Natural Supplement and Nutraceutical Merchant Account
Nutraceutical companies often struggle to get credit card processing. Durango Merchant Services secures fast approvals, interchange-plus pricing, recurring billing features and multi-currency gateways—so you can sell supplements worldwide without payment hiccups.
- Nathan Beck
How Did Nutraceutical Companies Become High Risk Merchants?
Today’s business environment has produced immense opportunities for growth in the nutraceutical industry. Daytime television personalities regularly sing the praises of natural remedies and supplements, and the internet both enables the rapid spread of new trends in natural health products and makes it much easier for customers to purchase them. That’s why it’s so important for nutraceutical merchants to have the ability to accept credit cards – being unable to offer customers the ability to use their preferred form of payment results in enormous missed opportunities to increase sales.
As you know, being approved for a merchant account isn’t always easy for health supplement businesses. The nutraceutical industry is considered “high risk” by credit card processing companies, and many traditional financial institutions won’t even talk to you once they hear what kind of products you sell. Looking at the few payment processors that are interested in your business, it can be hard for a start-up or growing business to find one offering affordable fees and favorable account terms.
Who is Durango Merchant Services?
Durango Merchant Services is a dedicated payment processing firm that specializes in serving businesses deemed high-risk, a category often bypassed by traditional banking institutions and payment processors. Our clientele spans a diverse range of industries, including but not limited to ecommerce, herbal supplements, travel agencies, subscription-based services, e-commerce platforms, and more. Established in 1997, we are committed to assisting businesses that encounter difficulties in obtaining dependable payment solutions. With over 25 years of experience we provide a variety of services specifically designed to meet the distinctive requirements of these sectors.
What Sets Durango Merchant Services Apart from the Rest?
- Free application process
- 25 years of helping the high-risk sector
- international network of banking relationships
- Durango Payment Gateway
- One-on-one coaching to help improve chances of approval
- Omni-channel payment support
- Recurring billing capabilities for supplement subscriptions
- Your success is our success and our work for our customers to be successful.
- Personal account manager with 10+ years of experience
- eCheck Processing through ACH
- Tested, highly reviewed, and leaders in payments
- Ten's of thousands of merchants placed
- Fast approval for the high-risk sector
What is a High Risk Nutraceutical Merchant Account?
Why are Nutraceutical & Herbal Product Companies Considered High Risk?
Challenges and Opportunities in Securing Payment Processing for Nutraceutical & Supplement Companies
Challenge 1: Regulatory Scrutiny
The nutraceutical and herbal products industry is subject to significant regulatory oversight, but the regulations can be complex and vary widely from one jurisdiction to another. This inconsistency can lead to challenges in ensuring all products comply with local laws, increasing the risk for processors concerned about legal compliance.
Opportunity
Durango Merchant Services offer support to nutraceutical and supplement companies facing regulatory scrutiny by providing expertise and guidance derived from or extensive experience helping place companies like yours. A few other things we are able to consult on are tailored payment solutions adaptable to regulatory changes, and advanced risk management tools. This approach helps nutraceutical companies navigate the complexities of legal compliance, manage risks effectively, and maintain operational smoothness in a challenging regulatory environment.
Challenge 2: High Chargeback Rates
Supplement & nutraceutical companies tend to experience higher than average chargeback rates. Consumers may dispute charges more frequently due to dissatisfaction with the product’s effectiveness, issues with recurring billing models, or longer delivery times. High chargebacks are a red flag for payment processors, as they can lead to financial losses and increased scrutiny from credit card networks.
Opportunity
High-risk merchant services providers can assist and advise nutraceutical and supplement companies in overcoming high chargeback rates through a multifaceted approach. This includes implementing advanced chargeback prevention tools, coaching on clear and transparent communication with customers about product details and billing, stepping up your customer service game to resolve issues promptly, employing sophisticated fraud detection systems (which come with us), and optimizing delivery and fulfillment processes. Additionally, they can provide customized billing solutions and educate merchants on best practices for reducing chargebacks. By adopting these strategies, companies can minimize disputes, enhance customer satisfaction, and maintain a stable relationship with payment processors, despite the high-risk nature of their industry.
Challenge 3: Product Claims and Efficacy
Many nutraceutical and herbal products make health-related claims that may not be fully supported by scientific evidence. This can lead to disputes if customers feel that the product did not deliver the promised benefits, increasing the likelihood of chargebacks and legal issues.
Opportunity
To mitigate risks associated with product claims and efficacy, nutraceutical and supplement companies should ensure their health-related claims are substantiated with credible scientific evidence, provide clear and accurate product labeling, and maintain transparency about ingredients. Additionally, educating consumers on the products' benefits and the science behind them, adhering to regulatory compliance, establishing mechanisms for customer feedback, offering satisfaction guarantees, and encouraging professional consultation can build trust and reduce the likelihood of disputes. These practices not only enhance customer satisfaction but also safeguard against legal issues and chargebacks, fostering a credible and reliable brand reputation in the marketplace.
Challenge 4: Reputational Risk & The Supplement Industry
The industry has, at times, been associated with misleading marketing practices and the sale of products with questionable efficacy. Such reputational risks make credit card processors wary of associating with businesses that might engage in practices that could attract negative attention or legal challenges.
Opportunity
Dedicate yourself to becoming leaders in the nutraceutical and supplements industry! You have given yourself an amazing opportunity to leverage scientific evidence and obtain certifications for your products, setting a gold standard for product integrity and providing real benefits for thousands and possibly millions of people. By committing to transparency in marketing and labeling, you can define industry norms and foster consumer trust. Compliance with regulations not only minimizes risks but also positions these companies as benchmarks for best practices in the sector.
Investing in quality control and engaging with the community showcases your companies dedication to excellence and well-being, distinguishing you from competitors. Proactively gathering and acting on customer feedback, along with securing endorsements from professionals in the health and wellness field, can amplify their reputation and influence. Furthermore, a robust crisis management strategy underscores their resilience and capability to navigate challenges effectively. Embracing these strategies offers nutraceutical and supplement companies a unique chance to not just participate in the industry but to lead it, shaping consumer perceptions and driving the sector towards higher standards of quality and integrity.
Challenge 5: Subscription & Recurring Billing Needs
Many companies in the herbal supplements and nutraceutical sector use recurring billing models, which can lead to disputes if customers find it difficult to cancel or did not understand the terms of the subscription. This model adds another layer of risk for payment processors.
Opportunity
Durango Merchant Services can support nutraceutical and supplement companies in mitigating the risks associated with subscription models by emphasizing clear communication, straightforward cancellation processes, and exceptional customer service. By ensuring that subscription terms are transparent and consent is explicitly obtained, offering easy and accessible options for subscription management and cancellation, and maintaining open lines of communication through regular updates and dedicated support, these providers can enhance customer satisfaction and reduce disputes.
Additionally, our payment gateway has highly customizable subscription options and advanced fraud detection measures further safeguard against chargebacks and unauthorized transactions, fostering a trustworthy and customer-friendly subscription environment. Our payment gateway also handles every facet of recurring billing. Some of these features include pausing subscriptions, automatically updating card info, setting any level of billing schedule, and much more.
How Can a Herbal & Nutraceutical Business Accept Credit Cards?
Despite having worked to maintain good credit and an honest business reputation, you may have trouble finding a payment processor. Still, the ability to accept credit and debit cards – especially through an online payment portal – opens a nutraceutical merchant up to a much broader customer base than he would otherwise be able to access. You want the greatest number of people to have the opportunity to benefit from your health remedies, and don’t want to be charged a high percentage rate and a higher than necessary reserve term.
That’s why you need a nutraceutical merchant account provider who is not only willing to approve businesses in high-risk industries, but is also open to discussing with you what your business needs, and is invested in your success. Durango Merchant Services has a well-earned reputation for being responsive to our clients and working with them to find nutraceutical credit card processing solutions that fit their needs and will help their business flourish.
Some Products in the Herbal Supplement, Vitamin and Nutraceutical Industry
- Minerals, vitamins and other dietary supplements
- Herbal products: garlic (allicin), ginger, echinacea, ginseng, liquorice, onion, senna, turmeric (curcumin)sits
- Dietary enzymes: (eg. bromelain, papain)
- Dietary fiber
- Hydrolyzed Proteins
- Nootropics
- Phytonutrients (eg. resveratrol)
- Carotenoids (eg. lycopene)
- Prebiotics
- Probiotics
Table of Contents
- Discount rates that range between 1.95% and 4.95%
- Authorization fees ranging from: $ 0.15 to $0.25
- Monthly installments: rates ranging from $15.00 per month to $60.00 per month
- Free Application Processing
- Rolling reserve requirements that range from: 0% to 10%
- Variable contract lengths including availability of month to month
- Direct financing with regular deposits
- Minimum processing: $5,000 minimum for US accounts, $50,000 for international accounts
Dive Deeper Into Payment Processing for Natural Supplement and Nutraceutical Companies
How Do I Open a Supplement & Nutraceutical Merchant Account?
Durango Merchant Services has created a detailed and digestible guide to help our potential clients understand and prepare for what to expect when trying to get approved to process credit card in the nutraceutical and supplements industry. As always, our sales team and account managers are experts in all things payments and are here to help guide you through and clarify the process.
How Do I Integrate Durango Pay Gateway into My Business?
Durango Pay Gateway stands as a pinnacle of modern payment processing technology, offering unparalleled versatility and efficiency. With the capability to integrate seamlessly with over 150 shopping cart platforms, ranging from WooCommerce to Shopify and BigCommerce, it’s designed to cater to a wide array of e-commerce needs. This gateway is immediately equipped for omni-channel operations, ensuring a smooth and unified payment experience across various sales channels. Additionally, it is fortified with advanced fraud detection and prevention mechanisms, alongside robust chargeback management functionalities, making it a comprehensive solution for modern business transactions.
How do I increase my credit card processing limits?
Seeking to boost your credit card processing capabilities? The strategy we will develop with you involves demonstrating a consistent and dependable transaction history and ensuring your business’s financial health is robust. Minimizing chargebacks and making sure your bank balance has a good cushion are key steps in positively showcasing your business to your transaction handlers. We encourage you to engage in transparent discussions with your account manager regarding your expansion objectives—this openness can be instrumental in securing more favorable terms as your revenue grows.
The art of medicine consists in amusing the patient while nature cures the disease.
Some Resources to Help You Grow
Just like you, we understand that finding inspiration and expertise isn’t always a straightforward task, particularly when facing challenges head-on. While Durango Merchant Services can be of great service in helping you setup strategies and technology to accept payments, we aren’t health and wellness professionals. If you would like a little inspiration and guidance as you seek to implement best practices in the nutraceutical and herbal supplement industry, then dive into these organizations and remember that they are created specifically to help companies like yours! We hope they can provide tools and inspiration to never stop learning and never stop ensuring your products are effective, safe and sold from an unyielding focus on the science of health that is the spirit of your industry.
Natural Products Association (NPA)
The Natural Products Association is one of the oldest nonprofit organizations dedicated to the natural products industry, including dietary supplements, foods, personal care products, and more. It provides its members with education and compliance resources, advocacy for favorable legislation and regulatory environments, and certification programs such as the NPA GMP Certification. This program ensures that companies comply with Good Manufacturing Practices, helping them maintain high standards of quality and safety in their products, thus avoiding regulatory troubles.
American Herbal Products Association (AHPA)
The American Herbal Products Association focuses specifically on the herbal products industry, including herbal supplements and remedies. AHPA offers its members a wide range of services, such as educational resources, advocacy, and regulatory guidance, aimed at promoting the responsible commerce of herbal products. The association helps companies understand and comply with manufacturing practices, labeling requirements, and safety regulations, thereby minimizing the risk of legal challenges and ensuring the integrity of their products.
Council for Responsible Nutrition (CRN)
How to open a Nutraceutical Merchant Account
To open a merchant account for supplements or herbal products, you’ll need to work with a high-risk payment processor like Durango Merchant Services. Submit your business license, tax ID, product labels, Certificates of Analysis, recent bank statements, and a clear refund policy. Your website should have visible terms and privacy policies, plus honest claims. Most accounts are approved in 3 to 7 days if your documents are complete and chargebacks are low. Expect a rolling reserve of 5 to 10 percent. The better your paperwork and history, the better your terms.
Here’s a step-by-step guide to increase your chances of approval:
Required Documents:
Detailed Roadmap for Opening a Nutraceutical Merchant Account:
Frequently Asked Questions (FAQ)
What is a Nutraceutical Merchant Account
A nutraceutical merchant account lets supplement and herbal-product sellers accept credit cards. Because regulators watch these products closely and chargebacks run higher than average, banks flag the industry as high-risk. Approval requires extra documents—like product labels and lab reports—and often comes with rolling reserves or slightly higher processing fees.
Why do banks label supplement sellers “high-risk”?
Card brands and acquiring banks see nutraceuticals as vulnerable to disputes: products can be over-hyped, mislabeled, or draw regulatory scrutiny from the FDA and FTC. That extra compliance risk—plus above-average refund and chargeback rates—means the processor is more likely to lose money, so they place the industry in a high-risk tier and apply tighter rules.
How fast can Durango approve my nutraceutical merchant account?
Once you’ve uploaded clean documents—business registration, owner IDs, recent statements—most files clear underwriting within three days but can take a little longer sometimes. Bigger catalogs, international fulfillment, or past chargeback issues can stretch the timeline, but a dedicated account manager keeps you updated the whole way.
What card-processing fees should I expect for a Nutraceutical Merchant Account?
Durango uses transparent interchange-plus pricing, so your rate is the true interchange cost set by Visa / Mastercard plus a markup to DMS. All-in, most supplement merchants see effective rates of about 1.95 %–4.95 %, with 15- to 25-cent authorization fees.
Can I set up subscription refills for my products??
Yes. The gateway supports recurring billing with customizable cycles, automatic account-updater tools that refresh expired cards, and a customer portal where buyers can pause or skip shipments—features that reduce involuntary churn and chargebacks.
Do supplement accounts require a rolling reserve?
Often, yes. The acquiring bank may hold back 5 %–10 % of daily sales for 90–180 days to cover late-breaking disputes. If your volumes are stable and chargebacks stay low, that reserve percentage can be renegotiated downward or even released entirely over time.
Call to talk to one of our account managers today!
