Nutraceutical Merchant Accounts for The Weight-Loss Industry
Nutraceutical merchant accounts have been much harder to place in recent years due to them being deemed high risk. With the evolving markets of skin creams and diet supplements, the market for all nutraceutical businesses has changed.
The obesity rate in the United States is alarmingly high. Studies show that the rate of those who are overweight or obese has climbed to above half of the total population in the United States. It is a stunning number, and the majority of those who fall into either of those categories are looking for ways to lose weight. The beginning of the year is particularly ripe with people trying to shed a few extra pounds as many have put losing weight on their list of New Year’s Resolutions.
There are more than a few diet programs to choose from, and many more are added each year. There continue to be new options available because different diets seem to work better for different people and because there is such a huge market for this service. It is estimated that this year alone that Americans will spend approximately $2 billion dollars on diet pills.
A big problem for the industry is the fact that the payment processors don’t make life easy for those who are trying to sell diet pills and services. These financial institutions think of weight-loss businesses as riskier than they really are. What they see are how many of these businesses spring up seemingly all the time, and they fear that most of them will flop and go belly-up very quickly. The industry has a reputation for high chargebacks on their credit card processing accounts, and that leaves banks wary of doing business with them.
Flow Payments is a great solution for any business in the diet industry. We are experts in the nutraceutical industry and have reliable processing solutions for most merchants who operate in this space. Flow Payments specializes in working with clients from industries who have a reputation of high chargebacks and other issues such as regulatory and reputational risk. Essentially, Flow Payments picks up where traditional financial institutions fail.
Applying for a Nutraceutical Merchant Account
To get a nutraceutical merchant account, an online application is the quickest way to an approval. Once the application is completed, the merchant will be required to have the following items:
- Completed website
- Copy of the fulfillment agreement
- Copy of call center agreement
- A government-issued ID like a state-issued driver’s license
- An EIN (Employer Identification Number) or SSN (Social Security Number)
- A pre-printed voided check or bank letter
- Three months of the most recent processing statements (if applicable)
- Three months of the most recent bank statements (if applicable)
Underwriting Process
Nutraceutical merchants must be able to prove they are a reputable and legal business to the underwriters and processors who review their application. Underwriters will review possible risk by carefully viewing an application to detect anything that could financially burden the process or appears suspicious. The products being sold should be FDA approved and should not be banned in the country. Their credit card processing history, as well as a merchant’s website and credit score, is used to determine risk. A merchant’s website must list its privacy and refund policies as well as provide other important information. A history of high chargeback rates, as well as negative bank account balances, late payments, and unpaid bills, impact a merchant’s risk assessment.
Approval Times
Approval times can vary depending on each business. The online application is the quickest way to get the process started. We are able to work with newly established businesses, known as startups, in the nutraceutical space.
You should expect that as long as the underwriters don’t see anything suspicious or out of order that they will be able to move forward with helping you get the account open. The process sometimes will require a little back and forth regarding document gathering depending on the applicant.
It is simply a matter of getting in touch with Flow Payments to get a free quote and then apply for a high-risk merchant account. We look forward to exceeding your expectations.