SARMS and peptide merchants face serious challenges finding stable long-term solutions for accepting payments online. The reason is that Peptides / SARMS are in the legal grey area for processors.
Technically the products are not illegal. But often banks and processors will not provide merchant accounts processing because of potential liability risks. The products are not currently approved by the FDA. Therefore, they cannot be sold “for human consumption.” Many websites have labels claiming “experimental” or “research chemicals” but banks and processors know the products are really being sold to consumers for usage other than research.
Obtaining card processing for the industry is hit or miss. Even if card processing accounts are initially approved, accounts rarely last for long. Sometimes a bank or processor will take a risk on the industry. Yet it is rare to have the accounts continue processing long-term.
With few exceptions, card accounts inevitably are terminated, often with no notice. While online sales for SARMS / Peptides have extremely low returns or chargebacks, domestic accounts for the industry are becoming increasingly difficult to obtain. And seldom work out long-term for merchants.
SARMS and peptides are on the prohibited list for almost all third-party ACH processors. The reasons are the same as for card processors. That is, too much risk to provide accounts for “grey area” products. Which can cause the ACH processor to lose their banking partners.
Lots of merchants, desperate for any type of electronic payments, use echecks. Yet this also rarely works out.
The processor creates “substitute checks” and deposits the items in your business bank either electronically or depositing / overnighting the checks. The processor has no liability for the items, since they are cleared through your business bank account.
Many banks do not accept checks submitted this way. For example, one of the largest banks in the US, does not accept “substitute checks.” Echecks submitted will “return to sender.” Your customer cannot pay you for the product and the sale is lost.
Still, the larger issue this creates for merchants is the loss of business operating bank accounts. If your bank sees returns running through a business bank account, the account will be flagged and has a high likelihood of being cancelled. That’s a nightmare no business wants to experience.
This option has all the benefits of ACH without the risk. Super solution for industries such as SARMS / Peptides that are prohibited or restricted by card and ACH processors.
The user experience is similar to an ACH payment. At checkout, buyers provide bank routing / account #s rather than card info.
All banks, credit unions and brokerage accounts accept this payment method. Transactions clear through the Federal Reserve and settle back to the processor. The processor assumes liability for returns and revokes (which are rare SARMS / Peptides). Cleared funds are settled to merchants via an ACH credit to the merchants’ bank account.
For more information contact INFO@NationalACH.COM today.