How to secure a merchant account for your online pharmacy?

Do you wish to capitalize on the booming trillion-dollar pharmaceutical industry and get into the online drug business? While there are perks to this line of work, bear in mind that most banks and other financial providers see this kind of business set up as a risk too high. What this means is that securing a merchant account for your online pharmacy is going to be a tricky task.

There are many reasons why the pharmaceutical industry is considered “high risk” by banks. First, any product that can be ingested automatically gets more scrutiny from the government regulators than other products. On top of that, there is the risk of fraudulent transactions, recalls, and chargebacks associated with prescription and over-the-counter medicine. Uncertain delivery is yet another reason mail-order drug business are considered to be high risk by the banks, which is why they don’t typically offer merchant services to online pharmacies.

"Why do I need a merchant account," you ask?

All businesses rely heavily on electronic payments - it is the nature of offline and online shopping. Also, virtually all online transactions are done using credit cards. This means that if your business is on the Internet, you are going to want some sort of credit card processing ability available for your customers. In other words, you cannot run your online pharmaceutical business if you are not able to accept credit cards as a payment option on your website. And, in order to be able to process credit card payments under major companies like Mastercard and Visa, you need a merchant account.

This is where enlisting the services of a reputed high-risk merchant account service provider becomes indispensable. While traditional payment processing providers turn away from opening a pharmacy merchant account, third-party processors will not. They can help you set up an offshore merchant account for your online pharmacy, allowing you to process credit card payments on your website. Furthermore, the application process is easy and can be completed in as little as 48 hours, providing payment processing in a pinch.

Note: Although high risk merchant service providers are more lenient towards pharmacy merchant accounts, you still cannot promote or sell illicitly used drugs or prescription medications considered to be “controlled substances” by the Food and Drug Administration (FDA). These may include Morphine, Codeine, Oxycontin, Fentanyl, Vicodin, hallucinogens, opium, PCP, stimulants, among many others.

Business owners that are in high risk industries such as online pharmacies can have a hard time getting a merchant account approved and may face a higher cost of doing business. Banks and other financial institutions often deny these merchants to ward off the fraud claims, the charge-backs, and other things associated with high risk credit card processing. Thanks to high risk credit card processing solutions, however, this reality has not affected the growth year after year of online pharmacies. With the right third-party high-risk merchant account service provider, you can set up credit card processing for your "high risk" online pharmacy business quickly, easily, and affordably.

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Created on Apr 9th 2020 05:40. Viewed 389 times.

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