How To Get Approved For a Pharmacy Merchant Account

Pharmacy products are a risky business. On one hand, they provide essential medical relief to people who need it. Yet, in the eyes of the law, pharmaceuticals (and the industry as a whole) pose a significant business risk. One that steers many banks away from approving pharmacy merchant accounts with speed.

These days, online pharmacies face a greater challenge in getting up and running. The reason? Strict industry regulations, such as airtight licensing protocols or stringent system compliance. Even with a clean setup, you can't guarantee that your account won't be flagged.

If you’ve been back and forth through the underwriting process with no light in sight, consider partnering with an experienced merchant account provider like Adaptiv Payments. We offer seamless merchant accounts that benefit both you and your customers.

To speed up the underwriting process and start offering your product to customers quickly, learn how to get approved for a pharmacy merchant account with those who know the industry best:

What Is a Pharmacy Merchant Account?

You may be familiar with payment processing platforms and merchant account providers. However, it can be difficult to understand the particulars of obtaining a pharmacy merchant account.

Pharmacy merchant accounts are specialized business bank accounts designed for pharmaceutical retailers to process payments digitally.

Here are some ways your pharmacy business can benefit from a well-managed merchant account:

• Expands Your Payment Options
• Provides Health Insurance Portability
• Processes Transactions Quicker
• Sells Pharmaceuticals Online Without Payment Holds
• Reduces Chargebacks with Platform Tools
• Limits Transaction Fees

Pharmacy merchant account services expand to both online and physical retail spaces, empowering retailers to sell more of their products and provide a better customer experience.

The issue most retailers struggle with is not that they don't accept most credit and debit cards, but rather that there are issues with their secure payment processing platform, even ones they are unaware of. You can't know that you're dealing with industry-specific barriers, such as high chargeback ratios, without them actually happening.

Partnering with a platform that has experience mitigating common merchant issues for specialized accounts can help mitigate those pesky hiccups that arise as sales come in. Using built-in tools like chargeback protection, you'll feel secure and safe when processing credit card payments of any kind.

Why & How Do Pharmacy Merchant Accounts Struggle to Get Approved?

As previously mentioned, there are some account types that yield a certain kind of attention. Pharmacy merchant accounts are a leader in that space. Why? Like CBD products, many pharmaceutical products are considered risky, so many platforms and banks do not take them as worthy accounts.

Merchant account providers, even before speaking with the individual companies, are wary of the many state and federal regulations that govern pharmaceutical sales. At that point, it's up to the businesses to stay in line with these clear-cut standards, proving to banks that they are, in fact, as trustworthy as their product.

Pharmacy merchant accounts just starting out are bound to run into a few approval holdups due to:

Natural Regulatory Risk

The FDA, DNEA, and other regulatory agencies require 100% compliance for retailers to actively sell in the digital space. When these regulations are not met, both the account holder and processor are liable. This stipulation alone makes banks think twice before backing pharmacy accounts.

High Chargeback Rates

Although chargebacks are not uncommon for specialized accounts, online pharmacies tend to experience a higher number of chargebacks because the products are more susceptible to disputes. Customers are often dissatisfied with their pharmaceuticals in general, making it that much trickier to sell them online.

Innate Fraud Risk

Even with plenty of reputable sellers, retailers selling fraudulent, counterfeit, or unlicensed medications make their way into the landscape. This is why the FDA maintains heavy surveillance over what is sold. You can prove your commitment to being a well-standing retailer by staying in compliance with all anti-fraud regulations, such as up-to-date licensing and prescription verification.

Cross-Border Logistics

The issues only grow as lines between transport destinations fade. Most online pharmaceutical retailers ship internationally, meaning they must not only comply with their country's regulations but also those of the country they are shipping to. Banks may not want to take on the layered risks of working with a company that does business outside of the U.S.

Getting Approved Faster: Where to Start

There's a way to take on the underwriting process with confidence. All it takes is a clear understanding of what you need to do to set yourself (and your business) apart in a space full of faulty, risky, and at times illegal behavior.

In addition to being backed by a specialized processor who understands your unique challenges, you can start off on the right foot by having each of these green flags in your arsenal:

Have All Licensing Completed

For online businesses, there's a set of tailored requirements you must have to even be considered for approval:

• Prescription Verification Process Documentation
• Licensed Prescriber Information
• Verified Supply-Chain Documentation

Provide Transparent Supply Chain Information

Don't give banks a reason to question your sources. Hand them over a complete breakdown of the necessary supply chain information, such as:

• Wholesaler Licenses
• DEA or FDA Registrations (if applicable)
• Invoices Showing Legitimate Sourcing

Have a Set & Clear Prescription Verification Process

Tell your future bank exactly how you and your team verify prescriptions. They’ll want a step-by-step breakdown of each piece of the process, showing where customers might cause unsightly risks, not the process itself.

Break down:

• How Prescriptions Are Validated
• How Patient Identities Are Checked
• How You Prevent Dispensing Without Proper Documentation
• How Orders Are Reviewed By A Pharmacist

Make Sure Your Website Is Compliant

Without realizing it, you could be making changes to your site that erase the compliant aspects you need. Even the content you put on your page could disqualify you from the underwriting process as a whole. You can keep your domain in line by remembering to:

• Clearly State Prescription Requirements
• Not Make Claims Like “No Prescription Needed”
• No Illegal Or Restricted Drug Listings
• HIPAA-Compliant Processes

Apply Through Specialized High-Risk Merchant Account Providers

Online pharmacy businesses can avoid unwanted chargebacks, fraud risks, and slow processing by partnering with a specialized merchant account provider that understands how to mitigate high-risk transactions.

Adaptiv Payments is a trusted payment processing platform with years of industry experience, making us a formidable business partner for online pharmacy retailers navigating the complexities of their underwriting processes.

Keep Your Pharmacy Merchant Account in Motion With Adaptiv Payments

Don't waste any more time going back and forth with banks that don't care to work with you. At Adaptiv Payments, we'll be the middleman you need to make banks listen, while also ensuring that you're in compliance with their regulations, no matter your business type.

If you're an online pharmaceuticals retailer looking for ways to undercut the pressure of launching, get a specialized merchant account with Adaptiv Payments today and start selling your way.