In many ways, getting a herbal merchant account going is the same as dealing with any other merchant account. However, it’s worth noting that it may be difficult at first to obtain such an account for your business.
This is because the herbal industry has an unstable reputation, since it is still largely viewed as an alternative industry. The perception of the herbal industry as alternative is furthered by the fact that many herbal merchants operate from overseas. They also often operate with websites as opposed to storefronts, which can make customers and investors nervous. With time, this perception will likely dissolve, and herbal merchants will be eligible for the same privileges granted to other industries.
These attributes make an herbal merchant what is called a high-risk merchant, meaning it will be tougher for you to get an account than it would be for a more conventional retailer. The most common problem with herbal accounts is the chargeback, which calls for the merchant to replace transacted money in the customer’s account. Because herbal merchants still often go unregulated, and are offering products that cannot always guarantee results, the chargeback can be a serious problem for them. When dealing with MasterCard and Visa, your bank will be on the hook for all such fees charged to you, which means that you’re also on the hook.
One of the most important aspects of getting an herbal merchant account going is to become a part of an established international network for taking payment, which will help with safety when taking payment. Sales usually go up when a merchant obtains such an account, as well. For these reasons, the importance of being internationally hooked up with debit and credit card service cannot be understated.
In this day and age, it is crucial for businesses of all types to accept debit and credit card payments. However, this is especially true for businesses such as herbal merchants. This is primarily due to the fact that many of them operate mainly online, and credit card is one of the most common methods of online payment. Thus, herbal merchants have a vested interest in this service. It is not difficult to find providers of the service.
Several major credit card providers, such as Visa and MasterCard, offer accounts specifically for online businesses. PayPal is another viable option. Just because your business is classified as high risk does not mean that there are no options available to you. Many merchant account providers have services geared specifically toward high risk merchants. These accounts will give you less freedom than a regular account, and may charge you more fees, but at least you will be set up to accept payment with credit card and debit.
Just like any other business, a herbal merchant will have trouble obtaining an account if they have a bankruptcy under their name, or even just a bad credit record.