What is a nutraceutical business? In essence, it is a type of business that sells products derived from food sources with extra health benefits apart from basic nutritional value found in foods. It is one of the biggest industries today as more and more people patronize such products (attributed to baby boomers reaching their senior years). In fact, a number of big nutraceutical corporations are publicly traded these days.
If you are planning to put up a nutraceutical business, chances are that you are going to apply for a merchant account in order to accept cashless transactions. With that said, it is important to note that the chances that your application for such account will be declined is quite high. That is because nutraceuticals are considered a high-risk account and some of the reasons are the following:
Based abroad. Because of higher profit margins, many nutraceuticals are based off-shore, which is why the industry is considered by many banks as risky
Licensing issues. As opposed to other types of business, nutraceuticals have to hurdle stricter permits and licensing rules.
Possibility of merchant fraud. Many service providers must naturally be more wary of merchant fraud when it comes to nutraceutical business; they are concerned that your account may engage in (or be exposed to) undesirable behaviour particularly when transactions are done on the internet.
Excessive chargebacks. It is believed that nutraceuticals are vulnerable to excessive chargebacks.
Your business appears on the MATCH list. MATCH stands for Member Alert to Control High Risk list, which records offenders who commit fraud and other unscrupulous activities. If your business appears on the list, it can be more difficult for you to get a merchant account.
Finding a reliable company that provides merchant services and credit card processing for nutraceuticals
To get top-notch merchant services and credit card processing for your nutraceutical business, make sure that you find a reliable merchant account provider / payment gateway. Here are some considerations that you should take into account when choosing a merchant account provider:
See to it that it caters to high-risk accounts
Find out whether or not the merchant services provider has more positive reviews than the negative ones; consider feedback from current customers
Make sure that it offers a complete merchant account solution (provides all you need for your nutraceutical payment processing needs)
Determine whether or not your prospect provides 24/7 professional customer support; this is to ensure that business downtime is at the minimum level
Check out if your prospect offers one of the most (if not the most) competitive rates
For more information about merchant services and credit card processing for nutraceuticals, contact us here at Swipebox at (720) 277-0648