For obvious reasons, payment processing for hemp oil businesses is a bit more complicated than filling out an online form and setting up a merchant account. Due to the political aspects of such businesses, and the fact that it’s not legal in all of the states, there are far more things to consider when considering how to process payments.
The fact of the matter is, E-commerce sites that sell CBD aren’t allowed to accept credit cards like the traditional merchant accounts do. They have to go less traditional routes and circumvent some of the former more commonly recognized payment methods. Domestic banks won’t willingly offer credit card merchant accounts to such sites. Cleary, there is a huge challenge for these businesses in finding ways to deal with this issue and accept credit card payments without jeopardizing their business.
At present, only 47 states allow CBD sales. 29 states allow legalized medical marijuana that also includes CBD oil. There are also 18 other states that will allow the sales of CBD oil for medicinal purposes but won’t allow the medical marijuana sales. In brick and mortar stores, this is all done on a cash basis, but that’s not possible online.
According to research done by Greenwave Advisors, the CBD market is anticipated to reach over $3 billion by the end of the year 2021. CBD is derived from the cannabis plant and is a non-psychoactive product. There is no THC in the product. THC is what produces the psychoactive properties of the product so since there is no THC in the CBD oil, there is no risk of psychoactive reactions.
In spite of the medicinal benefits of CBD products, there is still a lot of controversy over the payment methods and many of the merchant accounts are reluctant to become involved. However, there are a few great companies that have recognized the need for such high-risk merchant accounts and are climbing on board to help with the sales of CBD products and the processing of credit cards.
Of course, the main goal is to get the product to the customer that requires it with minimal difficulty. For this reason, reputable payment processors are at the ready to help process these accounts and payments. There are a variety of reputable payment processors that are able to work with businesses and process these payments.
E-commerce websites are making it easier to process these payments on a processing platform that will allow the products to be sold, processed, shipped and delivered to the customer in a timely fashion.
Not all of these companies are based in the United States. Traditional banking options that include merchant accounts may have strict regulations. However, there are many offshore merchant accounts that are set up that allow for the processing of credit cards for the sales of CBD.
It’s imperative for a CBD business to have a reliable form of transparent options for payments. Bankcard brokers will work with the company in most instances to process payments. The key is using the E-commerce companies that are located in the United States to minimize the risks of foreign companies being shut down.
There are strict rules for such business accounts regarding chargebacks. These companies also tend to have a very high rate of decline due to the authorization that is done in foreign countries frequently decline payments if they suspect fraud. Often, while there is no fraud, something isn’t quite right in appearance and they will decline the payment. To help combat this issue, customers may wish to contact their bank and let them know that there will be offshore transactions on their bank card.
Unfortunately, offshore accounts can be volatile which puts them at a higher risk of being shut down without notice. This shutdown would cripple many online businesses. Domestic accounts, when the bank is aware of the what products are being sold, have a far lower risk of such shutdowns. CBD payment solutions are a new hybrid account that authorizes domestically. Many companies are jumping on board to take advantage of such payment solutions and work toward the freedom of being able to utilize such accounts.
In this fashion, customers can process their payments in a secure fashion for the CBD products that they require without fear of being declined. This gives them the freedom to go online and order products without fear of being declined their product due to a payment glitch.
It’s far less to use this sort of account when compared with the higher risk offshore accounts. Customers will find an easier order system and a streamlined payment system when the company that is selling the CBD works toward this solution.
Maintaining a domestic route will also bring more return on investment and there will be fewer fees to the CBD oil company that is utilizing these companies. Customers will have fewer rejections and a better shopping experience when the CBD oil company chooses to go a domestic route vs an offshore route for payment processing.
There are going to be fees involved regardless, but with fewer rejections and more return on investment, businesses will find that the business is actually making more in the long run without having to pay the higher fees of the offshore merchants that work on the accounts.
It’s also a safer route to go as many of the offshore companies are “here today, gone tomorrow” type companies that may take the money and run. This can be a very dangerous way to do business and the CBD company may wind up losing hundreds if not thousands of dollars if they’re not careful.
The bottom line is choosing the best cbd merchant processing that offers a domestic payment system. These have shown a good solid way to do business and process payments. Read the fine print and find out how the company that you’re doing business with is processing payments. Make sure that the payment system is verified and has been in place for a good amount of time and there shouldn’t be any serious issues when processing payments and getting the product to the customers.