What are CBD merchants?
Perhaps you’ve heard of cannabidiol this new class of marijuana products. If you’re looking into opening a business that sells CBD oil products, We can help you!
CBD Merchant Accounts in USA
CBD products are now legal in the USA but, only one bank and most credit card processors still don’t approve CBD businesses for a merchant account, and cbd companies have accounts closed without notice. In this article, we’ll update you on the current (as of May 2020) legal status of CBD products and guide you to the best cbd merchant account provider.
Why Is CBD Merchant Processing High-Risk?
CBD Merchant processing is deemed high risk, making it very difficult and often times ridiculously expensive to get your merchant account. Unproven claims of CBD’s beneficial health effects make it more likely that a consumer will file a chargeback. Don’t stretch the truth about your cbd products and you’ll decrease your chargeback ratio and increase customer satisfaction.
DON’T use Paypal, Stripe or Square for CBD Payment Processing
Desperate CBD merchants that have tried using PayPal, Stripe or Square have had accounts closed and funds held up for months on end. Those companies quickly shut down accounts of any cbd merchant they catch.
Is being a Cbd Merchant Legal?
The 2018 Farm Bill was supposed to help the CBD industry, making it legitimate and much easier for CBD merchants to obtain merchant accounts to accept credit cards just like any other business.
Only a few high-risk specialists accept CBD businesses, and most require you to obtain an offshore merchant account. Of the few providers that do take CBD merchants, there is ONE that we feel comfortable recommending and they may be able to introduce you to the one Bank in america that provides banking for cbd, hemp and marijuana service.
Our recommended cbd/hemp/ marijuana payment processor below accepts CBD merchants and that has a strong reputation for providing Fast, Honest, Professional service and affordable rates. Until the day arrives when CBD products are fully legalized in all 50 states and approved by the FDA, these rates will be higher.
What Makes A Good CBD Payment Processor?
A good cbd payment processor offers reasonable prices, fair contract terms, and high-quality customer service, which is rare.
Pricing: A Cbd payment processor account cost more than a low-risk category of business. Tiered pricing (established businesses might qualify to negotiate rates). You should also expect these higher monthly and annual fees until marijuana is legal in all 50 states on the federal level. With the growth the cbd industry is experiencing you should have no problem with these small fees.
Equipment: Selling your CBD products out of your retail location requires a mobile payment processing system or credit card terminal.
eCommerce help: Selling via your website allows you to reach as many potential customers as possible. Our recommended payment processor will provide you with a payment gateway that gives you the option to process orders in person, on the phone and over the internet, all which help to make you money.
Rolling reserve: Another expense most cbd merchants have is called a rolling reserve. Your cbd payment processor withholds a portion of your funds in escrow every month until the accounts reserve is met.
Contracts: CBD merchant processors (like other high-risk merchants) will usually have to accept both a long-term contract (typically for 2-3 years) and an ETF.
Customer Support: High-quality customer service is the real secret that separates average cbd merchants from the best ones.
Our Preferred Cbd Payment Processor
The cbd payment processor that we recommend does have the lowest rates. They also offer website design/logo design, web hosting, seo, marketing & social media management. Their sister company has cbd products for wholesale, white label, private labeling and dropshipping. Other payment processors who accept CBD merchants impose additional restrictions. Some payment processors only accept established businesses and others require a very high minimum monthly processing volume to give you semi reasonable rates.