- What types of nutraceutical industry businesses does Nutra Payments accept as clients?
- Do you provide merchant accounts for non-US based businesses?
- Do you require manufacturing licensing for a nutra business to be approved for a merchant account?
- Do you provide nutraceutical merchant accounts for businesses offering free trials?
- What general advertising practices are permitted for nutra merchants?
- How do I apply for a merchant account?
- What information should I be prepared to provide during the underwriting process?
- Why do you require that my website display images of the nutra products being sold?
- How long does it take until I get approved for my merchant account?
- What payment currencies do your merchant accounts offer?
- What percentage of foreign card payments is acceptable on my merchant account?
Accepted & Prohibited Businesses
What types of nutraceutical industry businesses does Nutra Payments accept as clients?
We provide merchant accounts for all types of nutra industry businesses, but specialize in merchant accounts for businesses that are considered “high risk,” or hard-to-place. These can include manufacturers and retailers of private label supplements,vitamins, minerals, amino acids, herbs, and enzymes marketed in various forms: tablets, capsules, gelcaps, softgels, powders, and liquids. We also provide merchant accounts to service providers and other types of companies operating in the nutraceutical industry.
Do you provide merchant accounts for non-US based businesses?
Sorry, we are unable to provide merchant services for foreign or offshore businesses, or any company that is headquartered outside of the USA. To be approved for a merchant account with Nutra Payments, the business owner must have a valid SSN and US issued identification (driver’s license, US passport, etc).
Do you require manufacturing licensing for a nutra business to be approved for a merchant account?
Licensing is not required for approval in most cases, but having GMP certificates may increase the chances of approval with all of our partnering banks.
Do you provide nutraceutical merchant accounts for businesses offering free trials?
Our merchant accounts allow for selling products and services as a subscription, recurring, auto-ship, and/or negative option billing model. That said, merchants are required to disclose an easily-identifiable and verifiable opt-out option to customers.
What general advertising practices are permitted for nutra merchants?
Merchants must not advertise unreasonable or unsubstantiated results and claims. Additionally, they may not use unapproved celebrity names, news source logos, or fake testimonials in any advertisements.
Application & Setup Process
How do I apply for a merchant account?
To apply, first you need to complete the online application (which takes about five minutes), and upload any additional required documents. Next, you can review our full proposal (which includes pricing), and DocuSign it when you’re ready. When your assigned underwriter approves your account, you can start processing payments right away.
What information should I be prepared to provide during the underwriting process?
Most nutra industry merchant account applicants will be requested to provide information regarding fulfillment timeframes, as well as confirmation of the website(s) where the products are being sold.
Why do you require that my website display images of the nutra products being sold?
To be approved for a nutra merchant account, underwriting must confirm that the product ingredients as shown on the label are in compliance with the Food and Drug Administration and DEA.
How long does it take until I get approved for my merchant account?
After you apply, your merchant account will be pre-approved within 24 hours. Next, you will usually be fully approved (that is, through underwriting) within three to five business days. Unfortunately, same-day approvals do not exist for high risk businesses, due to the requirement that there be manual underwriting. Rest assured, however, that we will work as diligently as possible to get your account approved in a timely manner (typically three to five business days). Our priority is to get your merchant account up and running as fast as possible.
What payment currencies do your merchant accounts offer?
At this time, merchant processing is limited to USD (US Dollar). Any foreign card payments will be taken in USD, with currency exchange being completed at the issuing bank level.
What percentage of foreign card payments is acceptable on my merchant account?
Merchants should typically plan to stay below a 30% foreign card payment threshold. Please speak with your sales representative if you plan on processing a higher percentage of foreign cards.
Merchant Account Details
What is an acceptable chargeback ratio for my merchant account at Nutra Payments?
For applicants with previous credit card processing history, the bank will typically need to see a chargeback ratio under 2% for approval, unless there are extenuating circumstances which explain a higher chargeback ratio.
For existing merchants, the acceptable chargeback threshold to be able to continue processing can vary, but ideally should be maintained below 2% to avoid running the risk of termination.
What is a “rolling reserve”?
A rolling reserve is a type of cash reserve used to protect the merchant account and the bank from potential losses due to chargebacks. In this case, a percentage of the credit card volume processed (typically 5 to 10%) is held in reserve. Risk management will gradually release held funds from the reserve after six to twelve months of consistent processing with low chargebacks.
Certain types of businesses will be required to have a rolling reserve to be approved for a merchant account initially. This can be reconsidered after the business has established a positive processing history with the bank.