How to Get a Merchant Account for a Pharmacy. Like most other things today, medicines and medical equipment can also be purchased online. The proliferation of online pharmacies has enabled one to do so. It is as easy as going through an inventory, making a selection, completing the payment and having your order shipped to your place of residence. The good thing about the pharmaceutical industry, whether local or online, is that it serves international customers too. Merchants operating local and online pharmacies can streamline business processes by securing a payment gateway and merchant account. It offers several benefits to MOTO pharmacies, online pharmacies and compounding pharmacies.
If you have already tried applying for a pharmacy merchant account with a bank, it is likely that your application was denied for being “high risk”. Being a high risk business entails both a credit risk and a reputation risk; hence the stigma. Here are reasons you may have been rejected:
You have a high chargeback ratio Also called a friendly fraud, a business faces a chargeback when a customer disputes a purchase. Customers may make a chargeback claim if – they are not satisfied with the product, it is damaged or it was misrepresented by the merchant. A chargeback is a loss to the merchant and the acquiring bank. A high chargeback ratio could make getting a merchant account for pharmacies a real challenge. The chargeback ratio should be below 2%.
You are a startup Established businesses have it a lot easier that small businesses and startups when it comes to applying for a pharmacy merchant account. Payment processors prefer to work with companies that have created a brand name for themselves. The problem with startups is that they do not have a strong payment or credit history that processors can use to evaluate the business. Underwriting banks doubt the business’ ability to be successful. Some even lack the capital to fall back on.
It’s the FDA regulations The pharmaceutical industry is a highly regulated industry. Medicines impact health. The Food and Drug Association has very strict policies in place regarding the sale of medicines online. The FDA classifies drugs as Controlled and Non-Controlled Drugs. The FDA permits the sale of only non-controlled drugs online. Selling controlled drugs is considered illegal. FDA regulations are one of the reasons banks and payment processors refuse to sponsor your business.
Every pharmacy is designed differently. If you want to get the best out of your pharmacy merchant account, you need one that is designed for you. The pharmacy merchant account should offer integrated payment solutions. The best merchant account providers provide numerous ways to pay. This includes debit and credit card processing, eCheck processing and ACH processing. A MOTO pharmacy account with mail order and telephone order capabilities allows customers to place orders over the phone. The payments are made via a virtual terminal or a point of sale system. A few credit card processors have a provision for gift cards, a strategy they use to promote their business.
There is nothing like it if your credit card processor enables you to track inventory along with accepting payments. It should also have detailed and specialized reporting capabilities. Inquire about the funding time. Quick funding times ensure that businesses don’t have to wait long for deposits; they always have access to cash to fund their operations. The merchant account managers should be familiar with your specific industry. Along with quick payment processing, the merchant account should also ensure secure payments. Do not settle for non PCI complaint software. A chargeback ratio higher than 2% could result in your account being shut down. Make sure that the merchant account provider implements chargeback prevention and mitigation strategies to protect your pharmaceutical business. Being high risk, a merchant account for pharmacies will benefit from a payment processor that works with multiple underwriting banks. Some companies also offer offshore banking solutions. This is whether it is a MOTO pharmacy, Point of Sale system or eCommerce business. They also service compounding pharmacies that specialise in custom-made formulations for patients.
Third party merchant account providers are willing to underwrite pharmacies despite them being high risk. To start with you will have to submit your application duly filled and attached with the necessary documents. The payment processor will evaluate the nature of your business based on your application and the documents provided. Here are some tips to get approved.
1. You must be a licensed online pharmacy.
2. Follow FDA rules and policies.
3. Avoid illegal practices and sell only genuine medicines.
4. Payment processors do not support the sale of controlled medicines. Check the names of restricted drugs on the FDA website if you are unsure.
5. Your pharmacy, online or retail storefront should have a qualified and registered pharmacist on board.
The pharmaceutical industry is a high risk industry. So, be prepared to spend a little more on your pharmacy merchant account. Check the per transaction cost and processing fee. You shouldn’t be paying application fees or setup fees. A pharmacy merchant account will ensure a quick, smooth and efficient way to operate your business. Get one today.Sign Up Today
Three easy steps to accepting credit cards.
Complete the online Merchant Application. Remember, there are no setup fees.Sign up
Upon approval, normally within 48 hours, you will receive an email with your account credentials.
Log into your gateway account or mobile application to process credit cards.