Each year, the number of Americans taking supplements climbs a little higher. With more and more nutraceutical merchants entering the market to fulfill this demand, it would be easy to believe that the process is straightforward, and all merchants are successful. However, that belief would be wrong.
Unfortunately, certain factors make banks and other traditional providers incredibly nervous. As a result, the nutraceutical industry is considered to be high-risk. This reputation has made it very difficult for these businesses to secure the merchant services they need to protect their businesses transactions and offer efficient credit card processing options.
Why Nutraceutical Merchants are Considered High-Risk?
So, why are nutraceutical businesses categorized as high-risk? The following are two of the most common reasons and some of the biggest obstacles these merchants encounter:
Chargebacks. The nutraceutical industry has an unfortunate history of high chargeback rates, due to dissatisfied buyers. A big reason for this is that these supplement/vitamin companies use subscription billing to sell their product. Many buyers do not realize they were subscribing to get a new product on a monthly basis, leading them to refuse to pay for the subscription – and a chargeback occurs. In response, credit card processors have categorized supplement and vitamins as “high-risk” and charge extremely high rates for nutraceutical transactions.
Insufficient Government Regulation. Another reason processors label this industry “high-risk” is because these products and supplements are not tightly regulated by the government. As a result, claims are made about products that are not substantiated by a regulatory body. Buyers purchase the product, expect to see the results that were promised, and then blame the merchant when they are not happy with their experience. Leading to a strong case of buyer’s remorse, a dissatisfied customer, and a chargeback. Worst case scenario, the situation could also result in legal issues.
What is a Nutraceutical Merchant Account?
Because banks typically deny funding and payment processing to this industry, more and more of these merchants are turning to alternative providers like eMerchantBroker.com. As a high-risk specialist, EMB has years of experience in helping merchants other providers consider “too risky”, and provides services specifically tailored to meet the needs of each industry it works with. A nutraceutical merchant account allows these merchants to not only secure the credit card processing services they need, but also take advantage of electronic check processing, chargeback protection and prevention programs, and flexible business funding options.
The Many Business Types in the Nutraceutical Industry
The nutraceutical industry is made up of both large corporations and small businesses. These businesses develop and manufacture vitamins, dietary supplements and herbal remedies, and other natural health products. Some businesses specialize in offering niche nutritional products, while others are focused on researching and manufacturing the products.
eMerchantBroker.com offers nutraceutical merchant accounts to businesses that sell the following products:
- Dietary supplements
- Medicines made from botanical ingredients
- Natural male enhancements
- Nootropics, such as cognitive enhancers
- Weight Loss supplements
- Workout and sports performance supplements
What to Expect – The Merchant Account Application Process
One of the reasons merchant accounts from alternative providers have become so popular is the simplicity of the process. Unlike working with a traditional provider, eMerchantBroker.com promises a fast, streamlined process when applying for a nutraceutical merchant account. The requirements are minimal, and merchants are approved in as little as 24 hours. Merchants simply submit the following items to the processors and underwriters:
- A valid, government-issued ID, such as a driver’s license
- A bank letter or a pre-printed voided check
- 3 months of the most recent bank statements
- 3 months of the most recent processing statements, if applicable
- A SSN (Social Security Number) or EIN (Employer Identification Number)
- Chargeback ratios must be under 2%
If you would like to learn more about a nutraceutical merchant account or begin the application process, contact the team of experts at eMerchantBroker.com today.