Research has revealed that there’s much more to hemp’s benefits than just the cannabinoids it contains. Terpenes that give hemp its distinct flavor and aroma work a key role in the herb’s highly coveted benefits. So it comes as no surprise that many businesses have made terpenes the centerpiece of their venture.
Unfortunately, being so closely associated with hemp and marijuana makes the terpene industry high risk. Thus securing a terpenes merchant account might prove a struggle for most businesses.
Merchant accounts are essentially specialized bank accounts that allow businesses to take digital payments. They work both on and offline. In-store, merchant accounts come into play when buyers pay with credit or debit cards through a terminal. Online, they use a virtual point-of-sales system to collect card information.
Almost every business these days will benefit from a merchant account to some extent. The reason is that more and more shoppers have developed a preference for cashless payment methods.
By meeting customers where they’re most comfortable, businesses increase their chances of securing sales. This also allows companies to expand their horizons and reach buyers across the country, and perhaps the world.
The only problem however is that merchant accounts aren’t that easy to acquire. Traditional banking and financial institutions are particularly careful when screening the businesses that apply for these specialized accounts.
The reason? Risk. Merchant accounts cost money to maintain. Businesses that can’t cope with the fees, penalties, and recurring charges might find themselves unable to keep up with the demands of their merchant account.
Another thing is that some businesses have an inherently increased risk of chargebacks. This occurs when customers reverse payments made through merchant accounts. And because no one can question a chargeback, everyone involved in the payment gets slapped with fees.
That includes the merchant acquiring bank and the card issuers. So it’s really not surprising why financial institutions tend to veer away from businesses that come with higher risk.
Traditional banks and financial institutions are notoriously conservative. That means they do everything they can to steer clear of partnering up with businesses that impose unnecessary risk on their own operations.
So how exactly do they measure the risk associated with potential partner merchants? Here are some factors they look out for:
What is it about terpenes that makes it a high-risk industry? Ultimately, it all boils down to the product’s relationship to marijuana. Remember that terpenes sold on the market today mainly come from hemp or marijuana, which themselves have been entangled in boundless controversy.
Of course, most vendors that offer terpenes source their product from hemp, which has been deemed federally legal across the United States. But state-level prohibitions make the industry fickle — and banks just don’t like that.
There’s also the issue of reputation. Most traditional, conservative banks try to protect their reputation. This means they try not to associate with brands and companies that go against the grain of their identity.
And because hemp and marijuana are generally perceived as ‘problematic’, conservative financial institutions keep them at arm’s length.
Yes, despite the challenges, it is possible to set up a terpenes merchant account. But don’t think that traditional banks and merchant acquirers are your only option.
Even if they do allow you to set up your merchant account under their wing, you can expect unreasonable, exorbitant fees and tight contracts. And in the event of the slightest signs of non-compliance, they could lock down or cancel your account, and withhold any funds it contains. Yikes.
If you’re operating in a high-risk industry, finding a merchant acquirer can be tough. On the plus side, Shark Processing makes terpenes merchant accounts accessible to every business that needs it — regardless of the risk.
Shark Processing offers a range of services that guarantee placement for merchants considered of the highest risk. We pride ourselves in our ability to match high-risk merchants with suitable, reliable, reputable merchant acquirers that keep your business’s best interest at the core of your partnership.
We know how frustrating it can get to send application after application only to be met with rejection. So we do all the legwork for you, imposing a simplified three-step process that lets you get started with your terpenes merchant account — minus all the stress.
So how can you open up a terpenes merchant account with help from Shark Processing? Here’s how it goes:
There’s no need to waste time with conventional, traditional, conservative merchant-acquiring banks that can’t guarantee flexible contracts and reasonable fees. So skip the long waits and unanswered emails by choosing Shark Processing.
Experience fast turnaround, tailored solutions, merchant-centered contracts, and practical partnerships when you entrust your terpenes merchant account to us. Contact us to find out more about our services, or send in a pre-application form to get started on your high-risk merchant account today.
