Health and Beauty

Has a Processor or Payment Provider ever terminated your Health and Beauty Merchant account?

You and your webmaster complete a sleek new design for your website for your health and beauty merchant account, your company has a growing following on social media, as you begin to make sales through your new website using an Aggregator like PayPal, Square, or Stripe. Next thing you know you stop receiving funds from your website sales and you find out that your merchant account is being shut down and all sales immediately stop because you are not set up for success with your payment provider.

Many payment providers do consider health and beauty merchant accounts to be higher risk, mostly due to the amount of chargebacks and refunds given back to customers.

You are having difficulty making payroll and paying bills since you stopped receiving deposits for products you have sold and shipped.

Then your bank account becomes negative and now you owe your bank money while you have no money coming in from sales. Your merchant account has been completely closed, you have no access to the funds, and your customers start contacting you for an immediate resolution.  

This is not such a far-fetched story, this is the risk if you do not select the right payment provider that understands your business – when you come to Aacadia Payments for your higher risk merchant accounts, you avoid any funds being held for long periods and your income being halted.

Why do I need a High Risk Banking Partner for my Health and Beauty merchant account?

The primary reason health and beauty companies end up obtaining higher risk merchant accounts is because of the industry’s reputation with high disputes. Why are Health and Beauty Customers disputing their transactions?  Health and beauty businesses are known to receive more disputes when compared to regular e-commerce business and far more chargebacks then your standard brick and mortar retail business.  The cause of businesses having to get a high risk merchant account is mostly due to chargebacks. Here are some examples:

• Health and Beauty businesses many times hide the terms and conditions in the fine print.  Consumers do not read the fine print and when the terms are not what they expected, they file a dispute with their bank.  

• Many business owners that are experienced in Health and Beauty are very aware of the chargeback problems but fail to implement chargeback tools that are helping business owners succeed. Aacadia Payments uses chargeback mitigation tools to assist their customers in lowering their chargeback ratios and keeping their merchant accounts Open!!

• The other large issue with Health and Beauty is the Outstanding Claims made by deceptive marketing, causing consumers to feel ripped off and react by initiating a chargeback.  Many of these Health and Beauty companies do not have the staff to be able to respond timely back to the number of customers contacting them  – the longer you make the customers wait, the more upset they can be and in return, an even higher number of disputes will be received by the business.

Why Do Chargebacks matter to my business and How Can Aacadia Payments Help with my Health and Beauty Merchant Account moving forward?

If you start your merchant account with the right payment provider, the longer your merchant account will be open and the more success your business will have.   Payment Providers have ongoing due diligence and they monitor your merchant account on an ongoing basis, effectively, there is active risk monitoring ongoing with a higher risk merchant account.

You can avoid the headache of starting your payment processing, having your merchant account shut down, and then having to quickly find a new payment processing company by starting with the correct high risk payment provider from the very beginning  – this will also increase your chances of a quicker approval from partner banks that understand your business.  Aacadia Payments gives free quotes with quick response and help you understand your merchant fees.