If you sell cbd, you’re probably no stranger to roadblocks, exorbitant fees, and unpleasant shocks when it comes to accepting money. Although the ability to take credit cards is critical to the success of your company, most payment processors are wary of cbd due to its relationship with cannabis.
This puts company owners in the unpleasant situation of striving to meet compliance requirements and paying high costs while always seeking for the correct solutions to assist them in doing something that is fundamental to every business: collecting payments.
While these are genuine challenges for most cbd companies, there are methods to avoid them. The trick is to choose the best cbd credit card processing partner. To assist you on this path, we’ve developed a list of seven traits to look for in a cbd merchant account payment processing partner.
- An extensive merchant account approval process
Many individuals believe that quicker is better when it comes to applying for a cbd merchant account, however, this is not always the case. Some credit card issuers process applications for new merchant accounts fast, only to discover later that the firm sells items outside of their regular risk profile or sells more of them than they anticipated when the business owner submitted the application. When this occurs, the company risks being unable to handle payments.
When requesting a cbd merchant account, ensure that the payment processor properly underwrites new accounts and does extra due diligence. Providing more information on the things you offer, their chemical composition, and how you promote them may seem time-consuming, but it will assist your company in the long term.
- Is backed by a sponsor bank that acknowledges cbd
As you’re undoubtedly aware, it’s not unusual for cbd companies to be allowed to take credit cards one day, only to discover later that their processor suddenly considers them as too high risk and can no longer serve them.
That is why it is critical that you have faith in all parties involved in the transaction. This is also why not every credit card processor can provide cbd merchant accounts.
- Is an expert on cbd regulations at the federal, state, and industry levels?
When selling cbd, it’s critical that your processor is up to date on federal, state, and local legislation, as well as crucial rules regulating the sale of cbd-related goods. Being “up to speed” in these areas is not enough. Your processor must be a professional and should be able to assist you in understanding the complexities so that you do not have unexpected payment processing shutdowns or surprise penalties.
- Provide transparent and competitive rates
Many processors take advantage of cbd-selling firms because they know it is difficult to get a merchant account. Exceptionally high prices, pricing gimmicks, and frequent rate increases are some of the methods they use.
This is when your processor’s reputation comes into play. You need a payment partner that is trustworthy and provides straightforward pricing with no hidden costs. You should always know how much you’re paying and why.
- Offer surcharging or cash discounting programs to assist in offsetting processing costs
You should have access to services that may assist offset your processing costs in addition to receiving fair, competitive rates. One method is to use improved pricing schemes such as cash discounting and surcharging. These programs are excellent examples of how to legitimately split processing expenses with your clients while protecting your revenues.
