Cannabidiol is a recently and popular remedy which is increasingly popular in dietary supplements, scientifically it’s known as one of the more than 80 chemical compounds present in the Cannabis sativa plant, better known as cannabinoids, usually known as marijuana. Cannabidiol is obtained from hemp, which contains only a small amount of delta-9-tetrahydrocannabinol (THC) which is the main active ingredient in marijuana.
Selling CBD online
Starting a CBD business can put you in a very difficult path, forcing you to think in a lot of things like the online payment processors available which obviously will be your competitors, also includes a big amount of hard work and effort because launch a company could be stressful and to add more pressure you have to consider the uncertainty of a shifting regulatory landscape (including all the issues this brings with it). Nevertheless, in a primitive industry thought for have a hasty growth, the onerous work today could be very useful tomorrow.
Moreover, you can find obstacles which aren’t present in other industries and it is better that you be prepared for them, mostly if you are running an small business, it could be that you only need to set up a PayPal or Stripe account and you’re done. All this is true for non-high risks business but for CBD business things are more difficult.
Finding a payment processor
If you’re looking to sell your CBD products online, although merchant account providers will assume most of the risk involved in the transaction, you have to consider the risk present when processing credit card payments online, and as the CBD industry is labelled as high risk the chances that you have to promote this business aren’t the best due to this assets have a high level of risk involved, so, for this reason it is recommendable to give a right processing, to do this it’s very important to work with a strongly high-risk payment processor.
In the CBD case, that it is known for its increasingly popularity in the world of health and wellness, you have to be conscient about the laws and procedures that affects online CBD sales, so this way you can relies the business success. Furthermore, you have to keep you informed of changes and look for solutions to the arising problems that could thwart your business. All this is only because CBD is a high risk business, for other type of industry considered as low-risk maybe it won’t have so much troubles and/or difficulties.
What makes a business high-risk?
High-risk business are considered as such based on some factors or conditions: if the business or industry borders on legality and chargebacks, if business or industry operates within a high-risk industry and if the business or industry could face the risk of financial failure. Could be only one condition or all applying or affecting your company to be able to access financing, insurance, merchant accounts and backboard. The first condition is regard to the behavior and practices of the business owner or administrator. The second condition is related to health concerns and safety, the next condition is associated with the company continued profitability.
What about CBD retailers in UK?
Legalization of cannabidiol (CBD) is recently, and not only this, also other cannabis products are being merchandised globally, but, these products are being choose by more merchants across the UK, and they are opening shops and offering their clientele both kind of products, medical and recreational, including CBD. And UK did choose to legalize these products, so this way, UK sellers are being careful not to offer their clients specifics medical benefits for the use of this products due to the lack of support with clinical evidence, for this reason they market this product as food supplements, in contrast they use uncritical social media articles about CBD to explain the benefits purposes. For all this reasons merchants who sells this products find difficulties in their path because of this business it’s considered as a high risk business. However in UK they have so many options to find reliable payment processors and managing the complexities of differing legal frameworks around the globe.
What does a specialist CBD merchant account service do?
Due to CBD oil’s possible medical benefits, its production and sale is beginning to be legalized around the globe. In consequence, retailers who sell hemp-derived CBD are wrestling to find merchant accounts providers that can process CBD payments, because of there are a lack of providers out there who can place CBD vendors, and their ability to do so changes frequently, mostly in pricing, transparency and customer support. And the average of transaction is extremely high due to the level of risk associated with this industry, having so many troubles in their way like rolling reserves or fund holds. But the acceptation of credit cards makes it worthwhile for retailers. The list of providers it has to be checked continuously because it is updated regularly and CBD vendors need to have in mind that CBD processing it is always changing, because principal banks purges the CBD merchants from their portfolios unexpectedly.
How to find a CBD merchant service in the UK?
Nowadays, nobody, even the British government, denies the medicinal value of CBD and THC, even when maintained that lie forcing the cultivation and export of the world’s largest medicinal cannabis crop. So, in UK payment processors for CBD products are much more specific than the remaining payment processors, making it difficult to find one online, and more difficult if you want to find it based in the UK.
In November 2018 a landmark decision allows to UK doctors to prescribe cannabis just for specific cases and circumstances, based by the cases of Billy Caldwell and Alfie Dingley, whose epilepsy is considered improved by medicinal cannabis products containing both THC and CBD, has left a question: does cannabis offers a cure? If it doesn’t at least helps a lot, and people need to access it. That’s why iPayTotal provides CBD merchants accounts with a minimum of four banking solutions. Credit and debit card payments are disbursed across all accounts, beneficing merchants in a number of ways.
- LIMITED RISK OF EXPOSURE
By fork out payments using different accounts, minimizing the risk level of overexposure with the banks, this way CBD merchants will also helped to keep the account active and secure, and stable by all means.
- REDUCED CHARGEBACK RATIO
Typically, banks will only allow a specific percentage of transactions to be charged back to the consumer. If multiple banking solutions are used, the chargeback ratios will be naturally reduced.
- PROCESSING CAPABILITIES
Using multiple banking solutions for a CBD Merchant Account means never suffer for processing. In case of account closure, our CBD merchants will always have backup banks to rely on.
Online credit card processors and merchant account providers assess the level of risk involved during a transaction so that way the can assume most of the risk involved within, so this way they can treat them accordingly and assure to the traders and/or companies they will can work with different types of business. This it needs to be considered because of so many business are considered low-risk and won’t have any problems, but this is not like this for all businesses, because there some that are affected by the nature of the products they sell or the industry they operate in transforming them into high-risk businesses and they will face a lot of difficulties.
All this factors have to be considered as standards and merchants should strive for it, but, for high-risk businesses it is absolutely mandatory to do it. For this reason, CBD merchants are leaders in their industry, making this more important than ever, because of this will be the rule for how banks should choose to work with merchants in this industry for the next two or three decades.
Some things merchants can do to keep their accounts in good standing include:
Keep in a healthy way the relationship with the bank
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?
It is often difficult to secure merchant processing for businesses that sell CBD online. This happens because of the origin of CBD and its very different regulations in different territories, which indicates that in some territories it’s perfectly legal for recreational use, while in another’s can mean prison. Traditional payment processors don’t have the support to handle CBD products.
iPayTotal is a liable payment processor that can help you out to maintain merchant accounts for CBD businesses managing the complexities of differing legal frameworks across the globe and making so much easier to avoid risk and not go there at all, thanks to our MOTO gateway which allows accepts transactions on phone, and also accepting all debit and credit cards ensuring that credit card transactions are conducted under security and accuracy. iPayTotal is the best choice that you can do to spread your possibilities beyond that the regular payment processors do so you won’t need to look for alternative payments methods or use local and international payment systems.