Nutraceutical Merchant Account
Are you looking for a Merchant Account to process payments for your online nutraceutical business? Merchant accounts for Nutraceutical businesses are not easy to get. Nutraceuticals and supplements aren’t exactly “conventional”. As a result, it may make banks hesitant to approve merchant accounts for this industry. Therefore, there are limited types of merchant accounts that are available in this space. Understanding what type will work best for your business is important. The wrong choice can be costly and cause a lot of frustration.
Why are Nutraceutical merchant accounts are tough to get?
What are Nutraceuticals? Nutraceuticals are different from vitamins. They can come from sources like herbs, algae, and minerals. These products claim to have a wide range of applications. Claims include the ability to promote healthy aging, boost immune systems, eliminate certain diseases. As well as improve memory and reduce the effects of aging. Some of the direct marketing companies that sell these products don’t help matters either by promising cure-all benefits that have little to do with real science. In fact, what makes the situation more complicated is the fact that many of these supplements are classified as food products. Rather than medications when they come to production and distribution. This means they don’t require clinical testing, labeling, or other elements that classic nutritional supplements ought to have.
For these reasons dealing with merchant account providers and banks, the nutraceutical industry can be tough to sell. There is not a lot of merchant account product-specific information for this industry. However, there are some big players out there that provide merchants in this vertical the support they need. Nutraceutical Merchant Accounts are difficult to get. Especially for new business owners. But FintechMerchantAccounts has helped thousands of Nutraceutical businesses get a merchant account. Similarly, we can help you with your needs.
Type of Billing Models for Direct Marketing Nutraceuticals
Different nutraceutical billing models can also influence the payment processing risk.
Free Trial: Let’s start by taking a look at how long it takes for the average person to make a decision about using a new product. The average attention span of a human being is 8 seconds. So as an example, once you’ve read this sentence and looked up from your screen, it’s likely that your attention has already passed to something else. With so many online merchants popping up every day, it is critical for a business to find ways to quickly earn your trust. This is where free trial billing comes in.
Free trials are used to entice customers by allowing them to try out the product for free. These trials are limited to a set amount of time (usually about a month) before the user is prompted to purchase the product. In most cases, they are billed automatically with a charge on their credit card. Free trial billing is one of the most popular tactics used by direct marketing Nutra companies today. Although it is incredibly effective for increasing conversions, I’ve found that many consumers still have a negative view of free trial billing.
Online nutraceutical merchants who offer a free trial to attract customers often discover the trial process can lead to customer churn
The customer’s credit card is charged after the free trial period ends and they have not yet decided that they’re ready to buy. The charge can cause confusion and frustration while the customer waits for a resolution. There are many who think it’s a form of deceptive marketing. You might be aware that the FTC has an opinion on free trials and their view is free trials can be a form of deceptive marketing.
Straight Sales: Nutraceutical straight sales are direct sales between a sales organization and a customer. It is not a multi-level or pyramid scheme.
Continuity Billing: Continuity billing allows you to be invoiced on a recurring basis. For example, if a customer orders a supplement every month, they can opt into the continuity program. Their next order is placed automatically on the anniversary of their first order. This option is great for businesses that have an existing customer base. Continuity Billing is an exclusive way for merchants to create predictable and recurring revenue streams from their products.
Potential Risk Factors in Free Trial & Continuity Billing Nutraceuticals from a Credit Card Processing Perspective
Subscriber Remorse: No matter how good your product is, many eCommerce business owners will often see Subscriber Remorse. This is when your customer loves your product and becomes completely dependent upon it. Once you’ve built up a large customer base and depend on continual new sales for profit, you’re in for a (sometimes painful) surprise. Many customers don’t buy every month and cancel! Subscriber remorse is a feeling of regret you get after signing up for continuity billing. It comes from having to spend more money, which makes you feel regret for purchasing certain products, especially if they result in less than satisfactory outcomes.
Exaggerated Nutraceutical Claims Risk Factor
Many nutraceutical companies have consistently used a number of exaggerated claims to promote new products. The most common examples are claims to reverse the aging process and result in younger. Healthier skin is also popular. Some direct marketing Nutra companies market that they have the most potent products on the market. They not only claim to provide the best product but offer guarantees. As an example, if you don’t notice the benefit in a few days then you can return your product for a refund or replacement of another product. While this is a marketing tactic and exaggeration, there may be some truth in their advertising, However, this is looked upon as poorly and does not help in opening a merchant account. Mainly due to the risk of chargebacks.
eCommerce Nutraceutical Merchant Account Providers
Does Stripe do Nutra? One may think that this payment processor would be your best bet when it comes to accepting credit card payments, but they’d be wrong. The reason for this is that Stripe has a general policy against working with businesses in the nutraceutical industry.
Will Square accept Nutra? It is no surprise that Square does not accept nutraceuticals. Square has been clear on this for years.
Conclusion 
Why choose FintechMerchantAccounts for your Nutraceutical Business?
FintechMerchantAccounts brings its expertise in the Nutraceutical business. We work with our clients to make sure they run their businesses smoothly and profitably by providing the best possible solutions. Using Fintech Merchant Accounts for your Nutraceutical business is the best decision you can make for both your customers and yourself. We help you focus on the value you bring to your customers and not the very difficult and delicate topics of compliance. FMA is a Nutraceutical merchant account provider that is designed to help you overcome obstacles. We do this by providing you with affordable, robust, and state-of-the-art solutions.
Getting started is easy and can be accomplished in less than 24 hours. FMA will help you with everything to get you set up to start accepting credit cards online. Once your account is set up, we are here to support your needs around the clock. You can take the first step by setting up a meeting HERE.