Have you tried to search “How to obtain a CBD Merchant Account” or “Hemp Merchant Account” and came up short? You are not alone. Although 100% legal, most banks and processors still do not board companies in this industry due to how CBD is cultivated. Online CBD, hemp, and marijuana oils stores have opened up a new global market.
What is Cannabidiol ?
Cannabidiol oil is a derivative of the cannabis plant that has been appeared to have the potential to treat certain illnesses, for example, seizures, sickness, inflammation, and anxiety. It is extracted from low-THC strains of cannabis to form a non-psychoactive oil that would then be stored in capsules for accurate dosing. Cannabis is currently a Schedule I drug in the United States, which makes it illegal according to federal law and thus CBD Merchant Account and marijuana payment processing is restricted by visa and mastercard. The question now arises on how to have a secure way for transactions for cbd payment processing on a global level. you need a domestic or offshore CBD merchant accounts to make web payments. High risk merchant accounts for CBD oil is important to grow your online CBD oil sales. However, partially as a result of CBD oil’s conceivable medicinal value, some states are beginning to authorize the production and sale of this substance. Therefore, merchants who sell hemp-derived cannabidiol are yearning to open CBD Merchant Accounts that can process CBD payments.
By accepting the payments, the merchant would now be able to serve a global clientele with established systems for cannabis payment processing. The CBD Merchant Account system will calculate currency differences and allow transactions to happen twenty-four hours a day. This will result in increased sales and profits for CBD merchants.
The consumer also benefits from this hemp supplies, lotions, CBD infused oils shopping flexibility. Regardless of their location in the world or the time, the consumer will find the online store open for business and prepared to complete the money transaction rapidly and safely through their dedicated CBD merchant accounts.
Online CBD sales payments are a secure way to transfer money between two parties. Online payments with CBD Merchant Account will allow for the safe transfer of funds between the merchant and the consumer, yet it will protect all sensitive information from both sides for CBD sales payment processing.
CBD Payment Processing
The online CBD sales business can be a profitable one, however, securing CBD oil merchant processing can be unimaginably difficult! Although currently legal, there are very few merchant banks that will acknowledge applications from CBD dealers. The reason behind this, justifiably, is a huge risk involved. While applying for CBD oil merchant account , it’s important to allow up to three weeks before having your account approved. It’s also sensible to hope to pay higher rates and fees for your CBD and hemp oil merchant accounts.
CBD Payment Gateway
The majority of CBD and hemp oil items are sold online through e-commerce platforms, accordingly securing the correct payment gateway system is very important. When working in any high-risk division remaining PCI complaint is paramount to streamline trading. High-risk companies frequently receive notice from their current card payment processor, due to failing to meet compliance standards. Taking care of business is critical, SPEAK TO US TODAY.
Why Do Banks Consider CBD A High-Risk Ind
Acquiring banks are uncertain of CBD payment processing in view of its link to marijuana. The hemp plant is comprised of cannabidiol (CBD) and THC. While THC is the psychoactive, painkilling compound in weed, CBD is a characteristic pain relieving with hardly traceable amounts of THC. The association itself, we’ve found, is sufficient to drive away certain acquiring banks. Our acquiring banks accepting CBD Merchant Account , however, welcome CBD merchants with the correct criteria, such as:
Straight e-commerce sales
- Proof the merchant can produce at least $1,500 every week in sales.
- Four to six months of payment processing history with banking statements showing company name, total sales, chargebacks, and refunds.
- Endure a 10 percent rolling reserve
Securing CBD payment processing
At IPAYTOTAL, we work with organizations who legally and ethically source CBD products, we won’t work with organizations that fall outside of law and compliance guidelines. The accompanying will be evaluated while applying with any of our accomplices; business location, the source of supply, shipping and sales, location restrictions and the law of origin and location of intended sale.
Long-Term Solutions for CBD Merchant Processing
iPayTotal is a CBD payment processor that provides CBD merchants with premium high-risk merchant services. We utilize a variety of processing techniques to ensure that CBD merchant processing is a smooth and simple process for our high-risk CBD Merchant Account. Some of the features of your CBD merchant account include:
- Multi-bank processing (including off-shore)
- Secure payment gateway
- Chargeback alerts
- Chargeback disputes
- ACH/Check 21 processing
- Fraud prevention and protection
- Competitive processing rates (below 6%)
As a CBD payment processor, iPayTotal works hand in hand with CBD merchants to protect their businesses from account closures, fraud, and chargebacks. We offer award-winning fraud and chargeback protection and have strong relationships with over 40 banks who work with high-risk merchants both in the United States and offshore.
100% Domestic CBD Merchant Account
iPayTotal can offer a 100% USA domestic CBD credit card processing solution for your business. This incorporates a US acquiring bank and a US processor for a CBD Merchant Account. This is important as your card acknowledgment rates will be near 100%, thereby directly increasing your sales. Please note you will have your own merchant identification number (MID), including your own descriptor, and fully detailed monthly merchant processing statements.
Many processors claim to have processing solutions for the CBD industry, but only have international solutions, or offer aggregate accounts.iPayTotal has by a far the largest network of acquiring banks and processors in the world that will board your CBD Merchant Account fast!
Domestic Account Overview:
- No processing history required!
- Flat fees ranging from 4.95-7.95%, + $0.60/trans (includes per transaction for gateway)
- Daily funding
- 0% Reserves for well-qualified merchants (else 5% – 180 Day Rolling Reserves)
- Usual setup time is 5-7 business days
- Recurring payments
Required Items for Domestic Application Submittal:
- Voided Check & Bank Letter
- Color Copy of Driver’s License if US Resident for ALL Principal signers.
- Articles of Incorporation/Organization
- 3 Months’ Company Bank Statements, IF EXISTING business
- 3 Months’ Processing Statements for all accounts, IF already processing.
Required Guidelines for Domestic Merchant Account:
- Must have US company and federal tax ID
- Must have US business bank account
- Hemp Oil / CBD Oil products must be under .3% THC dry weight
How Multi-Bank Processing Protects CBD Merchant Accounts
All iPayTotal high-risk merchants are provided with a minimum of four banking solutions. Credit and debit card payments are disbursed across all accounts, which can benefit merchants in a number of ways.
- Limited Exposure – by disbursing payments across multiple accounts, CBD merchants will have a lower risk of overexposure with their banks.
- Reduced Chargeback Ratio – banks typically only allow for a certain percentage of transactions to be charged back to the consumer. By using multiple banking solutions, chargeback ratios will naturally remain low.
- Avoid Losing Processing Capabilities – having multiple banking solutions for a CBD Merchant Account means never going without processing capabilities. In the event of account closure by one bank, our CBD merchants will have at least three backup banks to rely on.
Keeping CBD Merchant Accounts in Good Standing
As a new industry, it is important that CBD merchants maintain their accounts with banks and credit card processors. Building good histories will increase the likelihood that banks eventually see CBD merchants as a legitimate and viable business that they are willing to work with. 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
Adhering to 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 years to come.