DirectPayNet

Category: NUTRACEUTICAL

  • Nootropics Gain Popularity But Lose Payment Processing Credibility

    Nootropics Gain Popularity But Lose Payment Processing Credibility

    The nootropics industry is gaining popularity again, and with it, there is a demand for nootropics merchant accounts. But unusually high numbers of merchants are being declined for merchant accounts in their quest to accept credit card orders online.

    So what’s the issue?

    Like many other nutraceutical sub-categories, nootropics are considered a high-risk according to card issuers such as Visa and merchant service providers. But the good news is that there are plenty of actions you can take to enhance your chances of securing credit card processing.

    This article will show you how to avoid the most common pitfalls and secure your first nootropics merchant account. But first, let’s take a look at what’s causing the comeback of these so-called “smart” dietary supplements.

    Nootropics Set to Enjoy Rapid Growth During the 2020s

    Nutraceutical business owners in the nootropics space are set to enjoy record growth over the coming years. Recent industry reports suggest that the value of the nootropics market will reach $5.32 billion by 2026. That represents a staggering Compound Annual Growth Rate (GAGR) of 13.2%.

    This industry offers ample opportunity for e-commerce merchants to scale as long as they have the right payment structures in place to accept card payments and other forms of online payments.

    In case you’re unfamiliar with this sub-section of the nutraceutical industry, there is a wide range of so-called “smart” or cognitive drugs and supplements available for businesses to sell online without the need for a prescription. They usually contain ingredients that can boost the memory, enhance creativity levels, decision-making capabilities, and improve overall brain performance.

    With so many people working remotely from home these days, their popularity has soared as home-based workers look to find supplements that provide improved focus and productivity enhancement.

    But business owners looking to scale and grow within this niche often hit roadblocks when applying to credit card processors. So let’s look at why this is the case.

    Did you know that the key to success in the Nootropics space is diversifying your payment options? But how can you make that a reality? Read our Six Must-Do Strategies to Diversify Your Nootropics Payment Processing to find out!   

    The Nootropics Niche Has a Reputation Problem

    Firstly, the reason that so many companies struggle to secure a high-risk merchant account for nootropics is due to the industry being in regulatory limbo. It’s fair to say that incidents of fraud and customer backlashes have not helped either.

    While some online vendors run honest and highly successful businesses, a minority of sellers have created mistrust in the industry by overpromising and underdelivering. Consequently, acquiring banks and other payment providers are less enthused to accept vendors in this business category.

    Nootropics merchants like to use the terms “cognitive enhancer,” “smart drug,” or “magical elixir” for the brain. Regardless, savvy branding does not persuade acquiring banks or other payment providers to approve you for a solution. What providers care about is the potential risk your business may present to them financially.

    With some nootropics merchants claiming that their brain enhancement drugs cure Alzheimer’s, Parkinson’s, and dementia, it’s no wonder why so many financial institutions keep the industry at arm’s length.

    However, there is good news. You can prove to your acquirers and payment processors that you are a legitimate nootropics business worth partnering with for a nootropics merchant account. There’s plenty of items you need to implement. But once you have those in place, you can take advantage of one of the world’s fastest-growing supplement markets and leave your competitors behind.

    Let’s start with building solid financials.

    Successful Nootropics Merchants Build a Solid Financial History

    Most nootropics merchants think that all they need to show is some processing history. While these financial statements are vitally important, you also need to show that you have enough capital to take on unexpected events.

    Hence the reason some acquiring banks request bank statements. Experienced sellers know that they need a solid financial history to show acquiring banks they are stable. For example, having a $15,000 account balance will ease concerns if you apply to process $10,000 in monthly sales volume.

    A payment services provider will want to know that you have enough capital to back up your business products, inventory, and operations like a proper nutraceutical merchant should.

    High-volume supplement companies and weight-loss-supplement brands already know this. That’s why they grow revenue to $15,000 or more before even applying for a merchant account. If they cannot accept credit cards, they use e-checks and ACH at the shopping cart checkout page to build up orders, revenue, and, more importantly, establish good processing.

    Pay Attention to Ingredients, Licenses, Agreements, and Fulfillment

    Government bodies that regulate food and drugs require an ingredients list to accompany ingestible products. Nootropics are ingestible and therefore are subject to the same treatment. Your product descriptions should include a list of ingredients, so customers (and acquiring banks) can see that you are fully transparent.

    Successful merchants also retain copies of licenses, agreements, and order fulfillment contracts to show their payment providers. It’s important to know what is in your products, where they come from as well as shipping methods and delivery delays.

    Additionally, banned, sinister and uncontrolled doses of substances can put your provider in violation of government rules and regulations. Therefore, remove questionable inventory items before selling them to buyers. Violating these and other rules might effectively terminate your merchant account. Most countries have a regulatory body with lists on their websites that can be searched for banned ingredients. For example, in the United States, you can review the FDA website to ensure all your product ingredients can be sold.

    Avoid Making False Claims in Your Marketing Materials

    In a perfect world, customers would be responsible for their decision to buy your product, but that doesn’t stop government agencies from taking action against you. Some nootropics brands have faced lawsuits and fines for false claims made about their products.

    If you want to avoid this type of legal attention, we suggest performing a thorough website audit of all your content. Remove any misleading statements or claims. Otherwise, customers and your merchant services provider(s) can hold you liable.

    Too often, online merchants claim that their products can perform miracles like improve memory for dementia patients or alleviate the issues suffered by people living with Parkinson’s disease and cancer. But making isleading and reckless statements like this will put you at risk of potential lawsuits, and acquiring banks won’t entertain your merchant account application any further.

    Additionally, it is illegal to assert your products can heal severe medical conditions. Exaggerated claims should be withdrawn and never be associated with your nootropics business. Lastly, clinical trials must be performed on your product before you can make specific claims.

    Keep a Close Eye on Your Affiliates Selling Your Products

    Affiliate marketing is an excellent channel for attracting new prospective customers to your products. Operating an affiliate program to sell your nootropics can have big benefits for increasing traffic. However, be aware of exactly how your affiliates are marketing your products.

    There is no time like the present to perform an audit on your program. Are affiliates using the marketing materials you provide them with, or are they creating their own? Have you read any of their email campaigns or live website content? Does it accurately represent your brand? These are just some questions merchants should consider to curb potential false advertising.

    Carefully check referral links to verify how online traffic is being sent to you and that your product is marketed properly. Sever ties with those over-promising the properties of your nootropic products. The alternative is getting stuck with returned products and rampant chargebacks from customers that put your payment channels at risk of termination.

    Presentation and Communication is Everything

    Acquiring banks typically perform due diligence on companies when they consider whether to issue a merchant account. This is why it’s vital to put your best business face forward. A quality website makes an impression on the people assessing your products. An order page that provides clear pricing and description is also favorable.

    Therefore, having a shop with six out of 10 products missing or phony testimonials can result in an instantly-declined nootropics merchant account application. Likewise, the reason payment providers have become weary of nutraceutical vendors is because so many have unclear pricing terms. This can confuse prospective buyers. This is another reason for the mounting chargeback ratios in this industry.

    Ensure to clearly detail specific costs on your order page, as well as in your terms and conditions. Try to avoid subscriptions if you can. But if you insist on pursuing the rebilling model, allow customers to “opt-in” if they want to subscribe.

    Free or discounted trial subscription offers are seen as a red flag by debit and credit card issuers. This is another cause of declined payment processing applications. With new MasterCard rules surrounding free trials, providers do not want to be penalized by card networks and often steer clear.

    Ideally, build up six months of processing history and develop a strong brand. Then, once you have industry experience and solid financials, you can try new pricing models. If you’re a recent startup, start with a straight-sale offer and upgrade to a recurring model when you have proven that you can process orders with few chargebacks.

    Anti-fraud Tools Make Better Nutraceutical Merchants

    As we have mentioned many times here at DirectPayNet, implementing a robust set of anti-fraud tools can protect your business. By implementing a few of these solutions, you will lower risk to your business. You will also help curb the threat of high chargeback ratios from putting your merchant account at risk of termination.

    So let’s take a look at what some of these measures are.

    Chargeback Protection Services

    All high-risk merchants should procure this type of support. These networks are experts when it comes to chargebacks. They alert merchants when buyers contact their banks or if the potential to request a chargeback is high. Knowing which customers are putting you at risk is beneficial to your payment processing. Companies such as Ethoca and Verifi offer this service.

    Fraud Analytics Software

    There are several high-quality fraud analytics solutions on the market. Find the software best suited to your business model, industry, and transaction needs. Request demos from providers to learn how implementation could be advantageous. Likewise, seek counsel from your tech team to determine if integration could be seamless, which it should be.

    There are also several payment gateway tools, such as the Address Verification Service (AVS), that can be activated to beat some obvious fraud. Make sure to review the options already available to you. A reliable payment processor such as DirectPayNet can help navigate the rules you can add to protect your business from unwanted fraud and chargebacks.

    3D-Secure 2.0 (3DS2)

    This payer authentication is an excellent security measure. Merchants that implement 3D-Secure 2.0 (3DS2) benefit from lower instances of fraud and chargebacks. It works by assessing dozens of real-time data points to evaluate whether a transaction is genuine or not.

    Crucially, it also requests additional authentication from the customer, in the form of identifying information such as a fingerprint or a code sent to their mobile device. This extra layer of security shifts the burden of chargeback proof from the vendor to the customer. Lastly, it’s been a legal requirement on orders processed with the EU since the 1st January 2021. So make sure you have it in place if you operate in Europe, or you could end up in hot water.

    If you’re worried about conversions, it’s essential to note that the tool has undergone major changes since the first version, and now customers never have to leave your website to complete a purchase. To learn more about 3DS2, visit this page.

    Secure Your Nootropics Merchant Account with Help from the High-Risk Payments Experts

    DirectPayNet has over a decade of experience in the payments industry. We have assisted merchants that sell anti-aging creams, vitamins and supplements, detox kits, diet and weight loss programs, and nootropic products.

    With our expert support, those merchants have secured nutraceutical merchant accounts and ACH processing to help them scale their businesses even faster.  We have also helped them retain payment processing even when faced with the threat of high chargeback numbers.

    Let’s help you get the support you need. Email us today to find a payment solution for your nootropics business.

  • Selling Keto Products? Here Are the Best Methods for Cutting Carbs and Increasing Profits!

    Selling Keto Products? Here Are the Best Methods for Cutting Carbs and Increasing Profits!

    The ketogenic diet is not new by any stretch of the imagination. Yet, the keto diet industry continues to grow at a rapid pace. Over the next four years, the low-carb diet industry is set to add a further $1.18 billion in revenue as those looking for weight loss solutions are increasingly turning to keto diet plans and other products (such as supplements) to help them hit their goals.

    So what are the hot keto products flying off the shelves right now? And how can you scale your keto business in an increasingly competitive space?

    Businesses Selling Keto Products Continue to Enjoy Healthy Profits Years Later

    When weight loss programs such as the Atkins or Paleo diet first took off, competition among retailers was fierce. But over the years, interest has waned somewhat, and those looking to lose weight have explored alternative options.

    Keto has risen to the top of the pile. The revolutionary diet teaches the body to burn fat instead of carbohydrates (entering what is known as a state of ketosis). And unlike other fad weight loss programs, keto is standing the test of time as cult-like keto dieters continue to spread the message about this amazing wellness trend.

    Despite being a mature diet market, the keto market is expected to expand at a compound annual growth rate (CAGR) of 5.5% from 2020 to 2027. These are numbers simply not witnessed in other mature diet verticals.

    Several digital products are hitting the sweet spot for customers. Keto merchants have build solid five and six-figure businesses selling online info products such as step-by-step eating plans, keto cookbooks, and holistic programs based on keto and intermittent fasting principles.

    But this sub-niche is becoming crowded, and physical products such as keto supplements appear the best growth opportunity in this industry.

    Keto Supplements and Keto Food Products Are Revolutionizing the Industry

    While info products are not unique to the diet industry, there is an increasing number of specific keto supplements and food products helping keto dieters enjoy their transition into low-carb foods.

    Carb-heavy favorites such as chocolate chip cookies, cheesecake, and brownies are being reworked to become healthy keto snacks. But supplements that aid the body’s transition into ketosis are proving to be even more popular.

    For example, exogenous ketone supplements are commonly used by those following a ketogenic diet to increase blood ketone levels. Taking these supplements can help the body transition over to using fat as an energy source much quicker. Hence why they continue to fly off the shelves!

    But if you want to grab a slice of the ever-growing growing keto-friendly pie, then you’re going to have to differentiate yourself from the competition. Remember, Keto offers are everywhere. So, where is the best place to start if you are to scale your business in a cloud of competitors?

    Highest-Performing Keto Merchants Offer an Entire Ecosystem of Products

    The key to succeeding in the keto industry is building an arsenal of products and services. As is the case in any industry, it’s extremely risky to put all of your eggs in one basket. If you lose your supplier for the one keto supplement product you’ve built your reputation upon, then what happens? You’re back to square one!

    That’s why you need to think about the positioning of your keto offers. For instance, if you sell keto supplements, can you offer complementary upsell to an extensive meal plan e-book written by professional nutritionists?

    You could leverage platforms such as Amazon to sell physical keto recipe books, which could act as a business card to your online keto bootcamp. Think outside the box. Take healthy, keto-friendly products such as coconut oil and peanut butter and put your own spin on them. There are so many ideas you could come up with. The key to remember here is diversification wins the day.

    But just as positioning is important, so is staying on the right side of regulatory bodies such as the FTC.

    Want to learn more about how to boost your online sales as an online Keto business? Read our top three Keto business sales-boosting tips here!  

    Avoid Making Unverifiable Claims in Marketing and Promotional Materials

    Assembling a broad range of keto products to cross-sell and upsell is one thing, but marketing them is another task entirely. The problem is that a few companies have ruined the reputation of the keto industry in the eyes of the banks that process online payments in this industry, thanks to their devious practices.

    The most famous recent case was the so-called “Shark Tank” keto diet pills. The company in question built fake credibility by saying they were the first keto diet pills on Shark Tank. They created fake ads with celebrities who never endorsed their products and flooded social media with deliberately shocking before and after photos of people who have never taken their product.

    These are big no-nos in the eyes of the FTC, and no acquiring banks will want to process online credit card payments for you with such deceptive marketing practices. Positioning your keto products in this manner will likely see your business shut down.

    Avoid Subscriptions and Create Clear Return and Refund Policies to Avoid the Chargebacks

    In this particular case, another problem was secret clauses buried in the fine print, which signed customers up for a subscription that very few of them knew about.

    For supplement products such as MCT oil capsules or exogenous ketones, it’s best to sell them as standalone products. We’ve spoken with Keto companies that utilize the subscription business model, and many of them have been rejected for payment processing on numerous occasions.

    If you’re wondering why, it’s because this business model has elevated risk in the eyes of financial institutions. Subscriptions are a magnet for chargebacks. Most of the time, it’s because canceling payments is too time-consuming, and so customers just issue a chargeback instead.

    That’s why, in addition to avoiding subscription business models, it’s crucial that you create and actively promote a straightforward refund policy. Even if you create high-quality keto products, people may still want to return their items for a refund. Thus, you should educate them on how they do this quickly and easily. Otherwise, disappointed customers will just issue a costly chargeback, which could hurt your payment processing.

    Step Up Anti-Fraud Measures for Your Online Keto Business

    When selling any products online, it’s essential to understand that Card Not Present (CNP) transactions come with an elevated risk level. That’s why you need to implement the latest technology to ensure that fraudulent payments are stopped in their tracks. You can also use software solutions to prevent fraudulent chargebacks later down the line.

    When it comes to beating fraud, there are many steps you can take. One measure you can implement is the Address Verification Service (AVS), which ensures that the customer’s address matches up with the records held by their card issuers. This is effective at blocking fraudsters from using stolen credit card information.

    Implementing 3DS2 is another smart step when it comes to processing your online keto payments. This solution analyzes hundreds of data points in real-time to ensure that the payment isn’t fraudulent. Better still, it requires an extra layer of authentication from the customer to make a payment.

    What this means for you as a merchant is that chargeback liability shifts from you having to prove the sale was legitimate to the customer having to prove it was fraudulent. You can imagine how much time and money this measure alone will save you as you scale your keto business.

    Build Up Processing History With Alternative Payment Methods Such as ACH

    The best way to convince financial institutions that your keto business is worth the risk is by providing them with an impressive set of processing accounts. A long and detailed processing history will allow them to perform an in-depth analysis and deem your keto empire a worthy business partner.

    However, this can be like the chicken and egg scenario. How do you impress acquirers enough to give you access to credit card processing without any processing history to speak of? With alternative payment methods, of course!

    One of the best ways to build up a processing history without a credit card processing solution is to utilize alternative payment methods such as ACH and eCheck. The best part is that, since these payments are authorized directly by the account holder, it’s challenging for customers to issue a chargeback.

    So not only will you develop an impressive set of processing accounts, but you’ll also do so with impressive chargeback ratios by keto diet industry standards.

    Scale You Keto Products Business with Help from the Experts

    So there you have it! You’ve learned what it takes to build and scale a successful keto product business. All it takes is careful positioning, a diversified product offering, and attention to detail when it comes to securing online payments, and you’ll be well on your way!

    However, these are mere building blocks to success. To secure shortcuts to seven-figure monthly revenues, you’re going to need the help of high-risk payment experts.

    Here at DirectPayNet, we’ve been helping clients in the weight loss space for more than a decade. We know what it takes to secure high monthly processing limits and achieve the size and scale to stand out from your competitors.

    So what are you waiting for? If you want to gain the inside track to success in the high-risk weight loss industry, talk to our expert team today!  

  • How to Address the Very Real Threats To Your Immunity Supplements Merchant Account

    How to Address the Very Real Threats To Your Immunity Supplements Merchant Account

    There’s no mistake about it. Merchants selling supplements that boost the immune system have enjoyed a boom in sales during the early 2020s. With COVID-enforced shutdowns, this high-risk industry has been enjoying record success. These elevated revenues are also set to continue long after the pandemic is over, with so many more customers conscious of their immune response to the coronavirus and other airborne diseases.

    But it’s not plain sailing for high-risk merchants in this space. Many health supplements are being missold. The food and drug administration (FDA) and the Federal Trade Commission (FTC) are cracking down on misleading claims about the efficacy of nutraceutical products in this space.

    Worse, some customers taking immune support supplements marketed as COVID-beaters are contracting and suffering severe coronavirus symptoms. This is causing a spike in chargebacks. As a result, many merchant service providers are severing ties with nutritional and nutra merchants selling immunity-boosting supplements.

    This guide will walk you through the very real threats posed to your immunity supplements merchant account before presenting you with the solutions you need to scale your business. But first, let’s take a look at the current state of the market.

    High-Risk Merchants Selling Immune Support Dietary Supplements Enjoying Sales Boom

    Throughout 2020 and 2021, sales of immunity supplements enjoyed record-breaking success. At one point, 17 of the top 20 multivitamin category products sold on Amazon were immune-related. The immunity supplement market grew by more than 25% in 2020 alone, and similar growth figures are expected to be reported for 2021.

    The immunity supplement market is now worth over $3 billion in the United States alone, making this an excellent market to enter and scale as a high-risk merchant. Herbal supplements and products high in antioxidants and known immune-boosting vitamins such as vitamin C, vitamin D, zinc, and magnesium are all popular today. And that popularity looks set to continue long after COVID recedes.

    But the problem is that some merchants are ruining the industry’s reputation by peddling false claims about “miracle” formulations, hiding side effects, and burying health disclaimers in the fine print. This is just one of several risks that pose a threat to legitimate nutraceutical businesses’ payment processing.

    High-Risk Nutra Merchants Being Hurt Deceitful Operators and a Low Risk Appetite

    Both the FTC and the FDA are cracking down on purveyors of supplements making false claims about their product efficacy. More specifically, they’re looking into hundreds of companies who have made erroneous claims about a supplement’s ability to fight off or prevent COVID infection.

    Unlike the vaccines being administered to millions worldwide as we speak, these supplements have not been subjected to rigorous clinical trials required of almost all healthcare drugs. The FTC has already warned numerous companies about making unsubstantiated claims regarding their products, and it’s having a knock-on effect.

    Those ingesting immunity-boosting products such as probiotic pills have been suffering some unwanted side effects. Others taking so-called “COVID-beating” herbal products have reported similar findings. The problem is leading to surging chargebacks within the industry, hurting legitimate merchants’ credit card processing abilities.

    Many nutraceutical businesses who began their journey with processors such as PayPal and Stripe have had their accounts suspended or shut down with little to no warning. These low-risk providers have very little tolerance to chargebacks and have stopped processing payments for these types of products in many markets. As we’ve mentioned before, setting up your payment processing in this way is always risky for a supplement business.

    The good news is that you can mitigate these risks to your business.

    Are you running a supplements business with Stripe or PayPal? Did you know they could shut your processing down with just 24 hours’ notice? Please don’t wait for them to pull the trigger! Contact our high-risk payment experts instead to secure you the best possible payment processing for your neutraceutical business! 

    How To Mitigate The Threats Posed To Your Immunity Supplements Merchant Account

    The last thing you should be doing is sitting back as a high-risk merchant. Remember, your e-commerce business could lose credit card processing overnight. Instead, look to shore up your defenses. The first step starts with you performing an audit of your sales and marketing copy.

    Perform a Sales and Marketing Copy Audit

    This is the best place to start to protect your merchant account status. Ensure that you don’t use words such as “treat,” “cure,” “prevents,” or anything else similar. You cannot make such claims without clinical studies. If you get cited by the FDA or FTC, you will have your payment processing privileges revoked almost instantaneously.

    Banks also want to steer clear of any business that mentions COVID. Vaccines are being released in high volumes right across the globe. That is the only prevention strategy that has stood up to the scrutiny of extensive scientific testing. Anecdotal evidence is not good enough to claim that you can cure or prevent any specific health condition.

    Evaluate copy to ensure that it doesn’t make any specific claims about COVID. Focus on peer-reviewed science to make any claims about the ingredients of your health products. Don’t make promises that will do nothing but skyrocket your chargeback ratios when those outcomes cannot be guaranteed for all customers.

    Compliance is critical when selling products in the health and wellness industry. That’s relevant whether you are a startup company launching a new product or an industry stalwart. No company is immune to action from federal agencies or acquiring banks.

    Take Steps To Improve Your Protection Against Chargebacks and Fraud

    As is the case for weight loss supplements, chargebacks are a real problem in this industry. In many cases, they are accidentally or fraudulently issued by customers. The good news is there are plenty of steps you can take to lower instances of both “friendly fraud” and more sophisticated attempts to hurt your company.

    Here are just a few of the steps you can take to mitigate the risks associated with fraud and chargebacks:

    • Use a payment gateway provider that utilizes 3DS2. It’s a legal requirement for EU transactions, and in the US, it shifts the burden of proof concerning chargebacks onto the customer rather than the merchant.
    • Add the Address Verification Service (AVS) service to your checkout page to match customer’s billing addresses with those held on file by card issuers.
    • Offer superior 24/7 customer support across live chat, phone, and email to quickly and efficiently process refund requests.
    • Avoid free trials, and instead, offer discounted pricing for the first order.
    • Utilize anti-chargeback technology software such as Ethoca or Verifi to catch and resolve attempted chargebacks before they go on file.

    Diversify Your Payment Options for Customers

    Not only do credit cards pose a threat in the form of chargebacks, but they can cut you off from many potential customers. There are millions of individuals who do not possess a credit card. Many of them are willing and able to pay via the Automated Clearing House (ACH) debit network.

    By adding ACH processing, you can lower the risk associated with chargeback-happy credit card customers. Better yet, it’s challenging for customers using ACH to issue a chargeback. You can then use your improved processing figures to apply for additional merchant accounts.

    Secure One or Several Specialist High-Risk Merchant Accounts

    While you have every right to start your business empire with low-risk-tolerance payment aggregators such as Stripe, the fate of your company rests in their hands. At any moment, your chargeback rates or industry news could see your account shut down within a matter of hours.

    That’s why you must explore several alternative options, such as specialist high-risk nutraceutical merchant accounts. By securing your own high-risk merchant account, you could work directly with acquirers and processors that are more tolerant of risk. They also have specific industry experience and can help you take the necessary steps to reduce risk.

    With your payment processing balanced through multiple merchant accounts, you can keep chargebacks at manageable levels, increase transaction approvals rates, and continue to apply for increased monthly sales limits.

    High-Risk Merchants Selling Supplements That Support the Immune System Need the Help of Payment Experts

    There’s never been a better time to have an e-commerce business in the immunity space right now. However, the risks threatening your merchant account status are genuine. With high sales volumes, it can be easy to become complacent. But now is the time to be more vigilant than ever.

    Merchant services providers such as PayPal can take away from your credit card processing abilities in a mere matter of hours. Turning your immunity supplements business on its head. That why you need the help of high-risk payments experts to secure you a better solution.

    With the help of DirectPayNet experts, you can secure multiple high-risk merchant accounts in North America, Europe, Asia, and beyond for your immunity supplements business. We can start the process of transitioning you away from the shared merchant accounts of Stripe and PayPal. Finally, you can leverage our expertise to dramatically reduce chargeback ratios and increase revenues.

    Unlike other merchant services providers, we don’t just view you as a client; we see you as a business partner. So if you need to future-proof and scale your supplement or health product business, book a discovery call with a member of our team today!  

  • Is Adding an Immunity Nutraceutical Upsell to your PPE Store A Good Idea?

    Is Adding an Immunity Nutraceutical Upsell to your PPE Store A Good Idea?

    Selling PPE (personal protective equipment) and nutraceutical immunity boost supplements online might seem like a good idea since the pandemic started. Still, there have also been a lot more roadblocks than ever before.

    Masks, gloves, face shields, antibodies, probiotics, lozenges, you name it…

    CNN reports that protective equipment costs increase over 1,000% amid competition and surge in demand.

    It’s no surprise that more consumers have been looking to get their hands on these items to strengthen their immune system and protect themselves from the coronavirus (especially during the flu season).

    That’s why most e-commerce stores are pivoting to reach that demand when most people can’t get a hold of their healthcare provider fast enough.

    And if you’re already selling PPE and immunity boost supplements…

    Some say it could be the “21st-century gold rush,” while others say it’s been nothing but headaches.

    Since many companies are focusing on selling what’s hot right now… 3rd party platforms like Shopify and Stripe are cracking down on their wellness regulations.

    Whether you sell on Shopify, Amazon, or elsewhere, merchants could quickly get banned if they don’t follow over-the-counter guidelines for selling COVID-19 related products.

    Not only that but if you’re not diversifying your payment processors, that could be another way you’re losing out on some serious sales.

    To find out if your online products are set to come out profitable, read on to discover why your payment processor actually has a lot to do with your overall revenue.

    5 ways to avoid e-commerce platforms from banning you

    As we mentioned earlier, 3rd party e-commerce platforms like Shopify and Amazon are cracking down on merchants selling PPE, immunity boost supplements, and other antiviral properties.

    And the worst part is that you may not be aware of these new rules for selling these products. That means you may experience your products being removed, your store suspended or even your merchant account terminated.

    Since consumers are staying at home and looking to buy more immunity-boosting or dietary nutraceutical supplements online, it’s undeniable that sales have gone up. According to ShipBob, vitamin and supplement purchases are growing 12% faster than the overall e-commerce average.

    So if your products fall under the immune-boosting supplement category, you need to make sure you do whatever it takes not to get banned.

    Let’s take a look at 5 of Shopify’s rules of engagement, for example. Here’s what you should look out for if you’re planning to sell any COVID‑19 related products:

    1. Claims

    If your products include any medical or scientific claims about a balanced diet, a healthy immune system, or even getting enough sleep, you must be able to back it up with evidence. Also, claims about preventing, treating, or curing COVID-19 aren’t allowed and will be removed from the platform.

    2. Compliance

    You’re required to comply with any laws and regulations of not only COVID‑19 related products but also any sort of powerful antioxidant, a multivitamin, or immune booster that supposedly helps improve a healthy lifestyle.

    3. Licensing

    Before you sell any of your immunity health products, you must first acquire all the appropriate licenses and permissions. This also includes any other approvals and authorizations for selling medical or health-related products.

    4. Price gouging

    You’re not allowed to increase your prices or overcharge customers for selling PPE and COVID‑19 related products like masks, face shields, hand sanitizers, and more.

    5. Selling regulated products

    You must first notify and get approved by Shopify about the sale of any regulated products. Again, you have to prepare evidence such as documentation to confirm that you’re in compliance with the rules and sign any additional agreement if required.

    The reason why you’re considered a high-risk merchant for payment processors

    Not only do you need to know the rules of 3rd party e-commerce platforms, but the same applies to payment processors too.

    So even if you’ve gotten away with listing your products on Shopify or Amazon, there’s still a chance you won’t get the sales you were expecting because of your payment processor.

    And if you’re relying too much on Stripe or PayPal, it might be time for you to reconsider. You need to know how to become bulletproof from the payment processor holds.

    Because if you want to come out successful selling PPE or immunity boost supplements, then you’ll need to diversify your options and work with payment gateways who already have a history working with supplement merchants.

    If you’re selling nutraceutical supplements, you’re immediately at a higher risk of getting your transactions declined.

    Whether you’re selling something that may seem as simple as vitamin a, vitamin c, vitamin d, vitamin e, or even calcium supplements…

    Most payment processors don’t favour these because they usually bring increases in chargeback activity. As Credit Card Insider says, “Credit cards are often flagged automatically when used in a way that suggests the charges might be fraudulent.” And when this happens, usually you’ll take the fall even when your chargebacks remain acceptable.

    You also have to keep in mind that high-risk sales come with a lot of chargebacks too. So you’ll lose your money, and you could lose your business overnight.

    For PayPal, they can hold your funds for up to 180 days. And for Stripe or Square, they could hold it for even longer (and it’s not guaranteed you’ll ever receive it).

    Imagine if you sold tens and thousands of dollars of your products, and you couldn’t keep any of the funds… that would be a total nightmare, wouldn’t it?

    You could run out of cash flow and eventually close down for good. Because if Stripe, Square or PayPal stops taking your payments, then you’ll have no chance at scaling and growing your business.

    Do you want to know what’s worse?

    Let’s say you were charged with fraud because of a questionable claim on your website, and the next thing you know, you get hit with a lawsuit. That could either bankrupt you, put you behind bars, or both.

    Because the FDA guidelines pay close attention to any immune system support products that are scaling, they will still target you even if you are considered compliant. So it’s best if you stay on the safe side by getting approved and familiarizing yourself with good practices.

    Again, choosing a payment processor that already has a history of working with supplement merchants before is your safest bet.

    If you want the optimal solution to beating high risks and earning high rewards instead, feel free to reach out to the team at DirectPayNet, and they’ll make sure your business is safe from selling COVID-19 related products.

    3 key steps to finding the right merchant services for your products

    Suppose you want to feel confident about selling PPE and immunity boost nutra supplements without worrying about your merchant account… in that case, there’s no better solution than to find the right payment processor for you.

    Having the right payment processor will not only prevent you from losing tons of revenue down the road, but you’ll also create a better customer experience, and that could encourage positive word of mouth for your business.

    Here are 3 key steps you could take to ensure a massive increase in your transaction rates:

    1. Never rely on just one source

    We mentioned briefly about diversifying your options earlier, and this is an important lesson to follow throughout your business. Because when you rely on just one source, you’re risking a chunk of your business if something happens to that source.

    So it’s always smart to set yourself up for success by having a backup plan. And if you’re not prepared, it could disrupt all of your business’s operations.

    With payment processors, it’s never good to have just one source. What will happen if your processor no longer supports businesses that sell nutraceuticals or PPE?  Where will you turn to? How much longer will you have to close your traffic sources and ads until you find another source?

    You see, no one would want these types of issues to occur. So it’s better to be prepared and have other options you can quickly bounce back from.

    Even if you think you’re selling some basic products, it’s never promised that your merchant account won’t get banned. Because guidelines are continually changing, you never know what the next update will be about.

    For example, face masks may seem simple enough to sell, and it was never a problem before. But SocialMediaToday shares that Facebook had a temporary ban on ads selling medical masks to prevent people from taking advantage of the pandemic for financial gain.

    So if you were relying on Facebook ads to bring in most of your sales, you could’ve been deeply affected by this. But if you had other options, you could focus more on those and continue to scale.

    And if you want to choose a payment processor that has a bigger appetite for high-risk businesses, you’ll need to be as transparent as possible when filling out the applications. That way, you’ll know right from the start if you’re a good fit.

    2. Be as transparent as possible

    In an article from NutraIngredients-Asia, several science researchers have communicated their key findings in immune-boosting health supplements. Since more companies are looking to sell them ever since the coronavirus outbreak, it’s their responsibility to confirm their research and educate consumers.

    When it comes to this industry, you need to be transparent about what you’re selling. That means being truthful about all the micronutrients and minerals involved with supporting your immune function, immune cells, and white blood cells.

    And because vitamin c supplements and vitamin d supplements have increased sales throughout the pandemic, it’s good to emphasize the recommended limit for consumers to take even though some might want to feel extra protected from the coronavirus by taking more.

    These are just a few examples of how you can be transparent to your consumers. You’ll need to communicate clearly about what they’re getting, or you’ll run into trouble if they think you’re selling them something else.

    Pure Branding states that 1 in 5 of U.S. consumers will choose a transparent vitamin and supplement brand as their first choice.

    Because the last thing you want is refunds, chargebacks, and disputes – those are all greater costs that can affect your merchant account and business. So aim for transparency, and you’ll avoid dealing with complaints.

    3. Use these tools to protect you

    As the e-commerce world is evolving, more tools become accessible to help nutraceutical merchants protect their businesses.

    So if you want to make sure your business is moving in the right direction, you’ll need the right tools and technology to protect data such as customer information.

    When you do this, you will avoid issues with fraud, lower chargeback rates, and make sure that your client information isn’t mishandled. Keep in mind; we always want to manage a good relationship with all our customers.

    So when you’re looking for a payment processor, look out for tools that can better support you and the customers’ payment experience.

    Here are some tools we recommend for your payment processing:

    • An e-commerce website where you verify transactions through the 3D secure protocol that can chargeback proof your sales.
    • An anti-fraud scoring software that helps you limit orders to specific markets that are likely to deliver your products later than expected.
    • The ability to track packages and provide updates to your customers so they don’t feel misled about expected delivery times.

    What to look out for if you’re starting this business

    If you’re entirely new to selling PPE and immunity boost supplements, the first step you should know is to learn about all the risks and see if you’ll comply with all the laws and regulations.

    According to Supplements 101, 46% of consumers are concerned about the effectiveness of supplements. That’s almost half of all consumers! And 92% of them will actually read the label.

    This just shows how important it is to do your research and be truthful about all your products. Because the more transparent you can be, the more consumers will be confident in buying your products. And on top of that, you’ll get to skip out on all the headaches when it comes to complaints and chargebacks.

    So the best marketing practice is to scrutinize how you deliver your message to your consumers (especially if you’re selling COVID-19 related products). You don’t want anyone to feel skeptical one bit.

    Once you have this down, then you’ll need to find the right payment processor to ensure you’ll come out as a profitable merchant who customers would love to buy from again and again.

    Set yourself up for success with a merchant account

    We know that selling personal protective equipment and nutraceutical immunity boost supplements isn’t easy… but it’s also the hottest thing in the market right now, ever since the pandemic started.

    With all these new rules making supplement merchants scared to scale, it’s no wonder why more people are afraid of getting their accounts banned.

    To ensure you’ve set yourself up for success, you’ll need to let the payment processor handle what’s important to you – your revenue. But not just any payment processor…

    You’ll need to find those with an appetite for high-risk businesses and experience working with this industry. So Stripe and PayPal may not be your best pick since they’ve had a history of banning supplement companies before.

    There aren’t too many payment processors that’ll favour nutraceutical merchants, but those that exist understand the industry and will help your business scale.

    Even if you’re already selling from Shopify, Amazon, or another 3rd party platform, the right payment processor can increase your transaction rates and give your customers a better shopping experience.

    If you’re looking for a payment processor that can give you just that, you can contact DirectPayNet today, and they’ll help you set up for success.