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Why Are Online Pharmacies Considered High-Risk Businesses?

Author: Paul Staple
by Paul Staple
Posted: Jan 26, 2021

Online pharmacies are one of the fastest-growing businesses all around the globe. Customers save their time and money purchasing their medical supplies online. Because of this, pharmacies are making a big name in the industry, and so many are well known. Besides, their growth is accounting for increasing high-risk credit card processing needs as well.

But unfortunately, financial instructions don’t view online pharmacies positively and are very strict about their procedures. Payment processors, too, wish to work with only highly reputed pharmacies and the ones that have created a brand in the market.

But why do online pharmacies belong to the high-risk business category in the first place? Let’s briefly take you through the specifics of what makes online pharmacies fall under this category.

High-Risk Pharmacy Merchant Accounts

The majority of merchants buying and selling medicines online have their pharmacies at different locations. This is one of the major reasons why online pharmacies may be classified as a high-risk business. Credit card processors find it challenging to accept such merchants. Yet, it remains to be a profitable business in the online scenario.

Besides, by trading offshore, merchants are better able to maximize profits enabling opportunities for online pharmaceutical providers to provide their services offshore.

Nonetheless, as profit margins keep going up for online pharmacies, banks decline their pharmacy merchant account applications. High-risk business owners have a hard time obtaining approvals. The reasons being higher chargebacks, risk of fraud, refunds, and more. All these and more make financial institutions want to avoid dealing with high-risk businesses. However, the success and failure of the business depends on the acceptance of different cards and offering secure online gateways for transactions to take place.

Getting A Merchant Account for Your Online Pharmacy

You may come across several service providers that offer the needed assistance but restrict your merchant account facilities if you sell Butorphanol, Codeine, Fentanyl, Hydrocodone, Morphine, Oxycontin, Ritalin, or Vicodin, and others.

So what can one do? The circumstances, as mentioned above, make it crucial for merchants to look for a solution that helps level up and meet the business goals. It’s best to look for the following high-risk merchant account features:

  • Secure transactions
  • Fraud protection
  • Real-time payment processing
  • Recurring billing
  • Reliable virtual terminal
  • No high-volume restrictions
  • Acceptance of all card
  • High-risk credit card processing
  • Online reporting
  • 24/7 customer support
  • Cost-effective solutions

Online drugstores are considered high risk owning to the hazard of high-volume sales and potentially higher chargebacks or frauds. However, using the facilities of a reliable service provider and the one that can align with your business needs will instantly get the business up and going.

When you are sure about the payment service provider (PSP) you want to go for, start by sending an application to them. The PSP will then evaluate the request and demand a few additional (KYC) documents. After meticulous evaluation of the papers and medicines you sell, the PSP will share its view on the outcome of the application.

What Else Do You Need?

Once you’ve registered your account, discuss your payment gateway to start receiving payments. Have reliable chargeback protection and a range of other advantages to enjoy a seamless transaction flow. However, several factors go into consideration to define the exact terms and conditions. Speak to your service provider and sort out your queries.

About the Author

Liberty Enterprises offers a wide array of offshore and US domestic credit card and Ach/E-check merchant solutions.For more visit

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Author: Paul Staple

Paul Staple

Member since: Jul 18, 2016
Published articles: 60

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