Alternative medicine ecommerce is growing rapidly—but with growth comes financial hurdles. For businesses selling supplements, CBD, and holistic health products, finding the right high risk ecommerce merchant account is a necessary step toward stability. Whether you’re launching a Shopify store or scaling a seven-figure business, you’ll need a payment partner that understands your industry’s nuances. In this blog, we’ll cover why these businesses are considered high risk, how to secure reliable merchant services, and what to expect throughout the process.
Why Alternative Medicine is Considered High Risk Ecommerce
Supplements, CBD, and holistic health stores often deal with regulatory ambiguity, chargeback exposure, and fluctuating market perceptions. These factors push them into the “high risk” category among payment processors. The Food and Drug Administration (FDA) does not evaluate all supplement claims, which leaves gray areas for legality and labeling[1]. Meanwhile, CBD, even when federally legal, still faces restrictions in certain states and marketplaces[2]. For payment processors, this creates a compliance and reputational risk—resulting in higher scrutiny, stricter terms, or outright denial of service.
What Is a High Risk Ecommerce Merchant Account?
A high risk ecommerce merchant account is a type of payment processing setup designed to support businesses that traditional processors often reject. These accounts are offered by specialized providers that accept the risk in exchange for higher processing fees or rolling reserves. Unlike standard merchant accounts, high risk versions come with features such as chargeback monitoring tools, more lenient underwriting, and support for recurring billing—critical for subscription-based supplement and wellness brands. Approval may take longer, but once set up, these accounts enable reliable online transactions with major credit card networks.
How to Get Approved for a High Risk Merchant Account
To improve your chances of approval, you’ll need to prepare detailed business documentation. This includes financial statements, processing history, product information, and a refund policy. Banks want to see that you’re financially stable and operating legally within your vertical. It also helps to demonstrate a chargeback prevention strategy, such as fraud filters or dispute response systems. Working with a provider like Payment Nerds—who specialize in high risk ecommerce merchant accounts—can drastically simplify the process. They know what underwriters look for and can guide you through each step.
Customizing Payment Solutions for Alternative Medicine Ecommerce
Every alternative health business is different, from herbal tincture stores to holistic therapy providers. That’s why customization is key. Your merchant account provider should offer tools like recurring billing for subscription-based products, flexible checkout APIs, and payment gateways that support multiple currencies. Advanced fraud protection, CRM integration, and loyalty programs can further streamline your operations. The goal is to reduce friction in the buyer’s journey while maintaining a secure and compliant backend.
Benefits of Partnering With Specialized Providers
Choosing the right merchant account provider makes a major difference in your ability to grow. Payment Nerds, for instance, works with multiple high risk banks and processors, giving you access to better terms and scalable solutions. They help you avoid red-flag mistakes, like vague product descriptions or unsupported claims, that could result in denial. Moreover, they provide hands-on support for integrations, ongoing compliance, and chargeback mitigation strategies. Specialized providers understand your challenges and actively help you overcome them.
Hurdles in High Risk Payment Processing for Holistic Health Businesses
Chargeback Risks
The wellness industry often deals with subjective customer outcomes. When expectations aren’t met, buyers may dispute charges. Educating customers, maintaining clear policies, and using tools like delivery confirmation help reduce chargeback volume. Choosing a processor that offers chargeback alerts and automatic responses can also be a game-changer.
Limited Banking Partners
Not all banks or processors are willing to support high risk verticals. This limits your options and often leads to higher fees. By working with aggregators or ISOs that specialize in high risk ecommerce merchant accounts, you expand your options and find partners who actually understand your business.
Regulatory Scrutiny
Alternative health products must comply with local and federal regulations. Missing disclaimers, inaccurate health claims, or non-compliant ingredients can lead to fines or payment delays. Partnering with a knowledgeable provider ensures your site content and policies meet industry standards.
Payment Gateway Compatibility
Not every gateway is built to handle recurring payments or international transactions for high risk merchants. Make sure your provider supports a gateway that fits your business model and volume. Custom API integrations can further improve checkout experience and reduce cart abandonment.
Subscription Management
Many supplement and CBD businesses rely on subscriptions. Without proper tools, managing recurring payments and customer data becomes overwhelming. Use platforms that support billing cycles, auto-updates for card details, and easy cancellation options.
Customer Misinformation
Public perception of CBD and supplements can vary. Some customers may not understand usage timelines, side effects, or interactions. Clear content, FAQs, and proactive customer service reduce confusion—and refunds.
How to Choose the Best High Risk Merchant Account Provider
With so many players in the payment industry, narrowing down your provider list can feel daunting. Start by choosing a provider with a strong track record in your specific niche. For supplement sellers, this means experience in nutraceuticals and FDA compliance. For CBD, it means understanding of hemp legality and processor preferences. Check for robust support, easy integrations, and transparent pricing[3]. Always prioritize providers like Payment Nerds that advocate for your business, not just approve you and walk away.
FAQ
Q: What is a high risk ecommerce merchant account?
A: A high risk ecommerce merchant account is a type of payment processing account tailored for industries that are more prone to chargebacks, regulatory scrutiny, or financial risk. This includes businesses that sell supplements, CBD, or holistic products online. These accounts have different underwriting standards, reserve requirements, and terms than standard merchant accounts[4]. They’re essential for maintaining uninterrupted online sales in high risk categories.
Q: Why are supplement and CBD businesses considered high risk?
A: These industries are classified as high risk because of their regulatory challenges and elevated chargeback rates. The FDA has strict labeling and health claim requirements, and violations can lead to fines or legal action[5]. Additionally, the legal landscape around CBD remains complex and varies by state and country. This uncertainty makes payment processors cautious about approving accounts.
Q: How can I reduce chargebacks in my holistic health ecommerce store?
A: Start by offering clear product descriptions, transparent return policies, and strong customer service. Implement fraud protection tools like AVS, CVV matching, and address verification to reduce unauthorized transactions. It’s also important to use delivery confirmation and order tracking. Proactive communication with buyers helps reduce misunderstandings and disputes.
Q: What are the benefits of using Payment Nerds as a high risk merchant account provider?
A: Payment Nerds offers expert support, fast approvals, and connections with banks that understand high risk industries. Their team helps you prepare for underwriting, integrate payment gateways, and stay compliant with evolving regulations. They also provide tools for chargeback mitigation and fraud prevention. Most importantly, they work as a partner invested in your long-term growth.
Q: Can I accept international payments with a high risk merchant account?
A: Yes, many high risk merchant accounts support international payments. You’ll need a payment gateway that accepts multiple currencies and complies with international regulations. Some providers offer tailored solutions for global ecommerce. Always verify that your account and gateway are optimized for cross-border transactions.
Q: Is it legal to sell CBD and supplements online?
A: Yes, but you must follow all applicable regulations. For CBD, the product must be derived from hemp with less than 0.3% THC and meet FDA and state-specific guidelines. Supplements must avoid unapproved health claims and follow labeling laws. Working with a compliance-savvy provider like Payment Nerds helps you avoid regulatory pitfalls.
Final Thoughts
Running a CBD, supplement, or holistic health ecommerce store comes with its fair share of complexity. From shifting regulations to chargeback concerns, these businesses require more than a basic payment processor—they need a strategic partner. A high risk ecommerce merchant account tailored to the alternative medicine space is essential for sustainable growth. Payment Nerds delivers industry-specific solutions that make selling easier, safer, and more scalable. When your processing partner understands your business, success is that much easier to achieve.
Sources
- FDA. “Dietary Supplement Labeling Guide.” Accessed June 2025.
- National Institutes of Health. “CBD: What You Need to Know.” Accessed June 2025.
- Shopify. “Selling CBD on Shopify.” Accessed June 2025.
- Square. “High-Risk Merchant Accounts: What You Need to Know.” Accessed June 2025.
- Forbes. “The Rise of Holistic Ecommerce.” Accessed June 2025.
