- December 3, 2018
- Posted by: ipaytotal
- Categories: Best Marijuana Merchant Accounts, Best Merchant Accounts for CBD Oil, cannabis industry merchant processing, Cannabis Merchant Accounts, CBD and Hemp Businesses, cbd merchant account reviews, CBD Merchant Accounts, cbd oil merchant processing, E-Commerce, hemp merchant services, hemp oil merchant account, Mobile Payment Gateway, online payments
CBD, short for Cannabidiol, is believed to offer unprecedented medicinal advantages in various ailments which have made the CBD oil industry receive a gigantic growth.
And despite the controversies that surround this business with lots of banks and financial institutions shying away from this business sector, labeling it as a high-risk industry, more and more entrepreneurs are continually attracted to this high-opportunity business.
Some of the most common reasons as to why the CBD industry is facing challenges in acquiring a merchant account include the nature of the business itself, negative public perception about CBD, payment processing limitations and legal regulations.
The Need For A Merchant Account For Your CBD Business
Any business, especially online businesses will need a merchant account. And this is also true to your CBD business. The goal is to help you accept and process debit and credit card payments from your various customers.
The merchant account is another kind of bank account that permits transactions from the banks that issue the card to the merchant account.
A secure and substantial merchant account is one of the basic requirements in order for your business to have smooth payment processing without any legal issues and payment processing issues.
A reliable high-risk merchant account also allows the expansion of your business, since it allows you to accept multi-currency payments. This way, you can sell to customers internationally, gaining more profits and revenue and establishing a presence in the world.
Thus, you will need the best payment processing services from a merchant account provider that specifically deals with businesses that fall under the high-risk category.
In this manner, iPayTotal offers a reliable CBD merchant account with a one-stop solution for all CBD payment processing services needed that pushes your business growth and offering a competitive edge against this booming, highly competitive and high-profit business industry.
The Disadvantage of Working with Banks
Since the CBD industry falls under the high-risk category, your business can face several problems. One problem is that most banks do not want any association with high-risk businesses, especially those that are surrounded by controversial and legal issues like the CBD industry.
And while some banks approve a merchant account for CBD business, a slight issue can cause the sudden termination of your account.
The Risk of Merchant Account Closure
The sudden termination of your payment gateway or merchant account can cause you a lot of problems.
This happens when you can’t manage your chargebacks ratios to only 2 percent or less or when your financial institution sees some fraudulent transactions with your account.
When your merchant account gets terminated, you will not have the ability to withdraw your funds from your terminated account. Your business cash flow is put to a halt without any notice, making you lose potential profits.
And while acquiring a merchant account for the first time can be quite difficult due to your high-risk label, a history of merchant account termination makes it even more difficult for you to acquire another account, with banks and other providers denying or rejecting your application.
Thus, it is important that you only choose the best high-risk merchant account providers for your CBD business.
And in this case, trust iPayTotal!
CBD Merchant account from iPayTotal: How Do I Get One?
iPayTotal specializes in high-risk businesses. We offer merchant accounts to all kinds of high-risk businesses, including those in the CBD industry, with focused rates via an established acquiring bank partner.
You can talk with one of our expert CBD merchant account manager via phone call (+44 800 776 5988) or get directly in touch with us via our website. If you wish to apply now, click here to get started.
Documents and Conditions in Opening a CBD Merchant Account From iPayTotal
The process of opening a merchant account with iPayTotal is rather simple and easy. You only need to provide the necessary documents and essential supporting records for us to process your application and have a better understanding of your business.
Some of the requirements for an iPayTotal high-risk merchant account include:
- Bank letter
- Government-issued valid id
- Bank statements for the past 3 months
- Total chargeback, returns, and discounts
- Total sales
- Demonstrating organization name
Some of the conditions for a high-risk merchant account include:
- iPayTotal’s payment solution is accessible to online businesses only.
- Startup businesses will be checked on a case-to-case basis
- Merchants need to generate a base of $1,500 per week in processing.
CBD Merchant Account Processing Fees and Approval Timetable
The time that it takes for a high-risk CBD merchant account approval at iPayTotal depends on every merchant’s case and their processing history. If you submitted all the necessary documentation and paperwork, then iPayTotal can process your application and provide you with a customized credit card processing solution in just 5 – 15 business days.
In addition, the expenses and fees that iPayTotal charges you will rely on several factors. For instance, the type of industry (whether you are low risk or high-risk), your processing history and extra anticipated sales volume.
And while each and every merchant is unique, the average fees and charges may include:
- Per transaction fee
- Refund fee
- Merchant discount rate
- 6-month rolling reserve
- Monthly statement fee
- Monthly gateway fee
- Chargeback fee
Integration of Payment Gateway For iPayTotal CBD Merchant Accounts
Each and every merchant account that has been approved by iPayTotal and our acquiring banking partners will have access to the reliable payment gateway of the approving bank. And you should rest assured since our banking partners offer a secure and safe payment gateway for all your business transactions.
In Need of Something Else?
iPayTotal is also your one-stop solution to merchant accounts and credit card payment processing solutions similar to CBD including: