Nutraceutical Merchant Account
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QUADRAPAY EUROPE LIMITED
#Kemp House, 160 City Road, London, EC1V 2NX, UNITED KINGDOM Registered in UNITED KINGDOM, Number 11095222
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Today’s business environment has produced immense opportunities for growth in the nutaceuticals industry. Daytime television personalities regularly sing the praises of natural remedies and supplements, and the Internet both enables the rapid spread of new trends in natural health products and makes it much easier for customers to purchase them. That’s why it’s so important for nutraceuticals merchants to have the ability to accept credit cards – being unable to offer customers the ability to use their preferred from of payment results in enormous missed opportunities to increase sales.
Approval For a Merchant Account.
However, being approved for a merchant account is not always easy for health supplement businesses. The nutraceuticals industry is considered “high risk” by credit card processing companies and many traditional financial institutions won’t even talk to you once they hear what kind of products you sell. looking at the few payment processors that are interested in your business, it can be hard for a startup or growing business to find one offering affordable fees and favorable account terms.
Why is the Nutraceuticals Industry Considered “High Risk”?
The reason is a few supplements/vitamin companies racked up a huge history of chargeback from dissatisfied buyers. This was caused because they were using subscription billing to sell their products. This means they would sell product and subscribe customers to get charged for a new product each month. They did it in a way buyers did not realize they were subscribing to get a new product each month. In response many would refuse to pay for the subscription and chargebacks occurred. The credit card processors responded by categorizing supplement & vitamin companies as “high risk” and charging extremely high rates for nutraceuticals transactions.
Payment Processing Companies
Payment processing companies classify certain types of businesses as “high risk” based on a number of factors, most of which boil down to the possiblity that doing business with a merchant in that field will end up costing the financial institution money. There are a few reasons that nutraceutical merchant accounts are considered high risk.
Natural Supplements are not Well Regulated
Manufacturers do not have to submit their products for testing in the same way that traditional drug companies do, So some remedies make it to the market without being proven safe, or even proven to contain what they claim to. This increases the risk of legal action against businesses that manufacturer and sell these natural products, as well as the risk of chargebacks from unsatisfied customers.
Several Natural Supplement Companies
Several natural supplement companies have included continuity billing in their business model in which customers authorize what they believe to be a small, one-time charge to their credit cards, only to discover later that they are being billed a much higher sum on a monthly basis because they failed to read the (deliberately well-concealed or absent) fine print. Businesses that utilize this business model have made payment processing companies understandably wary of nutracetical merchants. Not only do much fraudulent business practices increase the risk of chargeback and legal action, but they also risk turning potential customers off of the industry in general, since consumers have limited means of telling apart the fraudsters from the honest merchants.
How Can A Nutraceutical Merchant Accept Credit cards?
Despite having worked to maintain good credit and an honest business reputation, your may have trouble finding a payment processor. Still, the ability to accept credit and debit cards – especially through an online payment portal – opens a nutraceutical merchant up to a much broader customer base than would otherwise be able to access. You want the greatest number of people to have the opportunity to benefit from your health remedies, and don’t want to be charged a high percentage rate and a higher than necessary reserve term. That’s why you need a nutraceutical merchant account provider who is not only willing to approve businesses in high risk industries, but is also open to discussing with you what your business needs, and is invested in your success. There are a number of well-earned reputation account suppliers which are responsive to clients and work with them to find nutraceutical credit card processing solutions that fit their needs and will help their business flourish.