Lately the telephone calls, emails and leads that have been dominating our CRM have largely been from merchants seeking credit card merchant account services over four high risk industries: nutraceuticals, pharmacy, kratom and CBD. Finding payment solutions for these four industries is difficult, but not impossible – we take each merchant on a case-by-case basis.
In recent years, we’ve seen acquiring banks, both in the U.S. and internationally, abruptly halt payment processing services for these industries for little or no reason. The risk, some banking officials feel, becomes more of a burden than they care to bear.
“It can be very difficult to find acquiring banking solutions for these four industry types,” said Wendy Jacques, Sales Manager at Instabill. “Different acquiring banks have different demands because there is a great deal of risk they’re taking on, and it can be frustrating for high risk merchants and our partners. These industries are more complicated than they might think.”
Complicated, but not impossible.
Nutraceuticals: Take our advice
The industry of nutraceutical products has been a constant for us at Instabill for years. The requirements to get a nutraceutical merchant account, however, have changed. Currently, we are unable to board those nutraceutical merchants who wish to offer free trials – we can only offer credit card merchant account services to merchants who do straight sales off their websites. Free trials have always been a gateway to chargebacks and, considering the diminishing tolerance for chargebacks by the four major card brands, most banks are increasingly finding the offers of free trials too risky.
Online pharmaceuticals: A complicated (and potentially lucrative) business
Acquiring banks can be leery of online pharmacies for several reasons:
- The online sale of narcotics in a credit card-not-present environment.
- It is an industry with its share of transaction laundering: merchants not selling what they’re advertising.
- High chargeback rates and instances of friendly fraud.
We often receive inquiries from pharmaceutical merchants who grow frustrated with the process of finding credit card merchant account services, but we do our best to assure them that the strict policies and procedures are in place to mitigate the risk involved. Based on payment processing history, pharmacy merchants may be subject to higher processing fees.
In compliance with our acquiring banking partners, Instabill offers solutions for e-commerce straight sales (no free trials) and takes on startup pharmacy merchants on a case-by-case basis.
Kratom merchant accounts: Pay attention to guidelines
Kratom is either viewed upon as an effective pain reliever and/or treatment for certain ailments such as arthritis and fibromyalgia; or a legal ‘high’ of sorts. Perhaps more than any other industry for which we offer credit card merchant account services, it comes with stringent guidelines that are non-negotiable.
- Instabill can only furnish merchant accounts for kratom merchants that have some form of payment processing history, whether it be credit card processing (preferred) or check solutions. However, merchants who don’t have a history of processing credit card transactions may be looked upon as a startup business.
- Kratom merchants must only sell via e-commerce (no virtual terminal) and prove they can generate $1,500 per week in sales.
- Instabill provides merchant accounts for U.S. businesses only with U.S. owners.
- Instabill’s solution is an aggregate merchant account with a shared billing descriptor.
- Each of our acquiring banking partners will impose a rolling reserve.
If kratom merchants can meet the above criteria, we’re interested in having a conversation.
CBD oil: The hottest high risk industry
The health benefits of CBD oil are growing ever more popular, and the demand for credit card merchant account services is the highest it’s ever been. But CBD oil’s association with marijuana remains a concern for certain acquiring banks, hence it remains a high risk industry. As U.S. states are increasingly changing their stance on marijuana, we’re hopeful acquiring banks see more of the health benefits, and less risk, of CBD.
For the time being, Instabill can board CBD oil merchants matching the following criteria:
- Credit card processing history is strongly preferred, and merchants need to prove they can generate $1,500 per week in sales
- Instabill can offer e-commerce merchant accounts for CBD merchants. We cannot offer a virtual terminal solution.
- CBD merchants will likely incur a 10 percent rolling reserve from their acquiring bank.
Credit card merchant account services with Instabill – we know high risk
We take the most pride in the fact that we offer live merchant account support, from our free consultation throughout our account relationship. Navigating the many details and complexities of high risk industries is what we do.
Our credit card merchant account services always begin with a conversation. Let’s have one today at 1-800-530-2444.
