Engaging in the CBD business can be a lucrative venture. In 2017 the legal sales of CBD products and medical Marijuana hit the $10 billion mark. However, most of the banks still treat the CBD businesses as high-risk businesses and therefore do not offer payment processing solutions for them.
The few banks that offer the services do so with a lot of restrictions and exorbitant charges to the businesses. Without a merchant account, the business would not be able to receive online payments through cards making it difficult to run the business.
Many third-party payment processors that deal with high-risk businesses help get past the hurdle of banks not offering the payment processing solutions.
However, choosing a reliable one can be a daunting task for many as there are some that just want to take advantage of high-risk businesses. Here are some tips to help you when choosing a CBD payment processor.
Key Considerations when Choosing a CBD Payment Processor
Experience – A new CBD payment processor in the market might not be able to provide the required services with competence. They might not meet the regulatory demands required of their business, and they might not even be able to deal with e-commerce platforms effectively.
It is also imperative that the business can handle payment gateways with ease and deal with all the evolving challenges in the market effectively. All these demands might not be met by a company without enough experience in offering services to high-risk businesses.
High Stake In The Business – Reliable CBD payment gateway providers should have a huge stake in the industry meaning that they already work with many high-risk businesses and more so CBD businesses.
A payment processor that works with many CBD business will ensure that they provide the best services to grow both their business and your business too.
Fair Charges– The payment processors for CBD products usually charge fees higher than what is charged in other industries due to the high-risk factor. However, you should look for a payment processor that charges fair fees.
Most of the processors charge a flat rate plus a commission on every transaction. Ensure there are no hidden charges to your account or even set-up fees for the account.
Network Of Financial Partners– To be able to provide great services the payment processor should have an established network of financial partners to work with so that they have other partners to work with whenever there is a challenging one.
This reduces the chances of having your account closed or your business being offline and unable to accept payments whenever there is a problem.
Merchant ID – The payment processor, should provide you with a merchant ID with your details so that the charges on a customer’s card appear to have come from your business and not a third party business. This will build trust with your customers and give them peace of mind.
Variety of Services– A good payment processor is one that offers a variety of services for the high-risk businesses. They should offer other essential services such as; fraud protection, token systems, data management and others that will help your business to grow.
A reliable payment processor should also be able to work with your business and provide customized services as your business grows.