How to Get a Nutraceutical Company Merchant Account

Jan 11, 2019

To keep diseases, like high blood pressure, at bay and to maintain optimal wellness levels, consumer demands for supplements and nutraceuticals continues to rise.

From products that improve joint health to those that boost intestinal health, the global nutraceutical industry provides countless ways for people to stay nourished and healthy. Despite the demand and popularity, a lack of regulation and false claims about health benefits challenge businesses that sell these products. So, when a nutraceutical company applies to a bank for a merchant account to accept debit and credit transactions, it hits a wall.

Like many other companies that are classified as “high risk” by lenders, nutraceutical companies have uphill battles when they seek nutraceutical company merchant accounts. Banks and traditional lenders rather not work with these types of businesses because there is a good chance these businesses will cost them money in the long run.

Reasons Nutraceuticals Are Risky

Lack of Regulation

Like other businesses that fall into the high risk category, nutraceuticals is one of those markets that has sketchy, unclear, or nonexistent laws. In this case, nutraceuticals and herbal products are not well regulated. Unlike prescription drugs, supplements and similar products do not have to undergo strict trials by the U.S. Food and Drug Administration. Since nutraceuticals do not get tested for the purity of their ingredients and whether the products does what they claim to do, these items have a reputation for excessive chargebacks from unsatisfied customers, as well as has the potential for lawsuits.

Recurring Billing

Nutraceutical companies are known for putting information about billing, returns, and refunds in fine print, which customers rarely read or understand. Most times, since supplements are to be taken continuously to ensure effectiveness, these companies sign customers up for recurring billing. This means that customers are charged monthly or another scheduled basis that coincidences with them receiving their next batches of products. In some cases, customers are not aware of this and when they see another charge on their credit card statements, they initiate chargebacks. This also happens when a customer signs up for a trial of a product, not realizing that the trial actually enrolled the person into buy the item on a monthly basis.

The Last Word on Nutraceutical Merchant Accounts

The best way to proceed is to know your risks and prepare to have to pay slightly more for payment processing, to create a rolling reserve account, and to deal with some transaction volume limitations. However, if you can show that you have a good business model, sell quality products that do not trigger too many chargebacks and returns, you can request that a merchant service provider take another look at your account to get some of the limits adjusted.

Ready to Apply?

When it’s time for you to apply for a merchant account for your nutraceutical company, think about moving forward with a merchant service provider that specializes in working with high risk businesses. Though the pool of high risk merchant service providers is smaller, there are still plenty of alternative lenders who want to work nutraceutical companies. (EMB) is merchant account provider that works with high-risk businesses, and offers personalized payment solutions. EMB works with businesses with poor credit scores, no processing history, and previous history of terminated accounts. EMB can help you get the proper credit card processing account for your business. Apply today to experience an easy, streamlined application process.

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Having a merchant account allows an account holder to take advantage of merchant cash advances. When a merchant is approved for an advance, the business agrees to receive a lump sum of cash in exchange for an agreed-upon percentage of future credit card sales.

Pricing varies depending on the merchant’s industry, past credit card processing history, the type of business seeking the account, average ticket sales, and average transaction volumes.

Yes, EMB works with merchants who are building their credit, as well as those who have poor credit. EMB also approves merchants that have no credit card processing history and businesses that have lost their merchant accounts due to high chargebacks.

Several factors influence a merchant’s risk level. Though only one factor likely will not get a merchant classified as high risk, a combination of these may: business size, location, and industry, credit score, credit card processing history, a industry’s reputation for excessive chargebacks, a prior history of high chargeback ratios, and whether a merchant exclusively sells online.

Virtual terminals are stationed on a merchant’s website, making it easy for customers to make a payment or purchase online. Merchants or a payment processor can easily set up virtual terminals, so online businesses can accept credit and debit card and e-check transactions.

A merchant account is a business account with an acquiring bank. Without this business account, which actually works more like a line of credit, a merchant cannot accept and process credit and debit card transactions. Businesses need a merchant account to accept major credit cards via a static point-of-sale terminal, mobile card reader, or through a virtual payment gateway.

After filling out EMB’s simple online application and submitting any necessary, requested documents, many merchants get approved within 24 and 48 hours.

EMB specializes in working with high-risk merchants. EMB works with many merchants, including but not limited to businesses in these industries: gambling and gaming, adult entertainment, nutraceuticals, vaping and e-cigarettes, electronics, tech support, travel, high-end furniture, weight loss programs, calling cards, e-books and software, and telecommunications.

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