Nutraceutical Merchant Account or a General High-Risk Merchant Account: Which One Should You Choo

A nutraceutical merchant account is nothing else than a high-risk merchant account designed particularly for companies selling medicine and supplements. But is it really that different? Is the go-to solution tailored to the needs of such businesses, or is it pure marketing, and there is no need to pay extra for a nutraceutical merchant account? We will answer these questions in this article, so keep reading!

High-Risk Merchant Accounts

First, we cannot discuss what a nutraceutical merchant account is without defining what high-risk means in this context. It is a type of business bank account designed for companies that were deemed “high-risk” by financial institutions. This can happen due to a number of reasons, including high chargeback rates, fraud risk, a lot of card-not-present transactions or even a business just starting up. In the case of nutraceutical companies, it is usually so due to the strict regulations considering the products sold by them.

A nutraceutical merchant account is simply a high-risk account designed with the needs of this particular industry in mind. This means that it is indeed different from a standard high-risk account. Nevertheless, the question remains: Are there enough differences for a nutraceutical merchant account to truly be better?

The Truth about Nutraceutical Merchant Account

The answer to the question from the previous section is: yes, usually it’s worth it.

A payment processor offering a nutraceutical merchant account is usually more experienced in dealing with these particular types of products and overcoming the obstacles of this industry. This comes with several advantages for you:

  • Higher tolerance – An expert nutraceutical payment processing provider will understand the challenges that you face. This means that the conditions of your cooperation will be adjusted to the potential risk in the industry. As a result, you won’t need to worry about the consequences of, for instance, high returns when a product is removed from the market due to regulatory changes.
  • Expertise – If you get a nutraceutical merchant account, you also benefit from the knowledge gathered by your processor. As a company, they know how to protect you from liabilities and potential threats, and the account will include security measures adjusted to the needs of your industry. This way, you will be sure that no compliance issues appear on the way.
  • Customer support – When regulations change, you need to react, even though you might not know what to do, especially considering payment processing. This is why working with a company experienced in the nutraceutical industry is helpful. They are aware of the ever-changing laws and can prepare their customer service to answer your questions when a major regulatory change occurs. Plus, such businesses will often put extra workforce on the customer service line in periods right after these law updates to ensure that you get your answers swiftly.

Is It Worth Getting a Nutraceutical Merchant Account?

So, to conclude, should you get a nutraceutical merchant account instead of a general high-risk one? In our opinion, yes. A solution tailored to your industry is always better than a one-size-fits-all one, so you shouldn’t hesitate when making your choice.