Nutraceuticals are unregulated by the feds. This doesn’t make them illegal but it does present a harder hill to climb in obtaining a merchant account. Most banks do not accept nutraceutical credit card processing because of this gray area. So if you’re interested in the lucrative industry of Nutraceuticals, you should iron out a few things.
First, understand that not all ingredients are accepted by the banks. In order to easily obtain a nutraceutical merchant account you should do your homework on which ingredients are accepted and which are not. Start first by selecting the nutraceuticals you want to sell. After you have determined your product listing, set out to find several high risk merchant services companies.
Many times merchants fall into a pitfall when they do not complete the above. I’ve seen it many times where a merchant will google a certain ingredient only to find many companies selling those ingredients. Giving false hope that they too can follow in their predecessor’s footsteps. The trap happens when the new nutraceutical merchant thinks that because other companies are able to process credit cards that they will be able to as well. This is not true! Why? For many reasons. Sometimes credit card processing for certain nutraceuticals will be cut-off to newer start-ups. The high risk merchant service company will only accept nutraceutical merchants that have processing history. Also, like other high risk industries, there are merchants that will try to circumvent prohibited policies to only get caught and shut down. This re-iterates my point - to make sure you find several merchant accounts prior to launching.
Secondly, after you have determined which nutra’s you will be selling and you have found credit card processing to support your product line, you must find the right ecommerce platform to sell your products. This sounds easy and it is for the most part but as always learning the ins and outs about each platform will save you time and money. For instance, selling on Shopify. Shopify is one of the best platforms out there but they may not support your products. What I mean is that they will allow you to sell your products but they will not offer you payment processing. As a result, if you have to use a payment gateway like Authorize.net, you will be charged additional fees by Shopify. Other platforms such as Big Commerce, WooCommerce, Volusion and others, will not ding you for selling nutraceuticals. Knowing this ahead of time, will save you many headaches and money.
Hopefully these insights help you to prepare for your adventure into nutraceuticals. Merchant Discount Rate is familiar with the process and can help you to obtain a nutraceutical merchant account.