Tuesday, March 28 2023
CBD is one of the hottest and fastest-growing industries in the world right now, and as a result, there are CBD businesses, products, and shops popping up all over the place. If you are a part of this burgeoning industry, you are probably enjoying all of this new and increasing attention that the industry is getting. However, with attention also comes scrutiny. CBD merchants face issues today that no other business owner in no other business owner usually has to face--acquiring merchant services that are able and willing to work to provide a good solution to their needs. One of the keys to being successful in CBD and in any other industry is finding a good partner and gaining access to high-quality merchant services. However, this is sometimes easier said than done. We’re going to tell you about acquiring merchant services as a CBD merchant and what you can do to ensure your business has what it needs to run well and accept payments in a variety of ways.
Challenges finding a CBD merchant services provider
If you run a CBD business or are opening a CBD business and trying to gain a payments processor, then you know very well the struggles of trying to gain processing services for a business in the CBD industry. CBD is still a young industry, and for that reason, many underwriters are hesitant to give CBD businesses a chance with a processing account. Without enough data for them to base decisions off of, it is often difficult for them to know whether a CBD business will succeed or fail and put the bank at risk of loss. There are other reasons for these challenges, as well. The CBD industry and peripheral industries to it are at increased risk for fraud and chargeback. Additionally, CBD businesses often rest upon a legal gray area that could change at any time. As it becomes more normalized and accepted in many states and legislation is passed allowing the use of CBD products, this situation is improved. However, there still remains a cloud of uncertainty over the CBD industry that makes it a difficult industry to get processing for without working with the right partner.
Setting up a CBD merchant services account
When it comes time to set up or apply for a CBD merchant services account, there are some things that you will need to know to make the process go easier, faster, and more effective for your business. The first step is finding a merchant services account that will fit your needs and provide you with the services that you need to operate your business effectively, efficiently, and accept payments easily. Additionally, you will need to find a provider that is comfortable with your status as a CBD business and willing to work with you to find a processing solution to fit your needs.
Once you have found that partner, you can begin the application process. In the application process, you will need to provide various pieces of information that will allow underwriters to make an informed decision on whether you would be a good candidate or partner for a merchant services account. This documentation and information often includes a credit check, bank statement history, credit card processing history, social security or EIN number, and more. You should aim to provide them with as much information as you can to increase your chances of showing that you are a legitimate and trustworthy business.
Accepting payments for CBD products online
Any business owner knows the importance of taking payments for their products and services online. The CBD industry is no different, and actually places even more emphasis on online sales. Our merchant processing sales for CBD merchants can provide you with the online payment processing that you need to truly take your business global. With our easily-integrated solution, you’ll be able to provide an online checkout process that is easily and seamless in a matter of days for your customers, increasing the chances of having them come back and decreasing cost of acquisition.
The future of CBD payments
Though the relationship between CBD businesses and merchant service providers did not start out on the right foot, many are optimistic for the future of CBD businesses and their ability to accept credit card payments. Each day, more and more functionality is being laid out as the foundation for a healthy relationship between underwriters and CBD businesses. In addition, legislation is always coming through with increasingly positive attitudes toward CBD products and the industry as a whole. Regardless of a rocky start, the future of payments for CBD products looks bright and we look forward to being able to provide CBD payment processing solutions for any CBD business that has a need for a reliable partner.