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In this case study, we will cover our work with a mid-size nutraceutical brand that offers health enhancement supplements through a subscription pricing model. Prior to using our Paynote ACH solution, this nutraceutical company struggled with traditional payment providers like Stripe. Their primary challenge was maintaining a healthy merchant account, as their industry is considered high-risk and traditional payment processors are often ill-equipped to handle this.
The Challenge: Inconsistent Payment Processing
Subscription-based merchants rely on their ability to process payments smoothly and automatically to maintain long-lasting customer relationships. When payments fail, product shipments are delayed or cancelled, and the entire value proposition of a convenient monthly subscription is negated. This forces customers to either accept inconsistent delivery of a nutraceutical product that needs to be taken on a specific timetable or find a merchant with a similar product and more consistent payment processing.
For our subject merchant, account freezes and failed transactions were caused by their previous payment processor disrupting these subscription payments. This led to inconsistent revenue, high customer turnover, and limited ability to scale their subscription base. Overall, our supplement provider didn’t get to fairly compete in their market because the third party they trusted with their payment processing put them at a significant disadvantage.
The Solution
We deployed the Paynote Verified ACH solution for our subject merchant, which included a fast but robust upfront underwriting process. This means that we immediately assessed their risk profile, providing a merchant account that was built to ensure they would never experience an account hold or freeze while operating their business as usual. By providing them this upfront access to risk, our nutraceutical partner was given real peace of mind that the rug would not be pulled out from under them or their customers simply due to the industry in which they operate.
Paynote doesn’t simply offer a reliable merchant account, though. It also comes with a number of useful features designed specifically for high-risk and subscription-based merchants:
Key Paynote Features for our Nutraceutical Partner
The Paynote platform not only improved our client’s confidence in their payment processing, but it also allowed them to offer better service to their customers through their own branded checkout page. This means that all of the customer satisfaction gained from Paynote’s features could be credited to our client, strengthening customer relationships and retention.
The Results
As a result of their partnership with Paynote, our client experienced the following results:
Overall, our client saw improvements in payment reliability, conversion, customer satisfaction, and confidence in their payment platform after switching to Paynote. With the right payment partner, any business can experience improvements in both its bottom line and its ability to plan and scale its future.
Adopt Reliable, Modern ACH Payment Processing
Paynote offers a secure and easy-to-use platform to send and receive ACH payments. We have a simple online application process and require no credit checks, so businesses can set up their accounts quickly. With our payment pre-validation and optimized processes, Paynote can reduce payment disruptions and shorten ACH payment processing time from the standard three days to just one business day. Sign up for a free trial to see our fast and reliable ACH payments in action.
For more information, contact us to learn how our quick and cost-effective ACH transfers can help your business grow.
