Online payments solution for Nutraceutical businesses
The nutraceuticals market is seeing a huge surge in popularity with global consumers seeking alternatives to improving health and well-being. Nutraceuticals is the term used to describe any product manufactured from a natural or synthetic food source that delivers extra health benefits, in addition to the basic nutritional value found in foods. It also covers vitamins and minerals, and dietary products and programs. However, in the US this market is unregulated and attracts a high-level of chargebacks. This means many financial service providers will not wish to work with you and finding a payments processor willing to accept credit cards for your online business is likely to be a challenge.
As a specialist in processing payments for high-risk and hard to place online merchants across a wide range of industries, T1 Payments has the experience and understanding of the challenges nutraceutical businesses face. We pride ourselves on delivering a solution that will help you quickly set up your online store, seamlessly accept credit cards payments globally for your products, and navigate the minefield of issues a legitimate, but unregulated business can bring.
Why Nutraceutical products are high-risk?
For nutraceutical businesses operating in North America, the key issue is being an ‘unregulated’ industry rather than a ‘regulated’ one. Unlike many other countries, the US does not have stringent government regulations around nutraceuticals, and this leads to issues when selling to other countries that do have strict health regulations. With many of the nutraceutical’s products unregulated, it places businesses selling these items in the high-risk category.
In the US, many processors will refuse to work with nutraceutical merchants for four reasons that result in increased chargebacks:
- Potential false claims and increased risk of fraud because the ingredients and their effects are not substantiated by an official regulatory body
- Problems caused by the way buyers pay i.e. free trials and then unwanted recurring credit card subscriptions when the free period is over
- Lack of understanding around the regulations and restrictions of nutraceutical products in different regions/countries
- Inaccurate shipping information resulting in re-shipments and missing goods.
T1 Payments can help underwrite and provide payments solutions for your nutraceutical business because we know the issues associated with an industry that is unregulated in the US. We do not see this as an obstacle to starting or growing a legitimate online nutraceutical business.
T1 Payments benefits for your Nutraceutical business :
- Experience and understanding of the complexities around unregulated nutraceutical products to assist you in quickly opening a merchant account and unlocking the benefits of credit card acceptance.
- Sell nutraceutical products globally* – buyers can purchase in their native currency and you get paid out in your local currency.
- Secure payment gateway and cart integrations fully compliant with all PCI DSS Statements.
- Hassle-free integration with over 175 e-commerce shopping carts as T1 Payments handles the entire process.
- High volume merchant accounts.
- Recurring payments
- Collect payments in over 160 currencies and settle in 27 currencies.
- Help prevent chargebacks with the latest technology and maintain good standing for your business with the card networks to ensure your merchant account longevity.
*except in regions/countries where shipments of unregulated nutraceutical products are not accepted.
Get in touch with T1 Payments today to find out how we can help your Nutraceutical business accept credit card payments! Apply Now!
A snapshot of the Nutraceuticals business opportunity…
According to Statista, the US nutraceutical market was worth approximately 71.73 billion U.S. dollars in 2017 and is forecasted to reach 133.4 billion US dollars by 2025. The graph below shows the increasing market value of nutraceuticals in the US from 2014-251.
Know your Nutraceutical products…here is our quick guide for the products we process!
Encapsulated Nutritional Supplements
Encapsulation was originally an industry term used to describe the way nutritional supplement products were produced in capsules or tablets. However, with today’s growing consumer demand for nutritional supplements, manufacturers have developed a whole new range of delivery methods including caplets, soft gels and gel caps, time-released capsules, powders, liquids, sublingual applications and chewable tablets – just to name a few!
Botanical Products
In the U.S., botanical products are one of the most popular and rapidly growing of all complementary therapies. In 2010, the global retail sale of botanical dietary supplements amounted to more than $25 billion, according to Nutraceuticals World. Although botanical products are classified as dietary supplements, not drugs, it is common knowledge that many Americans use them to treat diseases and disease symptoms[1].
Herbal Products
The ingredients of herbal products are derived from plants and are used as supplements to improve health and well-being. They are often produced as tablets, capsules, powders, extracts and teas.
Vitamins and Minerals
Vitamins and minerals are two of the main nutrient types the human body requires to survive and stay healthy. There are 13 vitamins and many people choose to take them as pills, capsules, tablets, or liquids to supplement their daily requirements or deal with any vitamin-related deficiencies.
Dietary Supplements
Dietary supplements are made from nutrients extracted from food sources (or synthetics) to increase the quantity of their consumption. They are taken by mouth as a pill, capsule, tablet, or liquid.
Weight Loss Supplements
Weight loss supplements are manufactured to help you lose weight or make it easier to lose weight when combined with other methods. Supplements include pills, capsules, tables, liquids, and other natural options, and usually either aim to reduce appetite, absorb fat, or increase fat burning.
Diet Programs
Diet plan programs can be a tough vertical to get into, but the good news is the diet industry is huge and there is a constant supply of diet and exercise plans coming to market to help lose weight and tackle obesity.
Natural Male Enhancement
Herbal remedies, such as Pine Pollen and Ginseng, are used as a natural option for men who wish to boost their sexual function and libido.
Get in touch with T1 Payments today to find out how we can help your Nutraceutical business accept credit card payments! Apply Now!
1 https://www.statista.com/statistics/910097/us-market-size-nutraceuticals/
2 https://www.takingcharge.csh.umn.edu/explore-healing-practices/botanical-medicine/why-do-people-use-botanicals/small>