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Credit Card Processing for CBD

Credit card processing can be tricky if you’re involved with an e-commerce business that deals in high-risk products and services. Even if it might sound as though your business is being categorized in a bad light, that is not always the case. Businesses like online gambling, forex trading, gaming, casinos, herbal supplements, pharmaceuticals, and magazines are classified as high-risk businesses due to the uncertainty of sales and profits. As such, being in the CBD business cannot be an easy task. As a CBD merchant, you are likely to experience many challenges along your way to acquiring your merchant account for accepting payments. That said, as of 2021, CBD products could not be more in demand. To meet these ever-increasing needs of the general public, CBD products, including oils, topical solutions, capsules, and supplements, are being stocked heavily both online and in local stores. There is a lot of money to be made in this sector, which is why merchants still choose to proceed even though it is a high-risk business that comes with a lot of pushbacks and additional charges on the merchant account.

What Is CBD?

Cannabidiol occurs naturally in the Cannabis Sativa plant and has found its place in the mainstream medical world as a marvel. It is non-psychoactive unlike its sister compound THC found in the same plant. As technology has begun to improve, scientists have been able to probe further into the therapeutic effects of CBD. Ever since then, CBD has become a hot topic among lawmakers and health professionals because of its numerous benefits. The most common uses of this botanical herb include treating seizure disorder, easing anxiety, and relieving pain.

How Does One Acquire CBD Credit Card Processing?

Before you can start earning from your CBD business, you need to open a high-risk merchant account with services that are specifically designed to handle the nature of this industry. Opening a high-risk merchant account means having to deal with a surplus of fees and additional charges because of the associated risk. You need to find good CBD credit card processing options so that you can make the most out of your business and ensure the safety of your transactions. There are several different operators in the market designed to handle high-risk merchant accounts. On your part, you need to conduct thorough research to land on a viable option.

What Are the Troubles Faced by CBD Merchants?

Because of the complicated nature of the CBD business and the legal restrictions imposed on hemp in many areas, all sorts of CBD businesses — be it cosmetics, spa, herbal supplements, or infused pet food — are considered high-risk. As a CBD merchant, you already have to go through the trouble of finding investors, acquiring adequate funding, and securing a decent commercial space for your start-up phase. Aside from these, you also have to face complications in your daily business operations: credit and debit card processing. Credit card processing for CBD comes with its fair share of restrictions, including limitations on the number of transactions processed per month, higher processing fee, and even (in some extreme cases), being denied services entirely. Established processors like PayPal do not conduct business with any sort of high-risk companies, and that includes CBD. This makes daily operations for CBD merchants all the more challenging.

What Are the Key Features of a Good CBD Payment Processor?

Even though it can be quite a daunting task trying to find a decent payment processor to do business with, it doesn’t necessarily mean that you should opt for the first option that comes your way. Below are a few critical aspects that you should look out for when choosing a payment processor for your CBD business:

Honesty

It is often the case with many payment processors that they quote an up-front price while hiding the actual fees or stipulations in the contract. This allows them to hike up the price after a year. As such, it’s important to opt for processors that are honest and transparent about all their possible fees and reserve policies.

Partnership

Always look for a partner that provides solutions and has a collaborative approach. A payment processor’s job is to make transactions easy for you while they handle the nitty-gritty details. Look for a partner that simplifies the process of sending and accepting payments without a hassle.

Specialized Services

A payment service processor that specializes in high-risk businesses or even specifically CBD, would be the perfect option. It should offer diverse high-risk merchant account service tools to meet all your needs.

Compliance with All Cards

If your processor doesn’t deal with a certain card brand, then you’re back to square one. It’s advisable to acquire a processor that accepts all major credit card brands.

Reasonable Fees

Payment processors tend to charge a ridiculously high fee because they are aware that you are in desperate need of services because of the nature of your business. However, you shouldn’t just latch on to the first option; do your research and consult with multiple companies before you make a decision.

Customer Support

Active and trustworthy customer service is a very important factor that must never be overlooked. You need a processor that will be there for you with solutions if complicated situations arise that require immediate attention. 

What Are the Top CBD Merchant Account Processors?

You will be able to find a few good CBD merchant account processors upon research with some or all of the qualities discussed above. These include:
  • Square
  • PaymentCloud
  • Easy Pay Direct
  • USAePay and
  • PayKings
These processors are the leading names in the market. As a CBD merchant, you might face a lot of variations throughout your dealing with your processor because of the ever-changing landscape of the CBD world. Banks tend to alter their regulations and acceptance policies without giving you any sort of heads up or a warning. It’s important to bear in mind all of the possible complications before diving into this niche.

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