- January 11, 2020
- Posted by: admin
- Category: Uncategorized
Who are CBD merchants?
CBD stands for Cannabidiol, a natural occurring found in the resinous flower of cannabis, it is a plant with a rich and long history as a medicine. It helps in controlling blood pressure, anxiety and also has pain-relieving properties. Merchants who sell CBD products like oil are known as CBD merchants.THC (tetrahydrocannabinol) is closely related to CBD but CBD does not make a person feel “stoned” or intoxicated like THC. That’s because CBD and THC act in different ways on different receptors in the brain and body. Until very recently, under Federal law CBD-based products have been illegal. In the US, CBD products are legal now but still, this industry faces rejections from banks and credit card processors for a merchant account because of risk factors involved.
Importance of CBD merchant account and how it helps
An online account that allows your business to accept payments by debit or credit cards is known as a merchant account. While there are businesses which are at higher risk than others like CBD business because of the following reasons:
o High financial and legal risks. It becomes difficult to understand the legal status of the business
o The law regarding cannabis-product is unclear this makes it harder for companies to operate.
o There are no proper health risk guidelines for cannabis.
o Nature of the product.
Such businesses have to go with a high-risk merchant account, which simply means that the merchant has to face various restrictions and high fees. For high-risk business, it is more difficult to get a traditional merchant account because with you merchant account provider takes on more risk when offering you a high-risk merchant account.
What are the steps to get your CBD oil merchant account?
It is important to have a high risk CBD merchant account for your CBD oil business to provide a secure payment solution to your customers and it helps you in monitoring risks associated with your business.
So, here are the steps discussed in detail to get your high risk CBD oil merchant account:
Step1: Know your industry well: The foremost thing you should do is to know the important factors and risks associated with your business type. You should have good knowledge about your industry.
Step2: Maintain a healthy credit card history: Chances of getting rejected by payment provider increases when you don’t have a healthy credit card history. So maintaining a low chargeback ratio is important. A good bank account with a financial clear of overdraft fees has the best chance of obtaining approval for a merchant account.
Step3: Stable your processing volumes: No merchant account provider would like to invest in your business unless you have a large monthly volume of bank card transactions. Maintaining a stable processing volume will help to demonstrate to account providers that there is a demand for your product.
Step4: Get a license and other important documents: Another important step is to gather all the important documents. Also before you apply for a high risk merchant account get a required license for your business to prove your authenticity.
Step5: Set-up an attractive website with a disclaimer and policy: Your business website plays a vital role. Make sure that the checkout is secure and product and delivery options descriptions are clear.
Step6: Research and find merchant account providers: Before selecting merchant account provider do proper research and find those available in the market that specialize in high risk merchant accounts. And make a list of all to choose the best one.
Step 7: List out providers: Now pick those merchant account providers who deal with your business type or in your industry.
Step 8: Find details and reviews: Check reviews and feedbacks of customers of each merchant account provider to make sure the company isn’t super shady or fraud.
Step 9: Analyze the rates and services: Rates /fees should be under your budget. Here, are the important features you should look while analyzing merchant account provider:
- Choose a provider with a great track record in getting high-risk businesses to account for approved.
- Do consider the specific needs of your business for growth.
- Completely avoid those companies who hide fees in their contracts. The market is full of such companies. You need a trustworthy, honest companion like iPayTotal.
- High-risk business involved a lot of expenses, so, try to go for a month to month contracts instead of multi-year contracts.
- Read the contract properly and understand the charges and rates because once you get into the contract then you can’t back off. Only choose a merchant account provider who provides you worth paying services.
- Be certain to discuss debit card and credit card processing rates as they are different
- 24/7 customer services should be provided by your merchant account provider. So, that you can freely discuss your doubts anytime.
Step 10: Apply for the account: Once you find the most suitable merchant account provider for your business, fill the application form and complete other formalities. Setting up a high risk merchant account is an easy process but it is important to submit all of the necessary papers asked by the company in order to avoid delays and confusion.
Here is the basic list of standard items requested.
i. High-risk merchant account application form
ii. Articles of information
iii. Voided check
iv. IRS form SS-4
v. Business financial statements
vi. Processing statements
vii. Business bank statements
***Documents vary from company to company. ***
Step 11: Go through terms and conditions: Don’t forget to read the contract carefully which is signed between merchant and payment provider after all the paperwork and verification. If you have any doubts ask the merchant account provider hand to hand. The merchant agreement governs the entire relationship between a business and the provider, hence, it’s an important document.
Step 12: Ready to use: After all the formalities you are ready to receive payment via credit/debit card online and take your business on the great height of success.
As CBD oil is a high-risk industry, selecting the best high risk merchant account is a very crucial decision. You have to research, go through the reviews and then decide. IPayTotal is a trustworthy companion that helps your Cannabis business at every step. IPayTotal with a decade of experience and professionals works for the betterment of your CBD business and iPayTotal will definitely fulfill your requirements. Our 24/7 available customer service helps you to answer your every query. We practically approve every business type, even when you have been turned down by another high-risk payment processor in the past.
So, let’s get started!!