Nutraceutical merchants offer healthy solutions to customers,who are looking to stay healthier and look better. Whether it’s food, beverages, skin care products, alternative medicine, herbal supplements or other solutions, this industry is a very lucrative business that can have a wide range of loyal customers.
According to Nutraceuticals World: The global nutraceutical product market reached $142.1 billion in 2011 and is projected to reach $204.8 billion by 2017, growing at an Annual growth rate of 6.3%.
Although starting in the nutraceutical industry can bea highly successful business, it is certainly not always appealing to banks.
The banks tend to consider even the most insignificant regulation and define it as risk. Subsequently, even regular subscriptions can be interpreted as a potential chargeback.
As a result, banks define the nutraceutical industry being a high risk business.
The following are some tips to easily secure a nutraceutical merchant account:
Steer Clear of False Claims
Be clear about the potential health benefits of your products; do not over promise then under deliver. Make sure not to advertise false claims or guaranteed results. Payment processors tend to be hesitant with businesses that publicize bold claims due to a high number of customer complaints that might be expected.
Beware of Negative Option Billing
Chargebacks will be held at bay if negative/trial billing is avoided. High charge back rates could result in your nutraceutical merchant account cancellation. Once the account is terminated, it is often difficult to get another one.
Work on Great Customer Service
Make sure customers can quickly reach the company’s sales representatives. It will greatly benefit your business to practice superior customer service to help keep a low chargeback ratio. A customer would typically call your company first regarding any concerns before calling their credit/debit card issuer. This is a simple way to avoid charge backs and keep a clean processing history.
Need a Nutraceutical Merchant Account? Apply today.