The supplement and nutraceutical industry refers to the production, sale, and distribution of dietary supplements, vitamins, minerals, herbs, and other natural products that are intended to supplement the diet or provide health benefits. These products can be found in a variety of forms, including capsules, tablets, liquids, and powders.
The terms “supplement” and “nutraceutical” are often used interchangeably, but they do have slightly different meanings.
A dietary supplement is a product intended to supplement the diet and provide essential nutrients, such as vitamins and minerals. These products can come in many forms, such as capsules, tablets, liquids, and powders. They are regulated by the U.S. Food and Drug Administration (FDA) under the Dietary Supplement Health and Education Act of 1994 (DSHEA).
On the other hand, nutraceutical is a term coined by Dr. Stephen De Felice in the late 20th century, derived from the words “nutrition” and “pharmaceutical.” It refers to a food or food product that provides medical or health benefits, including the prevention and treatment of disease. In other words, nutraceutical products are functional food or food ingredients that have medicinal properties. Nutraceutical products are often made from natural ingredients and can include things like probiotics, enzymes, and antioxidants.
So a nutraceutical is a type of dietary supplement, but not all dietary supplements are nutraceuticals. Nutracueticals are more specific sub-category of supplements, that are intended to provide therapeutic benefits beyond basic nutrition.
A supplement and nutraceutical merchant account is a type of payment processing account that is specifically designed for businesses in the supplement and nutraceutical industry. This type of account allows these businesses to accept credit and debit card payments from customers for the products they sell.
Supplement & Nutraceutical merchant account is considered high risk for payment processing because they are prone to chargebacks. Chargebacks occur when a customer disputes a charge on their credit or debit card, and requests a refund from the merchant. Chargebacks can happen for a variety of reasons, but in the supplement and nutraceutical industry, they are often the result of customer dissatisfaction or the belief that the product did not work as advertised.
The supplement industry is considered high risk for chargebacks due to several factors. One factor is that dietary supplements are not regulated by the FDA like drugs are, this leads to some company make false claims about their products. Also, some supplements can have harmful side-effects or interact with other medications that a consumer may be taking which can lead to chargebacks. Additionally, product returns are common in supplement industry.
As a result of these higher chargeback rates, many traditional payment processors will not work with supplement and nutraceutical businesses, so it’s important for businesses in this industry to work with a merchant services provider that has experience with high-risk accounts. These providers often charge higher fees and have more strict underwriting requirements, but they can provide the necessary services to help these businesses accept credit and debit card payments.
A supplement is a product taken orally that contains one or more ingredients (such as vitamins, minerals, herbs, amino acids, and enzymes) intended to supplement the diet. A nutraceutical is a food or food product that provides health and medical benefits, including the prevention and treatment of disease.
Examples of supplement and nutraceutical products include vitamins, minerals, herbal supplements, probiotics, amino acids, and enzymes.
The difference between retail and online ecommerce for supplements and nutraceuticals is that retail stores typically have a physical presence and customers can see and purchase products in person, while online ecommerce allows customers to purchase products remotely via a website.
Methods for accepting payments for supplements and nutraceuticals in-store and online can include credit and debit cards, e-checks, and alternative payment options such as PayPal and Apple Pay.
A good in-store solution for retail supplements and nutraceuticals might include a POS system that can handle inventory management and processing of payments, while a good ecommerce solution for supplements and nutraceuticals might include a secure shopping cart and payment gateway.
Supplement and nutraceutical products are considered high risk in the payment industry because they are subject to a higher rate of chargebacks and fraud. This is due to a variety of factors, including the perishable nature of some products, the ease of falsifying product labels and packaging, and the potential for customers to dispute charges.
It is possible to have a merchant account to sell supplements and nutraceuticals online and in-store, but it can be more difficult to obtain and maintain due to the high risk nature of these products.
The legality of supplement and nutraceutical products varies by state and jurisdiction. It is important to check with local authorities and regulations to understand the laws and regulations for the sale of these products in your area.
