Back in 1999, it was big news that online pharmacy sales topped $1.9 billion in the US. In 2018 that number was $38.39 billion – and the global online pharmacy market is expected to reach over $131 billion by 2025.
It’s an industry in explosive growth, with an ever-increasing demand. Online pharmacies have become serious competitors to traditional drugstores, discount department stores and even the big hypermarket chains who have begun entering the space as well.
In spite of all this opportunity for massive revenue and profits growth, it remains a high risk industry. This label makes it impossible to get an online pharmacy payment gateway from your regular bank, or from a mainstream payment service like PayPal. Read on to learn why and what you can do about it to start or grow your own online pharmacy business.
Online pharmacies are considered to be high risk businesses due to the nature of what they are selling – medication. Even though medication is far from the only product on the virtual shelves of these businesses, it’s one that in of itself presents a disproportionate amount of risk.
Selling certain meds online is still a very gray area. There are many vendors who offer prescription meds along with a prescription by a “virtual doctor” that will write a prescription for anything to anyone.
…However, such practice is prohibited by the DEA, murking the water even further. If the online pharmacy offers such virtual doctor services under its own label and domain, then there can be a clear case of breaking the law.
But if they are loosely associated with one, without having this service as part of the registered business, the burden of responsibility becomes harder to place.
Such realities make it very unattractive for banks to get involved, as these conservative and traditional institutions survive and thrive by keeping their names out of legal battles. And it means that they’ll reject the application for an online pharmacy payment gateway without even looking at it.
If you haven’t started the business yet, and the above makes operating an online pharmacy sound daunting – don’t despair. 5 Star Processing is here to help you make it happen.
We work closely with online pharmacies and other high-risk business to provide the absolute best and most flexible payment gateway solutions possible.
By getting your online pharmacy payment gateway from us, you are protected against the natural risks of your industry. The general risk exposure and the frequent chargebacks won’t cause any disruptions; and you can sleep soundly knowing that when you wake up, your online pharmacy will still be making sales and processing payments.
While this flexibility and peace of mind are important, what is equally important is that we have record low credit card processing fees. We don’t feed on your margins – we support your business, so that you can keep growing your online pharmacy and serve more customers.
Our expert staff is here to help you, regardless of whether you still want to ask some questions about payment gateways, or you want to jump right in and start applying for one.