Online pharmacies are considered a high-risk industry. It is ironic that in spite of the quick growth of the businesses providing online pharmaceutical services, it becomes difficult to get merchant account for these businesses.
Back in 1999, it was big news that online pharmacy sales topped $1.9 billion in the US. In 2018 that number was $38.39 billion – and the global online pharmacy market is expected to reach over $131 billion by 2025. It’s an industry in explosive growth, with an ever-increasing demand. Online pharmacies have become serious competitors to traditional drugstores, discount department stores, and even the big hypermarket chains that have begun entering the space as well. Know more about High-Risk Online Pharmacy Payment Gateway.
In spite of all this opportunity for massive revenue and profit growth, it remains a high-risk industry. This label makes it impossible to get an online pharmacy payment gateway from your regular bank, or from a mainstream payment service like PayPal. Read on to learn why and what you can do about it to start or grow your own online pharmacy business.
The prohibitive high-risk factors of online pharmacies
Online pharmacies are considered to be high-risk businesses due to the nature of what they are selling – medication. Even though medication is far from the only product on the virtual shelves of these businesses, it’s one that is of itself presents a disproportionate amount of risk.
Selling certain meds online is still a very gray area. There are many vendors who offer prescription meds along with a prescription by a “virtual doctor” that will write a prescription for anything to anyone.
However, such practice is prohibited by the DEA, murking the water even further. If the online pharmacy offers such virtual doctor services under its own label and domain, then there can be a clear case of breaking the law.
But if they are loosely associated with one, without having this service as part of the registered business, the burden of responsibility becomes harder to place.
Such realities make it very unattractive for banks to get involved, as these conservative and traditional institutions survive and thrive by keeping their names out of legal battles. And it means that they’ll reject the application for an online pharmacy payment gateway without even looking at it.
Your high risk online pharmacy payment gateway awaits
If you haven’t started the business yet, and the above makes operating an online pharmacy sound daunting – don’t despair. 5 Star Processing is here to help you make it happen.
We work closely with online pharmacies and other high-risk businesses to provide the absolute best and most flexible payment gateway solutions possible.
By getting your online pharmacy payment gateway from us, you are protected against the natural risks of your industry. The general risk exposure and the frequent chargebacks won’t cause any disruptions; and you can sleep soundly knowing that when you wake up, your online pharmacy will still be making sales and processing payments.
While this flexibility and peace of mind are important, what is equally important is that we have record low credit card processing fees. We don’t feed on your margins – we support your business so that you can keep growing your online pharmacy and serve more customers.
Apply for your High-Risk Online Pharmacy Payment Gateway today
Our expert staff is here to help you, regardless of whether you still want to ask some questions about payment gateways, or you want to jump right in and start applying for one.
How to get a merchant account for an online pharmacy?
If your site has ready and you have the above-listed documents then you are most welcome to begin the process of application. 5-star processing team will keep you updated about the developments. We will share the replies regarding your application of pharmacy merchant account. The underwriting group will send you a merchant account contract since internal approval. This online pharmacy merchant account will have all conditions. You will have to sign the contract and send it back to the 5 start processing. Our processor will help you with the API documentation. Your technical team can include the pharmacy gateway with your website.
Why Online Pharmacies Are Considered High-Risk Businesses?
Most merchants who exchange medicines online have a license that is based abroad. It is a massive part of the reason why online pharmacies is considered high-risk trades. Credit card processing providers find it difficult to acknowledge high-risk trades such as pharmacy merchants. Yet, this is one of the most lucrative business services online nowadays.
In America, the pharmaceutical trade is so costly. By trading software, merchants can enhance revenues. Due to this reason, most pharmaceutical online providers are based offshore.
Yet, while profit margins rise for the online pharmacies, many providers decline their applications for the pharmacy merchant accounts, deeming their business as too risky. However, 5-star processing approve and issue online pharmacy accounts.
How does 5-star Processing Provide Pharmacy Merchant Accounts?
5-star processing specializes in providing high-risk merchant accounts for high-risk businesses. In addition to this, we can provide customizable accounts that fit merchant every merchant individually. All you have to do is to provide one of our merchant account managers with some details of your business. Contact us today to learn more.
Account Rates For Pharmacy Merchants:
Pharmacy merchant account rates are available on a case-by-case basis. With high monthly sales in excess of $1 million, pharmacy merchants generally pay around 4-5% for their merchant account. On the other hand, with the low monthly sales turnover (less than $50,000 per month), internet pharmacy merchants generally receive rates around 6-7%. Feel free to contact the representative for the particular rates information.
Approvals For Pharmacy Merchant Accounts:
5-star processing applications are free, and several qualified merchants can usually be approved for the merchant accounts in little as one to two days. Upon receiving a merchant account approval notice, a 5-star processing manager communicates all the credit card processing terms and conditions of the provider to the merchant.
In case the merchant accepts the offer. Then, the merchant account is emailed to the merchant for them to sign and return the agreement back to the 5-star processing. Live processing can often begin 24-48 hours later.