Nutraceuticals Guidelines to Accept Payment – How to Accept Payment
So, how can you create a merchant account and use it for accepting any nutraceutical payment?
Every business needs a solid payment processing scheme to account for all of its purchases and track its financial flow. But if you’re running a nutraceuticals business where disputes are all a part of a day’s work, you’ll need more than just the typical method of accepting and processing payments.
Your best option would be to set up a nutraceuticals merchant account that allows you to process payments more efficiently, manage chargebacks and mitigate risks related to the nutraceuticals segment.
The problem is, a lot of credit card processors don’t accept nutraceuticals businesses because the government strictly regulates the industry and it’s more vulnerable to high chargeback ratios.
Creating a merchant account
The first step to accepting payments is to set up a merchant account with a reliable payment processing partner that’s familiar with the industry and its most common business practices.
Since you’re considered as a high risk merchant, you need to fulfill all the requirements to increase your chances of getting an approval. Here are some tips:
- Underwriters will look at your credit score first. If you don’t have a good credit score, try to include a co-signee with one to boost your chances for an approval.
- Make sure that all existing debt is taken cared of before you submit your application. Any pending debt is a red flag for credit card processors so it’s very important to pay everything to make sure you get approved for a merchant account.
- Keep track of your disputes and chargeback ratios. If these numbers are high, prepare an explanation ahead of time because underwriters may look into that when they review your account.
Increasing processing limits
Once you get approved for a merchant account, your payment processor would usually give you a monthly limit of $25,000 to $100,000 for the first three to six months of partnership. This will give them enough time to evaluate your profile based on payment flows, processing levels, ticket sizes and chargeback ratios.
Once you perform efficiently throughout this trial period, the payment processing company could increase your monthly processing limits.
Managing chargebacks and refunds
Finally, as a high risk merchant, payment processors have their eyes on you when it comes to chargebacks and refund ratios. In fact, any spikes in these areas could trigger an unannounced audit that may lead to serious consequences for your business. For instance, excessive refunds may be a sign of poor business practices, which is a red flag for processors.
If you’re going to manage these chargebacks and refunds efficiently, you need to start with proactively identifying suspicious behavior and fraudulent activities using the proper tools.
You should also improve customer service to make sure that all complaints are dealt with accordingly. Find ways to keep your payment transactions high because that will put you in a position to absorb chargebacks.
Some companies even invest in a billing support hotline to give consumers a line to air out their billing concerns and gain their confidence in your business.
Accepting Payments In Multiple Points of Sale
In the supplement business chargeback ratio is pretty high so many credit card processors do not accept them and also this business is regulated by US government and without clinical trials and surety you cannot make certain promises about the product.
But most of the good processors companies like to do business with Nutraceuticals companies and the use best chargeback management plans and fraud preventions technology to serve the client and also offers affordable and stable merchant accounts for Nutraceuticals industry.
Now finding the different ways of payment in Nutraceuticals supplements and health supplement business four merchant accounts are available to make your payments secure and easy.
Retail: first one is the retail merchant which allows you to receive payments on the business point face to face using credit or debit card and for this a machine is available on your business point. This process is minimum risk of fraud and chargeback risks and if you have and old style storefront or weak internet connection you can still manage to do your nutraceutical payments.
Mobile: A mobile merchant account is more portable and allows your company to accept nutraceutical payment through credit card face to face by attaching the swiping machine to your mobile or iPad. As the technology is helping us more and more day by day this account is best for nutra business due to its portability as now you can not only use it in your traditional storefront but also you can use it easily on conventions and farmers market anywhere you want. These accounts are also very secure and have really low rates of fraud and chargeback and for that reason it also price similarly to the retail account.
Virtual Terminal: A Virtual terminal account allows your company to accept payments on your phone or via mail on your laptop without using any separate equipment. Although this mode of payment is best for the businesses that accept a good percentage of sales on phone but these payments are very risky and increases the possibilities of fraud and chargeback. On the other hand they provide merchants with virtual terminal integrated chargeback and fraud preventing tools to minimize the risk of fraud as much as they can.
eCommerce: An eCommerce merchant allows you to sell your products and take payments via your website. This merchant accounts includes many major nutraceutical payment gateways and website shopping carts and making shopping process simple. Online merchant account is without a doubt very risky and has a high risk to chargeback and fraud so the best thing is to apply security tools to prevent such risks.
The Bottom Line
Nutraceutical payment processing is not difficult. Especially when you have the right provider!
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