Establishing a CBD Merchant Account
The rising needs and research emerging about cannabis products have highlighted the potential for this industry to continue to boom in the coming future. With this expansion comes CBD and Hemp products that have absolutely changed the market. CBD and hemp products are no longer exclusively just for a group of certain individuals, but now in a variety of markets.
Specifically, cannabidiol or more commonly referred to as CBD, is derived from the marijuana plant and can be a natural remedy for a number of ailments with none of the psychoactive side effects associated with THC. Of the many forms of cannabidiol products that Coastal Payment Systems can process, CBD Oil is possibly the most outstretching. Depending on the type of oil, the purported effect can range from calming to even pain relieving. These oils have the versatility to be added into just about anything, whether that be a morning cup of coffee or face moisturizer.
Were You Turned Away for CBD Payment Processing?
Once you’ve organized your business, you’ll want to begin the steps of setting up an merchant account in order to process payments from your customers. Unfortunately, for most CBD merchant accounts, very few credit card processors will approve your business because of the association with cannabis. Likewise, very few merchant account providers will want to give you an account to begin the process of selling. This occurs because CBD products are labeled as ‘high risk’ to these merchant account providers and banks are very selective with the types of business they will service.
Why is CBD and Hemp Oil Still Considered High Risk?
CBD and hemp products remain high risk for a number of reasons, but specifically, there are three main determinants: legislation, risk of chargebacks, and reputational risk.
Although legislation has become more favorable regarding any by-products of cannabis or hemp, for many processors, this industry is still a taboo subject. This comes from the association of CBD with the physical cannabis plant and it’s containment of THC, even though the products we support do not have psychoactive properties. Unfortunately, the misconceptions continue and merchants with legitimate businesses selling regulated CBD products are penalized for it.
The second reason CBD merchant accounts are labeled high risk lies in the, at times, unpredictable nature of the products. The purported benefits of cannabinoid oils cannot fully be verified beyond personal testimonials and therefore can have higher rates of chargebacks from customers whose expectations were not met. However, these chargebacks can be mitigated by providing clear, concise descriptions of products among other preventative tactics.
Lastly, CBD products such as oils, tinctures, and skincare can be flagged as high risk because of their sudden emergence into the market. Not long ago all cannabis products- containing minute amounts of THC or not- were deemed federally illegal and thus merchant accounts could not be obtained. Just recently, the Farm Bill of 2018 allowed CBD products to escape the ‘Substance 1’ label as those substances contain over the accepted, regulated level of THC. Despite this federal ruling, the bill allows individual states to create their own parameters around cannabidiol products.
This bill being passed is the leading factor in why CBD is on everyone’s minds. The market is now open for these businesses to thrive.
These factors combined shed some light on why any account selling CBD products is automatically labeled ‘high risk.’ Banks will then refuse to run the risk of being associated with these merchants. Down the line, the payment gateway providers partnered with specific banks will not have the capability to service ‘high risk’ merchants, even if the reasoning is something as simple as selling CBD products.
Luckily, at Coastal Payment Systems, we’re different! Because we specialize in getting high risk credit card processing for our merchants approved, we can service a wider variety of businesses that may have been flagged. Unlike other service providers, our banking partners will not penalize your business simply because of the association with CBD or hemp products.
The Importance of Partnering with a Seasoned CBD Payment Processor
With greater acceptance of CBD products in the marketplace, we have been able to get thousands of CBD payment accounts approved. Our representatives know the most painless ways to assist in opening your merchant account so you can begin processing payments as soon as possible.
No more jumping through hoops to get your merchant account set up, just to be turned away in the end. Once approved, your CBD payment gateway can take as little as 24 hours to become active and able to process payments. Whether you need a physical card terminal or an online gateway, we have the means to get your business up and running.
Integration is now easier than ever! We are compatible with every third party gateway and almost every ecommerce website platform including Shopify, WooCommerce, Magento, Volusion, PrestaShop, BigCommerce, WordPress and many more.
When you have been approved for your merchant account and begin online credit card processing, it is important to figure out a strategy for keeping chargebacks to a minimum. Not only will this save you money in the long run by eliminating fees, but it will also keep your account in good standing according to the guidelines set forth by the bank.
CBD & Hemp Products We Support
CBD Pet Products
Tinctures & Oil
Pain Relief Sprays
Supplements & Capsules
How Coastal Payment Systems Handles CBD Merchant Processing
Unlike other merchant services providers, CBD accounts do not deter us from delivering you the same high-quality customer service and reliability that all of our merchants receive. We work around the clock to ensure the entire process is done securely and as quickly as permitted by our approval window.
In addition to our familiarity with the industry, we update our handling of CBD accounts as new legislation comes into effect. With the expectation for the industry to surge over the next few years, our staff is dedicated to keeping current with the updating legislation as each state currently has different policies regarding any cannabis product.
Benefits of Opening a Hemp Oil Merchant Account
Processing ability for credit and debit cards (Visa, Mastercard, Discover, and American Express)
Processing ability for retail, MOTO, and card not present sales
Integration with both retail terminals, virtual terminals, and online shopping carts
Processing for start-up businesses
Ability to integrate with many popular platforms (Shopify, WooCommerce, Magento, WordPress etc.)
Third party gateway compatibility
Representatives that know the industry and exactly how to process your account
Updated policies regarding changing legislation
Our staff is familiar with the cbd oil merchant processing industry as well as providing service that works for every merchant we encounter. When it comes to getting your account approved, knowledge is power.
If you are ready to put your CBD or hemp business on the map and begin processing payments for potential customers, reach out to us today. You can contact our knowledgeable team directly or by filling out an inquiry application.
Let us show you how easy it is to get started.
Contact us at 1-877-392-2737 or by filling out our simple online form.
Our goal is to make accepting credit cards as easy as possible. Often, we are able to send you out a quick email that includes everything you need to get started accepting credit cards. To get started, click Get STARTED below. If you would rather talk to a live human, we'd love to hear from you - simply call 877.392.3237.