Delta 8 THC is one of the many chemical constituents of the cannabis plant, found naturally within the plant matter and able to be produced outside of the plant from CBD or Delta 9 THC. It’s known for offering many of the same benefits and effects of Delta 9 THC, but with a more mild high, and this has led to the rise of the emerging Delta 8 industry.
There are many Delta 8 online stores and THC businesses out there, trying to get ahead of the game and share the best Delta 8 products with their customers as the demand for this form of THC grows. However, in order to set up a Delta 8 business, you have to have your own Delta 8 merchant account, and getting one of these THC merchant accounts can be tricky. Read on to learn more.
The cannabis industry has exploded in value and popularity in recent years, as studies have shown more benefits of cannabis usage and laws in many parts of the world have started to relax in terms of growing, selling, and using cannabis in different ways. It’s no surprise, therefore, that the Delta 8 sub-industry is seeing rapid growth and expansion.
A lot of people are interested in trying and using Delta 8 products for various reasons. Some may be medicinal marijuana users, for example, and studies are ongoing to find out more about how Delta 8 THC works and what can be done with it. This is leading to lots of new Delta 8 products and THC online stores selling things like Delta 8 edibles, oils, tinctures, and so on.
Because there’s such high demand for Delta 8 THC, setting up a Delta 8 business can be a smart option for savvy entrepreneurs who want to break into the cannabis industry and have a strong chance of success. But, as mentioned above, if you want to be successful with a Delta 8 online business, you need to make sure you’ve got a Delta 8 merchant account first.
Anyone who has experience of running an online business should be familiar with the concept of a merchant account. What is a merchant account? Well, it’s a type of business account that is essentially used to safely and legally process credit and debit card payments online, otherwise known as card-not-present transactions.
A Delta 8 merchant account is just a type of merchant account aimed at Delta 8 businesses. It works pretty simply; you set up your online Delta 8 store with a payment portal or shopping cart system. Customers add products and enter their payment details to pay for their order. The money goes into the merchant account for processing, before entering your main business account later on.
Basically, the Delta 8 merchant account is like the “middleman” of the transaction process for your online THC business. And since most Delta 8 sales are happening online, having one of these accounts is absolutely vital. However, because Delta 8 businesses are linked with high risk credit card processing and seen as high risk in general, applying for a THC merchant account isn’t always easy.
We can clearly see that having a Delta 8 merchant account is really important for any business wanting to sell Delta 8 products online. However, if you try to apply for a merchant account with your usual bank and tell them that you’re running a Delta 8 business, you’ll most likely receive a rejection and be unable to open your account.
In other cases, you may even find yourself getting punished by banks and payment processors, with some people losing account privileges or having accounts locked and cash held without warning, purely due to the fact that they are in the business of THC. Why is this? Well, it’s all because THC is seen as a high risk industry.
The legality and rules around cannabis-derived products are changing all the time, which can make it quite complicated to run a THC business. This is one reason why banks can refuse to offer Delta 8 merchant accounts; they don’t want to deal with all the potential complexities that may occur if rules change or new laws are introduced.
There’s also the fact that the THC business lacks much regulation in general and Delta 8 THC is such a relatively new product, causing additional uncertainty for the future, as well as high potential for fraud and chargebacks. All of this means that, for banks and payment processors, the risks of offering Delta 8 merchant accounts may simply seem to be too great to be worth the trouble.
Clearly, many banks and payment processors have a problem working with Delta 8 businesses and other businesses in the cannabis industry in general. Some of them even object to working with these brands on moral grounds, not wanting to be associated with any kind of controversial products or services. So where does this leave you, as a Delta 8 entrepreneur?
Well, fortunately, there are other options out there. Even if you have trouble getting a Delta 8 merchant account with your usual banks or payment processors, Shark Processing can help. We’re experienced experts in the world of high risk industry merchant accounts, like high risk merchant accounts for Delta 8 businesses.
We know what it takes to deal with high risk payment processing, and we’re here to support high risk businesses, with the help of our extensive network of banks and payment partners. With our help, you can get your Delta business off the ground and open your own Delta 8 merchant account. Contact our team to learn more.