GLP-1 Peptides, Payment Processing, and the Legal Crosshairs: What Healthcare and Finance Need to Know

Over the past 18 months, GLP-1 drugs like semaglutide and tirzepatide have exploded in popularity—first in clinical settings, then in wellness clinics, telehealth startups, and unfortunately, in a shadow market of “research-use” peptides. This meteoric rise has created a perfect storm at the intersection of FDA regulation, pharmacy law, and payment processing rules.

The Regulatory Landscape Has Shifted—Fast

Until recently, many compounding pharmacies could legally produce GLP-1 medications due to FDA’s official “drug shortage” designation. That flexibility is ending. Once the shortage designation was removed in 2025, most compounders lost the ability to produce these drugs unless they could document a patient-specific clinical difference.

FDA has already issued warning letters to online sellers—some operating under the thin veil of “for research only” labeling—reminding them that marketing unapproved semaglutide or tirzepatide for human use violates federal law. Enforcement actions can include product seizures, injunctions, and even criminal referrals.  If you are a provider, private or independent practice, pharmacy, or telehealth company, your compliance documentation and sourcing practices now matter more than ever.

The Payment Processing Problem

Even if your operation is fully licensed and compliant, you may still face an unexpected barrier: credit card companies and payment processors don’t like peptides because:

• GLP-1 products are now considered a high-risk category—not unlike CBD, supplements, or online gambling.
• Processors worry about regulatory uncertainty, chargeback risk, and misleading marketing claims.
• Platforms like Stripe, PayPal, and Square often freeze accounts tied to peptide sales, even for legitimate telemedicine practices.

As a result, many providers are forced to seek high-risk merchant accounts, which bring higher fees, stricter reserves, and more scrutiny.

Key Legal & Compliance Takeaways

• Licensing & Accreditation Matter – Payment processors are more likely to work with you if you have LegitScript certification, a clear prescription pathway, and a compliant fulfillment chain.
• Labeling Loopholes Will Not Save You – “Research use only” disclaimers will not protect a business selling for human consumption.
• Transparency Reduces Risk – Clear refund policies, explicit product descriptions, and patient consent forms reduce chargeback exposure.
• Document Clinical Need – For compounded GLP-1s, you must demonstrate why a patient cannot take an FDA-approved version.

What Is Next?

The GLP-1 boom is not slowing down—but the regulatory and financial infrastructure around it is tightening. However, we can expect more FDA warning letters targeting both domestic and overseas sellers, payment processors to continue to expand “blacklists” for unapproved peptides, and class actions against companies marketing unapproved GLP-1s as weight-loss cures.

GLP-1s are here to stay, but the window for “fast and loose” business models is closing. The winners in this space will be those who align legal compliance, medical best practice, and payment infrastructure from day one.  If you operate in the GLP-1 or peptide space and are facing legal, compliance, and/or regulatory or payment hurdles, let’s connect. This is one area where “move fast and break things” will only break your business.