The global CBD market is growing, with expectations that it will be worth $16.32 billion by 2026. With that much potential, you’re launching your CBD business at the right time. The CBD therapeutics segment is considered complicated and high risk, so you’ll need to proceed with some caution as you consider the best CBD merchant processor for your business.
You have the option of accepting cash payments, but in most cases, you will still need a merchant account that accepts non-traditional accounts. Your high-risk merchant account could involve higher fees, restrictions, stricter terms and conditions, etc. CBD legalization is turning the tide of public opinion, but you should still know what you need in a CBD merchant processor.
So, who says that your CBD business is high-risk? The Food and Drug Administration (FDA) has categorized CBD as high risk. While you can still sell CBD, that categorization means that you must be prepared for potential challenges. Here are top factors to consider in a CBD merchant processor.
The terms of service with the CBD merchant processor are the legal agreement, which includes details on company policies and procedures. It’s important to understand how you will work with the CBD merchant processor.
Your CBD merchant processor should be flexible enough to integrate with your current eCommerce store site. Otherwise, you may be forced to build a new website and/or store to make it work. Your goal is to work with a CBD merchant processor that will integrate with your digital payment processing platform.
The payout schedule is also an important consideration when you’re looking for a CBD merchant processor. You might expect a payment processor to hold your money for 7-10 days under normal circumstances, but a high-risk merchant account might require a longer holding period.
High-risk industries may include online gambling, telemarketing, online dating, pharmaceuticals, etc. Your payment processing must not only deal with high-risk transactions, but they should also have experience with supporting chargebacks, payment card fraud, etc. That also means that the CBD merchant processor must be willing to accept the higher risks associated with these transactions.
Fees are an important consideration when you scope out your CBD merchant processor since some companies will charge excessive fees to support high-risk transactions. The charges may include fees for monthly or annual fees, compliance and non-compliance, statements, and terminal. Check to make sure the fees are fair and reasonable, or at least that the company is not taking advantage of you and your business.
Does the CBD merchant processor have monthly volume requirements? If so, what are they? Some CBD merchant processors may offer better or different terms based on volume benchmarks, so it’s important to understand what volume requirements are involved.
Make sure you understand what payment types are available from the CBD merchant processor as well as what the approval process will look like. What credit cards are you able to offer? Are there limits? Make sure the CBD merchant processor can accept ACH, debit cards, credit cards, and other global payment options.
You need to understand the contract terms and conditions. What’s required of you? What do you need to know about how you will work with the CBD merchant processor? Make sure you understand the contract terms and how they may change over time.
Review all the contract details for the merchant processors you’re considering, but also make sure that the company offers top-notch customer support. Ask questions about anything that seems unclear, including how the order and payment process works. You need to tap into industry-leading payment processing solutions.
At CannaBusiness Financing, we can help you find the right CBD merchant processing. Our team strives to make the process easier for you as the business owner, so you can focus on growing your business. With our extensive knowledge of the industry, we can ensure that your needs are met.
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