CBD Payment Processing: How to Get Merchant Account for CBD Business

CBD Payment Processing: How to Get Merchant Account for CBD Business

What is a Merchant Account?

What is a Merchant Account

Many people are unaware that selling CBD in the U.S. is legal, as long as it does not contain more than 0.3 percent T.H.C. However, CBD businesses face other significant risks as well. Many banks view CBD vendors as "high-risk," which makes it challenging to provide payment processing. We have provided a guide below to help ease the struggle of finding the right processing company. Learn about the issues with high-risk merchant accounts and the common mistakes other CBD vendors make in this guide.

CBD Breakdown

By 2024, the CBD market is anticipated to reach $20 billion in sales, according to the B.D.S.A. This makes it one of the hemp and cannabis industry's fastest-growing subsectors. To participate in the business prospects of CBD, you must first become familiar with cannabinoids. You can better market products to your customers if you know what they are and how they are used. It's also important to think about the different aspects of running a successful CBD business from a commercial perspective and what they entail.

How Does CBD Differ From Hemp And Cannabis?

How Does CBD Differ From Hemp And Cannabis

Cannabis sativa is the species from which both hemp and cannabis are derived. They both grow for various purposes and have various traits. "Hemp" refers to cannabis plant strains with minimal T.H.C. This euphoric component gives the adaptable plant its potential for usage in a wide range of various businesses.

You may already be aware that hemp and cannabis plants contain the chemical CBD. CBD oil can be extracted from these plants to make CBD oil products. The distinction is that hemp is lawful to cultivate, harvest, and process in the U.S. since it contains less than 0.3% THC. Cannabis is prohibited on a federal level when it contains more than 0.3% THC.

What is a CBD Merchant Account?

An account explicitly authorized for use in selling some or all CBD products is known as a CBD merchant account. Most well-known merchant account providers, (and even several high-risk specialists) won't accept merchants selling CBD products since those businesses are considered extremely high risk.

Why is CBD Merchant Processing Considered High Risk?

Why is CBD Merchant Processing Considered High Risk

CBD businesses struggle to secure services that other online merchants utilise to speed up orders and enable payments, because of the strong (and constantly changing) legislative CBD and hemp products. You have full right to start a merchant account for your company if you sell CBD. But you can run across the following issues.

  • Higher than average value transaction rates
  • Rolling reserves
  • Unexpected holds on funds

Running a CBD business becomes challenging, especially given the current economy. You must choose your merchant service provider with care and make sure they specialize in CBD processing. If not, you are putting yourself at risk for account closure, having your funds held, or even end up in a blacklist where you can’t get another merchant account under your name or business name.

Benefits of Opening a CBD Merchant Account?

There are many benefits of opening a CBD merchant account, including:

  • Accepting multiple payment types online/instore, including credit card payments
  • Handling returns/refunds/partial refunds
  • Safer than just accepting cash
  • Better money management

What are The Fees Associated with the CBD merchant account?

The fees and charges vary depending on several variables, including the history of merchant processing, the industry (high risk or low risk), and/or the anticipated sales volume. Although every merchant account is different, typical costs include:

  • Merchant discount rate
  • Cost per transaction
  • Recurring statement fee
  • Recurring gateway fee
  • A rolling six-month reserve
  • Chargeback fee
  • Refund charge

Why Choose Merchantech?

Merchantech concentrates on personalizing your banking solution at the most affordable rates. Our experience in the field of CBD processing ensures the following benefits:

  • Ability to sell a variety of CBD products
  • Discuss your processing background
  • Low fees and prompt approval
  • Explain how to arrange goods and merchandise
  • Have experience dealing with banks specializing in CBD payment processing
  • Maintain a long-lasting account that won't expire

How Merchantech Handles CBD Merchant Processing

Unlike other merchant service providers, CBD accounts don't stop us from providing you with the same superior level of customer service and dependability that all merchants receive. We continuously strive to complete the process as swiftly and safely as our approval window allows.

Along with our knowledge of the sector, we keep up to date with any changes to how we handle CBD merchant accounts. Our crew is committed to staying up to date on the law because it is anticipated that the industry will grow over the next few years.

Kratom and CBD

Kratom and CBD

It is challenging for new kratom businesses or those with small monthly processing volumes to set up credit card processing, because kratom goods currently carry a high-risk classification, restricting payment acceptance possibilities. Because of this, only the biggest retailers are often given consideration for a sponsored kratom credit card processing account.

As a result, in order to sell kratom goods both online and offline, merchants need high-risk payment processing options. Fortunately, there is kratom payment processing available.

There is, thankfully, an option if you're seeking a high-risk kratom merchant account. Merchantech is happy to assist kratom business owners in obtaining the merchant accounts they want because they have years of experience in high-risk payment processing. To make the payment processing for your company easier, we provide kratom merchant accounts at affordable prices and partner with reputable banks across the world.

Get in touch with Merchantech and allow us to assist your shop in opening a merchant account. Begin accepting credit card payments for CBD goods in no time.

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