pharmacy merchant account
23 Oct

By ipaytotal

Category: best high risk merchant account provider, best high risk merchant services, Fraud Prevention, high risk merchant account application process, high risk merchant account instant approval uk, high risk merchant account pharmacy, high risk merchant account provider, high risk pharmacy merchant account, online payments, pharmacy merchant account, pharmacy payment processing

Important Guidelines of a Pharmacy Merchant Account Comments Off

Important Guidelines of a Pharmacy Merchant Account

High Risk Merchant Account for Pharmacy

Pharmacy Merchant Account

Setting up an online pharmacy store is one of those options where you not only fulfill your entrepreneurial dreams but also get the satisfaction of helping people lead a better, healthier life. The idea of an online pharmacy is centered around offering a wide choice of non-prescriptions OTC (Over The Counter) drugs, filling out prescriptions, delivering in time the drugs purchased to patients and making their lives a great deal easier.

And yet, online pharmacy store – also called distance-selling pharmacy – is largely an under-explored business even today. In 2016, prescription drugs to the tune of $158 billion were sold online in the USA alone. Compared to the entire pharmacy market, which is estimated at a little above $100 billion, the online sales stand at a mere 0.15% of the entire pharmacy business. This suggests a huge untapped potential.

Startups are bringing in various changes to introduce in different levels of value additions. For instance, while online pharmacies require customers to submit the prescriptions online, some startups also arrange to have the prescription physically collected from the customer’s location. Apart from value addition, this method lets the pharmacy better verify the authenticity of the prescription.

When a pharmacy merchant launches an online pharmacy site, one should have a pharmacy merchant account in order to receive credit/debit card payments from his clients. Since these accounts are likely to handle a majority of the financial transactions, it should belong to a trustworthy institution that would not only process the payments in time but would also assure protection of the personal account details of the pharmacy merchant.

As pharmacy merchant has to open a high-risk pharmacy merchant account, he must follow certain guidelines which are related to the opening of the merchant account. One of the first recommendations which are made to the pharmacy merchant in this regard is to ascertain his exact requirements from a credit/debit card processing solution. This should be done by assessing the processing requirements as well as the volume of processing as some providers place limits on the volumes of such merchant accounts.

While designing a pharmacy website, one should be realistic about the expenses involved in it. Among the other things, these expenses include very high fees which are incurred for opening a high risk merchant account and these should be taken into consideration by the pharmacy merchant especially while putting forth one’s profits projections.

Comparison between the various providers is a TT-time tested method of selecting the best provider and an important yardstick for comparisons between the various companies is the TT-time taken for them to reply to a simple query sent by the customer always.

After selecting a provider, the pharmacy merchant must be prepared to come forth with all the personal as well as financial details about both himself and his company. In addition, one should read the document provided to him thoroughly to avoid controversy and misunderstanding at a later stage.

Pharmacy Merchant Account Approval Timeline

The time that it takes for a pharmacy merchant account approval varies with each type of solution iPayTotal offers:

  • Offshore online merchant accounts–with payment processing history, it may take from 5 business days to 2 weeks.
  • Offshore startup online pharmacy merchant account, it may take up to 5 business days to 2 weeks.
  • Domestic online pharmacy merchant account it may take up to 2 weeks.

People buy medicines online because of many reasons. Some of the reasons are.

  • Ease of purchasing from home: People do not prefer to travel and buy medicines these days rather buying Online from home is a lot easier it saves time and money both.
  • Cheaper to buy medicines: The Online seller may be from anywhere from the world from developing countries. The medication may be much more affordable and cost-efficient. Everyone would like to save money so they buy online medicines. Pharmacies from Thailand, The Philippines, Canada, and Australia are also famous as they are cost effective.
  • No physical means of communication needed: Sometimes people hesitate to talk to stores seller about their medicinal needs. Some may prefer to be anonymous while buying erectile dysfunction(ED) medication, so this mean of purchase is best for all consumers.
  • Faster Order Processing online: The online payment process is straightforward which saves time in getting change and other small issues related to cash flow. The merchant ships the medicines by using a reliable shipping company and provides it to the consumer.

Getting medicines online available now worldwide is a huge help to mankind. As per Statistic, The global online pharmacy market will reach USD 130 Billion by the year 2023. Merchant in the online pharmacy industry needs Merchant accounts and Payment Gateways so that they can do business with an easy flow. With credit/debit card processing accounts online pharmacy companies can grow multifold and become universal. There are excellent chances for merchants to grow and progress under such conditions. There are few requirements of online pharmacy merchant accounts and payment gateways that merchant needs to full fill before he can start. There is a major twist in the story. Online Pharmacy Industry is a high-risk industry as per banks and other departments. Domestic banks and acquirers rarely offer merchant accounts to high risk businesses due to the high rate of chargebacks. But now firms from this industry could get offshore pharmacy merchant accounts easily. IpayTotal assists merchants in getting high risk merchant account for online pharmacies. If you’re ready to fill out your free application for an online pharmacy merchant account, simply click here to get started, To find out more about IPAYTOTAL’s merchant services for online pharmacy merchant accounts, Give us a call at +44 800 776 5988 or get in touch with us through our website. We believe transparency and proactive education is the best policy.



Pharmacy business owners often have to face many hardships in getting approval for the merchant account application. The sole reason behind the similar response i.e. the rejection from the banks and merchant account service providers can be the tendency of the business to get the chargebacks frequently. The increased risks of getting the chargebacks and refunds make the lenders too cautious to approve your application for merchant account. It is not like they don’t want to render you the services but they act cautious about their money. This is on you how you can convince them to trust you for having the lower volumes of chargebacks. You can show your sales and chargeback track record and credit card history for winning their trust.

Why Online Pharmacies Are Considered High Risk ?

First,this has something to do with human health. Any product that people consumes gets more scrutiny from government regulators than other products. Even drugs for pets need more review than products that dogs and cats don’t consume. That means there’s a high hurdle for these products to make it onto actual or virtual store shelves.

Secondly, because of the very nature of the business: The online, card-not-present sale of narcotics.

Additionally, internet pharmacies often draw high chargeback rates and instances of friendly fraud, the combination of which makes acquiring banks leery of taking monetary risk.

Types of Chargebacks in Online Pharmaceutical Merchants

Two types of chargebacks are common in the online pharmacy industry:

Customer Dissatisfaction: When a consumer purchases pharmaceuticals online and is dissatisfied with the product for any reason,instead of contacting the pharmaceutical merchant for a refund, she/he contacts their credit card issuer and files a chargeback.

Friendly fraud: When a consumer purchases pharmaceuticals online with his/her credit card, receives the product, then notifies the credit card issuer that they never received the item.

The Fear of Legal Action

Lawsuits are another problem for medication vendors. Have you ever seen ads for law firms seeking patients who took certain drugs? They claim the medication causes serious side effects. Whether the case has merit or not, the idea that medication is creating health problems may spur patients to act. They might want a refund from their pharmacy if they took the drug.

In these cases, the pharmacy faces an investigation from the credit card company. While the credit card issuer looks into the claims, the pharmacy has thousands of dollars on hold. Customers like being able to ask for their money back. But the process places lots of stress on the merchant.

List Of Prohibited Pharmaceuticals

Prohibited Medicines

Ipaytotal supports pharmacy business. However, we do not work with businesses that sell controlled prescription drugs. Some prohibited pharmaceuticals include: ● A2 ● Acid ● Actiq ● Angel Dust ● Anorectic Drugs ● Barbiturates ● Beautiful ● Benzodiazepines ● Blotter Acid ● Blue Mystic ● Boat ● Bromo ● Buprenorphine ● Butorphanol ● BZP ● Candy ● Cannabis ● Cat Valium ● CCC ● Chloral Hydrate ● Codeine ● Coke ● Crack ● Depressants ● Dextropropoxyphene ● Dilaudid ● DM ● Drug Classes ● Duragesic ● DXM ● Easy Lay ● Ecstasy ● Fentanyl ● Foxy ● Foxy Methoxy ● Flunitrazepam ● Georgia Home Boy ● GHB ● Glutethimide ● Goop ● Hallucinogens ● Hashish ● Hashish Oil ● Hydrocodone ● Hydromorphone ● Inhalants ● Khat ● Kit Kat ● LAAM ● Legal E ● Legal X ● Liquid Ecstasy ● Liquid X ● Lortab ● LSD ● MDMA ● Maria Pastora ● Meperidine ● Meprobamate ● Mescaline ● Methadone ● Methcathinone ● Methaqualone ● Methylphenidate ● Morphine ● Narcotics ● Nexus ● Opium ● OxyContin ● Palladone ● Paracodine ● Paraldehyde ● Paral ● PCP ● Pentazocine ● Percodan ● Peyote ● Phencyclidine ● PCP ● Predatory Drugs ● Psilocybin ● Psilocyn ● Ritalin ● Robo ● Rock ● Rohypnol ● Rojo ● Salvia ● Salvia Divinorum ● Shermans ● Snow ● Special K ● Spectrum ● Spirals ● Stimulants ● Supergrass ● T7 ● Thebaine ● Tic Tac ● Toonies ● Triple C ● Tripstay ● Tweety-Bird Mescaline ● Tylox ● Talwin ● Two’s ● TwoC-B ● Tryptamine ● Ultram ● Velvet ● Venus ● Vioxx ● Vicodin ● Window Pane ● XTC ● Zoom

What Are The Transaction Rates For Online Pharmacy Payment Gateway?

The Rate of the transaction for a USA based merchant ranges between 5% and 10%. For merchants located outside the United States, the rate of the 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 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. This stands true to the online pharmacy merchant account. Most of the online pharmacies pay 5% to 10% of rolling reserve. Sometimes this can be as high as 20%. This rolling reserve helps the payment processing company in paying for future chargebacks. iPayTotal  suggests merchants to negotiate with processors to keep rolling reserve to 10%.

What are the KYC documents for Payment Gateway For Online Pharmacy?

The list of documents needed may be a bit longer than the following. Here is a list of necessary documents for ONLINE PHARMACY MERCHANT ACCOUNT 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 limits. Generally, your chargeback ration should be below 2%. If it exceeds, there are chances of account shutdown. Next, you should always work in the guidance of FDA and government rules. This will ensure lawful procedures and your account will be safe. If you work under the law and provide quality products with the best service, you will be safe. Though, illegal practices can lead to punishments.

Features of
iPayTotal Merchant Account Solution for Online Pharmacy

How We Help With Your Online Pharmacy Payment Processing


ven if you’ve been told by others that your business is “too high risk to do business with”, we will always work with high risk pharmacy  merchants.

We prefer to have a conversation with pharmacy merchants to start. This way, with a few questions about your business and no more than 10 minutes of your time, our account managers can get a feel for your business and know which of our pharmacy merchant account solutions is best for you.

iPayTotal merchant account solutions are customizable and ideal for any legal pharmacy business.We provide online pharmacy merchant accounts to actual online pharmacy websites and online supplement websites (body building, herbals, dietary, enhancement, etc.). We have much experience in the field and we know how to do best of your business to provide you with the best credit card processing rates and terms. Every online pharmacy business has a chance to be able to process credit cards, thus make profits.

Pharmacy Merchant Account Features:

  • Weekly payouts
  • Real Time Payment Processing
  • No volume restrictions
  • Easytouse Virtual Terminal
  • Low Processing Fees
  • Support most popular shopping carts
  • Multiple Currencies Support
  • Repeat/Recurring Billing
  • Transaction Fraud Scrubbing
  • Detailed reporting of sales, refunds, chargebacks and settlement of funds
  • API Integration and hosted payment page

Definition of Internet Pharmacy

Visa Inc. uses the following definition in determining whether a merchant is an Internet pharmacy: A merchant is an Internet pharmacy if it sells, dispenses or markets, or facilitates the selling, dispensing or marketing of, a prescription or pharmacy-only medicine in response to orders placed over the Internet. Merchants that facilitate the sale of prescription or pharmacy-only drugs, but do not directly ship the drugs themselves, sometimes claim that they are exempt from having to comply with regulatory requirements because they are not a pharmacy, but merely an affiliate marketer. For example, a merchant may state that they only operate the website and are not personally responsible for shipping the drugs. Or, they may argue that they are not licensed as pharmacies, therefore they cannot be called an Internet pharmacy. These arguments should be rejected. Any facilitation of prescription drug or pharmacy-only drug orders conducted over the Internet should cause you to view the merchant as an Internet pharmacy.

Payment Gateway Features









Share this Post!

Tags: , , , , , , , , , , , , , , ,

Post Calender

October 2018
« Sep Nov »