How to get an online Pharmacy Merchant Account?

Convenience and discretion are qualities that consumers highly value in many of today’s businesses, and pharmacies are no exception. This explains why more and more people are choosing to obtain their medications from an e-commerce provider. If you want to cash in on this trend by starting your internet-based pharmacy, one of the many important tasks you will need to complete is choosing a Pharmacy Merchant Account provider for online pharmacies that meet your customers’ needs.

The challenges of finding a provider.

The fact is, that stores that dispense medications online are viewed as “high-risk “businesses. There are several reasons why this classification is made by merchant account providers.

• Whether valid or not, concerns are often expressed about the legitimacy of online pharmacy providers.
• Prescription medications can sometimes be incorrectly filled, leading to risk to customers and increased liability. Additionally, financial institutions are often concerned that online pharmacies will illegally sell controlled substances.
• The e-commerce nature of the business leads to a greater chance of fraud.
• Chargeback risk is higher. (Chargebacks happen when customers dispute charges and request funds from their bank without coming to the merchant first.)

When a business is deemed to be high-risk, the merchant can expect to pay higher fees and will probably be under greater scrutiny from their bank. Businesses that are considered to be high-risk are often denied service by standard Pharmacy Merchant Account providers. Therefore, it is best to focus your research on “high-risk” or specialty payment providers since they may have expertise in the online medications industry. But just what qualities should you focus on when you are choosing your payment partner?

Secure payment gateway access.

Whenever you sell goods or services from your website, you need a safe and reliable way to accept payments. A reputable payment gateway offers you a secure online portal that facilitates a speedy, efficient, and feature-rich purchase experience for both you and your customers. Think of your gateway as the virtual equivalent of an in-store point of sale (POS) system — one that works with the other actors in the process to ensure that the customer’s identity is valid and that there are sufficient funds for the transaction to go through successfully.

Multiple currency capabilities.

If you are like many e-commerce pharmacists, you want to serve buyers in more than one country. For many merchants, this means they need to offer their customers the ability to pay in their local monetary denomination. Failing to furnish clients with this level of choice demonstrates not only a lack of courtesy but could also cause your business to be construed as shady or somehow not worthy of trust. Particularly in the online pharmacy industry, you simply cannot afford for your potential customers to be wary of your reputation.

Fortunately, many Pharmacy Merchant Account providers offer robust multi-currency capabilities. Some even have established relationships with bankers and other financial institutions in your countries of choice, which may mean that the fees you and your customers pay will be lower. Greater transparency and fair prices will help you to attract new buyers and turn existing ones into loyal, long-term customers.

Subscription or recurring billing.

Once you gain your buyer’s trust, you can benefit from the fact that many medications need to be refilled regularly. When you set up recurring billing, you offer your customers the peace of mind of knowing that they will receive the medications they need on a predictable basis with no danger of delays due to a late or forgotten payment. Meanwhile, on your end, you’ll be in a much better position to understand your cash flow, making it easier to forecast future business and keep inventory in stock.

Easier tracking.

As is the case with most businesses, you must keep your finger firmly on the pulse of your transactions, preferably in real-time. The Pharmacy Merchant Account provider you choose should give you access to payment software and an online merchant portal that places all of your information on an easy-to-understand dashboard. You should then be able to view all transactions including those that have been declined, are on hold, or are involved in product returns. Additionally, you should be able to see analytics that tell you who is clicking on your site, how many customers are abandoning their carts, and what medications are the most popular to help you spearhead more effective marketing campaigns.

The application process.

Once you decide on the best merchant account provider for your online pharmacy, you will need to complete an application. Although requirements differ, you should be prepared to provide the following:

• A copy of your business license.
• A copy of your business plan/model.
• Business or personal bank statements for at least the past three months.
• Credentials of your board of directors.
• A voided check or a letter from your current bank stating that you are in good standing.
• Proof that you own the business.

In some instances, you will also be asked for a detailed list of the medications you carry as well as import/export and other licenses or permits. Keep in mind that under no circumstances can you sell medications that have been tagged as prohibited by the U.S. Food and Drug Administration. Examples of prohibited substances include morphine, oxycontin, fentanyl, hallucinogens, and stimulants.

A final word about chargebacks.

As we have previously stated, customer dissatisfaction or confusion about prescriptions, along with outright fraud, are common causes of customer-initiated refunds known as chargebacks. Although you can never totally avoid chargebacks, especially in the pharmacy sector, there are steps you can take to minimize the stress and financial toll they can cause.

• Implement and prominently display a clear and transparent chargeback policy, including free shipping. If buyers have an easy, low-cost, or free way to send products back, they will be less likely to file a dispute.
• Handle any mistakes on your part by offering discounts, rebates, or free shipping.
• Make sure that your customer service team addresses customer concerns immediately and courteously. You might consider investing in an automated assistant that can triage buyer issues, address routine questions on the spot, and refer more complex issues to you.
• The Pharmacy Merchant Account provider you choose can be a vital ally that gives you a secure payment infrastructure that fosters trust and minimizes costly product returns and chargebacks.

Conclusion:

Elevate your online pharmacy’s financial efficiency with a Pharmacy Merchant Account from 5Star Processing. Seamlessly tailored for pharmaceutical transactions, 5Star Processing ensures enhanced security, regulatory compliance, and 24/7 support. Choose a strategic partnership that not only understands the unique challenges of online pharmacies but also offers competitive rates for optimized financial resources. Position your business for success in the digital realm with 5Star Processing — the trusted ally for seamless and secure online pharmaceutical transactions. Get started today and unlock the full potential of your online pharmacy with a customized merchant account solution.