Vitamin Merchant Accounts: The Ultimate Guide
A vitamin merchant account is a specialized payment processing solution designed for businesses that sell vitamin pills and related products. These specialized merchant accounts are designed to meet the unique requirements of vitamin businesses. Such accounts are generally provided by high-risk credit card processors.
A regular merchant account might not be the best fit for your vitamin business. This is because most low-payment processors consider handling vitamin accounts difficult. However, with the dedicated vitamin merchant account, you can experience smooth payment processing while carefully mitigating associated risks.
QuadraPay has been providing vitamin merchant accounts to qualifying businesses since the year 2016. Our team has created this guide with the sole purpose of helping vitamin businesses like yours. In this guide, we have discussed important factors such as why vitamin businesses are classified as high risk by acquiring banks, how to choose the best payment processor, and how to reduce chargebacks and increase the approval rates. We are confident that this guide will give you an excellent understanding of credit vitamin sales payment processing. Let’s begin.
Why Vitamin Businesses Need High-Risk Merchant Accounts
Most of the traditional low-risk payment service providers shy away from businesses in the vitamin, supplement, herbal, and nutraceutical sectors. They consider these businesses as high risk. Let us explore some key reasons behind the behavior of sponsor banks.
High Chargeback Rates
Vitamins and related products are sometimes sold by merchants by making fake health claims. This can be a significant problem for processors. Businesses in this industry must avoid making any claims related to health benefits. If the payment processor finds the merchant doing so, then they can shut down the account anytime.
Subscription Model
Most of the vitamin sale companies bill their customers using subscription models. Although recurring payment is not a problem, if the customer is unsure about recurring debits, then it can create a problem for the processor. Such instances can increase chargeback and dispute percentage.
International Sales.
Many companies sell their products to international customers, and this can create challenges relative to cross-border payments. The product might be legal in some countries and maybe prohibited in others. It is important for the merchant and the processor to ensure that the product being sold is legit and is valid for sale in the target nations.
Any processor that onboards accounts from this industry without detailed evaluation can risk merchants money. It is important for businesses like yours to work with specialized and reliable high-risk merchant account providers that have experience working with vitamin merchants like you.
Features of a Vitamin Merchant Account
Merchant account solutions come with some amazing features that will work as your greatest support system when it comes to payment processing. Let us look at some of these features in detail.
High-Risk Approval
While many providers may simply say no to vitamin businesses, we offer a very high approval rate for such businesses. This is because we are connected with multiple acquiring institutions in Europe and America that support legitimate vitamin businesses. We can also support businesses selling related products such as herbal and dietary supplements, wellness products, and weight loss products.
Recurring Billing Support.
We are well aware that your vitamin store will need a recurring billing option, and that is why we are ready to provide you with such a facility. With recurring billing support, you can rebill your customer on a monthly basis. This is important to ensure monthly vitamin delivery at your customers doorsteps.
Chargeback Protection
The payment gateway that we provide comes with advanced security features such as 3DS, AVS, CVV, and an option to add chargeback alert services. By combining all these features, you will reduce the risk of dispute and chargebacks.
Compliance-Friendly
All of our solutions are powered by some of the finest and most compliant payment processing companies, and that is why when they onboard your account, you can rest assured that they have done proper vetting. This will reduce the risk of payment holds and sudden account closures.
Multi-Channel Sales.
We offer an omnichannel payment solution for vitamin merchants. That means you will be able to accept payments on your website, at your retail store, and also on your mobile application. One provider will handle all your payment processing requirements.
How to Get Approved for a Vitamin Merchant Account
As we have already mentioned in this guide, vitamin sales are considered high risk, so it is important for you to understand the application process to improve the chances of your account approval.
Provide Detailed Business Information
At the time of application, make sure that you provide all the business and personal documents requested by the payment service provider. We also encourage you to provide a business plan and the resumes of the directors to improve the chances of account approval.
Show Chargeback History
Keep in mind that our partners do not onboard merchants that have over 1% chargeback rates, and that is why it is important for you to apply only if you can display less than a 1% chargeback ratio. In case you are struggling with chargebacks, you can still apply; however, a high chargeback ratio will reduce your chances of approval.
Avoid Aggressive Marketing Claims
Keep the image of your website professional and legit. Do not make fake health claims, as this can trigger immediate rejection. Avoid making any marketing plans related to the health benefits of the products.
Consider offshore processing just in case none of the domestic payment service providers are ready to onboard you. There are various offshore credit card processing companies that can potentially support your business.
FAQ: Vitamin Sales Payment Processing
How to reduce chargebacks in vitamin sales?
Chargebacks are a headache for the merchant and the payment service provider. It is important for you to take every step that helps you reduce these instances. Your website must have clear return and refund policies. When customers initiate a dispute, then they check the refund policy. Sometimes if these policy pages are not visible on your website, then they immediately raise disputes. Make sure that these policy pages are easy to find.
After every successful order, you must send order confirmation and tracking to the customer. Platforms like WooCommerce and Shopify have an instant order notification feature that sends the order confirmation email to the customer. Sending the tracking information gives the customer the comfort that the product is shipped.
We are pretty sure that for your business you will be using recurring payments. That is absolutely fine, but make sure that you notify the customer before rebilling. Many companies send an SMS and email to the customer a few days before the deduction date. This helps customers keep the account funded so that the supplies are not interrupted.
Be cautious about chargebacks, but do not fear them if they come. You should fight fraudulent chargebacks. Working with a good payment service provider can help your chances of winning disputes because of quick communication.
Final Thoughts: Choosing the Right Vitamin Payment Processor
A merchant account can be the most important element for your vitamin business, but as you know, most credit card processors do not support this industry. You should work with specialized payment processing companies for long-term success. Along with that, you must ensure that you maintain a low chargeback ratio and use fraud prevention tools. By following the simple steps mentioned in the guide, you will be able to get approved for a reliable vitamin sales payment processing account.
If you need any assistance, then feel free to email us at [email protected].
Suggested readings
https://www.marketsandmarkets.com/Market-Reports/vitamins-market-159097794.html