CDB or Cannabidiol has been claimed to have health benefits like pain relief capability for both humans and pets which are supported by many research and studies. CBD oil with a less than 0.3% or a very low dose of THC or Tetrahydrocannabinol does not cause any addiction because it is non-psychoactive in nature.
With CBD’s market projected growth in the next few years, many merchants are joining the CBD industry. There are many businesses that have been set up to sell CBD products for both online and retail store format. One of the things that a CBD merchant must decide into is the manner on which they will accept payments from the customers. Accepting debit and credit card payments as well as the option to pay online is already a must in today’s market. Many customers are looking for other ways to be able to pay their purchases than paying by cash or thru check issuance. More and more people are using cards as their mode of payment or opting for online purchases.
A CBD merchant account is needed to accept card payments for either online or retail store platform. It is the type of bank account that allows businesses to accept payments made thru debit or credit cards. This is where the card payments from the customers go first before being transferred to the business bank account. Also, merchant accounts enable online businesses to tap into the international market by providing a viable payment system for customers overseas. Having a CBD Merchant Account allows CBD merchants to take card payments in various ways.
Ways to take card payments with a merchant account
· Card terminal – is a card machine that accepts payment from all major card providers which can be in the form of a
- Countertop card machine – Countertop card machine is a wired machine used to process transactions at store’s sales counter which is plugged into phone lines or broadband.
- Portable card machine – Portable card machine is a wireless machine that can be used up to 100m from its base.
- Mobile card machine – Mobile card machine is a device that is attached to the mobile phone to convert it as a card terminal.
· Online Payment – using an online payment gateway that enables the CBD merchants to accept payments thru their website.
· Phone payments – Phone payments allow a merchant to take payments over the phone.
Common fees with maintaining a CBD Merchant Account
Getting and maintain CBD Merchant Account involves fees which are
1. Transaction fees which are the agreed amount or percentage paid by the CBD merchant for every transaction.
2. Card terminal leasing fee.
Because CBD products (ie CBD oils) are derived from cannabis plants which faces a conflicting cannabis legislation worldwide, CBD products are considered as high-risk. Banks are reluctant to underwrite high-risk transactions because many banks are still worried that they might get into trouble with the law by providing financial services to CBD merchants. Although difficult, there are still CBD Merchant Account Providers that are willing to provide CBD OIL Merchant Services to CBD merchants even for start-up and new CBD businesses that lacks the processing history that is one of the basic requirements in opening up a CBD Merchant Account.
How to get A CBD Merchant Account Provider
1. Research for the right CBD Merchant Account provider that can provide the CBD OIL Merchant Services that can meet the needs of the CBD business. Gather plenty of information to gather better options.
2. Prepare and submit all the necessary requirements together with the completely filled up application form. Make sure all the data provided are accurate and correct as the underwriters will base their review from the submitted information.
What to look for in a CBD oil merchant processing
1. Trusted and Reputable Company
It is best to deal with merchant account providers that had been in the business for years as the year of experience may come in handy in dealing with issues and problems that may arise as well with dealing and cultivating a good relationship with banks and credit card companies and payment processors.
2. Reliable Customer Support Services
The CBD Merchant Account Provider must be able to provide 24/7 round-the-clock customer support to merchants as issues and problems may pop up at any time.
3. In-Store and Online Transaction
Make sure that the merchant account can process card payments for both card present and card, not present transactions.
4. Offers Fraud Detection & Fraud Prevention Services
This can be very helpful to prevent fraudulent transactions as well as chargebacks.
This is needed for CBD Businesses that are planning to sell the CBD products overseas.
Other things to consider in choosing CBD OIL Merchant Services Provider
- Inquire with the average processing time that it will take for funds to clear and reach the bank account of the business. Clearing time affects the cash flow which is vital to every business.
- Contract length is also important as longer contracts help CBD merchants to save money. But for starters, it is advisable to get shorter or month-to-month contracts and pay higher fees while evaluating the CBD OIL Merchant Services that is being provided. Merchants must also check if there is an automatic renewal clause that is stated in the contract that will extend the contract if it is not canceled ahead of time.
- Check if there is an early termination fee or a penalty that is typically around $495.00 for terminating the contract early.
- There should be no extra or hidden fees. All fees must be transparent and stated in the contract and must be discussed to the CBD merchant and agreed by both parties.
- Read and understand the contract before signing.
As a final thought, a CBD Merchant account is really vital in doing business and to be able to compete and last in today’s market. Finding the right provider can be very difficult and time-consuming but once attained is proven to help the businesses grow and attain improved sales
To learn more about CBD Oil Payment Processing, call us at +44 800 776 5988 or click here to set up your personalized payment consultation.