Natural Supplement & Nutraceutical Merchant Account
- Shane Kairalla
- February 23, 2016
- 7:09 pm
Natural Supplement and Nutraceutical Merchant Accounts
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.
However, 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.
What is a High Risk Nutraceutical Merchant Account?
A Nutraceutical Merchant Account allows business owners to accept credit card payments for the high risk nutraceutical industry. Nutraceuticals encompass a broad set of dietary supplements, natural medicines, health supplements and health maintenance substances that are free from FDA regulations and are widely available over the counter. The philosophy is rooted in using food as medicine and working with potent extracts to provide targeted benefits in health, wellness and disease prevention.
Why is the Nutraceutical & Herbal Product Industry Considered “High Risk”?
Payment processing companies classify certain types of businesses as “high risk” based on a number of factors, most of which boil down to the possibility that doing business with a merchant in that field will end up costing the financial institution money. There are a few reasons that nutraceutical merchant accounts are considered high risk.
- Natural supplements and herbal products are not well-regulated. Manufacturers do not have to submit their products for testing in the same way that traditional drug companies do, so some remedies make it to the market without being proven safe, or even proven to contain what they claim to. This increases the risk of legal action against businesses that manufacture and sell these natural products, as well as the risk of chargebacks from unsatisfied customers.
- Several natural supplement companies have included continuity billing in their business model, in which customers authorize what they believe to be a small, one-time charge to their credit cards, only to discover later that they are being billed a much higher sum on a monthly basis because they failed to read the (deliberately well-concealed or absent) fine print. Businesses that utilize this business model have made payment processing companies understandably wary of nutraceutical merchants. Not only do such fraudulent business practices increase the risk of chargebacks and legal action, but they also risk turning potential customers off of the industry in general, since consumers have limited means of telling apart the fraudsters from the honest merchants.
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.
- Minerals, vitamins and other dietary supplements
- Herbal products: garlic (allicin), ginger, echinacea, ginseng, liquorice, onion, senna, turmeric (curcumin)
- Dietary enzymes: bromelain, papain
- Dietary fiber
- Hydrolyzed proteins
- Phytonutrients: resveratrol
- Carotenoids: lycopene
- Prebiotics
- Probiotics
National and International Options for Nutraceutical or Natural Supplement Merchant Accounts:
Durango Merchant Services works with several gateway processors and suppliers with sponsor banking relationships that provide both US based national and international credit card processing solutions. We can provide merchant accounts for the nutraceutical and natural supplement companies under one of the following two options:
Requirements to open a merchant account for supplement businesses in the USA:
- Company entity based in the USA.
- REPRESENTATIVE of the company based in the USA.
- Bank Account is in the USA
Requirements of the European nutraceutical merchant account:
- Minimum $ 50,000 USD per month in sales
- The company must be based in the EU
Merchant Service Prices and Contract Terms:
Durango Merchant Services works with several gateway processors and suppliers with sponsor banking relationships that provide both US based national and international credit card processing solutions. We can provide merchant accounts for the nutraceutical and natural supplement companies under one of the following two options:
Available prices for nutraceutical processing:
- Total Discount rates range between 1.95% and 4.95% depending on your account type. (We give rate discounts for accounts that do larger volume)
- Authorization fees ranging from: $0.15 to $0.25 per transaction based on account type and volume
- Monthly installments: rates ranging from $10.00 to $60.00/month including our online internet gateway services.
Other terms of the natural supplement and nutraceutical processing contract:
- Reserve requirements range from ZERO on most accounts to 10% . Usually if a reserve is required 10% of your sales will be deducted from your deposits and held in your merchant account until a balance of 1 months approved monthly combined visa and Mastercard volume is reached. Reserves can always be negotiated and we can assist you with this.
- Variable contract lengths including availability of month to month
- Free application processing
- Direct financing with regular deposits (either daily or weekly depending on international vs. onshore)
Additional benefits of the nutraceutical and natural supplement merchant account:
If you get a nutraceutical merchant account with Durango Merchant Services, then you will also be eligible for other benefits that we offer, we can set you up with electronic commerce and recurring billing via our online portal. Businesses can receive the following additional benefits:
- Competitive rates
- Acceptance of multiple currencies and deposits
- Compatibility with major gateways and shopping carts
- Accept Visa / MasterCard / American Express at your store
- Integration assistance with more than 120+ shopping carts
- Chargeback prevention tools and advice
- eCheck processing
- Our gateway comes with industry leading fraud detection and prevention tools
We provide natural supplement merchant accounts for the following:
- Startups and existing businesses – we help all types of businesses
- If you have been Previously rejected or discarded by another processor, we can help you get back on track
- High ticket merchants and merchants with bad credit
- Minimum processing: $5,000 minimum for national accounts, $50,000 for international accounts
How do I get Affordable Nutraceutical Merchant Accounts With Fast Approvals
Durango Merchant Services has a dedicated team that has negotiated on behalf of thousands of clients. We understand the back and forth and give and take of negotiating processing accounts for high risk merchants, including hundreds of nutraceutical merchant accounts.
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