Every part of operating a business in the nutritional supplement or nutraceutical industry is plagued with rules, regulations and red tape. There are very strict rules around labeling, rigorous advertising regulations, laws around health claims, it goes on and on and the topic of accepting payments, or accepting credit cards in your nutraceutical company is no exception.
If you are willing to trudge through muddy waters that come along with the industry you must really believe in what you do, your products and how they can help your consumers. But, in order to do that you must be able to get those products into your customers hands which in turn means you must be able to provide your customers with an avenue to make payments to you.
Is getting a nutraceutical merchant account on your bucket list?
However, banks and financial institutions don’t really like taking on business from nutraceutical companies despite the fact that they represent a projected market of $279 billion by the year 2021.
Since late last year when some of the most prominent acquiring banks made the decision to move nutraceuticals from the high risk category into their list of prohibited merchants resulting in the shutdown of thousands of nutraceutical merchant accounts it has become even more difficult for nutraceutical companies to secure the tools and infrastructure needed to accept payments.
When entire portfolios of merchant accounts are shut down it puts millions of customers out of luck with no way to order their products and pay for them online. The banks may be making it difficult, but it is not impossible to achieve legitimate, stable solutions…both domestically and internationally.
It is important for these types of businesses to employ a strategy that includes a diverse set of payment options in order to protect their operation as well as load balance the risk. Merchant account shut down is crippling to an online business that does not have a way to take cash or even still make sales to people in person. Being able to accept multiple payment forms will help you to protect the runnings of your business regardless of what may try to hold you down. But in order to accomplish this you will need to partner with the right Merchant Service Provider. Not only do you want a MSP (merchant service provider) that has formed strong and diverse banking relationships, possesses a plethora of options for high risk industries and the knowledge advise you on those options, but also has a real grasp on your particular industry and its difficulties.
Today we’re going to talk about the benefits of having multiple types of payment forms and the advantages to processing off of the Visa/MasterCard Network.
Benefits of multiple forms of accepting payments for nutraceutical companies:
- Reach a larger market-this allows you to reach that portion of society that for one reason or another does not have or use credit cards.
- More options- simply offers more options for customers to pay with whatever form they are the most comfortable with.
- Savings on processing fees- processing forms of payments other than on the card networks translates into significant savings on your overall processing fees. Different forms of payments processing can be as much as half the cost of processing through a high risk credit card merchant account.
- Domestic processing- almost all high risk merchant accounts are going to be offshore-meaning they are located in foreign countries. This is very volatile and very expensive. Offshore processing can also result in high incidence of declined transactions as well as high chargebacks. There is a certain amount of security knowing that there is a portion of your payments that are being processed domestically. But allows you to still enjoy not being bound by the same Federal Reserve guidelines that apply to most banks.
- Faster funding-most high risk processing in offshore and funding only happens once a week- after your reserves. Domestic processing means funds are deposited quickly into your account allowing for more fluid cashflow.
- Recurring payments and auto-ship- the lifeline of a nutraceutical business is recurring purchases and you must be able to accommodate this regardless of the payment form from the customer.
- Reduce chargeback incidence. We all know how much charge backs hurt a business. Not only is it time consuming as well as cutting into your profits, but chargebacks also hurt your reputation. This is to say that when you are trying to get a merchant account to accept credit cards the acquiring banks take very serious consideration of your chargeback ratio. Being able to show a lower chargeback ratio helps the legitimacy of your business in the eyes of the bank. With this type of payment processing the consumer will generally call the business to cancel an order or autoshipment. This allows you to be able to handle it and maybe even save the sale. Unlike when they can just call the bank and file a chargeback for a payment or order they don’t want to get anymore.
- Quick approval- easy set up- thankfully, you can be processing payments in no time.
- Flexible and seamless shopping cart integration. No red tape here!
- Domestic customer service and dedicated account representatives-always have the support you need when you need it.
Nutraceutical payment processing is Not just a pipe dream!
At Bankcard Brokers our main goal is to give our clients every possible chance to succeed at their dream of running a business. We do this by partnering with the most reliable banks, developing the most innovative methods of accepting payments, and providing the highest level integrity and service our clients could want.
Every one of our ETA Certified Payments Professionals is committed to conducting themselves according to the ETA’s Code of Conduct for professionalism and integrity while providing clients with the truth about credit card processing.
Every one of our representatives has voluntarily taken the time to complete hours of training and pass the rigorous examination required by the Electronic Transaction Association (ETA) in order to become an ETA Certified Payment Professional.
There is NO training or certification that is actually required in this industry. So the fact that we take it so seriously is a testament to our dedication to the card payment industry and our clients. You can trust that they are very well equipped to council merchants on the best and most appropriate solution for their business.
We take pride in protecting our clients by demanding only the strictest levels of security including the most current TLS 1.2 security protocol and only 100% PCI-DSS Compliant software so that our merchants can process whatever types of payments they need to with confidence.
While many other processors are scared away from working with an industry that requires a little more underwriting and due diligence we are proud to work with legitimate businesses in the nutraceutical industry. We are ready to give truly educated advice regarding your nutraceutical merchant account and payment options as well as offer guidance regarding chargeback management and industry-leading fraud prevention tools in addition to recommending new and innovative ways to help you increase your bottom line.
Don’t hesitate to give us a call today to experience the Bankcard Brokers difference!