Does L3 Process Payments for Nutra Merchants?

Many merchants come to us with the following question: can L3 process payments for my nutraceutical business? You may be relieved to hear that yes, we absolutely do. Not only that, but we offer high-quality solutions to facilitate your payment processing needs best.

L3 Payments regularly works with “high-risk” merchants, and nutraceuticals fall under this categorization. But fear not! High-risk isn’t necessarily a bad thing.

This article will discuss what nutraceuticals are, which nutraceuticals L3 works with, and some of the main challenges nutraceutical merchants face.

Without further ado, let’s dive into the fundamentals.

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What are nutraceuticals?

The term ‘nutraceutical’ was first coined in 1989 by Dr. Stephen DeFelice, the founder and chairman of the Foundation for Innovation in Medicine. The term comprises of two words—‘nutrition’ and ‘pharmaceutical.’ Nutraceuticals are mainly used to prevent disease rather than heal from disease.

First, you should know that ‘nutraceutical’ is an umbrella term. It describes any product taken from food sources that provide supplementary health benefits alongside food’s nutritional value. They are sometimes used as biological therapies, and people utilize them to improve their overall health, control illness symptoms, and prevent future adverse health.

To describe specific nutras, it is essential to pay attention to the nutra’s intended function and its makeup. There are a few different ways to classify them, including their natural sources, chemical constitution, and pharmacological conditions. However, they tend to be grouped into the following four categories:

  1. Dietary supplements. These tend to come in capsule, liquid, powder, or pill form (vitamin D tablets, zinc capsules, protein powder, …)
  2. Functional foods. These are fortified, enriched, or enhanced products, as well as whole foods. They are designed to help reduce the risk of disease and give an additional health benefit beyond their nutritional value (fortified dairy products, fortified cereals, fortified orange juice, …)
  3. Medicinal foods. These tend to be administered under a qualified physician’s supervision. They are used for specific dietary management to help with a disease or condition that requires specific nutritional requirements. (Echinacea, green tea, …)
  4. Farmaceuticals. Another word that comprises of two previously existing words. These are medicinally valuable compounds made from genetically modified plants (corn, wheat, ...)

Nutras can help with many biological processes, increase the defensive structures of antioxidants, assist cells in proliferating, improve gene expression, and safeguard the integrity of mitochondria (the powerhouse of our cells).

Consumers tend to use nutras to improve their health, limit the likelihood of chronic disease, postpone the aging process, increase the length of life, and support the body’s functionality.

Nutras are popular not just because of their potential health benefits but also because consumers tend to view them favorably, especially as alternatives to other medicines and health-based regimens. The global nutraceutical industry is booming. In 2019, it had an estimated worth of $382.51Bn. The industry is set to expand.

Let’s explore what markets L3 works with explicitly.


Which nutra categories do L3 work with?

L3 works with a plethora of nutra verticals. The expert team at L3 focuses on solutions for high-risk merchants, and several of our banks work with both straight sale and trial nutra merchants. Some of our categories include:

  • Male Enhancement
  • Testosterone Support
  • Skincare
  • Diet
  • Nootropics

The list of nutra markets L3 works with extends beyond the above list. If you do not see your industry here or want to know more about a listed industry, we encourage you to contact us for a free consultation.
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What are some of the challenges in nutra processing?

There are a few significant challenges in nutra processing. As mentioned before, banks deem the industry high-risk. Understand that traditional payment processors are less likely to work with high-risk merchants for a multitude of reasons. One of the main concerns is reputational risk. As nutras have no real regulation and the federal government is hands-off about the industry, the products can be untrustworthy. Manufacturers can make false claims about their products and ingredients, and sometimes exaggerate or lie about their customers’ effects. Furthermore, the chances of legal action taken against these merchants are higher because the market is unregulated. Lastly, chargeback disputes are more likely as many nutraceutical merchants offer free trials with automatic renewals.

Know that banks deem subscription services as high-risk primarily due to negative-option billing.

MasterCard and Visa have specific trial rules for products. For more detail, please refer to the following website.

Although nutras do not require FDA approval, the FDA does issue labeling, ingredient, and registration regulations. It is the merchant’s responsibility to comply with these regulations. Furthermore, the ingredients in nutra products must not be flagged by LegitScript. Otherwise, banks will blacklist them.


So, is L3 right for you and your nutraceutical business?

L3 can help you in several ways. Our team of experts offers in-depth knowledge of nutraceutical payment processing, excellent customer service, and decades of experience assisting high-risk merchants similar to you to optimize their payment processes. L3 is your best option to help you optimize your nutraceutical business’s lofty goals.

We are here for any questions you may have. Contact one of our representatives today for a free consultation!

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