Before we get into the details of obtaining and using a CBD merchant account, let’s first look at the cannabidiol industry.
CBD stands for cannabidiol. It’s a naturally occurring chemical constituent, a cannabinoid, found inside the cannabis sativa plant. Since this industry has become popular and has much room to grow and develop, it offers much potential for entrepreneurs who want to join one of the fastest-growing movements in the health and wellness world.
However, you’ll need a CBD merchant account to run a modern CBD business properly.
A merchant account is a business account that allows for the processing debit and credit card payments. In other words, a CBD merchant account allows your customers to pay you online or with a credit card.
This type of payment is called a card-not-present transaction, and high-risk merchant accounts, for instance, CBD merchant accounts, make these transactions happen.
When you have such an account, money from your customers will travel from their accounts into the merchant account for processing before carrying on and ending up in your primary business account.
In today’s world, many cannabidiol purchases are being made online in this way, with many people shopping online for oils and edibles, so you must have the best CBD merchant account to keep up with the competition.
Unlike other industries, CBD is still relatively new and not yet fully regulated, causing financial institutions to view it as a risky investment.
Additionally, there is still a stigma surrounding cannabidiol due to its association with marijuana, making it difficult for businesses to find a reliable merchant processor.
While the industry is rapidly growing, CBD companies must research and find a processor specializing in high-risk industries to ensure their business can continue thriving.
So, it’s clear that getting a CBD merchant account is essential when starting a CBD company or selling CBD online. However, these accounts are not easy to obtain.
Cannabidiol is seen as a high-risk industry by many financial institutions. In some cases, this is purely because the industry is new.
The products have not been thoroughly tested and proven, and there’s still a lot of stigma and negative associations with marijuana. So some banks don’t want to be associated with such a controversial industry.
In other cases, banks refuse to work with CBD businesses because of the high rate of chargebacks for cannabidiol products. A chargeback is when a card payment is disputed and has to be refunded to the cardholder, leading to extra fees for the bank.
There are a few potential reasons why chargebacks can happen in the CBD industry. One reason is that CBD isn’t adequately regulated.
So the industry presents many accessible opportunities for scammers to prosper and trick people into buying CBD products that won’t work for them or aren’t made with good quality ingredients.
Other issues include buyer’s remorse or dissatisfaction with cannabidiol and wanting their money back.
Banks and payment processors will help you with high-risk credit card processing for your CBD business.
At Shark Processing, we specialize in high-risk payment processing, helping high-risk businesses, like those in the CBD industry, get the merchant accounts they need.
We can help you find the perfect CBD merchant account with the best rates from one of our trusted banking partners. Get in touch today to learn more about our CBD merchant account services.
If you want to sell CBD online, these are the steps you should consider.
By partnering with the right high-risk merchant account provider, you can streamline your CBD payment processing and focus on growing your online CBD business.
Getting a merchant account is essential if you’re looking to accept CBD payments for your CBD businesses. There are several CBD merchant accounts, including:
These accounts are designed for businesses with a higher risk of chargebacks or fraud.
These accounts are for those who prefer to operate within the US.
Offshore merchant accounts are for businesses that want to operate outside the US.
They pool funds from multiple merchants into one account.
Ultimately, the type of merchant account you choose depends on the core of your business and its unique needs.
Our updated technology and unmatched industry expertise make Shark Processing an excellent choice for CBD merchants. We comprehend the industry’s unique challenges and offer tailored solutions to help high risk businesses thrive despite the regulatory hurdles.
Our expert team provides the tools for fast and secure payment processing and offers merchant cash advance solutions, chargeback prevention and management, and fraud detection.
With Shark Processing, CBD merchants can focus on what they do best – producing quality CBD products – while leaving the financial worries to the experts.
You can get an online CBD merchant account supporting CBD business owners’ growth and success. Online merchant account providers like Shark Processing specialize in working with high-risk merchants, including cannabidiol and hemp companies.
By choosing one of these providers, you can have peace of mind knowing that your online transactions are safe and secure. You will, however, likely have to pay higher transaction fees and adhere to additional regulations.
You’ll likely need CBD merchant services if you’re involved in the CBD industry and looking to sell your products. With a way to process CBD payments, you’ll be able to experience potential sales and customers.
By partnering with CBD payment processors that give you CBD payment processing services, you’ll gain access to safe and secure payment processing, chargeback protection, and a range of other features to ensure your business runs smoothly.
Yes, we can help your CBD business up and running with our specialized CBD merchant services. Our expertise in high-risk payment processing solutions ensures that you get the best solution for your needs — no matter how unique!
Shark Processing is the go-to for CBD businesses looking to grow. Our honest and transparent approach guarantees no hidden fees or surprises, providing tailored payment solutions that meet each merchant’s needs precisely.
Plus, our cutting-edge technology ensures your CBD transactions are processed promptly and securely – so you, a CBD business owner, can focus on expanding your industry with peace of mind!
There are a few points to note when looking for a CBD merchant provider.
Here are some important aspects to consider when selecting the best CBD payment gateway for your business. They include:
Take the time to research each provider and ask questions to make an informed choice that will benefit your business in the long term.
Due to the legal ambiguity surrounding CBD and its association with marijuana, many payment processing companies are hesitant to work with a high-risk business like CBD.
This leaves CBD companies with limited options for processing payments and often results in higher fees and risks for the merchant and processor.
While some companies have found ways to navigate these challenges, many CBD entrepreneurs selling CBD products online and in-store need help finding a reliable payment processing company.