Vitamins & Herbal Company Credit Card Merchant Services

High Risk Merchant Account for Vitamin & Supplements Industry


Online businesses receive payments through credit cards or Debit cards and a payment gateway is what allows the customer to make the online payment. But once the transaction is through, the money needs to be in a temporary account before it can be deposited into your own personal account. The temporary account is called a Merchant account and it is mandatory to have a merchant account if you own any online business.

Who is an Online Shopping Cart Merchant Card Not Present (CNP)?

An Online merchant is similar to a storefront merchant in that he/she sells products. But unlike a store front where you use your credit card in the presence of the merchant and sign the transaction, in an online purchase only the details of your card are entered. So the transactions are categorized as “card not present and no signature”

Selling Herbal supplements like Weight Loss or Male Enhancement

Herbal, supplements, vitamins all fall under the Nutraceuticals category. This is not only a fast growing business, it is also an evergreen business that will never grow old or slow down. Not everyone wants to walk into a physical store and buy their herbal supplements.

Nowadays people like to buy things from the comfort of their home. Therefore, as a business owner, it is very crucial to have your own ecommerce website. This means having a website with your products listed, ashopping cart and payment gateway for your customers so that they can buy your products online.

What is a Vitamins Friendly Merchant Account?

A merchant account is issued by a bank, but applying for one directly with a bank can be quite a daunting task especially if you are a start-up business. Banks that underwrite merchant accounts analyze them for various factors from credit history to chargebacks to processing volumes etc.

Most often than not, this scrutiny causes new businesses and businesses classified as high-risk to be outright rejected when applying for a merchant account. To simplify this process, a merchant account provider comes into the picture, who acts as a link between the bank and the merchant.

Why do you need a merchant account provider?

Your application for a merchant account may not be accepted by the bank due to various reasons that we have explained below. That is why a merchant account provider who understands the needs of merchants like you is the best option for many businesses.

  1. High-risk Business

Herbal Vitamins and supplements fall under the Nutraceuticals category and this is considered as a ‘High-risk’ business by banks. This is because, unlike medicines, they belong to a highly unregulated market. Hence there is also a high chance of legal action by customers when a products does not work or if its causes undesirable side effect. So if you directly approach a bank and apply for a merchant account for you neutraceuticals business, then chances are that your application will be outright rejected.

  1. Denied, shut-off or closed

When you are a high-risk e-commerce business, other popular credit card payment processing services like paypal or FirstData might close your account or deny payments or shut-off your account. Here are some of the reasons why your account may be denied.

  • Unfavorable personal credit history

  • High-risk business

  • High processing volumes

  • High Chargebacks

  1. Startup/New Business

All companies at some point were start-ups but that is not the problem of your bank that issues your merchant account. The problem you will face when you are a start-up or a new business is that you won’t have enough track record or transactions. This might even cause an outright rejection of your application for a merchant account.

But in a rare case that you application is accepted, the fees charged will be very high. This will definitely not be a feasible option for your new business. Hence, a processing company which specializes in new businesses is what you need as they will be able to provide you with a much lower fee,

Benefits of using a merchant account provider

When you choose a merchant account provider who specializes in high-risk businesses like nutraceuticals you can enjoy a lot of benefits as explained below.

  1. Domestic & Offshore Options

If you are keen on having only a domestic merchant account, your merchant services will be able to help you with the best option. When you choose a domestic account, you get obvious benefits like a lower rate of interest and security. But because your Nutraceuticals business is considered ‘high-risk’, a better option is to explore an offshore account. There are many advantages to opening an offshore merchant account.

  • A lower rate of interest

  • Quick approval of your merchant account application

  • No processing limit

  • Ability to accept transactions involving foreign currency

  • No annual accounting required

  • Low or no tax requirement

  1. Recurring billing

With a startup or new business it is very important to keep your revenue flowing in order to establish a good turnover quickly. As herbal supplements are required to be taken on a daily basis, you can make use of the recurring billing option. When you opt for this facility, you can have on-time payments and you will be able to easily forecast your revenue.

  1. Easy application

A payment processing company or merchant account provider will let you apply online and that too for free. What’s even better, you can start accepting credit card and debit card payments in no time. Typically you can start accepting payments in less than 48 hours.

  1. Virtual terminal

Merchant account providers cut down your need to apply for a separate virtual terminal by providing one with your package. Through a virtual terminal you can manually enter card details and basically use it like a front-end billing desk without the need for extensive hardware.

  1. Payment gateway

For your customers to buy your products from your Ecommerce website, you will need a shopping cart and a payment gateway. When you look for a merchant service provider, look for one who comes complete with a payment gateway as part of the package.

How to choose the best merchant service provider for your business?

With so many merchant service providers in the market, choosing the right one for your business can be very confusing. Once, you choose a provider that specializes in Nutraceuticals, look if they also have the following features.

  • Free online application

  • Provides free merchant account

  • Free account set-up

  • Set-up up your virtual terminal for free

  • Free set-up of your payment gateway for your ecommerce transactions

  • Should accept all major credit cards

  • Deposit the funds from your merchant account directly into your bank account

  • 24/7 customer support for queries and troubleshooting