Since nutraceuticals are unfortunately deemed high-risk, acquiring a standard merchant account is likely unfeasible. Even if you manage to secure one from a conventional payment processor, your business remains vulnerable to disruption. Selling any type of nutraceutical goes against their service policies, leading to account closure upon discovery of your business type. Opting for a high-risk nutraceutical merchant account helps mitigate the risk of losing sales opportunities or the ability to attract new customers.

With a high-risk merchant account in place, you can advertise your Nutra products, services, and subscriptions without jeopardizing your sales potential or transaction completion. These accounts are well-suited for individuals interested in marketing unique, one-of-a-kind, or alternative products that diverge from the standard retail market offerings. Partnering with the right payment processor allows you to conduct business as usual, irrespective of the industry niche you operate within.

Operating an internet-based supplement enterprise might not appear inherently high-risk, yet online operations entail greater risk compared to traditional, in-person transactions. Several factors contribute to the classification of the nutraceutical market as high-risk for standard payment processors, including:

Chargebacks: The online supplement business and nutraceutical markets are notorious for their elevated rates of chargebacks. Regrettably, when a sector experiences a chargeback rate exceeding 3%, it frequently earns the designation of 'high risk.'

Fraudulent Charges: Any market or industry plagued by fraud swiftly earns the 'high risk' label from traditional banks. Given the substantial scale of the nutraceutical and supplement industry, its incidence of fraud surpasses that of other conventional markets.

Furthermore, numerous banks adopt a cautious stance towards products intended for customer consumption. Consumers also harbor specific expectations regarding the supplements they consume. Consequently, if a customer seeks clarification or expresses dissatisfaction with a product, it could escalate into more intricate issues. Unfortunately, such challenges occur with greater frequency in the supplement and nutraceutical sector compared to other industries, resulting in increased obstacles and account-related concerns.

Prior to initiating the application process for your nutraceutical merchant account, it is crucial to assemble the following information:

Banking Information: You may be required to provide personal and business banking account details, along with statements spanning up to three months.

Personal Details: Depending on your business model, you may need to furnish either your Social Security Number (SSN) or Employer Identification Number (EIN).

Credit Score: A request for your credit score and credit history might be made, particularly if this is your first time applying for a high-risk merchant account. Payment processors utilize this information to assess your eligibility within the nutraceutical industry, considering various risk and market factors.

Industry Experience: Having prior experience in the industry or in processing debit and credit card payments could potentially lead to lower processing rates.

Online Presence: Include your business website URL in your application submission to ensure compliance verification by the processor and the bank.

Securing a credit card processor specialized in nutritional supplements not only ensures the smooth operation of your Nutra business but also provides reassurance with every debit or credit card transaction completed by customers. With a high-risk supplements merchant account in place, you can concentrate on customer acquisition, product expansion, and overall business growth, rather than fretting over the possibility of account suspension or loss.

Many nutraceutical merchants who come to us have recently faced closures from their previous processors. This occurrence is common because those banks and processors often fail to conduct proper underwriting for your business, leaving you vulnerable to fraud and chargeback challenges. Fortunately, O3 Merchant Services operates differently. We possess established banking relationships and robust underwriting procedures specifically tailored to support credit card processing for nutraceutical supplements.

Upon partnering with us, you'll receive personalized support from an assigned account manager, ensuring compliance, securing lower rates, and facilitating setup with a secure gateway. Additionally, our in-house tools for risk mitigation and chargeback management are at your disposal should you encounter such issues. Whether you have inquiries before, during, or after the application process, don't hesitate to contact us. We are committed to ensuring the prosperity of your business.