Peptides Payment Processing
The peptides industry operates mostly a grey area of the law. Viewed by many as a type of steroid, the use of peptides is legal in the United States with a prescription. Many of the payment processors today have restricted peptides and removed any peptide credit card processing accounts from their portfolios. One of the challenges facing merchants in the industry is finding a reliable peptides merchant account.
What are Peptides?
A peptide is an amino acid compound that is a smaller version of a protein. Peptides were designed for users to designate the intended results. Used in a number of different health and cosmetic products for their anti-aging and anti-inflammatory properties. Commonly peptides are used in skin care products to repair collagen, as a weight-loss aid and as a muscle-building supplement to improve recovery times.
Peptide Payment Processing Services
Peptides are legal in the United States to sell and possess. The one caveat is that they are not available for human consumption. This has made it difficult for many businesses to find a merchant services company willing to accept transactions knowing the fine line that exists in the legal system. These problems have not slowed the demand for peptides and consumers continue to want them, making online sales extremely difficult.
As the availability of credit card processing for merchants in the Peptides industry has all but dried up, merchants have reached out for alternative payment methods. One of the most widely used methods for accepting payments has been through echeck. Unlike most larger banks that work with the credit card companies, e check processing is done on a smaller level. The e-check industry continues to process transactions for the peptides industry by following local government regulations.
How Peptides Credit Card Processing Works
Transactions that are payment card-based, whether debit or credit, are handled through the same process for both storefront and online sales. These transactions will use the same financial services companies when attempting to authorize a customer transaction. The organizations used to approve a peptide merchant account credit card transactions include:
- Merchant Acquirer: The acquiring bank maintains the relationship between the merchant and the payment card association. Working with or as the payment processor, the acquirer handles underwriting and account management for the merchants. Acquirers also ensure that merchants are fully compliant with products sold and services offered.
- Card Issuer: On the consumer side, the card issuer maintains the relationship with the cardholder. The card issuing bank manages the customer's account and provides account security to prevent fraud or other problems. The card issuer receives merchant requests for payment authorizations and decides whether to approve or decline. The issuer also ensures that payments are sent to the merchant once the transaction has finalized.
- Card Network: The most recognizable names in the payment card industry are the members of the card networks. Companies such as Visa and MasterCard have built these vast financial networks into some of the largest in the world. Providing security and simple functionality has been the driving force behind the growth of these networks. As customers have become more and more comfortable with using payment cards, the industry is in a constant growth curve.
- Terminal: The terminal can either be a physical machine in the merchant's storefront or an online application integrated into a merchant's website. Both types of terminals offer security for both the merchant and cardholder alike. Online terminals, known as a virtual terminal, are part of a payment gateway and allow merchants to manually log in to process transactions.
- Shopping Cart: Merchants operating an e-commerce store will need to install a shopping cart on their website to handle customer orders. Through the shopping cart, customers can enter their payment card information and have it securely sent to their card issuer for approval. Working with one of the larger shopping cart programs will make the integration process much easier for merchants when looking for a merchant account.
Customers making a purchase will either swipe their card at the business storefront or enter the card information into the shopping cart of the merchant's website. Card account information for the payment authorization will be sent from the terminal location to the acquiring bank for entry into the payment card network. All information about the transaction is encrypted between the customer's web browser, the payment gateway and the merchant acquirer.
At the payment card network, the transaction information is deciphered so the card brand and card issuing bank can be determined. The authorization request is sent to the appropriate bank where security and financial checks are performed to verify the validity of the transaction. If there are no concerns and the account has the available credit, an approval response will be sent back to the merchant. In the same manner, declined authorizations will be sent back to the business location, informing both the merchant and consumer.
Peptides Merchant Account Requirements
Merchants that are preparing to apply for peptides credit card processing services will need to provide various supporting documents. Some of the most common documents required by payment processors and merchant acquirers include:
- Completed Application
- Copy of ID
- Voided Check
- Bank Statements
- Previous Processing Statements (if available)
The most important piece of the peptides merchant account application process is having a completed application for the underwriters to review. Full information about the business will allow underwriting teams the ability to vet the merchant and run background checks on both the applicant and the business.
Underwriting teams and merchant services agents will need IDs of the applicants to verify their identification. Since peptides credit card processing services operate similarly to a credit agreement, fees are assessed and collected by the credit card networks on a monthly basis. This is a reason why acquirers want to know the full identity and financial history of a merchant.
Providing a voided check from the merchant's settlement bank account is an important supporting document to ensure that payments are properly sent to the merchant. Incorrect information provided on the application can create problems for the acquirer and card issuer if payments are returned because the account does not exist.
Businesses that are not startups will normally need to provide copies of their most recent bank statements. Most merchant account underwriters will want to see at minimum the last 3 months, while providing the last 6 months will help give a complete view of the company's financial record. Underwriters do not want to see a history of overdrawn transactions or bounced checks, signs that the business does not have the proper reserves to cover monthly fees and any potential refunds.
Merchants with an existing merchant account will need to show underwriters the most recent history. Generally, the last 3 months is required, but providing the last 6 will help ensure that the accounts are approved in a streamlined manner. Underwriters will want to verify that there are no problems with the merchant, specifically excessive refunds or chargebacks.
Start Accepting Peptides Payments today!
Contact one of our Peptides payment processing professionals for more information about the available services for your business. While peptides merchant processing can be hard to find from time to time, the team at Allied Payments has relationships to help almost any business accept payment online. Contact us today to start accepting payments online.