Nutraceutical Merchant Account

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vitamin supplement merchant account

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In Merchant Services Since 2016 2016 2016

Table of Contents

We, at Quadrapay, have the foresight to become industry’s best support system in getting high risk merchant accounts for different high risk industries. With the deeply rooted vast network of best in class banks, acquirers, payment gateways, payment processors and merchant service providers, we resolve our clients’ issue with utmost diligence. Specifically, in the field of nutraceutical industries, we provide complete turnkey solutions regarding high risk nutraceutical merchant account. Whether it be a payment gateway or a high risk merchant account for nutraceutical business, we are ready to help you. You can log onto Quadrapay.com and fill our easy registration form. You can also reach us at [email protected] or dial our 24/7 helpline +1 63183 21773. Quadrapay is dedicated to help merchants from high risk industry. Get rid of the market hassles and optimize your profits by expanding your online business with the help of team Quadrapay.

What Are Different Charges And Fees For Nutraceutical Merchant Account?

Usually, there is a provision of setup fees with offshore nutraceutical merchant account providers and payment gateways. A merchant should negotiate for transaction fees (TDR and MDR), fixed transaction fees and monthly charges to get the best deal. Today, the range of transaction fees is somewhere between 4.5% and 8%. A high risk merchant account for nutraceuticals has to bear large rolling reserve as well. The statistical analysis of Quadrapay has shown the average rolling reserve to be 10%. For cross-border transactions, wire fees are also a crucial factor.

The arrear or hold period is generally 1 to 3 weeks, depending upon the risk factor of the nutraceutical business. A merchant should also enquire about chargeback alert and notification services and pre-authorization services as well. These services help merchants in smooth functioning of the nutraceutical merchant account without any problems. As, subscriptions are involved in nutraceutical industry, recurring or continuous billing is also there. Thus, a merchant should also ask the service provider regarding fees and charges related to return and refund. Last but not the least, chargeback penalty also marks a big part in finalizing an offshore merchant account for high risk business.

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What Are Nutraceuticals?

Nutraceuticals are generally defined as the derivatives of natural and herbal food sources that have additional health benefits. These are often used as Pharmaceutical products also. The term that was coined almost 30 years back, has not taken major portion in medical and pharmaceutical industry. There is always a constant debate related to the classification of nutraceuticals as a dietary food supplement or a nutritional drug. Because of the regulations and strict law related to the specific categorization of nutraceutical products, the whole industry has been thrown into the category of high risk industry. The major difference between Pharmaceutical and nutraceutical products is a doctoral prescription. A person doesn’t need any doctor’s advice before getting nutraceutical products. They have often been termed as health and fitness supplements or natural rejuvenating medicines.

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Overview Of The Nutraceutical Industry And Need Of Nutraceutical Merchant Account

The classification of nutraceuticals has been different for different jurisdictions in different countries. With the expansion of Technology and development in science, people are getting more and more aware of health benefits. This is the major reason that nutraceuticals are getting extremely popular. From maintaining a fit physique to professional bodybuilding and even as a remedial medicine, the naturally produced phytochemicals or nutraceuticals are widely used around the globe. Mostly this is governed by FDA. The Global nutraceutical market is expected to grow to double its size by 2022 and cross 600 billion-dollar limit. With such a growing industry, nutraceutical merchants billing in this high risk business are still facing a lot of hindrances. Getting a high risk nutraceutical merchant account is really difficult in this business. Private and Multinational organizations around the globe have held multiple conferences, summits, and exhibitions to explore, expand and grow the industry domain further. The work of such an international congress has accentuated the awareness of nutraceuticals in common men, and infinite possibilities of development and expansion have arisen.

In earlier discussions as well, Quadrapay experts have explained that getting a high risk merchant account for nutraceutical industry is extremely difficult with the domestic banks and acquirers. Although a merchant can find many offshore service providers who can readily onboard nutraceutical merchants, yet finalizing the most appropriate processor is no less than a herculean task. The online market functioning and transaction flow is totally dependent on type of the high risk merchant account and quality of payment gateway.

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Why Is Nutraceuticals A High Risk Industry?

The major reason for nutraceutical industry to be categorized as high risk industry is high chargeback ratio. Apart from this regulatory imposition there are other reasons as well. When a nutritional or dietary supplement is passed for human consumption by government authorities, it must clear the entire laboratory test and prescribed ingredients guidelines. Involvement of regulated or prohibited ingredients or exceeding the permitted limit can put nutraceutical product under a ban.

How To Get A High Risk Nutraceutical Merchant Account?

Industries worldwide have been classified as low risk, mid risk and high risk industries. Domestic banks and acquirers are quite comfortable in giving merchant accounts to low risk and high merchants, but they step back from providing services to high risk merchants. Nutraceutical merchant accounts, being high risk are mostly avoided by domestic banks and processors. As we have discussed the need for high risk merchant account for nutraceuticals in our previous segment, merchants must look for the best processors to help their online businesses.

The underwriting guidelines for high risk nutraceutical merchant account are strict, obstructive and rigid in domestic banks and acquirers. There are little chances of getting a high risk merchant account for nutraceutical business, unless you have a very good credit history, strong financial base, genuine documentation and adroitly planned business model. If the underwriter goes with an optimistic approach, you may get a nutraceutical merchant account.

The easier option for merchants in nutraceutical industry is to work with offshore high risk merchant account providers. There are many offshore service providers ready to onboard high risk nutraceutical merchants. This is crucial for a merchant to find the most suitable offshore nutraceutical merchant account provider for his unique business model. At the time of application submission and initial onboarding procedure, terms and conditions are agreed upon. This also includes the fees and charges for the services provided. Generally, the application process takes 5-7 days, and the merchant can negotiate with the processor for competitive rates and charges.

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What Factors Affect The Selection Of An Offshore Merchant Account For Nutraceuticals Business?

There are various factors to keep in consideration while deciding the right offshore service provider for a nutraceutical business. These are –

  • When it comes to offshore nutraceutical merchant account providers, the age of the processing company matters a lot. A well established processor can efficiently manage the merchant account and provide best in class services.
  • The ability to accept payments from multiple Nations is also a crucial factor while deciding the payment processor for your nutraceutical merchant account. In today’s world, Global outreach is really essential to expand the business.
  • Mostly customers will prefer to buy in their local currencies. Thus the acquiring bank or processor should also offer multiple transaction currency options. Not just about the customers but the mountains also prefer to be paid in the local currencies. Hence, the number of settlement currencies offered by an offshore nutraceutical merchant account processor also matters.
  • Pre-Authorization helps merchants introducing chargebacks and fraud instances. We suggests nutraceutical merchants get merchant accounts with this service.
  • Monthly and annual subscriptions contribute to a larger part of sales in the nutraceutical industry. Merchant must check if the merchant account providers or payment processors offer subscription, recurring, trial and continuity payment options.
  • A merchant must negotiate with the offshore nutraceutical merchant account provider in order to get the deal with the minimum rate of transaction.
  • Location of the acquiring Bank also matters a lot. If the Offshore merchant account provider for nutraceutical business is located in any of the developed or fastly growing country, then it adds to the maximum approval of transactions in terms of global processing.
  • The number of payment options provided by a merchant account processor also defines the business domain expansion of the merchant. With multiple payment options like Credit/Debit Card processing, wire transfer, internet banking, ACH and Echeck, etc. merchant can easily split the volumes of transaction and maximize the profit.
  • Rolling reserve effects nutraceutical merchant account in a drastic manner. This is advisable that a merchant must avail the services from the offshore service provider with the least rolling reserve.

If you are also a merchant dealing in the nutraceutical industry, you can reach out to Quadrapay.com for the expert advice and complete assistance of Quadrapay business experts. We are ready to help you with a high risk nutraceutical merchant account from our reliable and quality service providers along with a payment gateway with best-in-class speedy services.

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What Is The Definition Of Chargeback Ratio And How Does It Affects A Nutraceutical Merchant Account?

Chargeback ratio can be defined as the total number of chargebacks in a month divided by the total number of transactions in that particular month. The percentage equivalent of this calculation explains the chargeback ratio. Our experts suggest that the charge battery shows should be typically kept below 2%. Let us take an example to understand it better, if there are 500 transactions in a merchant account per month, then the threat limit of chargeback is only 10. To maintain the stability of your account, it is suggested that the number of chargebacks, in this case, should not be more than 8.

Subscriptions and recurring billing are the main issues that result in high chargeback instances. At times if the customer is not aware of subscription, they file a chargeback for the complete amount, and this creates a problem for the nutraceutical Merchant. We suggest merchants to avail chargeback alert and notification services, which informs the merchant at the time of dispute and a refund can be settled with the customer before the chargeback is initiated. Apart from this, merchants should also ensure strong customer relationship and continuous feedback to improve the quality of products and services. With a variety of payment options available, we also suggest nutraceutical merchants to use Echeck and ACH, or Check 21 solutions for the payments. If the merchant is not able to maintain the chargeback ratio below the suggested limit of 2 %, it may lead to the shutdown of the nutraceutical merchant account.

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Conclusion

Whether you are an established merchant or a new start up dealing in nutraceutical industry, you must have a nutraceutical merchant account and payment gateway to carry on your online business and grow further. The world has become smaller because of The E-Commerce and online marketing. Every customer has a global outreach to all the products and services available in the world. Thus, availing the best in class services for your online business is really crucial.

If you are facing any trouble in finding perfect nutraceutical merchant account for your specific business model, Quadrapay can help you good the best one for you. You can simply fill onpage form or you can mail us your inquiry at [email protected]. Our 24/7 helpline is also active to help you resolve issues on +1 63183 21773.

Top-Rated Supplement Merchant Services For Nutraceuticals Business

Now Sell Online Easily With Supplement Merchant Account!

Just like any other businesses, a supplement business also requires to have a credit card processing solution. Having a merchant account for supplements allows a business to retrieve payments through the website or online web application. But because of strict guidelines and laws, it becomes somewhat difficult for a supplement business owner to get a supplement merchant account. But now with Quadrapay, you do not have to worry, because we are working with top-rated payment industry experts that support most of the supplement businesses. For supplement businesses that are registered under European Union, we have several different processing solutions to be offered. For business merchants that are registered under the US junctions and running an online supplement selling business, we have an Echeck/ACH solution.

What Makes It Difficult For A Nutraceutical or A Health Supplement Business To Get Payment Processing Solution?

For a nutraceutical and health supplements selling a business, there are several reasons behind which makes it to be categorized under the high-risk business segment. Some of the significant reasons behind this cause are as follows:

  • One of the primary reason behind a business owner to face difficulty to obtain a supplement merchant account is the false advertisement of products. There are a lot of websites where irrelevant products images; the description is shown on the domain. These activities also lead to an increase in the number of chargebacks as people may claim for faulty product and services. If things become more sensitive, then this might become a reason for the suspension of processing payment account. That is why it is majorly advised to supplement business merchants to show and mention the correct information about the product and services you offer. Disclaimers are also essential in this industry. Additionally, if all your products are under lab certified, then adding the certificate copies and actual test parameters of all the tests will act as a bonus factor in making a tremendous and successful supplement selling business with a supplement merchant account.
  • Also another reason that makes it difficult for a supplement business to get approval for a merchant account is the trial offer being offered. Most of the processors reject the application for a merchant account as soon as they see a trial offer is provided on the website for products and services. There might be some merchant account providers that may approve for a smaller period trial offer, but that should not be that much extensive. For quick approval supplement merchant account and better processing solutions, a business should avoid offering trial offers as this approach will benefit them with lower chargebacks.
  • Business Reputational Risk: Because of reputational risks involved in terms of buying and selling nutraceutical and supplement products, most of the reputed banks and financial institutes rejects for providing supplement merchant account. This is the primary reason for an adult business and online dating sites as well.
  • Complete Documentation: Every payment processor looks for a merchant application form and verifies all the set of KYC documents under in-depth verification. That is why it is majorly recommended to be prepared with all required KYC documents at the time of applying for a supplement merchant account. This provides a faster approval and integration experience. Some of the must-have KYC documents are like identity cards, bank statements, processing records, utility bills, business plans, registrations certificates and supplier agreements. For supplement products, there might also be required for lab reports of the products being mentioned on the website.
  • The number of chargebacks: The nutraceuticals and supplement industry is known for its better returns, but at the same time, it is highly prone to chargebacks. The primary reason behind such chargeback may be because of a trial offer being offered.

For more information on Supplement Merchant Account, you can mail us at [email protected].

Must Read

https://www.usada.org/wp-content/uploads/supplement-guide.pdf

How To Get A Nutraceutical Credit Card Processing Merchant Account ?

NUTRACEUTICAL MERCHANT ACCOUNT

Nutraceutical Merchant Accounts are required by merchants that are selling Legal Herbal/ Natural origin body supplement products.

THERE ARE MANY WAYS TO ACCEPT PAYMENTS ON A NUTRACEUTICAL WEBSITE

1. Credit Debit Card Merchant Account:– This solution allows the buyer to purchase the product by entering the credit debit card info on the merchant’s website.

2. Virtual Terminal / Moto:– This is a Panel used by Merchants to accept orders over the Phone.
3. Echeck 21/Check 22/ACH/ICL/RDC:– This Payment Processing solution allows the Buyer to make the purchase by using the Electronic Check Solution. The Buyer needs to submit information’s like

  • Name
  • Billing Address
  • Account Number
  • Routing Number

4. Bitcoin or Crypto-Currency:– This solution is used by merchants that are extremely hard to place. We recommend extreme caution as of now for this method as the Value of Crypto currency is very volatile.

Top-Rated Supplement Merchant Services For Nutraceuticals Business

Supplement Merchant Services: Cards & Echeck Gateway For Nutraceuticals And Herbal Sales.

Quadrapay is proud to announce that its processing partners are willing to evaluate applications from Supplement sales industry at no upfront cost. Yes, that’s true. Our processing partners are looking forward to assisting merchants that have the vision to excel in the online supplement sales industry. With a Supplement merchant account businesses can easily accept payments on the web. Customers can efficiently use there credit and debit cards to make purchases with the help of Supplement Merchant Services.

The good news is that the rates are low and integration is super easy.

Presently our supplement merchant services and processing partners are comfortable in evaluating applications from EU, USA, India, and Middle East for this industry type. Some of our processing partners in the USA offer a robust echeck solution for Nutraceuticals and Herbal business. This works pretty much like a credit card processing account; the only difference is that the payment instrument used is ACH. In this detailed article, you will come to know about various factors that may affect the fate of your application.

Technical Information – Related Merchant Classification Codes

MCC 5411 Grocery Stores and Supermarkets
MCC 5499 Miscellaneous Food Stores – Convenience Stores and Specialty Markets

Why Supplement Merchants Find It Hard To Get Credit Card/Echeck Solution.

There are multiple reasons behind this industry to be considered high risk or some times very high risk. Few of the factors are explained below that why you need a supplement merchant services.

  1. False Advertising of Nutraceutical, Herbal and Health Supplement Products. Merchants must be care full about the Images, Text, Video claims which they make about the product. Any claims made must have valid proof available. False claim creates confusion and dissatisfaction. This is the reason why we say. “Show What You Sell and Sell What You Show.” Established players in the market never use false commitment on sites. Disclaimers are also essential in this industry. Your website must have required disclaimers. In case if your products are lab tested and you have the certified copies of these lab certificates, then you should place it on your website. This will create a sense of comfort in the mids of the customers as well as underwriters.
  2. Trial Offers. A Major challenge in the Nutraceuticals and Supplement sales industry. Many companies will reject the application if there is any Trial offer. Some may say yes to select merchants, but the trial period should not be extensive. At the time of pre-approval, our processing partners may update you about the changes needed on the site in some cases. If you make those changes to the terms of the trial offer, then there is a higher possibility of approval. If yours is a pull product, then you should think of avoiding trial since you may have some good organic traffic on the site.
  3. Reputation Risk In On-boarding supplement merchant services. Some acquiring companies refuse to work with these merchants because of reputation risk. The same challenge is faced by merchants from industries like Adult and Online Dating.
  4. Regulatory challenges. Underwriting is a critical job. Payment processing firms have to check deeper for merchants from these industries. This is why you must share all the KYC, processing Statement, Certifications, Business plan, and Supplier agreements with the processor to improve the chances of approval. The processing company may also ask for the composition of each product that you sell online. Please note you should not sell products that are prohibited or not supported by card schemes and banks.
  5. High Charge-backs in the Nutraceuticals and Health Supplements Industry. Traditionally this industry has seen high returns. The primary reason can be trial offers. One more industry that faces a similar challenge is the Herbal tea or Slimming Tea industry. Merchants should use chargeback alert services and should avoid offering trials and subscription.

Application Process For Supplement Merchant Services, Credit Card And Echeck Processing Account.

The application process to get supplement merchant services is similar to any regular merchant account.

  • The first step is to identify the correct payment processing institution that will be interested in evaluating your application. Here Quadrapay can help you with supplement merchant services. We already have established relationships with payment processing companies that may be interested in assessing the application. It will help you to save your time.
  • After identifying the right credit card payment processor for supplement merchant services, you need to send them a filled merchant account application form. In this form, you will have to give essential information about your supplement business. You will also have to send KYC documents.
  • The next step is risk evaluation. This basically means critical analysis of your risk profile, line of business, products that you sell, potential credit risk, reputation risk, and many other factors. If your application passes the risk overview, then its the time for onboarding for supplement merchant services.
  • The processing company will send you a proposal in the form of a Merchant Account Contract/Merchant Account Agreement. In this proposal, which is a legal binding agreement, they will put all the terms and condition that you are expected to follow throughout the life of the contract. We recommend you to read these terms and conditions and then after understanding all the clauses sign on the line if you are comfortable.
  • After agreement its the time for the integration and test transaction. Our payment processing partners offer readymade plugins for popular shopping carts. With these plugins, you can easily integrate your supplement website with payment processing infrastructure. Your payment processing company will give you some test card details as well as Test Echeck details. These will include credit card information and check transaction information which is used only for testing purposes. After performing the test transaction, you will get a response from the payment processor, whether they were able to receive your transaction information or not successfully. If they say yes, they will allow you to accept live transactions.

Quadrapay Will Make It Easy For You. Get A Merchant Account For Your Supplement Business.

The team at Quadrapay is looking forward to assisting you in finding the right payment processing solution for your supplement business. Send us an email or fill the form available on the contact us page. Our team will be happy to introduce you directly to the payment processing company so that it saves your time and give you the power to negotiate the pricing as well.

For more information on supplement merchant services, you can mail us at [email protected].

Suggested Reading

https://www.eatrightpro.org/practice/code-of-ethics/ethics-education-resources/guidelines-regarding-the-recommendation-and-sale-of-dietary-supplements

https://quadrapay.com/nutraceutical-merchant-account

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