Running your online business is not ordinarily considered high risk. Still, there’s a greater risk associated with conducting your business online as compared to traditional and face-to-face transactions. Depending on various factors, payment processing companies classify some businesses as high-risk. This is because most of these businesses deal with a merchant, posing a threat of financial losses to financial institutions. The nutraceutical market is currently labeled as a high-risk industry for several reasons. Some of these are: Zero Regulation of the Industry Generally, the nutraceuticals and supplements industry need to be better regulated. In this industry, manufacturers are now subjected to the rigorous process of submission of products for testing as compared to traditional pharmaceutical manufacturers and producers. Therefore, some health supplements make their way to the market without proper certification of their proven safety and even the quality of their ingredients. As a result, the legal action against businesses that manufacture, sell, and promote natural supplements and herbal drugs are on the high side, as well as increased risks of chargebacks, especially from unsatisfied customers and clients. Business Model of Nutraceutical Companies Most natural supplement-based companies employ continuity billing as part of their business model. In this case, customers are tempted to authorize a small, one-time charge on their credit cards only to realize that they’ve unknowingly subscribed to monthly billing. This is most likely due to their failure to read the deliberately concealed or absent fine print of terms of service or purchase policy. As a result, businesses that operate based on this model have made payment processing companies wary of processing payments for nutraceutical products. These fraudulent business practices don’t only increase the risk of chargebacks, but they are also a turn-off for potential customers and clients. Of course, it would be difficult for customers to differentiate between honest merchants and fraudsters. Hence, the nutraceutical industry is generally labeled high-risk. In addition to the issue of chargebacks and fraudulent business models, many payment processing companies also decline to process any payment related to nutraceuticals and herbal products. Usually, consumers’ expectations of nutraceutical products are expectedly high, leading to a series of complex issues if the products fail to produce the specific effects advertised.  Hence, customers would be upset and want to reach out to the company for clarification. Unfortunately, problems such as this are more commonly faced by supplements and Nutra businesses frequently than any other industry, resulting in more hurdles and concerns.