Setting up an Online Pharmacy Merchant Account – What You Need to Knowby Confidential Banking #1 Merchant Processing Services
With everything going digital these days, it’s no surprise that online pharmacies are becoming increasingly popular as well. In fact, according to Statista, the global online pharmacy market is likely to reach $128 Billion by the year 2023! Are you planning on tapping into that huge market and setting up your own online pharmacy business? You should know… to be able to accept credit card payments from your online customers, you’re going to need a merchant account.
But if you’re thinking, “Hey, it can’t be this easy,” you would be absolutely right!
Although many online pharmacies are highly reputed and well known, the views of financial Institutions are negative for the industry in general. The online pharmacy industry is considered “high risk” in nature by most banks and credit card issuers, which makes it tough for any pharmacist to get a merchant account.
There are many reasons why online pharmacies are labeled as high risk. One of those is the product itself. Government authorities have strict and stringent policies in place regarding the sale/purchase of controlled medicines and substances, which is why most financial institutions are reluctant to set up a merchant account for online pharmacies. The second reason is the high chargeback to sales ratio. If the customer isn't satisfied with the product, they file a chargeback, putting both the merchant and acquirer in a loss. Financial institutions understand this all too well – and that's why most of them do not offer processing services to pharmacies.
So how do you accept payments online for your pharmacy business?
When it comes to setting up a pharmacy merchant account, you can rely on a fund transfer service called e-check or ACH (Automated Clearing House). Using the ACH network, you can easily and securely check payments from your online pharmacy website. All your customers have to do is enter their transit, routing and account number off their checks, and the funds will then be debited directly to your business holding account. Fund can even be wire to an overseas account weekly.
Application Process for Startup Online Pharmacy Check
To get an e-check/ACH merchant account, you’ll need to apply with a third party high risk e-check processing services provider that's fine with on-boarding high-risk merchants such as yours. The processing company will evaluate your application and request some documents from your end. In the payment processing industry, these documents are known as KYC (or Know Your Customer) documents, and may include the following:
· A signed ACH application
· Faxed or scanned copy of incorporation paper
· Scanned copy of owner’s passport
· 3 months of bank or credit card statements
· Void check or signed wire instructions for overseas accounts
· Fully functional US customer service number
After rigorously evaluating your KYC documents and the nature of medicines or other products you sell, the processing company will approve your merchant account. Keep in mind that you cannot sell controlled medicines or substances even with an e-check or ACH processing account.
Final NotesAs you can see, using ACH as a payment solution can help you incorporate a safe, secure, and reliable payment gateway at your pharmacy website. So, if you want your online pharmacy business to grow, partnering with a high-risk merchant account services provider that offers high-risk e-check/ACH processing may be in your best interests.
Created on Mar 6th 2020 04:27. Viewed 340 times.