The nutraceutical & supplement industry is massive and has many niche businesses operating under it. CBD Oil, Medical Marijuana, Kava, Kratom and such are a few businesses that are related to this industry.
We are well-aware how difficult it is to obtain merchant services for any businesses related to the nutraceuticals industry. Merchants selling Kratom, a South-East Asian tropical tree related to the coffee family, are no different.
Kratom has been found to have many medicinal uses & benefits, although people still view it as an addiction. The herbal product can be used to cure anxiety and insomnia. It can also help relax chronic pains. Admittedly, there are side-effects too. If taken in low dosage, kratom acts as a stimulant whereas, at high dosage, it acts as a sedative.
With the growing awareness about the herbal products and its medicinal properties, there are a number of businesses popping up. While majority of such businesses operate online, considerable brick-and-mortar stores have opened up too.
A Risky Business
As with any business in this day and age, banking services are essential for smooth functioning. Especially for online businesses, credit card processing to able to accept regular payments forms a critical business function.
But just like many high risk merchants that have a tough time getting approved for merchant services with banks and merchant account providers, Kratom merchants are no different.
Kratom maybe a tricky business but make no mistake, the business is as legal as your regular book-store.
With banks denying services, merchants face operational challenges. No doubt such business earns high revenue which causes security risk to keep cash at hand and make them highly vulnerable to break-ins, theft & assaults.
In order to acquire banking services, some merchants open a personal account by hiding the nature of their business and then eventually get shut once found out. Similarly, businesses have also used a fake website to get approved with online payment processors like PayPal which has a strict policy against accepting these types of businesses. When caught, PayPal will freeze such accounts for well over 3 months.
Why is Kratom business termed as high-risk?
- Kratom contains chemicals that have psychoactive substances which itself causes processors to have reservations regarding its sale in the market
- Strict rules & regulations concerning the sale of kratom,
- Controversial nature of business,
- Little known knowledge about industry operation and
- Customer dissatisfaction leads to refunds which increases chargebacks
- Subscription-based business model wherein customers end up signing up for a product they do not want later and cancel the order causing high chargebacks.
- Fraud & illegal business websites are a huge cause of concern for banks and credit card processors.
Kratom Merchant Account Solutions
Processing options for Kratom merchants might be limited but they are several first-rated merchant account providers that willingly take on Kratom merchants with reasonable processing rates and customized services. Start looking for processors offering High-Risk Merchant Account Solutions!
Find a reliable merchant account provider that has considerable knowledge and experience with the herbal products industry. Such providers will understand your business hurdles, expectations and cater as per your requirements. Make sure to enquire for an integrated secure payment gateway to take online payments for your e-commerce store.
Legal business operations, positive credit history, low chargeback and large monthly volume are a few pre-requisites required to stand the best chance at getting approved for a merchant account.