Convenience and discretion are qualities that consumers highly value in many of today’s businesses, and pharmacies are no exception. In fact, this explains why more and more people are choosing to obtain their medications from an ecommerce provider.
If you want to cash in on this trend by starting your own internet-based pharmacy, one of the many important tasks you will need to complete is choosing a payment provider for online pharmacies that meets your customers’ needs.
The fact is, stores that dispense medications online are viewed as “high-risk “businesses. There are several reasons why this classification is made by merchant account providers.
When a business is deemed to be high-risk, the merchant can expect to pay higher fees and will probably be under greater scrutiny from their bank. Businesses that are considered to be high-risk are often denied service by standard merchant account providers.
Therefore, it is best to focus your research on “high risk” or specialty payment providers since they may have expertise in the online medications industry. But just what qualities should you focus on when you are choosing your payments partner?
Whenever you sell goods or services from your website, you need a safe and reliable way to accept payments. A reputable payment gateway offers you a secure online portal that facilitates a speedy, efficient, and feature-rich purchase experience for both you and your customers.
Think of your gateway as the virtual equivalent of an in-store point of sale (POS) system — one that works with the other actors in the process to ensure that the customer’s identity is valid and that there are sufficient funds for the transaction to go through successfully.
If you are like many ecommerce pharmacists, you want to serve buyers in more than one country. For many merchants, this means they need to offer their customers the ability to pay in their local monetary denomination.
Failing to furnish clients with this level of choice demonstrates not only a lack of courtesy but could also cause your business to be construed as shady or somehow not worthy of trust. Particularly in the online pharmacy industry, you simply cannot afford for your potential customers to be wary about your reputation.
Fortunately, many merchant account providers offer robust multi-currency capabilities. Some even have established relationships with bankers and other financial institutions in your countries of choice, which may mean that the fees you and your customers pay will be lower.
Greater transparency and fair prices will help you to attract new buyers and turn existing ones into loyal, long-term customers.
Once you gain your buyer’s trust, you can benefit from the fact that many medications need to be refilled regularly. When you set up recurring billing, you offer your customers the peace of mind in knowing that they will receive the medications they need on a predictable basis with no danger of delays due to a late or forgotten payment.
Meanwhile, on your end, you’ll be in a much better position to understand your cash flow, making it easier to forecast future business and keep inventory in stock.
As is the case with most businesses, you must keep your finger firmly on the pulse of your transactions, preferably in real time. The merchant account provider you choose should give you access to payments software and an online merchant portal that places all of your information on an easy-to-understand dashboard.
You should then be able to view all transactions including those that have been declined, are on hold, or involved product returns.
Additionally, you should be able to see analytics that tell you who is clicking on your site, how many customers are abandoning their carts, and what medications are the most popular to help you to spearhead more effective marketing campaigns.
Once you decide on the best merchant account provider for your online pharmacy, you will need to complete an application. Although requirements differ, you should be prepared to provide the following:
In some instances, you will also be asked for a detailed list of the medications you carry as well as import/export and other licenses or permits. Keep in mind that under no circumstances can you sell medications that have been tagged as prohibited by the U.S. Food and Drug Administration.
Examples of prohibited substances include morphine, oxycontin, fentanyl, hallucinogens, and stimulants.
As we have previously stated, customer dissatisfaction or confusion about prescriptions, along with outright fraud, are common causes of the customer-initiated refunds known as chargebacks. Although you can never totally avoid chargebacks, especially in the pharmacy sector, there are steps you can take to minimize the stress and financial toll they can cause.
The merchant account provider you choose can be a vital ally who gives you the secure payments infrastructure that fosters trust and minimizes costly product returns and chargebacks.
With every passing year, online medication dispensaries are becoming more popular with consumers around the world. Finding the right payments provider to partner with is the perfect prescription for running your online pharmacy with confidence.