Our Nutraceutical Merchant Account Services
Nutraceuticals are hot-selling items that help people achieve specific health goals. Although that’s great news, some business entities don’t want to allow these types of sales. Even though there are no regulations against Nutraceuticals, big banks and traditional merchant services don’t want to touch the business.
That’s why Nutraceuticals are considered to be a high-risk merchant account. To sell them online, your company will have to find alternative providers. Fortunately, The Southern Institute can help you attempt the approval process. Since the business is still under scrutiny, we can’t guarantee and approval, but you will have a fighting chance.
Industries We Serve
We’re always looking to help. We have succeeded in placing merchant accounts in the following sectors.
- Dietary supplements
- Multivitamin suppliers
- Medicines that derive solely from botanical ingredients
- Organic male enhancements
- Nootropics, including cognitive enhancement supplements
- Weight Loss Supplement suppliers
- Workout and high-performance athletic supplements
What You’ll Need to Secure a Nutraceutical Merchant Account
You’ll need to provide a wide range of documentation pertinent to your opening an account. The list includes.
- A valid, government-issued ID, such as a driver’s license
- Either a pre-printed voided check or a bank letter
- Three months of your current bank statements
- Three months of the most current processing statements, if applicable
- An SSN (Social Security Number) if you’re an individual or EIN (Employer Identification Number) if you’re a corporation
- You must maintain chargeback ratios under 2% and be able to prove it with statements.
What You Should Expect During the Approval Process
Put yourself in the place of an underwriter. Before they allow a nutraceutical company to sell using their network, they want certain assurances. They need to vet your record to determine that you’re running a legitimate operation that won’t cause them financial harm. The more files and documents you have that support those claims, the more likely you are of receiving approval.
Financial risks to the merchant provider include loss of reputation and loss of money due to chargebacks. Shoddy products or ones with misleading marketing may fit into this category. Nutraceutical merchant account providers aren’t trying to create troubles for themselves by handling payments for a company that receives as many complaints as orders. If you run a stable nutraceutical company, this issue won’t be a problem. Show your chargeback ratio and your operating history, and you can get approval.
A Nutraceutical Merchant Account Application may be to risky if:
Accounts with a negative checking account balance are problematic.
Credit history of unpaid bills and a pattern of late payments
A history of high chargeback ratios with your current product is a red flag.
All of these factors are bad for business and mean that the company is going to cause a headache. Instead, you’ll want to have a history of bills paid on time and a hefty bank balance. If you do, a favorable decision is more likely. The underwriter wants to know you run a stable business with happy customers who are satisfied with their purchases. Those are the kinds of companies that are profitable, so almost all merchant account providers will want to partner with them.
Why Are Chargebacks Such a Big Deal?
Chargebacks cost the processors money. They won’t keep accounts with high rates around long. A spike in chargebacks also indicates a problem with the product itself or the company. Many processors are fast to shut down any account where the chargeback rate rise skyward. They’re not willing to wait around to see if the company stays in business. Instead, they’ll terminate fast. When this happens, the enterprise will need to scramble to find alternatives, which is hard to accomplish. That’s why maintaining a pristine (under 2%) chargeback rate is all important.
Do Your Part to Reduce Chargebacks
Did you realize that the single biggest reason that people issue a chargeback is that they don’t recognize the company? That’s why a stellar customer experience starts with a website that is precise and an ordering process that spells out (in detail) what the consumer may expect. Let them know the correct name of the charge and amount that will appear on their credit card statement.
A simple commitment to clarity will help prevent your customers from charging back. Send email receipts that clarify the purchase and let them know to whitelist your company email address. Provide them with support information in case they have an issue and thank them for their investment in their health. Customers you treat with respect will buy many times, and very few will ever have a reason to chargeback. Happy customers also keep positive reviews flowing online, which is excellent for growth.
No matter what, it behooves your firm to stay on top of the chargeback situation to make sure it will never get out of control. Each occurrence is a costly misadventure that prevents profit. Streamline your processes so that these are infrequent occurrences and maintaining a merchant account should never become a problem.
What’s Wrong with Nutraceutical Companies?
The main element that causes concern in this sector is that the FDA does not evaluate the claims made by companies. In other words, these businesses can say just about anything when they sell the products. To the ears of their customers, they’re hearing about a miraculous cure that can help them solve an issue. If they find they don’t get results, they may just chargeback. It’s a common situation and one that causes the industry the most problems with merchant account providers.
Still, nutraceutical companies can be very lucrative, because many don’t have these types of problems. Instead, they sell well-loved lines of products that their customers are happy to re-order. Maintaining high standards and keeping chargebacks below 2% are the keys to long-term happiness. If you’re a top performer with a stable product line, we need to talk.
Don’t hesitate to apply for a Nutraceutical Merchant Account now. The Southern Institute helps companies like yours process orders. We take your success seriously and are here to help you accept credit card payments to keep your revenue growing. High risk is no problem. We specialize in offering merchant account services for an extensive range of risky industries.
Don’t Let the High-Risk Designation Crush Your Dreams
As the old saying goes, high risks bring significant rewards. The Southern Institute understand the nutraceutical industry are willing to work hard to find you a solution for your credit card processing needs. Fill out the form now to apply. Our approval process is painless, and we’ll work with you every step of the way to find service.
The Southern Institute Is Ready to Assist
If you’re ready to take your nutraceutical business to the next level, we’d love to help. We have a team of dedicated experts is ready and willing to help you start now. Kindly complete the form to begin the application process. We help companies in your industry fulfill their sales objectives. With a reliable merchant account provider at your back, you’ll find getting business is a breeze.
It’s clear to us that the nutraceutical industry is expanding daily. We love helping new and established entrepreneurs extend their sales capabilities. To succeed, you’ll need a global nutraceutical merchant account provider for nutraceuticals who allows you to handle payments. Without this crucial feature in place, your business will struggle to grow. We at the Southern Institute welcome the opportunity to work with you to get your merchant account. Fill out the form when you get a chance so we can begin the process of approving the application.
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If you need to speak with someone urgently, please use the contact form above or give us a call. We look forward to speaking with you, and thank you for reaching out to The Southern Institute.
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