What are the CBD oils? Perhaps you’ve heard of this new class of products, and you’re curious about what they are and what benefits this can offer you. Maybe you’re also interested in opening a business that sells CBD-derived products, and you’d like to know more about the special requirements you’ll need to meet in order to be successful. Well, we’re here to help! Cannabidiol or CBD is a substance (or phytocannabinoid, to be more precise) that’s derived from hemp (Cannabis sativa) plants.
As a state, local and federal governments weigh the pros and cons of legalizing cannabis for both medical and recreational purposes. And the benefits of other products derived from cannabis have taken shape like cannabidiol, it’s known as CBD.
CBD merchant accounts are a relatively new product. But iPayTotal can help merchants selling health or dietary products that contain the compound to find the credit card processing solutions they need.
What Makes A Good High-Risk Merchant Account Provider?
- Find the provider for your type of business: Look for something that suits your requirements.When you search for the provider, save time by finding a company that specializes in your type of business.
- Know about the charges: Any high-risk merchant account is going to cost significantly more than a comparable low-risk one. Mostly they work on a tiered pricing model. You might also expect to be charged higher monthly and annual fees as well, although the difference in these costs isn’t as much as it is with processing rates.
- The payment service provider should offer as many payment types as possible: A merchant account is not only about accepting credit cards. You need to maximize your sales, so plastics are not enough. The best provider should be open to process payments from your customers that are made through other payment methods.
- Contracts: We really like month-to-month billing arrangements that don’t lock you into a long-term contract or force you to pay an early termination fee if you close your account early. Unfortunately, CBD merchants will usually have to accept both a long-term contract (typically for three years) and an ETF, also be aware that if you have a long-term contract, it will probably also include an automatic renewal clause that extends your contract, typically for one-year periods at a time. If you don’t keep careful track of when your contract is scheduled to auto-renew, you might find yourself signed in for another year or longer.
- The provider should offer tools that will help secure your revenue: Choose a provider that assists you in managing fraud and chargebacks. While handling the payment information of the customers so that you can generate customer profiles. And always, security is crucial, especially with cybercrime as one of the major problems today.
- Hardware: In case if you plan to sell CBD products out of a retail location. You will need either a dedicated countertop credit card terminal or a mobile processing system that uses your smartphone or tablet in conjunction with a mobile card reader. Your terminal should be able to accept both magstripe and EMV payments at a minimum. We also recommend that you consider getting a terminal with NFC-based capabilities so that you can take payment methods. Also, we highly recommend that you purchase your terminals outright rather than leasing your equipment. Leasing arrangements lock you into noncancelable long-term contracts. So you’ll wind up paying several times more in leasing fees than what your machine is actually worth.
- The provider should have excellent customer support: It may be easy to find high-risk merchant account providers that have friendly fees and several attractive services. However, if their customer service is questionable, all those features don’t matter. Always make sure that the customer support of the company is outstanding. You can call the customer care and ask a few questions to determine and get a feel of how they handle their potential and existing clients. In case, if the provider is not willing to answer your questions, is impatient, and is incapable of providing help, move on to the next company.
- eCommerce Support: You want to sell your CBD products to as many customers as possible and selling on the website is a good option. And selling via a website allows you to do that and there are still some significant restrictions on selling CBD products across state lines that you’ll want to be aware of before you launch your website. The recent legalization of hemp-based products is going to open up doors to eCommerce opportunities that weren’t there just a few months ago. Most providers can set you up with a high-quality payment gateway that will allow you to process transactions over the internet and significantly expand the reach of your business. Moreover, not all states have relaxed their marijuana laws, you’ll want to find a gateway that will automatically filter out customer addresses where CBD products are still illegal.
Need CBD Merchant Account Solutions?
If your high-risk business happens to be in the CBD Oil industry, we understand how frustrating it can be to find payment processors for CBD when you need to take debit and credit card payments and to have your business run smoothly and efficiently. Finding a high risk CBD merchant account can be really tricky if you don’t know where to start.
CBD oil solution options are considered to be high risk in the online merchant account world due to the nature of how the oil is cultivated this sends the lenders and banks an immediate red flag and your CBD oil merchant account is deemed as a high risk right from the get-go. That doesn’t mean you’re out of luck when it comes to eCommerce and payment processing online, it just means that you need to choose the right company to handle all your needs for CBD merchant processing.
Here at IPAYTOTAL, we work with organizations who legally and ethically source CBD products and we won’t work with organizations that fall outside of law and compliance guidelines. Our team will evaluate while applying with any of our accomplices; business location, the source of supply, location restrictions, shipping and sales and the law of origin and location of the intended sale. We are a CBD payment processor who provides CBD merchants with premium high-risk merchant services. There is a variety of processing techniques that are utilized to ensure that CBD merchant processing is a smooth and simple process for our high-risk CBD Merchant Account holder, So feel free to call us and our customer service representatives will be very happy to help you.