of merchant services that can significantly enhance your customers’ experience when they make payments to you. Let us look at some of these merchant services.
- ACH Payments: It is particularly advantageous for skincare merchants. Businesses can easily accept payments from customers’ bank accounts using this modern bank transfer method. It’s also an ideal fit for recurring transactions, such as subscription-based skincare product purchases.
- Online credit card processing for skin care: We offer online credit card processing solutions for skincare businesses. With these solutions, skincare companies can accept credit and debit card payments over the web. Along with regular credit and debit cards, skincare companies can also accept various other alternative payment methods and expand their business to many nations.
- Retail credit card processing for skin care stores: Our credit card terminals are perfect for businesses with retail locations from where they sell skincare items or services. These credit card terminals allow business owners to accept face-to-face payments. With credit card processing terminals, you can accept all types of physical cards, including EMV cards, NFC cards, and even magnetic strip cards.
Some skincare businesses may not receive approval for ACH or credit card processing. For those businesses, we recommend using eCheck as their payment processing method. With electronic checks, they can accept payments from customers through bank transfer.
By adding these merchant services to your business, you will offer a wonderful experience to your customers when they make purchases from you. Customers will be able to use their own preferred mode of payment, and this may significantly improve your returning customer ratio.
Skin Care Merchant Account Rates (Tentative)
Some skincare businesses may face higher markups if they sell premium, subscription-based, or clinically positioned products. Recurring billing and subscription models may add 0.5% – 1.5% to processing rates. providers may offer volume discounts. Merchants with high monthly volumes (e.g., $50k+) could qualify for reduced rates. Cross-border transactions may incur additional fees (1% – 3%). Please note that these rates are illustrative and subject to negotiation. Always compare quotes and read contracts carefully.
Application Process: Getting Merchant Services for Skincare Products
The first step toward obtaining a credit card processing account for your business is to submit an application along with KYC (Know Your Customer) documents. The KYC documents for cosmetic merchants typically include:
- Business license
- Voided check
- Utility bills
- Previous processing statements
- Lab certificate
- Ingredients list
- Supplier agreement/wholesale contract
- Other certifications: Made Safe, EWG, USDA Organic, or NSF/ANSI 305.
Please note that the exact KYC requirements can vary based on several factors.
You have to send the copies of all these documents along with the field merchant account application form to the payment service provider. The underwriters will review your document and also check your website and product information. Based on their analysis and the risk appetite of this sponsor bank, they will either approve your application or reject it. If they say yes, then the payment processing company will send you an offer. We strongly suggest you review the contract and the term sheet carefully. Make sure that there are no hidden charges.
Once you are confident about the terms and the rates, it’s time for you to sign the agreement. Then the processor will send you the integration information, which will include API details. Some high-risk payment service providers may also offer readymade plugins for well-known ecommerce platforms like WordPress, Joomla, WooCommerce, OpenCart, PrestaShop, and ZenCart, etc.
When you apply for a skincare merchant account, it is important for you to be active throughout the process. Timely responses to the queries raised by the underwriting team help reduce delays. It also demonstrates your seriousness. Whenever needed, provide clarification. Be honest in sharing your viewpoint. This will help build the trust between the processing company and you. Overall, your proactive approach will maximize the chances of your account approval.
Final Words!
It is important for skincare merchants to understand the reality of the industry. Sometimes it can be extremely challenging to get a credit card processing account. However, the best approach would be to work with a high-risk merchant account provider that specializes in assisting skincare merchants.
QuadraPay is here for you. We have already established business relationships with various payment processors that are comfortable working with legitimate skincare product companies. Ask us today for a zero-obligation, free quote.
