With the growing popularity of CBD, it’s no surprise that more and more businesses are trying to get in on this trend. Reputational risk and legal challenges make finding a suitable payment processor seem impossible. That is why it is essential that you know what questions should be answered by your potential providers! We’ll go over everything here, so keep reading. This blog will demonstrate the importance of finding a CBD merchant account that is right for your business, tackling the seemingly impossible seamlessly.
Why is CBD High-Risk?
Industries can be categorized as “high-risk” for a number of reasons: high-chargeback rates, larger tickets or volume, rolling reserves, and reputation are among the most common sources. These factors can dissuade banks from taking your business on as a client. CBD merchants are classified as high-risk primarily due to the nature of the business and the stringent legal restrictions on hemp and CBD products. Although CBD products and services have been federally legalized, there is still a negative stigma surrounding using or selling any consequences related to cannabis.
Does a CBD Merchant Account cover your CBD industry?
Whether your CBD product is utilized for beauty or health reasons, a CBD merchant account will accommodate your business including the following::
- Beauty Products
- CBD Pet Products
- Hemp Oils & Drinks
- Pain Relief Sprays and Capsules
Any industry, selling services or products, that uses CBD in any capacity will require a solid merchant account to handle the various risks associated with the industry.
What does a CBD Merchant Account provide?
Finding a CBD merchant account that caters to the industry (and other high-risk industries) provides a sustainable solution you can use to scale your business. CBD merchant accounts help:
- Prevent account closure
- Navigates around unnecessary identity/financial checks
- Manages returns/refunds/partial refunds
- Covers day-to-day business tasks
- Scales your business
- Utilizes CBD payment gateways
The benefits of having a solid merchant account for your CBD company will ultimately make you money. Instead of spending time worrying about your payments, wondering if your account will be suspended, or filtering through several different chargebacks, your business can focus on the products and services.
Where Can I Find a CBD Merchant Account?
CBD businesses are being declined by most payment processors, but there’s a solution. Seamless Chex can help your high-risk business accept eCheck and credit card payments online and in store! Contact us now for more information about how we work with CBD merchants like you to provide a sustainable and scalable payment processing solution for your business. Get your CBD merchant account today.