Nootropics Industry… Major Growth Leads To High Risk Merchant Accounts
The Smart Drug Industry
For the last few years, Nootropics, sometimes referred to as “smart drugs,” have been adding to the profits of the nutraceutical merchant account industry in ways that, up until now, could only be imagined. Yet the reality of the situation is such that these natural and synthetic supplements and drugs, used primarily to improve mental capacity, like cognitive and memory function, have resulted in huge profits.
The Numbers Speak Volumes
The fact is, just a few years back, in 2017, the United States nootropics niche was valued at more than $1,300 million, a most impressive figure.
However, current predictions point towards profits that will very likely grow at a CAGR (Compound Annual Growth Rate) of 15.7% between now and 2024, resulting in numbers expected to surpass $5,900 million.
As consumers continue in their quest for ways to promote their health and wellness, the future of nootropics looks to be outstanding, as sales continue to rise exponentially. This is very good news for merchants. Or is it?
Success Brings Merchant Account Complications
Of course, you likely won’t hear of merchants complaining about the huge profit margins and cash they are collecting their their payment gateway due to the growth in popularity of their nootropics products. After all, everybody’s in business to make money.
Unfortunately, a fact of business life is that oftentimes, along with success comes unwelcome complications and in this particular case, the nutraceutical industry, with its nootropics niche, is no exception to that rule.
Banks & Credit Card Processors Are Not Impressed
As nootropic sales continue to rise, more and more sellers are finding themselves in the position of needing merchant accounts, in order to accept credit and debt card payments and ACH payment processing.
It’s pretty much a fact, that increased business almost always escalates the need and demand for merchant accounts in just about every industry. Unfortunately, as sales continue to grow, so too, do the problems that normally occur when dealing with consumers.
Due to larger numbers of chargebacks, increased fraud allegations by customers (legitimate or not) and the lack of a regulatory system in place in the nutraceutical field, banks and credit card processors consider the nutraceutical industry to be very high-risk and are often unwilling to provide business owners with their much-needed merchant accounts.
As with all categories of the nutraceutical industry, nootropics are consequently and hence by default, also considered to be high-risk, resulting in nootropic sellers being turned down for merchant accounts, as well.
Steps To Take
When your high-risk nootropics firm applies for a merchant account, it is more than advantageous to be able to demonstrate to the banks that the business is financially sound, stable and secure.
Therefore, it becomes necessary that your firm’s bank account balance be high enough to back up your monthly sales goals and then some, should any problems arise.
Banks want to know that you can cover any financial mishaps that may occur. In order to accomplish this, it will more than likely be necessary that you build up your account balance by accepting payments that don’t involve credit and debit cards.
This may certainly take some time to accomplish, however, it’s an extremely important step to take if you want the bank to even consider you for a merchant account. Moreover, when applicable, you’ll need to provide the banks with proof that you have a clean and successful processing history.
If you’re unable to do this, the banks will most likely not be interested in working with you. In addition, and this is extremely important, you’ll need to be running a clean and proper, fraud-free business, whereby all of the nootropics products you sell are legitimate in every way possible and that there’s no room for question of any kind regarding your operations and sales.
High Risk Merchant Processors
Although following the above steps is immensely important when applying for a high-risk merchant account, there’s no guarantee that you’ll be approved.
In fact, when operating on your own, it’s more than likely that the banks will turn you down, as they’re generally not keen on getting involved with high-risk businesses in the nutraceutical/nootropics field.
The good news is, there are high-risk merchant processors who, if they excel at what they do, can help you obtain your high-risk merchant account and make the entire process painless and easy.
Given you operate a high-risk business, you’ll more than likely end up turning to a high risk merchant processor, so be sure to your research and go with a firm that’s not only got experience, knowledge and proven success but will also have your back after you’ve obtained your merchant account.
***Important Notice to all Nootropics Merchants***
We know just how difficult it is for start-up and experienced Nootropics merchants to obtain and keep your “high risk” merchant account. If you’re in need of assistance, you need to talk with us.
We’re First Card Payments and we can and will end your struggles today. We’ve been in the “high risk” merchant account business for twenty years. We have the experience, know-how and contacts necessary to get the job done quickly and easily at a very fair rate.
First Card Payments is consistently 25% less than our competitors when it comes to fees, guaranteed! We walk the talk! Once we get you your merchant account, we’ll remain with you for the long haul and do all we can to support you in keeping it. We’re always there when and if you need us. That’s our promise to you and we won’t let you down.
Find us at: FirstCardPayments.com
Joyce Hope is a writer who specializes in merchant accounts. She has worked for First Card Payments since 2017.