Payment Processing for Legit Pharmacies WholesalersGone are the days when you had to be physically present to use your credit card for payments.With the advent of technology and the internet, more and more payments are made online. In fact, you can safely bet that there is not a single business that does not accept credit card payments.
But if you run your own business and want to accept card payments, you will need a merchant account.A merchant account is a type of bank account where the money from your customers are temporarily stored before they can be paid to your personal account.
What is Pharmaceutical Wholesaler or Distributor?
When it comes to medicines sometimes one size does not fit all. Some patients require custom-made formulations due to various reasons. The commercially available drugs may contain substances that are not tolerated by the patient or may not simply be available due to a high demand. In such cases, drugs can be prepared and packaged by a pharmacist as per a licensed medical practitioner’s prescription. This is called as pharmaceutical wholesaler or distribution of compounding products.
Though your brick and mortar pharmacy is still available in case you want to walk up to a store, online merchants are becoming increasingly popular. This is because when you order online, it gives you the convenience of getting your medicines delivered to your doorstep.It also allows you to regularly receive all your important medication on time. But a merchant account for pharmaceutical compounding needs to be safe and secure to keep important customer information confidential.
Is yours a high-risk business?
Pharmaceutical compounding is a very customer-specific wholesaler business. It is also where a lot of chargebacks are common. A chargeback is when the payment needs to be reversed to return the customer’s money. Any business with a high chargeback ratio of greater than 1% is considered as a high-risk business.
So if you are a licensed distribution center or compounding pharmacy business, high-risk merchant accounts will not underwrite your business. A high chargeback automatically makes your business high-risk.Sometimes, even if a bank underwrites your account, you can end up getting terminated or shut-off. This is very commonly seen with third party credit card processors like Paypal and FirstData. In case a payment is declined due to fraud, they will immediately close your account.
If your account gets terminated, you won’t be able to continue accepting payments. That’s not the whole story. The terminated accounts will not be able to get a merchant account easily. They will be put under a TMF (Terminated merchant file) list which can be accessed by any merchant account provider. So your business can be severely impacted without a way to receive your payments.
Are you a start-up business?
If you thought only businesses with a high chargeback and terminated accounts are considered high-risk then think again. Even start-up or new businesses are considered as high-risk by many card processors. So if you are new to the compounding pharmacy business, then getting your merchant account might become all the more difficult.
Here are some of the reasons why your start-up business might be rejected when you apply for a merchant account.
Unpredictable–New businesses run the risk of not becoming successful
Payment processing history – As a new business you will not have a payment processing history which is used as the main tool to underwrite a business
Lack of funds – Unlike established businesses, most new businesses do not have hefty bank balances or enough capital
Domestic versus Offshore merchant accounts
Domestic merchant accounts are preferred by many businesses due to lower rates and the security offered by them. But offshore merchant accounts can help you overcome some of the following associated with your business.
High volume transactions
Any business that domestic accounts are not willing to underwrite
Individuals with a bad personal credit
Why should you use our services?
Whether you are a small business or a startup/new business finding a merchant service provider for your merchant account can be quite a difficult task.Add to it the fact that your merchant account application could be rejected because your business is considered as high risk.But our services have the best of features to help you start receiving payment for your licensed compounding pharmacy business in no time.
Fast and secure payments online through an internet payment gateway
We offer high-risk businesses like you the option of choosing domestic and offshore merchant accounts
E-Check processing where the funds are directly debited from the customer’s account
ACH (Automated clearing house) processing wherein both your card as well as check payments can be accessed in one place
No set-up fee
No annual fee
Free shopping cart
A mail order to telephone order merchant account to receive orders over the telephone