Nutra Merchant Accounts
The amalgamation of the two words ‘nutrition’ and ‘pharmaceuticals’ has resulted in coming up with the word nutraceuticals which is also popularly called as ‘Nutra’. Any type of food or fortified food products that claim to prevent illness, used as a supplement, or to maintain health is considered to be nutraceuticals.
The nutraceutical products are not observed under the same light as conventional foods or pharmaceuticals. Instead, they have a different set of testing. The nutraceuticals generate four trillion worth of revenue annually in the global market.
Merchant accounts that deal with products like multivitamins, weight loss supplements, functional foods, cognitive enhancers or nootropics, hair and lash growth supplements, herbal products, natural male enhancers, sports performance enhancers, botanical ingredient medicines, skincare products, dietary supplements.
If a brand or merchant is producing nutraceuticals or selling nutraceuticals or both, then only offline methods won’t bring enough profits. For that, most nutraceuticals merchants also have an online account. A greater online presence is important for a brand (like a website along with eCommerce storefront) to attain greater opportunities and revenues.
But most nutraceuticals merchants don’t realize the reason behind the account being labelled as high-risk, even after successfully attracting customers from different demographics. The factors that make nutraceutical merchant accounts high-risk for banks (or traditional online card processors) are:
- A very high number of chargebacks – There is a multitude of reasons that can be behind chargebacks in Nutra merchant account. Some of them are:
- Product not being described accurately therefore returned.
- Products being defective or not working so returned.
- When customers with an over-extended credit card or a check that is meant to bounce.
- More cases of chargebacks over three per cent in the Nutra industry has caused it to become high-risk.
- Merchant accounts dealing with consumable products are often considered to be high-risk prone.
- Merchant accounts associated with the delivering of goods are also considered to be high-risk. It is because there have been cases of theft and misdelivering of products many times before.
- Consumer enrollment cancellations – Customers prone to be wanting a refund can be one of the cases. Sometimes the merchant charges the customer’s card after they have requested for ta cancellation can also cause problems.
- Fraud – Customers using a stolen credit card, or a friendly-fraud where the real cardholder later disputes the transaction. When an issue of fraudulent relates to any industry, then it is quickly declared as high-risk.
- The higher rate of occurrence of bankruptcies.
And this is also why most standard payment processors like Stripe, Square, Braintree, etc. will waste nutraceutical merchant’s time by approving at first but then rejecting them on round two of inspection. It is they don’t easily support high-risk merchant accounts.
https://highriskmerchantexpert.com/That is why choosing a right card payment processor for your Nutra high-risk merchant account is crucial. Having a good high-risk merchant account service will ultimately help to promote Nutra products, subscriptions, and services. Also having a high-risk merchant account will reduce hassle without causing disruption to complete transactions or generate sales.