best cbd merchant processing

December 15, 2021 By admin Off

They also charge a monthly fee plus flat rate pricing (percentage plus a fixed fee).

PaymentCloud offers a variety of POS systems, but they also reprogram existing equipment to work with its partner banks. They accept all major credit and debit cards for in-person, online, or over-the-phone transactions.

Leap Payments sets you up with a dedicated sales representative to walk you through the process of bank applications and negotiations. Once approved, they’ll set up your account by integrating it with your existing gateway or starting a new approved gateway.

Not sure what is right for your business?

For larger payment processing companies like Square or PayPal, selling CBD products is immediate grounds for account cancellation.

BankCard USA Known as the “vape bank,” BankCard offers same-day approvals for CBD sellers. The company also provides 24/7 customer service, chargeback and fraud protection, PCI compliance, invoice capabilities, and third-party integrations.

In order to process with Easy Pay Direct, you must be a stable CBD company with solid financial backing. Your store must also process less than $100,000 in credit card sales.

Luckily, there are many merchant account providers willing to work with CBD sellers. Knowing what to look for and what each merchant offers can help you choose the right provider.

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PaymentCloud is a high-risk merchant account provider that partners with a large number of banks. The company doesn’t charge an application fee and provides you with a dedicated sales representative to guide you through the approval process.

Easy Pay Direct charges an application fee and the approval process may take up to 14 business days.

eMerchant Broker (EMB)

Mobile and virtual terminals.

Even though CBD oil is legal in many states, merchant processing companies consider CBD sales high risk. Plus, some high-risk merchant processors may cancel your account if they find out that you sell CBD products.

eMerchant Broker specializes in high-risk merchant accounts and claims to offer approval in as little as 24 hours. Merchants with a solid history of CBD sales and few chargebacks will have better odds of approval.

Short Contract Terms Many high-risk merchant accounts require sellers to commit to a long-term deal. This ties you into a specific merchant account even if the laws change and CBD becomes a less “risky” product to sell.

PayKings has relationships with more than 24 banking partners, many of which specialize in CBD payment processing. The company offers payment solutions for both e-commerce and retail stores.

What to Look for in a High-Risk Merchant Account.

Answer a few short questions in our credit card processing quiz to receive tailored recommendations to help you keep more profits.

Merchants can accept a variety of payment types including EMV, contactless, ACH, and major credit cards. PayKings has dedicated account managers who provide a free quote for your CBD payment processing before you sign up.

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Centurion Payment Services Centurion provides low-risk and high-risk merchant accounts, including accounts for CBD retailers. The company also offers interchange-plus pricing, no annual fees, no startup fees, and doesn’t require reserves.

Although CBD products have become popular, some payment processing companies are still wary of the industry. The complicated legal issues, risk of chargebacks, and industry uncertainty make many providers hesitant to get involved in the market.

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The primary reason that Elavon terminated all of their CBD merchant accounts was that they were caught processing CBD that contained greater than .3 percent THC.

Lastly, unproven claims of CBD’s beneficial health effects make it highly likely that a consumer will file a chargeback should they feel like CBD didn’t help with their anxiety, depression, or ailment they are experiencing.

The CBD industry is considered high-risk as it is currently not regulated by the FDA as a dietary supplement . Payment processors and banks understand this, making it hard for CBD merchants to acquire a merchant account for CBD.

Low-risk merchant service providers will not typically process hemp sales, and if they do, they can still terminate your account.

CBD Processing fees can drastically vary from one provider to the next; however, it is worth noting that CBD merchant accounts are significantly more expensive than low-risk merchant accounts.

Lack Of Quality Control In The CBD Industry.

When looking for CBD credit card processing, you must ensure compliance with all regulations. CBD merchants who are selling CBD/hemp-derived products with THC levels of .3 percent can apply for their CBD merchant account.

At Corepay, we specialize not only in CBD merchant accounts but in high-risk merchant accounts. We understand what it takes to get CBD merchant accounts up and running and how to keep them growing.

The transaction may now be disputed with the cardholder’s bank, leading to a chargeback against the merchant.

As the CBD industry expands and encompasses new products, Corepay works diligently to maintain proper service and provide exceptional service to our clients.

It doesn’t matter if you are processing CBD transactions at a brick and mortar location or processing online ; you will still be considered high-risk.

CBD is often used as an alternative to treating epilepsy, cancer, sleep deprivation, and anxiety. With this being said, there has been insufficient medical evidence to back up these claims.

A CBD merchant that sells mostly CBD vapes or ingestible products may be viewed differently from a CBD merchant that deals mainly with external CBD oils, as vapes can introduce another dangerous element.

In 2019 , Elavon began accepting applications for CBD merchant accounts, and companies flocked to them. A few months later, all merchant accounts were swiftly closed after questions arose about the onboarding processing and ongoing compliance with state/federal regulations. Elavon stopped accepting CBD merchants and that they would be shutting down all CBD merchant accounts in 45 days.

CBD merchant accounts are difficult to find as banks and payment processors are worried about reputational risks.

They deem the account to be high-risk, and they terminate the merchant’s account, withholding funds in the account for up to 180 days after termination.

CBD Industry Fraud.

As the FDA does not approve CBD products, banks and payment processors are taking a risk processing transactions, especially in cases like the above.

If a CBD company is caught selling CBD with higher levels of . 3 percent THC, the payment service provider risks taking a significant financial hit and reputational hit as well.

Epidiolex contains a highly purified form of the drug substance CBD for the treatment of seizures.

The fact that the FDA does not approve CBD makes it a significant risk for payment providers. A bank or payment processor’s reputation can be on the line when working with CBD companies, as there are still many unknowns.

Corepay offers the following for CBD merchants:

Stripe is similar to Paypal as it does not support anything CBD related. CBD is currently on Stripe’s restricted business list. Products containing THC and CBD are not allowed with Stripe.

Chargebacks in the CBD industry differ from other high-risk industries such as online dating or adult content. Generally speaking, there aren’t as many chargebacks in the CBD industry, but they still exist, especially with online CBD stores.

Why Are The Best CBD Merchant Accounts Considered High-Risk?

Unfortunately, at Corepay, we see many CBD merchants who come to us after having their Paypal account terminated. Once this happens, we do everything we can to get their CBD merchant accounts up and running again.

At Corepay, we offer our CBD merchants highly competitive rates, and we also waive annual fees, setup fees, and application fees. We believe a good payment processor will earn your loyalty rather than extort it with hidden fees.

As THC levels in CBD can vary, this leads to a risky position for payment processing providers.

It is the CBD merchant’s job to assure that their products contain a legal amount of THC. Consumers cannot verify this information for themselves; therefore, they could receive products that contain zero THC or products that contain too much THC.

Working with a payment service provider specializing in high-risk credit card processing can significantly help reduce chargebacks, saving CBD merchants money.

Be sure that you seek out a processing company specializing in CBD merchant accounts to avoid any further surprises.

For example, someone signs up for a CBD subscription box. They decide they no longer wish to receive CBD packages, yet they forget to cancel their subscription.

When your account is terminated, there isn’t anything you can do to speed up the process of reclaiming your withheld funds. Corepay will work with your business to get your account processing transactions swiftly if your account was terminated.