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Nutraceuticals, also know as “nutra”, help numerous people around the globe with natural alternative supplements to either lose weight, better his or her skin, enhance sexual activities, or help with their exercise and workouts. Typically nutraceutical sites offer recurring and continuity offers since customers usually need to consume the product on a regular schedule for extended periods in order to see the benefits.
Nutraceutical Payment Processing
According to a 2016 economic impact report funded by the Council for Responsible Nutrition, more than two-thirds of American adults take dietary supplements, many of which do so to fill in the gaps in their nutrition, which has pushed the dietary supplement industry to a $100 billion plus market. Unfortunately, nutritional supplements are not highly regulated in the United States, so it easy for businesses to make false or misleading claims about their ingredients and their effects. The questionable benefits surrounding dietary supplements make banks stay clear when it comes to working with businesses in this industry. Since the nutraceutical industry has a reputation of being a high-risk for credit card processors, banks don’t like to approve merchant accounts for these businesses Additionally, many online advertisers have plagued the industry by adding aggressive billing models, such as auto ship continuity programs and negative option free trials. Legitimate businesses that want to accept credit card payments can rely on Maverick BankCard. Due to Maverick’s experience in this field and history in the industry, Maverick understands the nutraceutical space along with all the factors within it, including risk management, chargeback mitigation and fraud prevention. Having numerous partners to work with, Maverick can provide a merchant account structure that is reliable and long-term.
Nutraceutical Merchant Account Requirements
Nutraceutical offerings require additional documentation and information when compared to an account for a more traditional business, such as a restaurant. The reason is the increased risk associated with the business type, in terms of both financial risk, such as chargeback exposure, and regulatory requirements.
- The billing model will need to be compliant in terms of the FTC’s Restore Online Shoppers Confident Act and Electronic Funds Transfer Act if any sort of trial is being offered or possibly even any type of recurring offer. They must also abide by other applicable regulation, such as the FDA, to ensure claims are legitimate and supported. This can vary based on the product type. For example, a natural weight loss or diet supplement will have different claims requirements when compared to a workout supplement or male enhancement product.
- Aside from advertising in a compliant and transparent way, there can be a reserve, which is used to mitigate risk associated with chargebacks.
- It is also very common for nutraceutical merchants to use fulfillment centers. In this case, a copy of the fulfillment agreement is required. Maverick is here to assist in the process that can sometimes be overwhelming to obtain an account.