Nutraceuticals Payment Processing

Traditional payment processors reject nutraceutical businesses for several interconnected reasons. First, the FDA's regulatory framework for dietary supplements is less stringent than for pharmaceuticals, creating perceived risk around product safety and marketing claims. Processors worry about liability if a merchant makes unsubstantiated health claims or sells products later found to contain harmful ingredients. Second, the industry's historical chargeback rates—often 2-5% for aggressive marketers—far exceed the 1% threshold most traditional processors will tolerate.

The continuity and subscription billing models common in supplements create additional rejection factors. Many processors view trial offers as inherently problematic due to customer confusion and resulting disputes. The complex billing sequences (trial period, then monthly, with upsells and cross-sells) require sophisticated payment logic that basic payment gateways simply don't support. When these merchants experience high chargeback rates and customer complaints, processors terminate accounts rather than invest in understanding the business model and implementing proper safeguards.

Paysuki specializes in nutraceutical payment processing with a platform specifically designed for subscription-based supplement businesses. Our intelligent dunning system is tuned for the supplement industry's unique patterns—we know when to retry failed payments (usually 3-5 days after initial decline), how to communicate with customers about billing issues, and which decline codes respond well to retries versus which indicate permanent failures. Our clients see 40-60% recovery rates on failed payments, significantly higher than industry average.

Our fraud prevention system understands supplement commerce inside and out. We flag risky patterns specific to this industry: unusual order velocities suggesting card testing, mismatch between shipping and billing addresses indicating fraud, and purchase patterns inconsistent with legitimate supplement usage. We've built custom risk models for different supplement categories—sports nutrition has different fraud patterns than anti-aging supplements. This specificity means fewer false declines and higher approval rates while maintaining low fraud levels.

Compliance is critical in supplement commerce, and our platform helps merchants stay on the right side of regulations. We enforce proper pre-notification for subscription charges, maintain detailed customer consent records, and provide clear cancellation flows. Our reporting tools help merchants monitor chargeback ratios across different product lines, identify problematic marketing sources, and take corrective action before rates reach dangerous levels. We also assist with FDA compliance around payment page health claims and transaction descriptors that clearly identify the merchant.

We've processed over $1 billion in supplement transactions, giving us deep insights into what works and what doesn't. Our account managers help supplement businesses optimize their entire funnel—from trial offer structuring and rebill timing to email campaigns and customer support protocols that reduce chargebacks. We understand that supplement businesses need aggressive growth coupled with sustainable unit economics, and our platform is designed to support both objectives simultaneously.