FDA’s determination that β-NMN (beta-nicotinamide mononucleotide) is excluded from being lawfully marketed in dietary supplement products has caused a tumultuous ripple effect, particularly when it comes to payment processing and commerce platforms.

Since FDA’s decision came to light in the fall of 2022, brands have faced tremendous challenges in establishing relationships with merchant services providers who will support the sale of the ingredient. To focus less on the ethics or legality of FDA’s decision — the subject of a citizen petition filed with FDA — and more on the impact on commerce, let’s backtrack to March 2023.

A few months after FDA’s determination, commerce juggernaut Amazon notified all NMN sellers that the ingredient could no longer be sold as a dietary supplement without FDA approval for OTC sales. Amazon’s actions were not a surprise to many as a similar story developed in May 2021 with the dietary ingredient NAC (N-acetyl-L-cysteine). Considering the Amazon ban, brands had one major channel to shift to: their direct-to-consumer websites. However, that solution was short-lived.

In mid-March 2023, Shopify followed suit, forcing brands to remove NMN products or find a new payment processor. This caused brands to pivot once again, seeking specialized high-risk merchant providers.

Related:FDA says ingredient studied as drug—β-NMN—is excluded from supplements

Typically, nutraceuticals are in a gray area of support by most mainstream processing options such as Shopify Payments. Digging deeper into the restricted industries list on Shopify Payments reveals that “pseudo pharmaceuticals” are prohibited. Shopify defines “pseudo pharmaceuticals” as “nutraceuticals, pseudo-pharmaceuticals and other products that make health claims that have not been approved or verified by the applicable local and/or national regulatory body.” Under this definition, Shopify’s support for nutraceuticals in general is unclear.

Having worked with many brands in the NMN space, it appears that finding the right provider for payments has become increasingly difficult. Many NMN brands have experienced unexpected merchant account shutdowns, withheld funds and ambiguity, further straining their operations. That begs the question: How can NMN brands find the right payment provider?

My recommendations are below.

The hurdles imposed by FDA's decision have reshaped the landscape of NMN commerce, pushing brands to adapt. As we await further clarity from regulatory authorities, the key for NMN brands lies in creating beneficial partnerships.

By carefully selecting payment providers attuned to the unique demands of the industry, vetting providers and prioritizing reliability over cost, brands can find the right long-term payment partner.