Every year, the United States has a skin care industry that sells products worth billions of dollars. A large portion of the industry is made up of anti-aging and wrinkle creams. Many companies that sell them also offer convenient auto-shipping options and free trials. High-risk businesses are often rejected by skincare merchants when they apply for payment processing accounts at major banks and processing companies. Merchant Stronghold specializes in payment processing solutions for high-risk merchants in this sector and other industries that big banks consider too risky.
What Are the Risks of Skincare Merchants?
Many skincare products make huge claims about their products that aren’t supported by scientific research. These claims could be related to skin conditions such as acne and keratosis, making wrinkles disappear, or deep hydration for severely dry skin. These claims are often not supported by evidence because these products are not subjected to the same regulations as pharmaceutical remedies. These products can also contain ingredients that are not regulated and could cause allergic reactions or other adverse effects. These problems contribute to the high-risk designation given to skincare merchants. Customers may not be satisfied with the product, and instead of contacting the company to resolve their concerns, they initiate chargebacks with their credit card issuer.
Skincare merchants are more inclined to offer free trial offers and auto-ship programs to customers. This model is high-risk in any industry. Customers who don’t know how to cancel their accounts or forget to cancel will often initiate chargebacks with credit card companies.
A merchant may be considered high-risk if they have a high rate of chargebacks or a higher risk of chargebacks. Often, these chargebacks will be paid by the bank or payment service provider. Merchants who have a higher chargeback ratio than the threshold set by banks — even those that offer accounts to high-risk merchants — may see their account frozen or shut down without warning. This could leave their business in jeopardy.
Protecting your bottom line
Merchant Stronghold provides high-risk merchant accounts to keep your skincare business afloat. After analyzing the market, we have built a strong network that offers payment solutions in the United States as well as offshore to merchants in skincare. Merchant Stronghold offers a wide range of solutions to help your business, including:
- Multi-bank processing (including offshore)
- Chargeback alerts
- ACH/Check 21 Processing
- Competitive processing rates
- Secure Payment Gateway
- Chargeback disputes
- Protection and prevention of fraud
We maintain a low rate of chargebacks, deal with chargeback disputes, and prevent account closures and fraud by working closely with our account holders.
Multi-bank Processing/Offshore Pay Processing
Merchant Stronghold is able to connect with anti-aging and high-risk skincare merchants through a network of more than 40 banks both in the United States. Merchant Stronghold has at least four banks that will accept payments. Multiple banks can process payments, which will reduce chargebacks. If an account is closed or frozen, at least three banks can continue to process payments. The merchant will not have to stop accepting debit and credit payments.
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Award-Winning Fraud Prevention
All merchants will have access to our secure payment gateway, which comes with our award-winning fraud prevention tool. These tools scan hundreds of transactions to detect fraud and prevent fraudulent transactions from being completed. Merchants can set up fraud filters that will automatically reject or suspend transactions that do not meet their requirements.
Chargeback Alerts and Disputes
Merchants in the anti-aging and skincare industry are more likely to charge high charges back if they offer free trials or auto-ship agreements. Merchant Stronghold provides merchants with the tools they need to combat unwarranted chargebacks before it is too late.
Merchants are notified by chargeback alerts whenever there is a chargeback on their accounts. Merchants can dispute chargebacks if they are not justified. They will be able to show proof of the free trial, auto-ship, or any other agreements or receipts that support the consumer’s knowledge.
By keeping chargebacks low, accounts with banks or payment processors will remain in good standing.
How to apply for a high-risk skin care merchant account
You’ve likely been turned down by large banks for payment processing accounts if your products include anti-aging creams, serums, or other skincare products. Merchant Stronghold approves 98% of all applications. We offer competitive processing rates, comprehensive account features, and a wide range of other services that will help you keep your skincare business thriving.
You can easily apply online for a high-risk merchant account for skincare. After you have completed the form, simply digitally sign it and attach your supporting documents. Our underwriters will determine your eligibility. We will get back to you within 24hrs. Once approved, we can have credit or debit payments ready for you in 48 hours.