Nutraceuticals Merchant Account

The nutraceutical industry — or nutra industry — has seen huge growth over the last 10 years. Nutra products range from oral supplements to teas, tinctures and salves. Many herbal products are also referred to as nutraceuticals. Typical reasons people purchase these products include increasing energy, losing weight, reducing pain and assisting with sleep. However, nutraceuticals have hundreds of other uses too. Many people find that using a nutra product has fewer side effects than a physician-prescribed product, yet still offers the same benefits. Some nutra products have been scrutinized harshly as of late due to their wild claims of benefits and cures.

Nutra products are often sold via a “free trial” method that is considered high risk because the customer must agree to pay the full amount after the trial has ended and also agree to a recurring monthly shipment and fee. Many merchant account providers have moved away from supporting nutraceutical merchant processing due to this method of sales, as it can cause a high number of customer complaints including chargebacks. This has caused many businesses to struggle when trying to secure a nutraceuticals merchant account. Companies that deal in nutra should be sure to have a clear refund policy and make the process easy for customers to initiate. Another important factor in retaining customer satisfaction is to offer a quality product. Customers will not continue their subscriptions if they feel the products have not lived up to expectations.

Some nutraceutical products provide specific benefits; others may offer more general benefits. Customers are much more prone to order if they are purchasing a product for a specific ailment over one that just blankets several disorders.

When choosing a provider of nutraceutical merchant services, one should always be sure to ask the right questions — things such as rates, fees and funding time are all important. However, the first questions to have answered should be about the processor’s experience and tolerance for the nutra business model. If you offer free trials, negative option and recurring billing, be sure the processor supports these methods of sales. Also be sure the timeframe for refunds and free trials is in compliance with the processor’s regulations. These are important to know before moving forward, since your nutraceutical merchant account could be negatively affected down the line if your terms are not specifically approved.

A nutraceutical merchant accounts provider also may inquire about the agreement you have with your supplier. Often, it will want to see an active agreement before issuing approval. If you do not have this, the nutraceutical merchant account provider may require an invoice from the supplier, or another way to verify you have access to your product line. Lastly, be sure the merchant account provider supports your specific product line. Some nutraceutical merchant processors look only briefly at a product line and this can cause issues with the acquiring bank after a few months.

If you have a product that you know is deemed a higher risk, be upfront with your representative. Tell the rep about the product and the challenges you have faced with other banks and processors. This way, the rep can be proactive and make sure the product is fine to process.