Merchant Account for Online Pharmacy

Update :- Currently We Only Offer Echeck Solution To Pharma Merchants Selling Non- Controlled Items. No Card Processing Solutions

Feel Free To Get In Touch With Us!

Quadra Services
#4 FF-A Block Omaxe Gurgaon Mall, Sohna Road Gurgaon Haryana India 122018
+91 9643614168(India)

#Kemp House, 160 City Road, London, EC1V 2NX, UNITED KINGDOM Registered in UNITED KINGDOM, Number 11095222
+44 05603845586(UK)

Skype – Netcaller
+1 6318321773(USA)

What is an Online Pharmacy?

Online Pharmacy refers to a website where people can purchase medicines. Online pharmacies display the entire list of medicines which they sell. Customers can make the selection and checkout by filling some required information and making payments. The customer creates a username and password on the online pharmacy website while making the purchase. The Shopping cart sends the order information along with the shipping information to the customer in email format. After the successful processing of transaction the merchant ships the medicines to the buyer. Most of the online pharmacies sell medicines to customers located in multiple countries.

Why do people buy medicines from Online Pharmacies?

People buy medicines from online pharmacies because of multiple reasons. We will not be able to discuss all the reason but few of the most prominent are listed below.

  • Ease of making the purchase from home. We all hate to travel and purchase these days. Making online purchase is lot easy.
  • Cheaper medicines since the seller may be located in a developing country like India, Thailand, Philippines, African Nations or European Countries. Everyone loves saving money.
  • No physical interaction needed. Sometimes people do not like to talk to others about their personal medicinal requirement.

Why are Online Pharmacies considered as a High Risk Business?

There are multiple reasons why online pharmacies are considered extremely high risk in nature. The most common reason is the product itself. Medicines can have a massive impact on the physical and mental health of the customer. This is the core reason why different Govt Agencies have created a list of control medicines and substances. Online pharmacies should never sell controlled medicines. Just for a small profit, they should not take someone’s life for granted. Credit Card processing companies understand this and that is why it is extremely difficult to get a Credit Card merchant account for pharmacy. Honestly, none of the payment service providers we work with offer any Credit Debit Card Processing account to Online pharmacy Merchants.

What Payment Options are available for online Pharmacies?

Looking at the present scenario the only available option for merchants in this industry would be the electronic check or ACH Payment Processing Solution. Merchants must be aware that they are not allowed to sell any control medicines even by using ACH or echeck as a payment processing method. Merchants are responsible for all their activities while using the merchant account or payment gateway.

Update :- Currently we only offer echeck solution to Pharma Merchants selling Non- Controlled Items. No card Processing Solutions

What are the requirements to start an online Pharmacy Business?

Online pharmacy website should list all the medicines that are sold by the business. The website must be SSL protected and should be integrated with the echeck payment gateway via the API integration technique. A proper description of every medicine is vital. The online pharmacy must have a registered pharmacist. The registered pharmacist must look at every prescription before shipping any order. The business must have proper legal licenses as per the country where the buyer and the shippers are located. They should have a proper import-export license along with relevant medicine sales or drug licenses. The ACH Processing company or the echeck processing company will share a list of documents that are needed for the approval of the account.

Can I take payments by echeck or ACH for the sales made on my online pharmacy?

Yes, you can accept payments by using echeck or ACH Payment Processing Solution. To do this you will have to apply for the same with any echeck processing company. Most of the processes approve accounts in less than 5 business days. merchants can be located in countries outside the United States, for example, India, Philippines, Thailand or any part of Europe.

Please keep in mind that the process of approval is not easy and is very strict. All your documents are checked and your risk profile is analyzed. The processor checks every segment of your website and may approve or reject the application depending upon their internal analysis.

If you have a ready website and also have all the previously listed documents available then you can click the apply now button and start the application process. Quadra services will send your application to the Echeck payment processor. Our team will keep you updated about the developments and the responses on your application. Once the underwriting team approves your account internally they will send you a merchant account agreement with all the terms and condition. You will have to sign the agreement and send it back to the payment processor. Once this is done you will get the login to the echeck payment gateway. The processor will also help you with the API documentation. Your web developer or technical team can easily integrate the Gateway with your website.

The order processing involves multiple steps. Here few of them

  • Customer visits the online pharmacy website.
  • The customer makes the selection of the medicine and by clicking on the checkout option the customer proceeds to a form.
  • On this form, the customer fills the shipping information along with additional personal details that include Name, Email Address, and phone number.
  • At the next step, the customer fills the account number and routing number.
  • This information is securely transferred to the ACH payment processor or the echeque payment gateway company.
  • The payment processor receives the information and calls the customer to verify the quality of sale.
  • The purpose of Voice Verification is to confirm that the customer really placed the order. This verification call also helps the processor to understand if the merchant is implementing any incorrect business practice.
  • Once the verification team is satisfied by the response of the customer they send the check for processing.
  • Once the check processing is approved the merchant gets the information in the Merchant control panel as an approved transaction.
  • The merchant can now start the shipping process.
  • As the tangible products are received by the customer then the merchant must keep the proof of delivery for at least 24 months. This proof of delivery can be used in case if any incorrect dispute has been raised by the customer.

International merchants get paid weekly with one week arrears. Merchants located in the United States can be paid faster by the processor.

With the gateway, you get two different options that help you to collect payments from the customer.

The first option is with the API. Your technical team can create a payment form or integrate the Gateway on to the Shopping Cart by using the API configuration

The second option is the virtual terminal. With the virtual terminal, you can put the order information directly into the virtual terminal that is located inside your merchant account panel. To process the order you will need the following information

  • Customers name
  • Email
  • Billing address
  • Shipping address
  • Account number
  • Routing number
  • Account type
  • Amount of transaction

Yes, that is correct you get the access to the virtual terminal that can be very useful in placing orders for your online pharmacy. Control panel shows you the list of orders including the orders that were approved, declines or orders that are on hold.

  • The Rate of the transaction for a merchant that is located in the United States ranges between 5% to 10%.
  • For merchants located outside the United States, the rate of transaction can be between 10% to 13%
  • Please keep in mind that most of the processors charge a per item fee. This can be up to $6 per transaction.
  • The processor may also charge a fee for transaction returns and insufficient fund transactions.

Every High Risk Business has to face the challenge of accepting a rolling reserve on the merchant account. This stands absolutely true to the online pharmacy business. Most of the online pharmacies pay 5% to 10% of Rolling reserve. This rolling reserve helps the payment processing company in paying for future risks.

It is mandatory to have a supplier agreement if you are selling any tangible products. You may search on the Internet to find sample supplier agreement or vendor agreement. This agreement must be signed and certified by the respective parties.

The list of documents needed may be a bit longer than the following. Here is a list of basic documents that are needed with echeck application

  • Business License
  • Vendor Agreement/Supplier Agreement
  • Business Plan
  • Copy of national ID of all the Owners
  • Copy of address proof of Owners
  • Utility Bill of all the directors
  • Cancel Check or letter of good standing from the corporate bank
  • A Non-expiring user id and password of the merchant’s website