Will New Regulations Kill the Nutraceutical Market in Canada?

Jun 01, 2015

The United States’ nutraceutical market has taken a major blow as inquiries led by legislators have revealed that many vitamins and nutraceutical companies are lying about what’s in their products. This industry is not regulated like most products in the U.S. The Federal Drug Administration, the entity in charge of food and drug regulation, does not have a say over what many nutraceutical companies actually put in their products. Recent discoveries of products containing fewer ingredients than listed on the bottle or none at all, has caught the attention of many in and outside of the market.

Recently, Canada created more regulations and requirements for those in the nutraceutical business. Now the Canadian government requires all new nutraceutical imported into Canada to carry a Natural Product Number (NPN) and be imported by a Health Canada licensed facility. This means that nutraceuticals imported from the United States, must be assessed and approved by Health Canada and a site licensed facility. Considering what has been happening in the U.S. lately, this could cause a swift decline of nutraceutical imports and put a major dent in some or all industry profits.

Still some in the business say there are ways to keep nutraceuticals on the shelf. The first step is to partner with a Canadian site licensed facility. This relationship will add significantly more credibility to some companies, while making it easier to obtain a NPN. For cosmetics companies, it means getting a cosmetic notification (CN) is more important than ever. Getting a NPN can take between two and six months. In addition, nutraceutical companies must also provide a list of ingredients in the product, the dose, potency, non-medical additions, and recommended use to site licensed facilities. Ensure you know about new labeling requirements. Some things that must be listed on bottles are: any need for special storage, quantity of pills in the bottle, product license number, and more.

The new rules in Canada do not have to be a killer to your nutraceutical merchant account. All you need is an experienced payment processor who understands the regulations and can guide your business down the right path.

Let us help you get a high risk merchant account today!

Get Started

Award winning.

  • 2012
  • 2013
  • 2014
  • 2015
  • 2016

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.

Live Chat