Cannabidiol is a popular natural remedy used for many common ailments and it’s better known as CBD, it is one of the 104 chemical compounds known as cannabinoids found in the cannabis or marijuana plant, Cannabis sativa. Researchers are looking at the possible therapeutic uses of CBD. And CBD oils are oils that contain concentrations of CBD.
Selling CBD online
There’s a lot to think about when you run an online business. With a number of online payment processors readily available, you’d think this would be one thing you wouldn’t need to worry about. However, there are some obstacles in the way not apparent in other industries. It is critical that you prepare for them. It is true for most small businesses – all you need to do is set up a PayPal or Stripe account and you’re away. But for some businesses, like CBD, things are not so simple as we think
Finding a payment processor
When processing credit card payments online, merchant account providers will assume most of the risk involved in the transaction. Due to this, they assess the level of risk involved with different types of business, and treat them accordingly. It’s also important to work with a proactive high-risk payment processor. The one whose own business success relies on staying ahead of the laws and procedures affecting online CBD sales – and who actively works to keep you informed of changes and develops solutions to emerging problems/changes that could derail your business. A lot of businesses will be considered low-risk and will have no problem. However other businesses, because of the nature of the products they sell or the industry they operate in, will be considered high-risk and may face difficulties.
What makes a business high-risk?
Any type of business or industry that borders on legality and chargebacks is likely to be considered high-risk. For example, lots of digital products have higher rates of chargebacks due to the fact they are easier to scam and the providers often operate globally. A company is considered a high-risk business based on 2 conditions: it operates within a high-risk industry and risk of financial failure exits. Either or both conditions might apply. But, both circumstances might affect your company’s ability to acquire financing, insurance and merchant accounts.
What about CBD retailers in UK?
Businesses that sell CBD online in UK sometimes find it difficult to secure merchant processing. It’s because of the origin of CBD i.e cannabis and the fact that this remarkable plant has very different regulations in different territories. For CBD retailers involves “unsubstantiated” health claims. If the product makes a health claim that hasn’t been verified by the FDA, it will fall into the category of “pseudo-pharmaceuticals” where it isn’t an approved prescription drug but still claims to have benefits like prescription drugs.
The payment processors in UK are liable to close a business account if that business is likely to undermine their relationship with a bank. It’s much easier for them to close a small business account than it is to negotiate a deal with a large financial institution.Rather than managing the complexities of differing legal frameworks all around the globe, traditional payment processors have opted to avoid risk and not go there at all. Instead of this, specialist CBD merchant account services have sprung up to fill the gap.
Retailers need not worry about their business because they have a high chance of success.
What does a specialist CBD merchant account service do?
There are thousands of payment processors and merchant services across the globe, but very few of them specialise in high-risk industries, so looking for the right one which suits your requirement is important. Same size doesn’t fit all. IPayTotal CBD merchant account services provide online payment processing solutions that are specifically geared towards CBD vendors. The right CBD payment processor can change the game significantly. Legitimate payment processors can help bring your business to the next level.
How to find a CBD merchant service in the UK?
Merchant services that provide payment processing for the CBD industry are much more niche than the mainstream payment processors. So they can be difficult to find one online. Especially ones that are based in the UK.
At IPayTotal all high-risk CBD merchants are provided with a minimum of four banking solutions. Credit and debit card payments are disbursed across all accounts. That can benefit merchants in a number of ways.
· LIMITED RISK OF EXPOSURE
By disbursing payments across different accounts, CBD merchants will have a lower risk of overexposure with their banks. That will also help to keep the account active and secure and stable by all means.
· REDUCED CHARGEBACK RATIO
Banks will typically only allow for a certain percentage of transactions to be charged back to the consumer. By using multiple banking solutions, the chargeback ratios will naturally remain low.
· PROCESSING CAPABILITIES
multiple banking solutions for a CBD Merchant Account means never going without processing. In case of account closure, our CBD merchants will always have backup banks to rely on.
Adhering to all these standards is something any business should strive for,. However, in a new, high-risk industry, it is more important than ever. Today’s CBD merchants are pioneers in their industry, meaning the way they handle their CBD Merchant Account will set the standard for how banks choose to work with merchants in this industry for many more years to come.
Some things merchants can do to keep their accounts in good standing include:
- Maintain a good history with credit card processors
- Consistently perform a high sales volume
- Keep a high balance in business accounts
- Dispute chargebacks whenever possible and back up disputes with strong evidence
- Remain transparent in all communications with your banks and payment processor
LOOKING FOR A CBD MERCHANT ACCOUNT?
Look no further than IPayTotal , the leading experts in getting your CBD Oil Merchant Account ready to accept payments. Our high risk merchant accounts allow you to accept all major credit and debit cards. Our MOTO payment gateway allows accepting transactions on phone. Our MOTO solutions ensure that credit card transactions are handled swiftly, securely and accurately. IPayTotal is designed to extend your possibilities to easily accept alternative payments online using local and international payment systems.