Successfully operating a nutraceutical (Nutra) business and establishing a strong brand presence requires more than just offline operations. Creating an online presence through a dedicated website and an eCommerce storefront is essential for maximizing opportunities and generating revenue. Merchant accounts enable entrepreneurs to efficiently process payments through their websites or chosen eCommerce platforms, allowing for seamless transaction tracking and management.

Prominent tier one payment processors, such as Square, Stripe, and Braintree, are widely recognized; however, these providers typically do not cater to businesses classified as high risk. Consequently, online supplement vendors often face challenges in securing accounts with these platforms, restricting their ability to accept credit card payments. The nutraceutical industry is among the business sectors that receive limited support from traditional banking institutions, highlighting the necessity for specialized payment solutions that address its unique requirements.

Due to their classification as high risk, obtaining a standard merchant account for nutraceuticals can be challenging. Even if you manage to secure a merchant account from a traditional payment processor, your business may still face potential disruptions. Selling nutraceuticals typically violates the service policies of these processors, which can lead to account closures once your business type is discovered. ​Therefore, opting for a high-risk nutraceutical merchant account is essential to ensure that you can operate your business without jeopardizing sales opportunities or the ability to attract new customers.​

With a high-risk merchant account, you can effectively promote your nutraceutical products, services, and subscriptions without compromising your capacity to generate sales or process transactions. High-risk merchant accounts are particularly advantageous for businesses offering unique, specialized, or alternative products that are not typical in standard retail markets. By partnering with the right payment processor, you can maintain seamless business operations, regardless of the industry in which you operate.

Nutraceuticals and supplements are categorized as high-risk for several reasons. First, the regulatory landscape surrounding these products is complex and constantly evolving, which can lead to compliance challenges. Many nutraceuticals are subject to varying state and national regulations, necessitating stringent adherence to legal standards in marketing and sales.

Additionally, the nutraceutical industry is associated with higher chargeback rates, which occur when customers dispute a transaction, often due to dissatisfaction with the product or unmet expectations. This increased potential for chargebacks raises concerns among payment processors, making them wary of accommodating businesses in this sector.

Furthermore, the availability of anecdotal evidence regarding the effectiveness of nutraceuticals may contribute to skepticism among financial institutions, as they are often unable to rely on consistent empirical data to assess product safety and efficacy. ​These factors collectively contribute to the classification of nutraceutical and supplement merchant accounts as high risk, affecting the ability of businesses in this sector to obtain favorable payment processing solutions.

Before initiating the application process for your nutraceutical merchant account, it is essential to compile the following information:

Banking Information

You may be required to provide personal and business banking account details, including statements for up to three months.

Personal Details

Depending on your business structure, you may need to submit your Social Security Number (SSN) or Employer Identification Number (EIN) as part of the application process.

Credit Score

Applicants may be asked to share their credit score and credit history, particularly if this is their first application for a high-risk merchant account. Payment processors often evaluate credit history to assess eligibility for high-risk accounts within the nutraceutical sector, considering various risk and market factors.

Industry Experience

Experience in the nutraceutical industry or familiarity with processing debit and credit card payments can be advantageous, potentially leading to lower processing rates.

Online Presence

Include your business website with your application to demonstrate compliance and provide the payment processor and bank with assurance regarding your business operations.

Securing a nutritional supplement credit card processor is crucial not only for maintaining a fully operational nutraceutical business but also for providing peace of mind with each customer transaction. A high-risk supplements merchant account allows you to concentrate on attracting new customers, stocking innovative products, and expanding your business without the concern of potential account locks or losses.

Many nutraceutical merchants who approach us have recently experienced shutdowns by their previous payment processors. This often occurs when banks and processors fail to adequately underwrite the business, leaving merchants vulnerable to issues related to fraud and chargebacks. Fortunately, we are different. We possess the necessary banking relationships and underwriting capabilities to effectively support credit card processing for nutraceutical supplements.

Upon partnering with us, you will receive an assigned account manager dedicated to ensuring your compliance, securing lower processing rates, and assisting you in establishing a secure payment gateway. Additionally, our in-house risk mitigation and chargeback management tools are available to help address any challenges you may encounter. Should you have any questions before, during, or after the application process, please do not hesitate to contact us. We are committed to supporting the success of your busines