Supplements are legal, popular and sold everywhere, so it surprises many brand owners when a processor closes their account. To a bank, a nutraceutical business raises two questions: what does your marketing promise, and how do you bill people?
This guide covers how underwriters answer those questions, what to fix before you apply, and how to keep your account open. It’s general information, not legal advice.
Why banks treat nutraceuticals as high risk
- Health claims. A claim that a product treats or cures a disease can turn a supplement into an unapproved drug in the eyes of regulators.
- Auto-ship and free trials. Customers who didn’t realise they’d signed up for repeat orders are a classic source of chargebacks.
- “It didn’t work” disputes. Weight-loss, energy and anti-aging products create high expectations and more refund requests.
- Affiliate marketing. You’re responsible for what affiliates say, and bold promises from a third party can still land on your account.
- Card network monitoring. Card networks expect banks to watch for misleading marketing and excessive disputes, so banks watch their supplement merchants closely.
Your label and website claims
Underwriters read your claims because regulators do. The FDA separates structure/function claims, which describe how a nutrient supports the body, from disease claims, which aren’t allowed on a supplement without FDA authorization.
- Usually acceptable with substantiation: “calcium builds strong bones.”
- A problem: “lowers blood pressure”, “cures insomnia” or “treats arthritis.”
If you make structure/function claims, you need evidence that they’re truthful and not misleading, and you must use the FDA disclaimer. The rules also require you to notify the FDA within 30 days of first marketing a product with such a claim. An underwriter may ask how you handle all of this, so it helps to have the answer ready.
Don’t forget customer reviews, testimonials and before-and-after photos. If you use them to sell, they count as part of your marketing.
Your billing model
Bank reviews of supplement brands often come down to this. Selling on subscription is fine, but a confusing offer isn’t.
The FTC’s “click to cancel” rule was struck down in court in 2025, but the federal Restore Online Shoppers’ Confidence Act (ROSCA) is still in force. Sellers offering online subscriptions must clearly disclose the terms before taking billing details, get the customer’s express consent, and give them a simple way to stop the charges. Some states add their own auto-renewal rules.
Expect an underwriter to go through your checkout page by page. Banks generally prefer:
- Straightforward one-off purchases or clearly labelled subscribe-and-save offers
- Renewal terms shown next to the payment button
- A reminder email before each shipment
- Cancellation online, without a phone call
- No free-trial offers that turn into large charges
What underwriters will ask for
- Your product list and labels, including supplement facts panels.
- Manufacturer details. Who makes your products, and evidence that they follow current good manufacturing practices (cGMP).
- Testing. Third-party certificates of analysis, especially for weight-loss, sports and “natural” products that can carry contamination concerns.
- Your website, checkout and ads, plus any affiliate networks and their rules.
- Your refund policy and support contacts.
- Delivery and shipping details, including where you don’t ship.
- Processing history and the standard documents: business registration, owner ID, and a voided check or bank letter.
How to keep a nutraceutical account healthy
- Audit your claims on your site, emails, ads and social media a few times a year.
- Control your affiliates. Approve their creative, and remove any partner who makes medical claims.
- Make refunds easy. A refund costs less than a chargeback and protects your ratio.
- Email customers before each auto-ship and let them skip or cancel in one step.
- Answer disputes with evidence: the terms accepted at checkout, delivery confirmation and support history.
- Tell your processor before launching new product lines or a new offer.
See also: How High-Risk Businesses Can Reduce Chargebacks, What Is a Rolling Reserve, and Why Do High-Risk Accounts Need One? and our guide to CBD and other regulated products.
Frequently asked questions
Are all supplements considered high risk?
No. A simple vitamin brand with one-off sales can look quite different from a weight-loss product sold on free trial. The product, the claims and the billing model all count.
Can I offer auto-ship?
Yes, in most cases, if the terms are clear and cancelling is easy. Tell the bank about it when you apply. Don’t add it afterwards without telling them.
Do I need FDA approval to sell supplements?
Supplements aren’t approved by the FDA before they’re sold, but they must follow its rules on labeling, manufacturing and claims. Some products, such as those with new dietary ingredients, may have extra requirements.
My account was closed because of chargebacks. Can I still apply?
Often, yes. Be open about what happened and show what you’ve changed. See Stripe or PayPal Closed Your Account? What to Do in the Next 48 Hours.
Get approved for your nutraceutical brand
Safe Merchant Solutions has over 15 years in high-risk processing and more than 25 banking partners, including banks that work with supplement and nutraceutical brands.
Get Approved or start a Live Chat to talk through your options.
