Starting a CBD business is a financially sound choice, but without the right payment processor, a person’s dreams of being successful can come crashing down around them. What a merchant does not know about Credit Card Processing for CBD can hurt their business efforts. With this information, merchants will learn the information they need to make a pragmatic decision for protecting their company.
What Should Merchants Know?
There are a few things merchants should know before they choose a payment processor. CBD product merchants are considered high-risk because of the great number of chargebacks and the fraud that occurs in payment processing. Because they are considered a high-risk business, many payment processors refuse to provide services or suddenly stop their service without any warning to the merchant.
Even though marijuana is now legal in several states, banks see CBD products as a gray area and are often reluctant to approve a payment processing account for CBD merchants. Thankfully, slow changes are being made and payment processors are coming around. In the next few years, more and more states are likely to legalize marijuana, which will open the door to more payment processors accepting this type of merchant. In the meantime, CBD merchants must educate themselves on their options and best recourse for their payment processing needs.
How to Choose a Processor
When choosing a payment processor, there are a couple of things CBD merchants must consider. Research is vital before making a decision on any payment processor. The following tips should make the process of choosing a processor much easier.
- It is wise for individuals to choose a processor that has a lot of experience working with high-risk merchants. Processing companies with a high level of experience are going to be more likely to be able to help the merchant avoid problems.
- Experts warn CBD merchants to look for processors with a large network of providers and a high stake in CBD companies. Payment processors that have a lot of experience working with CBD merchants are able to stay abreast of the changing laws and protect their merchants.
Taking time in making a decision will help to ensure the right processor is chosen. The reputation of the processor should always be taken into account when making a decision.