How Electronic Checks Increase Nutraceuticals Sales
Are you a selling neutracetucals and vitamins? Boost orders by accepting electronic checks from your customers. Call 214-269-9361.
Nutraceuticals in Great Demand
As the health consciousness of consumers has increased, focus has shifted from treating illnesses to preventing them. Leading to a huge demand for a wide variety of nutritional supplements and vitamins.
These products are classified the generic term nutraceuticals to differentiate them from pharmaceuticals. Nutraceuticals are designed to improve the physical well-being and cognitive performance of individuals. A goal which different from prescription medications which are developed to address specific medical conditions.
The nutraceutical market is astounding not only in terms of size, but also with respect to its prospects for growth. Recent market research suggests that by the end of the decade, its global value will reach to $241.1 billion.
Banks Classify Nutracetucals as High Risk Merchants
The increasing demand for nutraceuticals, vitamins and supplements has created an unprecedented business opportunity. And payment processing is crucial in order for your customers to buy from you.
In recent years, there has been a constant push for regulations to deal with situations in which a vitamin supplement or nutraceuticals seller makes claims about curing specific diseases. More precisely, given the disparate regulation applied for nutraceuticals across the world and within the United States, the risk that the products will be sold to the wrong customer persists.
It is precisely this accessibility and increasing consumer demand for alternatives to traditional healthcare that sometimes works to the disadvantage of merchants that sell their products online. Obtaining payment processing accounts is challenging for nutraceutical merchants. The reason is the industry is classified as high risk merchant accounts by the banks.
Chargeback Risk for Payment Processing
Selling nutraceuticals online is not always easy because these products are considered high risk in the payment industry. The chargeback rate can be statistically higher than average for nutraceuticals, vitamin and supplement merchants.
Some customers claim that the product did not work for them as advertised or their expectations were not met. In spite of the fact that many such situations can be solved by asking you for a refund, some customers instead dispute the charge with their card issuing bank.
This perception of increased chargeback risk is somewhat is erroneous. It is quite possible to keep chargebacks in check by making sure that all the characteristics of the products are made clear, while being ready to address any customer concerns as soon as they arise.
Of course, most businesses sell perfectly legitimate nutraceutical products, without making exaggerated or non-compliant claims. Yet, legitimate sellers are still classified as high risk.
How Echecks Boost Your Profits
Card processing accounts for high risk merchants is important. Yet, the more payment options you offer at checkout, the more sales you make.
Echecks are the most popular alternative payment option for US buyers. With echecks, you get sales from customers that don’t have cards, are maxed out on cards, or simply prefer to pay you with a direct debit from a bank account rather than using a card.
Establishing an account for you to accept electronic checks from your customers is easier than getting a card merchant account because there are no arbitrary card brand rules involved. Processing rates are much lower for echeck payments than for card processing.
And you’ll have much greater flexibilty regarding chargebacks with an echeck account than with a card account. This is because the customer has a shorter period in which to initiate a chargeback and the process itself involves several steps they need to follow. The process is not meant to hinder customers that have a legitimate concern, but to eliminate frivolous claims, something which merchants that sell nutraceuticals will surely appreciate.
NationalACH is committed to offering affordable and reliable payment services to merchants that sell nutraceuticals who want to increase profits and expand their customer base.
More than 30% if US etailers already offer electronic checks as a payment option at checkout. Don’t risk losing a sale simply because your competitors accept echecks and you don’t.