Merchant Account for Online Pharmacy

Update :- Currently We Only Offer Echeck Solution for Pharmacy Merchant Account Selling Non- Controlled Items. No Card Processing Solutions

Overview of Pharmacy Industry

The world has taken a great leap towards technological advancements. There have also been many discoveries in science and health industry. As a result, the medicine and pharmacy industry has grown extensively. You can find pharmacies, hospitals and medical centres everywhere around. Now the expansion has taken e-commerce and online platform also. A person can go online and order for medicines and even consult doctors for the treatment. This has made human life quite easy. Therefore, anyone can take care of his health. For online business, pharmacy industry also needs online accounts and payment processing solutions. If a pharmacy merchant has online payment options, business can grow multifolds. This is actually a great chance for merchants to grow and progress. Hence, there is requirement of online pharmacy merchant account and payment gateway. What we can call the twist in story is pharmacy is considered high risk industry. Domestic banks and acquirers usually refrain from giving a merchant account to high risk businesses. But now the market has other options to facilitate pharmacy merchants. We, at Quadrapay provide best support to get high risk merchant account for online pharmacy. You can apply on or reach us on [email protected]. Our 24*7 helpline +1 63183 21773 is also readily active to help our clients throughout the process.

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What is an Online Pharmacy? How does it work?

Online Pharmacy refers to a website where people can purchase medicines. Online pharmacies display the entire list of medicines which they sell. The customer creates a username and password on the online pharmacy website before making the purchase. At times the customer can be directed straight to checkout page without login. Customers can make the selection and checkout by filling required information and making payment. The Shopping cart sends the order information along with the shipping information to the customer in email format. After the successful processing of transaction, money transfers to the online pharmacy merchant account. After this, the merchant ships the medicines to the buyer. Most of the online pharmacies sell medicines to customers located in multiple countries. The Pharmacy industry is expanding fast in present time and online market is taking a huge share in this. 

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

Why do people buy medicines from Online Pharmacies?

People buy medicines from online pharmacies because of multiple reasons. Some of the major reasons are listed below.

  • Ease of making the purchase from home. People do not prefer to travel and purchase these days. Making online purchase is a lot easier.
  • Cheaper medicines can be availed This is because the seller may be located in a developing country like India, Thailand, Philippines or African Nations. Everyone would like to save money.
  • No physical interaction needed. Sometimes people hesitate to talk to others about their personal medicinal requirement.
  • The payment process is also quick and easy which reduces manhandling to some extent.
  • Customers can also get medical consultations online from pharmacy websites at competitive prices.
  • Many a times, online pharmacy websites have attractive offers that are economical for customers.

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Why Online Pharmacy Merchant Account is Considered As A High Risk merchant account?

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 Government 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 put someone’s life at risk.

Rules and regulations applied by government authorities make it difficult for domestic banks to onboard pharmacy merchants. Even FDA (Food and Drug Administration) Authority has strict and stringent policies. Apart from this high chargeback is also a drawback. If customer is not satisfied with product, he files a chargeback. This puts the merchant or acquirer in loss. There have also been instances of friendly frauds in this industry. Credit Card processing companies understand this properly. 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. We offer reliable and better Echeck solutions for pharamcy merchant account.

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What Payment Options Are Available For Online Pharmacy Merchant Account?

The best available option for merchants in this industry is the electronic check or ACH Payment Processing Solution. Merchants must be aware that they are not allowed to sell any controlled medicines even by using ACH or echeck as a payment processing method. Though these days merchants are also setting up merchant accounts for credit card processing. But that is a tough path with many hindrances. Merchants are responsible for all their activities while using the merchant account or payment gateway. This industry requires strict law abiding ethics. Quadrapay experts suggest pharmacy merchants to carefully frame the online selling lists and stay within limits of law. The check 21 solutions are quite a facility for merchants. If it is used wisely, merchant can save from chargebacks. The chargeback rate is quite higher in credit card processing option and this can be a problem for the merchant.

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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 and government certification. 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.

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Can I take Payments by Echeck or ACH for the sales made on my Online Pharmacy Website?

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 analysed. The processor checks every segment of your website. They may approve or reject the application depending upon their internal analysis. At times it is easier to get online pharmacy merchant account from offshore merchant account providers than from domestic processors.

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How to Get a Payment Gateway or Merchant Account for an Online Pharmacy?

If you have a ready website and also have all the previously listed documents available then you can click ‘apply now’ icon 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. At times, the API integration can be directly integrated just by purchasing the same.

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How does The Order Process Work on a High Risk Payment Gateway for Pharmacy?

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. This includes 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 echeck 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. The hold period for pharmacy merchant accounts in offshore in longer. 

How Can I Integrate The Pharmacy Payment Gateway On My Website?

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 or MOTO. 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

Does The Pharmacy Merchant Account Or Payment Gateway Offer Virtual Terminal Feature?

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, declined or orders that are on hold. You can keep a complete track of your sales and maintain the accounts. Virtual terminal can be very helpful for your online pharmacy merchant account.

What Are The Transaction Rates For Online Pharmacy Payment Gateway?

  • The Rate of the transaction for a merchant that is located in the United States ranges between 5% and 10%.
  • For merchants located outside the United States, the rate of transaction can be between 10% and 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.

Is There Any Rolling Reserve For Pharmacy Merchant Account?

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 merchant account. Most of the online pharmacies pay 5% to 10% of rolling reserve. Sometimes there has been a hike till 16% of rolling reserve. This rolling reserve helps the payment processing company in paying for future risks. Quadrapay suggests merchants to negotiate well with your processor to keep low rolling reserve.

Do I Need A Supplier Agreement Or A Vendor Agreement To Sell Medicines Online?

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. Following laws, rules and regulations is quite important for online pharmacy merchants. This ensures a stable and growing business.

What Are The Documents That Are Needed If I Want To Get A Payment Gateway For Online Pharmacy?

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

How can I maintain my pharmacy merchant account for long term?

This is not as easy as it seems. You must avoid high chargeback and stay within the prescribed chargeback ratio limits. Generally, your chargeback ration should be below 2%. If it exceeds, there are chances of account shutdown. Next, you should always work in guidance of FDA and government rules. This will ensure lawful procedures and your account will be safe. If you work under law and provide quality products with best service, you will be safe. Though, illegal practices can lead to punishments. Similarly, customers should also stay away from friendly frauds. They can go to jail for false chargeback acquisition. 

Conclusion can be one point solution to get online pharmacy merchant account. Having online pharmacy business is not as easy as having a T-shirt printing business at home. The expert team of Quadrapay has comprehensively evaluated the best in class service providers. We have figured out processors with the most competitive pricing. We have resolved to help the high risk merchants with our specifically tailored support solutions. Any merchant can easily enroll with us by filling the short and easy application form available online on our website.

The team of excels in helping you find best processors and service providers for your high risk merchant account. We provide serivces globally in USA, UKCanada, Australia, Europe and Asia. If you are facing any trouble in getting the account, we are ready to help you. You can sign up the application form at or send us a query on [email protected]. You can also call us on our 24*7 helpline +1 6318321773.

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)

+44 05603845586(UK)

Skype – Netcaller
+1 6318321773(USA)

About Quadra Services works as a bridge between merchants and payment processors. We are proud to be the resellers of many domestic and international payment processors. The approval of any application is subject to the approval from the respective Payment Service Providers. Merchants must comply with the terms and conditions of respective service providers. Read Detailed Terms and Conditions Here

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