Consumers are purchasing nutraceuticals at increasing numbers year over year, and more individuals are meeting the demand for this market through e-commerce sites. Business is growing, but credit card processing is slow to fully support this thriving industry.
Legitimate nutra companies seeking a merchantA business that accepts credit cards for goods or services. account can turn to National Merchants Association (NMA) – a leading merchantA business that accepts credit cards for goods or services. services provider and business advocate that is transforming the financial services and nutra industries, one payment at a time.
Nutra, trial and continuity expertise
Up to 70% longer MIDA number that numerically identifies each merchant to the merchant processor for accounting and billing purposes. lifespan
An integrated fraud suite to mitigate chargebacks, with the goal of keeping them under 1%The term, “nutraceutical” – a combination of the words “nutrition” and “pharmaceutical” – can be defined as any type of food or fortified food product that is used to supplement a diet, prevent illness or maintain health.
According to the U.S Food and Drug Administration, unlike pharmaceuticals, nutraceuticals are tested and regulated under a different set of guidelines than those covering “conventional” foods and drug products. The difference in regulations does not deter NMA, which offers solutions to fit a wide range of nutraceutical e-commerce businesses – from startups to established businesses of all sizes. NMA provides payment processing to companies that sell the following products:
NMA offers merchantA business that accepts credit cards for goods or services. accounts to an extensive list of e-commerce, card-not-presentA merchant environment where the cardholder (and the card) is not physically present at the time of purchase. Typical card-not-present transactions take place in businesses focused on mail order/telephone order, business-to-business, and Internet-based transactions.... businesses – typically classified as high-risk. Learn more about our high-risk merchant accounts, or reach out directly to speak with one of NMA’s high-risk experts. Learn More »
The nutraceutical industry is prone to chargebacks for a variety of reasons, causing merchantA business that accepts credit cards for goods or services. accounts for nutra businesses to be considered high risk by banks and regulatory bodies.
The label “high riskA merchant that is considered a high risk based upon the credit, product, method, ticket size or volume. Examples of high risk merchants are telemarketing, adult and travel related industries.” doesn’t necessarily indicate unlawful or malicious activity; high riskA merchant that is considered a high risk based upon the credit, product, method, ticket size or volume. Examples of high risk merchants are telemarketing, adult and travel related industries. simply means that a merchantA business that accepts credit cards for goods or services. account needs additional supervision and management to keep the account healthy and active.
Chargebacks are a major detriment to the nutra merchantA business that accepts credit cards for goods or services. account, and can occur for a multitude of reasons.
» Nutra products are not as regulated as pharmaceuticals and the health benefits are often unproven and commonly disputed
» Dissatisfied customers who dispute credit card transactions.
» Actual fraud, where someone other than the cardholder purchases a product
» Friendly fraud, where the actual cardholder makes the purchase and later disputes the transactionAn act between a seller and a cardholder that results in either a paper or an electronic representation of the cardholder’s promise to pay for goods or services received from the act. The action between a cardholder and a merchant that results in financial activity between the merchant and cardholder’s account....
» A merchantA business that accepts credit cards for goods or services. charges a consumer’s card after they have requested a cancellation
» A consumer isn’t aware or forgets that their card was to be billed – as in cases with a free trial period followed by monthly billing charges – and wants a refund
Chargebacks can be detrimental to a nutra merchant’s business, but with the right tools in place, can be successfully managed. The experts at NMA have partnered with an integrated, comprehensive suite of services to help prevent chargebacks, as well as suggested business practices to minimize disputed transactions.
Merchants not actively preventing and fighting disputed transactions are doing their nutra business a disservice. Maintaining a low chargebackThe act of reversing a sale made by the merchant. This can happen for many reasons including procedural and fraud. The process usually begins with a dispute from the cardholder. ratio is critical to the long-term success and prosperity of a nutra business.
NMA is the leading expert in nutra payment processing, and prioritizes a long-lasting, healthy merchantA business that accepts credit cards for goods or services. account. Nutra businesses do not fit the cookie-cutter mold, and one-size-fits-all merchantA business that accepts credit cards for goods or services. accounts for these companies have proven to be ineffective for long-term success.
Fast approvals are dependent on full packages submitted to NMA’s underwriting team. The documents we require help to validate important facets of the business, and assess risk based on actual data and business history, as opposed to just the industry type.
Here’s what you’ll need to get started:
Once the application is submitted, the NMA underwriting process begins:
Upon approval, NMA will set up the merchantA business that accepts credit cards for goods or services. account, deploying the payment gatewayA payment gateway is a combination of hardware and software that provides merchants with the ability to perform real-time credit card authorizations from a website over the Internet. It’s the link between a merchant website and the processor., chargebackThe act of reversing a sale made by the merchant. This can happen for many reasons including procedural and fraud. The process usually begins with a dispute from the cardholder. mitigation software, and additional fraud-fighting solutions. From the second the nutra account goes live, the experts at NMA actively monitor the account to mitigate risk and sustain the health of the business.
