Why are Nutraceutical and Pharmaceutical merchants considered high risk? With so much popularity it might be surprising to learn that Nutraceutical merchants are often identified as high risk merchants. Which leads to fees being higher for payment processing and other services and might even mean credit card processing companies refusing to work with you.
There is a lot to love about an industry as widely popular as supplements, especially when nearly two-thirds of Americans consume dietary supplements each year. Products like Multivitamins, Weight loss supplements, workout and sports performance enhancing supplements raise many health concerns making them high risk.
There are many reasons that add up to one: risk. One of the biggest issues with this industry is that there is little to no governments oversight monitoring production. There is no accountability for what can go wrong and how and what makes the product consumable. With addition to that, claims that are being made to consumers can very well be misleading on purpose. Fabricating beneficial effects is a common tactic for selling supplements making banks nervous to put their name behind businesses selling these products.
Unregulated markets have higher odds for legal action and with no oversight, there is people actively looking for ways to take full advantage of it. Charge backs are also another big reason that Nutraceutical businesses have high risk merchant accounts. Customers seek refunds through their banks instead of reaching out to the business owner for a resolution.
HawkScanner is a very key and important database to utilize for Merchant Service Providers to make sure that products being sold are compliant against an FDA-powered database. With premium features like enabling live monitoring, storing ingredients and saving frequent searches.
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