The nutritional & dietary supplement industry with products such as herbal supplements, vitamins, and other nutritional items brings in billions of dollars annually, and continues to expand at a rapid pace with new businesses entering the scene daily. The majority of supplement sales are made online. Credit card processing for nutritional & dietary supplement stores is what allows these businesses to offer products to the global marketplace, collect payment, and then ship worldwide.
If you are considering getting into this business, one of the main elements to be concerned with will be securing a merchant account. Online supplement stores fall into the category of “high risk” , as determined by banks backing the merchant account. It’s not that they consider these products to be unsafe, therefore deeming these businesses high risk, but rather the historical risk of excessive charge backs by customers buying products from online supplement retailers. Other factors reviewed by the banks include average sales ticket, expected monthly sales volume, business location, and credit history of the principal.
A high risk merchant account for supplements is not difficult to obtain, but you can expect to pay higher rates than a typical low risk merchant account. The application and approval process can take longer, as there are more stringent underwriting guidelines. As long as the principal of the company has good credit, some documentation is likely required, but not an excessive amount. Be prepared to send checking account statements to show a continual balance in the account. Processors want to see that there are funds available to cover chargebacks in the event that they occur.
If you currently accepting credit cards for nutritional supplement sales, you may be eligible for a lower rate. In order to negotiate a lower rate, you’ll have to have at least 6 months of a clean processing history with little or no chargebacks. You will be required to provide 3 to 6 months of statements.
At The Transaction Group (TTG) we work with online and traditional retail nutritional & dietary supplement stores. Whether you are just entering the industry or are long established, we’d be happy to help any way we can to secure the lowest rates possible, with reputable processors. We pride ourselves in customer service and will take the time to answer all your questions and let you know what to expect with your merchant account.