Does L3 Process for Telemedicine and Online Pharmacy Merchants?

We do! We also offer high-quality solutions to facilitate all your payment processing needs. But what do telemedicine and online pharmacy merchants need to know about processing payments?

The telemedicine and online pharmacy industries have faced unique processing challenges due to the COVID-19 pandemic. The number of people using telehealth—an umbrella concept for telemedicine and online pharmacy (among others)—shot up dramatically in the wake of the pandemic. 

According to the CDC, there was a 154% increase in telehealth usage at the end of March 2020 compared to the same time in March 2019.

Even before the pandemic, banks deemed telemedicine and online pharmacy merchants high-risk, mainly because of the higher likelihood of chargebacks from customers in this industry (we’ll discuss this shortly). 

But fear not! Being high-risk isn’t necessarily a bad thing. It’s just a way for banks to categorize your business due to the greater likelihood of chargebacks. 

Does being high-risk make it difficult for you to get a merchant account? It can, but there’s no need to worry. Our payments experts at L3 have a solution for you.

In this article, we’ll discuss:

  • What are telemedicine and online pharmacy companies?
  • How do we define telemedicine companies and online pharmacies?
  • What are some of the challenges in telemedicine and online pharmacy processing?
  • What might the future of the telemedicine and online pharmacy industries look like after the COVID-19 pandemic?

Without further ado, let’s dive in!

What are telemedicine and online pharmacy companies?

Let’s keep this part short and sweet.

This article will discuss many different telemedicine services and one other health-based industry. These are:

  • Telemedicine
  • Telehealth
  • Medical services, and
  • Online pharmacies

You’re likely reading this article because you belong to one of these categories. We’ll dive into some definitions and answer your most pressing questions about payment processing in the telemedicine and online pharmacy industries. 

If you have any questions about telemedicine or online pharmacy payment processing, feel free to reach out to one of our payments experts, who’ll be more than happy to assist you.
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First, let’s define terms.


How do we define telemedicine companies and online pharmacies?

Let’s explore the terms from the section above in some detail.


Telemedicine uses video calling technology via phone or computer, phone calls, or messaging that allows healthcare professionals and patients to talk at a distance. Patients can be evaluated, diagnosed, treated, and prescribed medicine through these means. Over time, telemedicine has become more and more a part of the American healthcare system. At the time of writing, 38% of patients had used these services, and 76% have stated they would continue to use them in the future.


For some, it can be confusing to discern the difference between telemedicine and telehealth. It doesn’t help that the two terms are often used interchangeably and, therefore, incorrectly. 

Telehealth is more of an umbrella concept under which telemedicine falls. Whereas telemedicine is inherently clinical, telehealth is not. For example, training for providers, meetings for administrative teams, and medical education all fall under the telehealth bracket.

Medical services

Medical services is an even larger umbrella concept that encompasses all aspects of medical care. Any services deemed medical fit this definition: cardiology, x-ray, psychoanalysis, and many others.

Online pharmacy

Online pharmacies are exactly what they sound like: pharmacies that operate online. They comprise internet-only pharmacies, the online aspect of otherwise brick-and-mortar pharmacies, and any sites that are “representing [a] partnership among pharmacies fall under the purview of “online pharmacies”.”

What are some of the challenges in telemedicine and online pharmacy processing?

One of the main challenges in telemedicine processing—and the main reason why telemedicine is high-risk—is that there is a much higher likelihood that you would receive chargebacks

One reason why a patient may attempt to issue a chargeback can be if a telemedicine meeting doesn’t satisfy their requirements. Another could be that technology problems affect a faster delivery of an online pharmacy purchase.

Know that there are ways that merchants like yourself can help mitigate instances of chargebacks. Through expectation management, one of these ways is letting your patients understand what to expect from using your services. 

Another thing you can do is to empathize with your patients. Your patients may be using telehealth services for the first time or are relatively unfamiliar with the whole process.

For example, if technology affects a telemedicine video call, ensure you reach out and reschedule ASAP. Give delivery updates on online pharmacy medications to help stop your customers from worrying about it. In short, the more transparent you are, the lower the likelihood of chargebacks.

One last but essential thing you can do is work with a trustworthy and proven payments processing company. L3 Payments is here for all your high-risk payment processing needs. Feel free to reach out to one of our experts if you have any questions


What might the future of the telemedicine and online pharmacy industries look like after the COVID-19 pandemic?

The COVID-19 pandemic made the healthcare-from-a-distance model even more essential than ever before. Firstly, it helped mitigate the spread of COVID-19, especially if the patients presented with symptoms of the virus.

The fewer people that sit in medical offices with others means less contact between doctors and their patients—a net benefit on limiting the spread. 

The benefits of telemedicine and online pharmacy services are numerous, and the COVID-19 pandemic only highlighted these benefits to more people than ever before. These services allow providers to save time, increase profit margins, and allow practitioners to work from home. 

Furthermore, patients didn’t have to travel, could spend less time in their cars, and may not have had to take time off work.

Telehealth companies are now optimizing their experiences for their patients and have had to learn a lot along the way, adapt, and evolve. One good news is that one prediction puts telehealth at an annual growth rate of 18.5% per year until 2028. 


Final Word

We know this is a lot to think about. L3 Payments regularly works with high-risk merchants, including telemedicine and online pharmacy industries. 

In short:

  • L3 has multiple partner banks working with travel companies of all sorts.
  • L3 successfully helps travel merchants like you navigate payment processing challenges with chargeback reduction, business intelligence, and a consultative approach that’s customized based on the specific needs of your business.

Therefore—no matter what aspect of the telehealth industry you work in—we’re here to assist you. Feel free to reach out to one of our experts to discuss the telehealth industry further and how better payment processing can help your business!

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