Pharmacy Merchant Account

Since 2017, online pharmacies have made over $75 billion in revenue. The aging generation is beginning to learn to shop online, and younger customers have always shopped online. 

Positioning yourself as a trendsetter is essential as competition increases. Opening a pharmacy merchant account is a step in the right direction in making your business a trendsetter. 

An online pharmacy merchant account provides several benefits, especially if you’re looking to open an online pharmacy soon. This blog aims to provide all the information you need to open an account to provide your customers with the correct payment methods for the 21st century. 

Over the years, PaymentUSA has become a partner to many merchants, including online pharmacies. With our strategic solutions, you can focus on what you do best – looking after your community.  

What is an Online Pharmacy Merchant Account?

Merchant account providers for online pharmacies know this sector has unique needs. Creating an online pharmacy usually involves complications, including accessing pharmacy credit card processing services. 

Pharmacies and pseudo-pharmacies (businesses that sell non-prescription health products) are always in the midst of such battles since they come with risks. As a result, traditional banking firms label them as “high-risk” merchants. Getting a high-risk classification isn’t the end of the world, although it makes doing business more expensive than otherwise. 

With the right payment service provider, controlling the fees and risks and accessing other essential services is easy. 

Before understanding what a pharmacy merchant account is, let’s look into what high-risk merchants are. 

What is a high-risk merchant?​

High-risk merchants are businesses with a higher vulnerability to chargeback or fraud. Merchant account service providers determine which businesses fall into this category. 

”Chargeback” refers to situations when credit card companies make a refund back to a customer based on request. Reasons vary, but usually center around customer dissatisfaction, discrepancies in the final charge for the product, or outright fraud.

Regular pharmacy and pseudo-pharmacy

A regular pharmacy meets all the requirements for an online pharmacy, including licensing and accreditation by the respective medical bodies They only attend to patients with a doctor’s prescription. 

For pseudo-pharmacies, the story is different. They sell drugs that carry some sort of claim but may or may not need a prescription before selling. This includes weight-loss supplements, CBD products, and others. Some sell over-the-counter medication, like Advil or Tylenol. 

These definitions are not exclusive, as a regular pharmacy may sell CBD, which results in the business having a “high-risk” tag.  

The online pharmacy merchant account

The high-risk merchant account for online pharmacy allows pharmacy business owners to set up a merchant account for their online business. Due to the complications involved, creating one is expensive because of the fees and the “high risk” designation. 

There are many factors that providers look at when classifying merchants as high or low risk. These include:

  • Regular use of foreign currency
  • Sales of products of questionable legality or unregulated products
  • Selling products that could cause harm when abused. 
  • The business depends mainly on card not present transactions. Such transactions are more likely to be fraudulent. 
  • Government regulations. The pharmaceutical industry is under the purview of the government with strict regulations.  

Why your Business Needs an Online Pharmacy Merchant Account

Many patients purchase medication from online pharmacies with a license for several reasons, such as: 

  1. People-free transactions: often, people prefer not to have a face-to-face conversation with the pharmacist regarding their needs. Getting medicines from the online pharmacy store offers privacy. 
  2. High convenience in purchasing from home: no one needs to travel to the pharmacy anymore with their prescription. Getting medicines from home is now more convenient since doorstep delivery is part of the package. 
  3. Lower prices: medication is cheaper online. Online pharmacies effectively cut out middlemen by purchasing from the manufacturer, resulting in. lower prices for the customer. 
  4. Faster processing of orders: payments go through quickly, and modern payment methods enable the fast-tracking of orders. 

A pharmacy merchant account is essential if you want to deliver reliable, optimal customer service. If you’re still doubting what good it’ll do for your business, here’s a list of the advantages a high-risk merchant account for online pharmacy brings. 

Safe transactions​

Protecting all transactions with a pharmacy merchant account from PaymentUSA is a great idea. With a higher level of fraud protection, with this merchant account type you can control access to all payment details. In addition, there is an assurance of protection for anti-scams and identity theft. 

One important aspect is PCI-DSS security compliance. With the aid of a reliable merchant account and payment processor like PaymentUSA, your transactions are secure. 


You can easily configure your merchant account to fit your specific needs. You can accept all types of payment methods, like credit cards and contactless payments (e-wallets), providing your customers with options to clear payments. 

Faster payment processing

Processing transactions with a merchant account for online pharmacies becomes faster and simpler. Maintenance is easy and simple, especially if you’re just starting out in the e-commerce business. 

Easy setup

Among the many complications of setting up an online pharmacy, you can remove payment services from the equation. With the right merchant account provider, the requirements for setting up the payment system won’t be extensive. This means you can easily apply for an account without the rigorous processes traditional banking systems require. 

This is a significant boost if you’re just opening an e-commerce store and do not have a credit card history. Merchant account processors do not consider credit card history, which makes the application and set-up process simple and straightforward. 

The peculiarities of a high-risk pharmacy merchant account allow for flexibility in making decisions. Hence, you can choose from a number of options to protect your business’s interests and deliver top services to patients and customers. 

How to Set Up an Online Pharmacy Merchant Account

With the particularly high-risk classification most financial institutions place on this industry, it can be challenging to open an account. 

However, you can get a secure and optimal payment gateway for your store. Here are steps to pass through. 

Carry out real research ​

Part of running your business means you need to connect the dots. Hence, you need to understand what you need. For one, you need a reputable payment processor to help handle your business on the backend. You can easily select between choosing separate partners or using one provider with a track record of covering the two functions. 

Some firms may try to entice you with a juicy contract so you will quickly sign. Doing this may only lead to complications later. We recommend shopping around for the right merchant account provider that also doubles as a payment processor. This will save you in terms of costs and service charges. 

Groom your ecommerce store

Given the requirements of high-risk online pharmacy payment processing, it is essential to put your house in order when going to apply for a merchant account. 

What we mean by grooming your store is ensuring that your business looks good to partner with. This includes ensuring your website is up and running, all refunds and returns have the policy to back them up, with the guidelines clearly published. You should clear your debts, and savings accounts should be in the green. 

While evaluating your store, underwriters will need to know you can manage a merchant account. So, grooming your business to a high standard is important if you want to succeed in the application. 

Present the necessary documentation during the application process

The documents you’ll need vary depending on where you submit an application and other factors. However, there are a number of general documents to back your submission process. They include:

  • License to operate
  • Vendor/supplier agreement
  • Your national identification
  • A copy of proof of address and bank account
  • Recent statements of account
  • Your website
  • Marketing material

Underwriters will use these documents to scrutinize your business which is part of the risk assessment procedure.  

Underwriting process

Besides filing the application and documentation, the underwriting team evaluating your business will ask questions. Some providers may request further documents like your sales process and projections to get a clearer view of your business. 

Do your best to answer, be honest, and offer helpful responses. This will help you get a merchant account that will benefit your business and customers in the long run. 

The peculiarities of a high-risk pharmacy merchant account allow for flexibility in making decisions. Hence, you can choose from a number of options to protect your business’s interests and deliver top services to patients and customers. 

We have a Pharmacy Merchant Account Just for You

Partnering with PaymentUSA as your merchant account provider and payment processor offers you various benefits. You don’t have to spend more than necessary to get a modern payment system up and running. As a matter of fact, our impressive online pharmacy payment processing is inbuilt into the POS system our pharmacy merchants use. 

Here’s what you get when you sign up for a merchant account online pharmacy facility –

  • Secure and reliable pharmacy credit card processing
  • Multiple payment options
  • Fast payment processing to the account of your choice within 24 hours 
  • Loyalty systems to allow you to reward regular customers
  • Dedicated 24/7 customer support, even during holidays
  • Detailed reporting and statistics to help you out with analytics and customer information 
  • Backup protection in case of network issues

Our executives can help walk you through the process of filing and opening an online pharmacy merchant account that fits your needs. With our offshore pharmacy merchant account offer, even serving customers outside the country is possible. Book a consultation today to find out which solution is best for your business.

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