Credit card processing options for CBD
If you’re interested in processing payments for your CBD business, you have probably already encountered a number of roadblocks. As a member of the high-risk merchant sector, it’s crucial to know the requirements to legally conduct business transactions.
Extracted from low-THC strains of cannabis, CBD is a non-psychoactive oil however since cannabis is currently a Schedule I drug in the United States, which makes it illegal according to federal law. With more and more states legalizing the production and sale of cannabis, CBD products are an emerging yet risky legal market making many payment processing systems label them as high risk merchants.
An industry poised to earn $16 billion in revenue by 2025, more and more business owners are looking for payment processing options. So how do you find a CBD payment processor that can process merchant account payments? We’re so glad you asked. Our team of experienced merchant service professionals are sharing some of our best practices for CBD merchant services.
CBD Merchant Services Are Still Evolving
When it comes to traditional merchant processors, not many accept CBD businesses and the merchant services offered are frequently changing so you’ll need to be prepared for ____. In addition, CBD credit card processors are known for having higher prices and less than optimal customer services compared to less risky industries.
The solution? Find a high-risk processor who is not afraid to assist you with a payment gateway that ensures you can conduct business just like any low-risk company.
While you should be prepared for higher-than-average credit card processing rates associated with being labeled a high risk merchant, the security and convenience that comes with accepting credit cards may make it make the extra effort and cost worthwhile.
What To Look For In a CBD Merchant Account
A CBD merchant account is a merchant account that has been specifically approved for use in selling some or all types of CBD products. Considered a very high-risk, many traditional payment service providers (and even many high-risk specialists) will not accept merchants selling CBD products.
However there are a number of options out there so we wanted to share a few things to look for when selecting your CBD merchant services account.
1. High-risk availability
As a high risk merchant, making sure your payment processor has experience dealing with high-risk transactions is absolutely critical. As an industry that operates in a grey legal area, CBD payment processing can be prone to payment card fraud and charge-backs and only a handful of CBD payment processing services will be willing to take the risks associated with these types of transaction.
2. Easy integrations
Changing your merchant services platform in order to integrate a CBD payment processor can not only be labor-intensive and costly, it can also be stressful and overwhelming. With an easy to integrate payment solution, you can work with a company that operates using API integration and allows you to easily integrate their CBD credit card processing system with your existing ecommerce software.
3. Low fees
While high-risk merchants such a CBD products are known for having higher fees, you do not have to be limited to companies that charge ______. Some other fees to consider are things like statement fees, compliance and non-compliance fees, terminal fees, as well as monthly or annual fees. Always confirm any associated fees to your account prior to establishing a partnership with CBD merchant processing partner.
Pro tip: credit transactions may be more expensive than debit card transactions and chargebakcs will also add to additional fees.
4. Reasonable contracts
Every payment processor’s fees and contracts will be different, just like each CBD company has unique circumstances and _____. However we recommend avoiding companies that require long-term partnerships or early termination fees (ETF). Make sure you look over your options to find one that works with your needs, the right CBD payment processing partner is out there.
5. Customer support
Regardless of your industry, having a merchant service with strong customer support will set you up for success. But when you are a high-risk merchant with CBD products, there are more regulations that make having a dedicated rep you can call day or night absolutely critical.
For example, if you have a $500 chargeback on a recent sale, you need to understand exactly how handle these situations to not jeopardize your merchant account and set your business up for long term success.
Getting Started
While not as easy a traditional payment processing, we believe even high-risk merchants like CBD products deserve fair merchant services. If you’re looking for a partner who will ____, be there to help you handle disputes and _____, our team is just a phone call away.