Nutraceutical payment gateways provide a reliable and secure way for an ecommerce business to accept payments online. Nutraceutical companies often use a nutraceutical payment gateway to intelligently route transactions to multiple credit card processors. Multi Mid payment processing for high-risk businesses with integrations into LimeLight and many other third party applications is SecureGlobalaPay is all about.
It is crucial for a nutra business in the virtual marketing space to have a seamless way of accepting and processing card payments. After convincing people to buy dietary supplements and herbal products online, nutraceutical merchant accounts rely heavily on front-end payment gateway technology when accepting credit and debit cards for their sales.
Choosing an ideal payment gateway for your nutraceutical company whittles down the risks that come with processing payments. Multiple MID payment processing allows nutra industries to mitigate their risk by working with multiple payment processors at once.
Customers can buy nutra products through an online store that is open 24-7. However, a high chargeback potential is created by processing large volumes, offering free trials and continuity billing models. Nutra merchant accounts need to be bullet proof. A no-nonsense payment gateway when processing nutraceutical payments is of utmost importance.
What is a Nutra Payment Gateway?
A nutraceutical payment gateway is a merchant service solution that processes payments for ecommerce nutraceutical companies and their products.
A payment gateway is like an online cash register with a full suite of applications to help manage your payments and reduce your risk. To fully understand how it works, you will need to know all the players involved.
Merchant: This is the owner of an online business (nutraceutical company) selling a product or service to a customer.
Customer: This is the buyer or cardholder that is looking to purchase what a merchant is selling online. The buyer is the one who initiated the transaction.
Issuing bank: The cardholder’s bank issues a debit or credit card on behalf of card companies like Mastercard or Visa.
Acquiring bank: This bank processes card payments on behalf of the merchant. The funds released by the issuing bank are transferred to this account.
The payment gateway confirms a cardholder’s details and makes sure there are sufficient funds in the account for the transaction to go ahead.
When a customer pays for green tea supplements, liquid prenatal vitamins or probiotics from a nutraceutical company, the payment gateway encrypts the sensitive card details and sends the information from the buyer to the merchant using the acquiring bank as an intermediary.
If the payment processing company endorses the transaction via the issuing and acquiring bank, the processor sends the information back to the nutraceutical companies payment gateway which authorizes the sale to move forward.
Once the payment gateway receives authorization, it prompts the nutraceutical ecommerce store to accept the purchase and route transactions accordingly.
Benefits of Using a Secure Payment Gateway
Fast payments: You can use a payment gateway to complete and route transactions in less than 5 seconds.
Convenience: A payment gateway keeps your nutraceutical store open 24 hours a day and 7 days a week.
You literally make money while you sleep with the successful integration of a robust payment gateway with your website.
Safe and secure: A payment gateway encodes sensitive information transferred between customers and merchants and routes the transactions to the appropriate payment processor.
More customers: With a multi mid payment gateway, you are not restricted to your physical location; you can sell your nutra products to the whole world, via multiple payment processors, routing transactions accordingly if you have the right technology and an effective distribution line in place.
Different Types of Gateways
Redirect Gateways: These types of gateways are meant for small and medium scale business owners looking to integrate the security of an online payment platform with their business.
However, this gives them no control over purchases conducted on their website and slows down the checkout process for customers.
Checkout On Site & Payment Off Site: Here the customer checks out through the frontend of the merchant website. Payment processing takes place through the backend API online system.
In this situation, the gateway is directly integrated into the merchant processor. The integration is responsible for collecting secure credit and debit card information from the cardholder.
Nutra merchants that opt for this online payment system should always integrate it with the SSL protocol.
This added layer of security ensures that the connection between the payment gateway and merchant site is encrypted.
Online Onsite Payments: Most large scale businesses prefer to process payments on their own servers.
Here the merchant is responsible for the online purchasing experience from beginning to end.
There is no involvement from any third-party because the merchant controls the entire user experience and checkout process.
This means the responsibility to provide security measures that plug leaks and handle any breaches falls totally on the merchant.
Payment Gateways Vs Payment Processors
Here is the difference between a payment gateway and a payment processor.
A payment gateway prompts a credit card transaction by passing the card information from a cardholder to a merchant’s bank through a credit card network.
On the other hand, a payment processor either declines or approves the transaction to move forward.
The payment processor transmits the data to the customer’s bank and then to the acquiring bank—the merchant’s bank.
To establish a nutra merchant account needed to integrate into the payment gateway, a nutra merchant should always set up a high risk merchant account with a high risk merchant service provider.
A typical payment processing cycle looks like this.
- Payment processing company provides the merchant with a card reader or virtual payment terminal
- Payment terminal authenticates the the card and sends the information to the issuing bank which approves or declines the transaction
- Payment processor sends transaction denial or approval to the payment terminal.
- If the transaction goes through, details are sent to the acquiring bank.
5 Things Before Choosing a High-Risk Payment Processor
There is no shortage of payment gateways in the market, but some gateways are better suited for the nutraceutical industry than others.
Here are 5 things to look out for before choosing a payment gateway for your business.
Pricing and Service Agreement: Make sure your payment gateway provider is able to route transactions to multiple payment processors and provides a pricing plan that suits your budget and meets your business objectives.
Look at the terms of the agreement and the gateway fee structure, how does it compare to your business model?
Some providers charge setup fees, others do not. Some payment gateways even charge you for abandoned carts and when a monthly transaction volume is not met.
A transparent payment gateway company lays everything bare on the table and answers the questions that you might have.
International Payments: According to Capgemini’s World Payments Report, non-cash transactions reached $708.5 billion in 2020.
And this unprecedented number is expected to record a growth rate of 12% over the next 2 years.
Additionally, the global nutraceutical market size has been growing in leaps and bounds and is expected to be worth $314.2 billion in the next few years.
Scaling your business and selling your products outside your geographical location should be on your to-do list because you are leaving plenty of money on the table, if you do not.
The best payment gateways allow you to do this by providing the necessary support while helping you accept payments in multiple currencies from different countries.
Integration of Different Platforms and Shopping Carts: Most nutraceutical online stores use platforms like PHP, Ruby Python, Shopify, WooCommerce, Magneto and more.
The ideal nutra payment gateway offers integrations into your favorite high-risk credit card processor with plugins and customer service for all these platforms. It also provides tutorials and easy to follow directions to install your preferred plugin.
A payment gateway system that does not interfere with your credit card payment processor or website UX should be your top priority.
Personal Checkout Experience: According to Invespcro, 23% of customers ditch their shopping carts because the checkout process is too complicated or requires too much information.
Do you know that 80% of customers prefer to purchase products or services from businesses that offer them personal experiences?
These statistics show the importance of choosing a payment gateway that allows you to personalize your checkout page.
The right payment gateway knows that brand language makes a world of difference towards a successful purchase.
Make sure the checkout experience is the same on all devices and networks.
Payment Analytics: Look for a nutraceutical payment gateway provider that offers analytics and comprehensive reports of all your transactions. Make sure these analytics integrate into your credit card payment processor and CRM.
These detailed reports should comprise of your payment history, transaction volume and the locations as well as the type of mobile devices people are using to access your ecommerce store.
This data helps you develop better marketing strategies for your nutraceutical business in future.