Getting a merchant account for Nutraceutical companies just got a little bit harder thanks to the banks.
If you’re in the nutraceutical industry you are no stranger to how difficult it is to get a merchant account so you can take payments for your products. For many years now it has been notoriously difficult to even get an affordable and reliable merchant account, let alone keep it. After you jump through all the hoops and cut through the red tape and just when you think you’re good to go you’re stopped in your tracks when out of nowhere the bank decides to shut down your account leaving you scrambling for a way to continue business and fulfill orders uninterrupted.
But now banks just made it even more difficult on you. Recently, some of the world’s largest acquiring banks have decided to add nutraceutical companies to their list of prohibited merchant types. Instead of allowing them to remain in the high risk category they have decided to outlaw them entirely, some banks even cancelling entire portfolios of nutraceutical merchant accounts, resulting mass merchant account shut downs. This act has left thousands of legitimate nutritional supplement manufacturers, both domestic and international, with no options for providing service to their customers, and thousands more in fear and wondering when their account too will be cancelled under them.
The nutritional supplements industry, or Nutraceuticals as they are commonly called, is one of the fastest growing industries of our economy with a projected market of $279 billion by the year 2021. It not surprising since more and more these days people are paying extra attention to their health and seeking more natural ways to take care of themselves. In order to succeed in such a competitive industry it is more important than ever to partner with a merchant account processor who not only has a grasp on your industry, but also specializes in options for high risk industries in general, and knows the importance of having multiple banking relationships.
Even if you have a perfectly functioning (for now) high risk or offshore merchant account you need to have some alternate form of taking payments. In the event that you are having trouble with a merchant account or experience a shut down the most important thing is for you to still be able to process payments and fulfill orders and you can do that with check processing capabilities.
We’ve already spoken to the importance of having more than one way to accept payments to protect your business from losing thousands of dollars in sales and valuable customers along with it. It’s absolutely imperative if you want to protect the future of your company. But there are also many other benefits to being able to process payments off of the Visa/MasterCard network. Firstly, it simply offers your customers more options for paying for their products while also helping you to reach out to those potential customers who for one reason or another can’t or don’t use credit cards.
This type of account will process domestically which brings with it its own host of benefits. With just a routing number and account number you will be able to quickly process payments from any customer. You’ll even be able to create recurring payment agreements and process auto-shipments for your continuous customers. While this may sound like ACH payment processing it is actually an entirely new and different option that does not use the Automated Clearing House, which is how ACH payments are processed. This means that we are not bound by the same guidelines that many federal reserve banks have implemented. Domestic check processing will not only afford you with much faster funding, but it is also more affordable. In general, the costs associated with check processing equates to be about half of that of a traditional credit card merchant account. That means that an average nutraceutical company processing about $200k in sales a month would be able to realize just about $9000 in savings just by processing that same amount through the check processing system. Even if only a portion of your sales each month were to move over to this option you would enjoy significant savings annually.
Increase profits with Nutraceutical payment processing.
This payment type also boasts exceptionally low charge-back incidence, further helping you to lower costs and boost your bottom line. Because it acts more like a cash payment the customers don’t tend to go to their bank/credit card company to register a charge-back when they no longer want a product or see a charge for one they forgot they ordered. Instead, the customer tends to call you, the merchant, to cancel their account which in turn gives you the ability to save the account or cancel as requested, which ultimately lowers your charge-back ratios and costs associated with those charge-backs. It’s a win-win for both you and your customer.
This account is easy to be approved for and quickly set up so you can be up and running in no time with flexible and seamless shopping cart integration. And if that weren’t enough, domestic processing means domestic customer service and support, a bonus that can’t be overstated!
If you have been unfortunate enough to have your merchant account shut down recently this is the perfect time to check into alternate payment options, but please do not fill out multiple applications for a high risk account all over the place. Filling out multiple applications is looked at as a red flag and can actually hinder you from getting approved. We want to give you every chance to succeed at setting up reliable processing. Even if you currently are processing credit cards through a high risk, offshore merchant account this option is a perfect accompaniment to help you load balance your risk.
Don’t trust your business to some salesman whose only interest is in being the best “salesman”, closing deals and who doesn’t care about the success of your business. You want to make sure you are working with a merchant services provider that specializes in high risk industries as well as having direct experience with the nutraceutical industry, and is currently working with clients in the nutraceutical and supplement industry that they have successfully helped.
With Bankcard Brokers as your business partner you can rest assured that our staff of ETA-CPP (certified payment professionals) are here to offer educated guidance for the life of your account. Our expertise means we are able to recommend steps to help you manage chargebacks more efficiently, reduce or prevent fraud, and ultimately increase your bottom line.
We take pride in the fact that we take every precaution available to ensure your company is 100% secure, only install 100% PCI-DSS Compliant software, as well as implementing a strict level of security to authenticate the legitimacy of all parties involved. This helps you to protect your customers and their personal information while allowing them to feel safe through maintaining a high level of privacy. We are always striving to find new options and products for our partners to help to ensure the success of their business. Building lifelong partnerships can only be done when you care as much about the success of your partner as you do your own, this is our main goal.
Call Bankcard Brokers today to find out how you can benefit from this new payment processing platform.