A nutraceutical merchant account furnishes business owners the abilities to accept credit cards, debit cards, and stored value cards, for payment on goods and services. A Nutraceutical Merchant Account allows merchants( Nutra company owners) to accept credit or debit card payments for the high risk nutraceutical industry.Another preference to be considered would be high risk ach processing to directly bill customers checking accounts. The final option would be adding a gift card program to increase sales.
Exclusive Nutraceutical Merchant Services & Credit Card Processing for the Nutra Industry
Who Needs Nutra Supplement Merchant Accounts:
As the fitness and health conscious millennial generation has adopted supplements as part of their everyday rituals, the Nutra supplement business has undergone explosive growth. According to Nutraceutical World, The international nutraceuticals market will keep growing at 7.3% through 2021. Much of this expansion is because of the constant steps made by the health-conscious consumer towards functional foods and drinks, nutritional supplements and personal fitness. Nutraceuticals cover a very broad set of goods provided under the pretext that they’re sourced naturally. These products have a tendency to be defined from the naturally sourced ingredients which go into, like supplements, foods, and medications.
With such negative light being cast on GMOs along with other genetically modified foods, a golden chance for growth is in the nutraceutical market. With lots of vendors utilizing the expansive online market, the time is now to expand your sales reach with a Nutra Merchant account. The largest hurdles you are going to be forced to unavoidably face will come in the shape of chargebacks and tempering your advertising strategies to ensure you’re not currently practicing business in a manner that is bad or unethical. One particular type of chargeback that may possibly rear its head will come in the shape of clients canceling because they don’t believe the merchandise met with the advertised benefits.
These forms of chargebacks can be unavoidable at times, but nevertheless should be monitored closely. Both of those hurdles have the capability to hurt your merchant account. Being vigilant at these red flags and preventing, or in the case where they do happen, reacting consequently will ensure you have a healthful account and don’t lose the capability to process credit cards. Being able to process cards will give your company opportunities that wouldn’t have been available otherwise. With the growing tendency of natural based alternatives rising by the year, there’s a golden opportunity to capitalize on the new clients which are currently turning to the market.
The capability to market your goods at every corner of the globe brings with it practically limitless sales chances. Making sure that you have a tried and verified seller accounts service can help differentiate you from the competition. The specialists at IPAYTOTAL are here to assist you every step along the method to ensure your company has the tools you want to compete in the highest level. We at Ipaytotal offer credit card processing solutions specifically for merchants in the online and mail-order nutraceutical industry and we have both domestic as well as international solutions available. There are slightly higher credit card processing fees and a reserve fund is common, although not always, required for nutraceutical merchant accounts due to the high risk of chargebacks associated with the industry. However, be rest assured that you will not have your merchant account terminated simply for being in the Nutraceuticals business.
Why Nutraceutical Merchants are Considered High-Risk?
So, why are nutraceutical businesses categorized as high-risk? The following are just two of the very numerous reasons and some of the greatest obstacles these retailers encounter: Chargebacks. The nutraceutical industry has a regrettable history of high chargeback rates, because of disgruntled buyers. A reason behind this is that these supplement/vitamin businesses use subscription billing to market their merchandise. Many buyers don’t realize that they have subscribed to get a brand new product on a monthly basis, leading them to refuse to cover the subscription – and also a chargeback occurs. In response, credit card processors have categorized nutritional supplements and vitamins as high risk, and cost substantial rates for 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. This industry is highly unregulated, banks often feel uneasy approving payment processing for nutraceutical merchant applications. Benefits of these products can be questionable to some, and dishonest manufacturers and merchants may make unsubstantiated claims about the efficacy of their product. Because of this, nutra merchants run a high risk of lawsuits, chargebacks and other hassles that most credit card processors would prefer to steer clear of.
The Many Business Types in the Nutraceutical Industry
The nutraceutical industry is made up of both large companies 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.
IPAYTOTAL 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
Why Nutraceutical Merchants Face So Many Chargebacks
The nutraceutical industry is susceptible to a high level of chargebacks due to the loose regulation in regards to dietary supplements and vitamins. Usually, the claims made on such products are not verified or substantiated by a regulatory body and this can cause huge headaches when customers wish to return products.
For example, buyers may try to initiate a chargeback due to buying a supplement and not making any lifestyle changes, therefore claiming the supplement doesn’t work. Their lack of activity or failure to change their diet can render the effects of the supplement useless and they will blame the merchant for such incidents. The result of this is a chargeback.
Similarly, the nature of the business can lead to a high number of chargebacks. Many nutraceutical companies will offer clients a free trial and follow that up with regular credit card payments once the trail has been completed. However, people may not understand how the recurring billing system works and that can lead to a chargeback.
Another reason for chargebacks in the industry is the regulation of some of the products sold. Some supplements may make unsubstantiated claims or even contain illegal ingredients. If that is the case, the unhappy buyer of the product may dispute the credit card transaction, leading to a chargeback.
Ipaytotal uses the latest technology to combat chargebacks. Our chargeback alert system will warn you when a chargeback has been filed and provide you with 48 hours to fix the issue with the client. This will prevent the chargeback from appearing in your merchant account, reduce chargeback ratios, and could potentially save your business thousands of dollars every year.
Role Of A Good Payment Processing Solution In Nutraceutical Business
IPAYTOTAL Is The #1 Choice For Nutra Merchant Services.
Why Are We #1? Because every client gets three guarantees (whether you’re an online Nutra business, a supplements or herbal products company, or any other kind of nutraceuticals business):
- Instant Online Quote. When you submit your application, you’ll get an instant price quote to DocuSign. No offline paperwork, no faxes, no waiting.
- Industry Minimum Pricing. You will automatically receive Industry Minimum Pricing in your online quote. No more frustrating haggling with sales reps.
- 24/7 Customer Support. When you call or email, you’ll always speak to our friendly support team.