Setting up a merchant account to process payments is the first step in enabling nutraceutical commerce. Nutraceutical businesses are classified as high-risk, which makes them ineligible for merchant accounts at numerous sponsoring banks. DigiPay’s expanded network of banking relationships accepts the nutraceutical business category and provides competitive rates, terms and conditions. At DigiPay, nutra is in our DNA. We “get” nutra’s unique framework and diversity of categories, business models, SIC and NAIC codes and VISA MCC; we underwrite our merchants before sending the applications to our sponsor bank.
How to Get a High Volume High-Risk Nutraceuticals Merchant Account
Getting a high limit high-risk nutraceuticals merchant account isn’t easy. Presenting your business in the best possible light from point of first contact is important because merchant accounts are essentially a line of credit from a processor.
Once a high-risk nutra merchant account is approved, payment processors set monthly processing limits. These limits are typically between $25,000 and $100,000 per month. DigiPay knows how to navigate the high risk nutraceutical payment processing space and has developed exclusive partnerships that allow for our qualified nutraceutical merchants to process up to $1,000,000 a month.
Due to nature of the business category, higher risk is associated with nutraceutical products. Therefore, more due diligence is required during the new merchant on-boarding process. This means underwriters need to review a range of documents to assure the business is compliant, financially sound, and a good credit risk. The degree of risk is further assessed by merchant category code (MCC), credit history, ticket size, and processing volume. Proper classification is vitally important to prevent funds from being held in reserve for misrepresentation. Nutraceutical industry codes must fall under the Primary NAICS Code: 325411 for Medicinal and Botanical Manufacturing or under Primary SIC Code: 2833 for Medicinal Chemicals and Botanical Products. To date, Functional Foods, Nutritional Beverages, do not have a designated SIC Code or NAICS Code.High Risk Nutraceuticals Merchant Account
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