Why is a Nutraceutical Credit Card Processing Business Considered High-Risk?
There are three main reasons why nutraceutical businesses are considered high risk:
- The industry is regulated by the US Government and cannot make certain guarantees, promises, or claims without extensive clinical trials on their products. Compliance with these government regulations requires a considerable amount of underwriting by credit card processors, which is why most refuse the business of nutraceutical merchants.
- Nutraceutical businesses also have to deal with frequent, higher-than-average chargebacks. Product performance can vary from person-to-person and may result in a high number of chargebacks from buyers that don’t see the results the product claims. A large number of Nutra businesses run on a month-to-month subscription model that often results in chargebacks after an initial “honeymoon” period with the product.
- There can be an adverse perception of the industry based on the negative press over the past few decades. Merchant providers may not want to be associated with the industry if they believe the negative connotation that businesses are selling products that “may or may not work.”
There are several significant considerations to make when trying to find a partner to provide you nutraceutical merchant processing:
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A partner with extensive experience and positive relations with companies in the nutraceutical industry.
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Mobile processing and small card readers for smartphones are incredibly important for working with nutraceuticals as many purchases are made online, at trade shows, and at events.
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Advanced fraud detection tools will allow you to set custom filters and thresholds on your payment gateway. For example, you can set a limit on the number of transactions you accept in one hour, curbing fast, high-volume fraud attempts common in the eCommerce space.
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Nutraceuticals do not need FDA approval before they hit the market, but their sellers are legally responsible for following labeling, advertising, and ingredient requirements specified by the FDA. They’re considered high-risk because the laws and regulations under the FDA change regularly in their industry.
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Your merchant provider needs to have a team seasoned in addressing the challenges and concerns of the industry as policies and regulations change often.
WizoPay has offered nutraceutical merchant services to businesses for over 25 years. We value the services provided by all types of companies within the industry, including:
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Subscription month-to-month supplement services
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Subscription month-to-month vitamin companies
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One-off supplement companies
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One-off supplement vitamin companies
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Other products that are considered a part of the nutraceutical industry
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Negative Option Billing - we’re one of the few companies that offer negative option billing as part of our nutraceutical merchant accounts
Getting Approved With WizoPay is Easy
We’ve grown with the nutraceutical industry and understand the dismissive nature of many other payment processors, but because we see these companies and industries as legitimate we choose not to view them negatively from the outset. Instead, we choose to see your business for what it is, a legitimate, valuable, in-demand business with customers that need payment options.
We understand the need to keep your customers happy and coming back, and to do that you need to be able to accommodate several payment methods. By partnering with WizoPay as your merchant provider, you can get all your needs met in one place, and more.
You can also expect:
- Fast Approval for All Merchant Accounts
- Low Rates, Free Equipment, & Integration Assistance
- Online Fraud and Chargeback Prevention Program
- Unlimited Processing with Limited or No Hold Options
- Next Day Funding Available
- No Hidden Fees and Transparent Pricing
- In-house Technical Support
- Flexible revenue options to help you scale
- No cancellation or termination fees
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