Nutra Merchant Account
Nutra Merchant Account
Nutraceuticals have become a very popular industry over the past decade. These retailers are mainly based online and advertise both online and on the television. Nutraceuticals consist of both natural supplements, weight loss supplements as well as other supplements that better the life of the user. These supplements are considered high risk since they are not FDA approved and the selling techniques of the retailers are different from the norm. Put all of these factors together and you have an industry that will not be processed for by a low risk bank. These merchants require a high risk merchant account processor.
Nutraceuticals are sold in several different ways. Everyone has seen TV nutraceutical sales that make claims that are sometimes not accepted by some doctors. The selling tactics used by nutraceutical merchants includes; trial offers, continuity and negative option offers. Trial offers are a selling strategy that allows a customer to pay a small amount if any for the product and then shipping and handling for the first trial of the product. The customer must contact the company to cancel the recurring billing that will start after the trial offer. This creates high chargebacks if the company does not have a solid customer services department, canceling memberships and offering refunds when appropriate. A trial offer is a negative option. This means that the customer must call in and cancel the membership. The membership will not automatically end and it is not a onetime sale. Continuity is the constant rebilling of customers as their membership continues. All of these sales strategies create chargebacks and label the merchant as a higher than normal risk. These merchants need to use a high risk merchant processor.
Some nutraceutical merchants do sell with a onetime sell strategy however this is rare and dramatically cuts down on the profitability of the business. For those merchants that do sell onetime, they will most likely be processing with lower rates and fees since the risk is greatly reduced. Most merchants that are running a continuity sales model will have just slightly higher chargebacks if they have employed a knowledgeable full time staff to handle all inquiries. Most problems occur when there is little or no customer service available. It is important that merchants using a trial offer scenario make sure that they are fully prepared to deal with all customer inquiries. Most merchant accounts are closed for nutraceutical merchants because their chargebacks spike and the bank or processor feels the risk is too high.
If you are a nutraceutical merchant and you are looking for a high risk merchant account you can choose to work with Offshore Merchants as a leader in the high risk payment processing industry. Offshore Merchants has dozens of relationships with banks and high risk payment processors across the globe and are able to place nearly any type of business within 7-10 days usually. They have been setting up high risk merchant accounts since 2007 and are able to assist your business with their payment processing needs.
Contact one of our helpful account representatives to assist you in the setup of a high risk merchant account or offshore merchant account for a high risk merchant.