It depends on what you sell and how. Telehealth merchants and clinics that prescribe peptides or GLP-1s need LegitScript certification to get a full merchant account with our banks. Research-use-only (RUO) sellers don’t need certification, but their payment options are narrower: typically ACH and, for merchants with processing history, card-to-crypto.
That is the short answer. Some processors tell peptide sellers they don’t need LegitScript at all. That is true for one type of seller and costly for the other. If you run a telehealth program, or a med spa or clinic that sells or prescribes peptides or GLP-1s, skipping certification is how accounts get frozen. The rest of this article explains where the line sits, what certification costs, and what each type of seller can expect from underwriting.
Group ISO has worked with high-risk merchants since 2001 and processes for about 100 peptide merchants today. What follows is how our banks underwrite peptide sellers. It is not legal advice about what you can prescribe or sell.
Licensed vs research-use-only peptides, and why banks treat them differently
Peptide sellers fall into two groups, and banks underwrite them differently.
Licensed sellers include telehealth providers, GLP-1 programs, med spas, wellness clinics and 503A and 503B pharmacies. They sell to patients through a prescribing or clinical model, and the medication comes from a LegitScript-certified supplier or a 503A or 503B compounding pharmacy.
Research-use-only sellers sell peptides labeled for research use. They don’t prescribe, and they fall outside LegitScript’s healthcare certification program.
Banks treat the two differently because of what each can prove. A licensed seller can hand underwriting independent evidence: LegitScript certification, a pharmacy fulfillment contract and a telehealth contract. That evidence lets the bank approve a full merchant account with confidence. An RUO seller has no certification to offer, so the bank limits its exposure through narrower payment options instead.
| Licensed sellers | Research-use-only sellers | |
|---|---|---|
| Who | Telehealth providers, GLP-1 programs, med spas, clinics and pharmacies | Sellers of peptides labeled for research use |
| LegitScript certification | Required with our banks | Not required |
| Payment options | All payment types once certified | Typically ACH; card-to-crypto with processing history |
| Typical MCC | 5122 for med spas; 5912 or another fitting code for telehealth | Set by the bank during underwriting |
Neither group is turned away by default. They just take different paths, and knowing which path you are on saves weeks of applications that go nowhere.
When LegitScript certification is required for payment processing
With our banks, certification is required when you are a telehealth merchant or a med spa or clinic that sells or prescribes peptides or GLP-1s. That includes:
- Telehealth providers that prescribe peptides
- GLP-1 programs offering semaglutide, tirzepatide or other GLP-1 medications, which count as telehealth merchants
- Med spas and clinics that sell or prescribe peptides or GLP-1s
- Pharmacies that fill those prescriptions
Merchants in this space get certified before Group ISO can issue a merchant account. Your website must be compliant front to back to pass, and your medication must come from a LegitScript-certified supplier or a 503A or 503B compounding pharmacy.
Certification does more than satisfy a checklist. LegitScript reviews healthcare businesses against its certification standards, and major card networks recognize the certification. For the bank, it is independent evidence that your website, partners and practices were checked by someone other than you.
If you run a weight loss program, see GLP-1 and weight loss payment processing for the full underwriting picture. For every licensed peptide model, see peptide payment processing.
What certification costs and how long it takes
LegitScript publishes its own fees: a $975 application fee and a $2,150 annual fee. Check LegitScript’s healthcare certification page for the current amounts before you budget, since LegitScript sets and can change them.
Group ISO’s LegitScript certification assistance is $4,500. It covers LegitScript’s application fee, expedited processing and your first year of certification. A Group ISO specialist works with you one on one, from website compliance through the application to approval. Assistance is separate from the merchant account, and LegitScript independently controls certification decisions.
On timing, certification typically takes 7 to 10 days once your site is compliant. The part that takes longer is getting compliant. Many merchants need a full website overhaul or new telehealth and pharmacy partners before they reach that point. If you need a partner, we can recommend many telehealth and pharmacy networks that are LegitScript certified.
Once you are certified, merchant account approval typically takes 2 to 3 days with a complete file.
For the full list of requirements and each step in order, read our LegitScript certification guide.
MCC codes for med spas and telehealth
Your merchant category code (MCC) tells the card networks what kind of business you are. For peptide and GLP-1 merchants, it depends on the business model:
- Med spas typically receive MCC 5122.
- Telehealth merchants typically receive MCC 5912, or another code that fits the model.
The bank confirms the final code during underwriting. Describe your model accurately on the application, because a code that doesn’t match how you actually sell creates problems later.
What underwriting looks at for licensed sellers
Certification gets you to the application. Underwriting then reviews the rest of your file. For licensed peptide and GLP-1 merchants, our banks typically ask for:
- A signed application and standard KYC documents
- A driver’s license and articles of incorporation or LLC (proof of ownership)
- A voided check or bank letter, bank statements and prior processing statements
- A high-risk addendum
- Your pharmacy fulfillment contract and telehealth contract
The bank may ask for more after review. Reserves range from 0 to 10%, and most LegitScript-certified merchants start with no reserve. Once you’re approved, keep your chargeback ratio under 0.75%. Ratios above that cause problems with the bank, and fraud chargebacks draw the most scrutiny.
Payment options for RUO sellers
If you sell research-use-only peptides, you won’t get a full card merchant account through LegitScript certification, because that program doesn’t cover you. You still have options:
- ACH. Bank-to-bank payments are the typical starting point. Startups may be limited to ACH and crypto payments at first.
- Card-to-crypto. RUO sellers with prior processing history (cards, ACH, Venmo, Zelle and similar) may qualify for a card-to-crypto option.
Options for RUO sellers are more limited than for certified merchants, and every account goes through underwriting. Call us to talk through your model before you apply, so you know which options fit your history.
Which path are you on?
Answer these four questions before you apply anywhere. They decide which conversation to have with a processor.
- Do patients get a consult or prescription before they buy? If yes, you are a licensed seller, and you need LegitScript certification with our banks.
- Do you run a GLP-1 program, in person or online? GLP-1 programs count as telehealth merchants, so the same answer applies: certify first.
- Are your products labeled for research use only, with no prescribing? If yes, you are on the RUO path. Certification isn’t required, and your options start with ACH.
- Do you have processing history? For RUO sellers, prior history with cards, ACH, Venmo, Zelle or similar is what opens the card-to-crypto option.
If your answers point both ways, for example a clinic that also sells research products, call us before you apply, so we can tell you how underwriting will see your model.
What happens if you sell without certification
If you are a licensed seller and you skip certification, the usual pattern goes like this. A mainstream processor approves you quickly through an automated signup. Later, it finds peptide or GLP-1 sales it never approved. It freezes the account, holds the funds, and often terminates it.
That costs you twice. Money customers already paid stays out of reach, and you have to find a new processor while orders keep coming. Starting with certification, and with a processor that underwrites your real model, avoids that cycle.
How Group ISO helps
Group ISO handles underwriting, risk and support in house. For licensed sellers, we help you get LegitScript certified and then open the merchant account. For RUO sellers, we talk through which payment options fit your history.
Call 800-960-0135, Monday to Friday, 7:30 AM to 5:00 PM PST, or contact us to start.
