If you’re seeking a CBD merchant account with clear pricing, almost fast approvals, and expert contribution 24/7, call us today. We are experts in CBD payment processing, including CBD credit card processing, and our team is always present to answer any of your questions.
Merchant Stronghold has a huge network of high-risk financial partners in the industry. We’ve frequently tested various processing banks to know the perfect fit for every kind of high-risk merchant account category. We provide a diverse display of solutions as per the business type unlike anyone else in this industry.
The explanation for CBD Merchant Processing
Merchant Stronghold is a CBD payment processor that gives CBD merchants a surcharge on high-risk merchant services. We use a type of processing technique to make sure that your CBD merchant processing is a quick and simple process.
Some of the characteristics of your CBD merchant account may incorporate:
- Multi-bank processing (incorporating off-shore)
- No reserve
- Fast settlements to merchants
- Stable payment gateway
- Chargeback alerts
- Chargeback disputes
- Check 21 processing
- Fraud prevention and protection
- Competitive processing rates (below industry standards)
- Merchants can start processing within 1 week
As a CBD payment processor, Merchant Stronghold works arm in arm with CBD merchants to safeguard their businesses from merchant account closures, fraud, and chargebacks. We’re proud of our renowned fraud and chargeback protection.
Get to know us and we’ll show you how to grow high-risk merchants both in the United States and offshore.
CBD Merchant Account General Question Asked
How should you process CBD payments?
CBD is a high-risk industry, which constraints the number of merchant providers that will allow CBD businesses. This results in inflated processing costs and an increased blockage to entry for many small business owners who want to cash in on this profit-making niche market.
It’s a tough task to get a merchant account if you vend CBD products, but financial companies (like Merchant Stronghold) are glad to work with businesses that have a set history of success and profitability.
Financial Institutions want your business – even though they’re anxious about high-risk transactions like those related to selling CBD products.
What is a CBD merchant account?
A CBD merchant account is a sort of a credit card terminal categorically for merchants looking to vend high-risk products such as cannabis. Most providers will not support these types of transactions, but those that have been known to take special measures should be taken with their customers by implying multiple parties in an order’s process and scanning the company’s financials before sanctioning it.
Does PayPal allow CBD sales?
We’ve been made realized that PayPal is not allowing the sale of CBD products, and we wanted to make you aware as well. If your account damage this policy it will be shut down without any prior notice.
This means if you vend any sort of hemp-derived product on eBay, Shopify, etc. via a third-party processor such as PayPal then you’re doing a riskier job and your account can be closed without any notification.
Does Square accept CBD payments?
A big yes. Square launched a new pilot program in 2019 to permit CBD merchants to sign up for its services. Their CBD credit card processing rates are sky-scraping than Square’s normal rates, but there are no long-term contracts and no monthly fees. We don’t suggest using Square as a merchant account for your CBD business until and unless you’re just processing a few transactions per month.
Can you sell CBD with Woo Commerce?
Yes. You can operate the open-source Woo Commerce platform without limitation, but you should be acknowledged their demands when using other Automatic services with it – for example, if you’re sailing to customers or tracking stock via Jetpack and want a mobile app that’ll work side by side with store’s design then this is where a CBD merchant account via Merchant Stronghold comes comfortably. Our merchant account options are consistent with both Android and Apple devices so no one skips out on any offers.
If we were discussing CBD products though (or hemp at all), things get more complicated because there are few limitations put in place by law in terms of what kind of payment processor merchants may allow from their international buyers. For these cases, Woo Commerce Payments is not an option as per industry rules and regulations.
Can you sell CBD products on Shopify?
Yes. Shopify grants and promotes the sale of CBD products in states where it’s legalized to do so, but you’ll require a third-party payment gateway provider like Merchant Stronghold, but before we get into that there are some warnings worth noting. If your business is situated in or catering accurately to an area where CBD sales aren’t permitted, it gets tough.
What’s essential to get a CBD Merchant Account?
To start accepting credit and debit cards for CBD products, get started today by filling out Merchant Stronghold simple online application. To smoothly move the process along, you’ll need to give the following documents:
-An authentic, government-issued ID, such as a driver’s license
-A voided check
-Three months of the most frequent bank statements
-Three months of the most recent processing statements, if applicable
-A SSN (Social Security Number) and/or EIN (Employer Identification Number)
-Chargebacks must be under 2%
CBD Payment Processing Gateway
Looking for a good high-risk merchant account provider for your CBD business involves the same norm as a low-risk provider. It’s just tough to find a supplier that offers the correct combination of affordable prices, fair contract terms, and high-quality customer service.
1. CBD merchant account approval
The underwriting process needs to get ratified for a merchant account can be the trickier job for any merchant, but it’s specifically tough if you sell CBD products. Nonetheless, full filing this process before you initiate your processing of credit card sales can save you from having your account suddenly crash down once you’ve started using it. You should be distrustful of providers offering “quick” approval of your merchant account, as they often delay this loophole-finding step until after you’ve already sanctioned a long-term contract.
2. High-risk merchant account
Your CBD payment processor must be able to share out high-risk transactions. The reason for this is that this equitable new industry is susceptible to card fraud and chargebacks, which could ruin your business in just a few days.
As an industry that levitate around a legal grey area, only a handful of credit card processors will take risks connected with these sort of transactions. Try to look for companies, like Merchant Stronghold, that have large experience aiding businesses operating within hazardous sectors like CBD, the adult industry, offshore merchant accounts, etc.
3. POS (Point Of Sale) Options
By searching for a CBD payment processor with point-of-sale (POS) availability you’ll be able to tackle both online and offline transactions as well as get perfect reporting from POS software which will boost your profitability while also increasing customer loyalty.
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If you need help when choosing the correct POS hardware, please do not hesitate to contact us.
POS software can help you make profitable business choices. What’s more, these types of systems are used to command stock input and output from a single location. If you plan on vending CBD products out of your physical store, then either get a specific countertop credit card terminal or use your mobile phone for processing with the aid of a perfect card reader that gets into it via USB port or Bluetooth connection.
NFC-based (contactless) methods would be suggested at this point but may not be harmonious with some POS configurations depending on their hardware setup so EMV payments should remain as fewer requirements just to ensure compatibility across every device regardless.
4. CBD credit card processing fees
Although the more well-established companies may need a fee from account holders upon registration, many will give away their services for free or at a pocket-friendly rate.
Ask yourself if you can manage to pay the particular percentage your preferred provider charges per transaction and decide whether it works with your profit margins before signing up with them.
There are also several other fees to take into deliberation when choosing a CBD payment processor, such as:
- Statement fees
- Compliance fees
- Non-compliance fees
- Terminal fees
- Monthly fees
- Annual fees
- Early termination fees
Chargebacks may also result in additional fees, so it would be in your best profit to confirm this early to establish a partnership with CBD merchant processing companies.
The bottom line here is that any high-risk merchant account is going to be more expensive than a comparable low-risk one. Be prepared to accept tiered pricing models, although some established businesses might be able to negotiate an interchange-plus model for slightly lower rates and fees.
You can also get higher monthly and annual costs with such merchant accounts but the difference in these expenses isn’t as much when differentiated against other rates like processing charges which are usually significantly higher for high-risk accounts given the elevated risks of fraud connected with them – often requiring additional safeguard from both merchants and processors (like rolling reserves).
A rolling reserve is where your credit card processor withholds a certain percentage of your funds every month until the reserve is met. While you’ll in due course receive all of it, rolling reserves can create urgent cash flow problems for both small and newly established businesses.
What is CBD?
It must be almost 80 years since CBD was first invented, but there’s still a lot to know about this unique chemical compound.
Back in 1940, Dr. Roger Adams and a group of scientists from the University of Illinois successfully found the non-psychoactive cannabinoid for the very first time. Some 23 years later, scientists managed to assess its structure in clarity.
CBD is a naturally occurring form in marijuana and hemp plants, but the vast majority of products filtering into the mainstream market are created using industrial hemp plants.
Although CBD brags a fairly long history, it has never been discussed quite as much as it is nowadays.
CBD was revealed 20 years before the cannabis plant’s primary psychoactive cannabinoid THC was. Thanks to the inventions of technology, scientists have been able to dig a little deeper into CBD’s therapeutic potential as of late, which has led to it overtaking cannabis’ high-inducing chemical THC in terms of what’s being talked about and researched.
This is not to say that THC does not possess therapeutic qualities — but for now, the world is paying close attention to CBD. Notwithstanding, unproven health claims are prohibited by the Food and Drug Administration (FDA) and the Federal Trade Commission (FTC) due to the risk of merchants making false claims and promises to consumers that could put off them from seeking expert medical care, merchants are limited to using a high-risk CBD payment processor.
Cannabidiol, or CBD, is imitative of cannabis that can be extracted from both hemp and marijuana plants. CBD is sold in a variety of different varieties: CBD oil, CBD tinctures, CBD drops, CBD isolates, CBD cream, CBD ointment, CBD capsules, CBD topical, CBD gummies, and more. CBD is not psychoactive in its purest state, and when derived from the hemp plant and ended as a medicinal product, is “legal” in all states per the 2014 Farm Bill. CBD has shown to be a very effective treatment for several ailments, including:
- Alzheimer’s disease
- Parkinson’s disease
- Multiple sclerosis
- cancer and chemotherapy side effects
- Hyperemesis gravid arum
- Anorexia Nervosa
- Mood disorders
- Nausea and vomiting
- Pain and inflammation
Is CBD Legal?
CBD’s high risk, summed up by the fact that marijuana remains illegal at the amalgamated level, makes the task of accepting online payments fairly prohibiting for sellers.
“Marijuana-derived” CBD is not legal at the governmental level yet. “Marijuana” or “cannabis” as it is more commonly known as a part of the cannabis family, just like hemp. The difference is that cannabis grows with more than 0.3% THC; the plant’s psychoactive element.
Confusion between the two plants has caused debate among hemp business owners who have fought to find processing solutions that are willing to accept online eCommerce payments for CBD-containing products.
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