Square is one of the first traditional platforms to delve into CBD processing. However, merchants must undergo intensive screening to make the cut. Square makes sure all products sold on their platform are under the THC threshold. Additionally, the Square early-access program is only a trial for the payment processing company.
Oftentimes, CBD merchants don’t know this when establishing payment processing. When CBD merchants use traditional processing, they put their entire business at risk. Traditional processors typically ban the sale of CBD. Violating this policy can result in a merchant’s account being frozen. Merchants are left without access to their business and any funds in their merchant account. This is an urgent problem for a merchant to face.
Stripe uses machine learning through Radar that can evaluate each payment’s risk in real-time. Radar is a helpful tool for merchants and can even protect them from fraud. While on the other hand, it means that merchants using Stripe are continually being evaluated for risk. High purchase volumes or an increase in chargebacks can make merchants appear to be high risk to Stripe. Radar can automatically flag your merchant account for Stripe to review. This may come along with your account being temporarily frozen. However, if you are a high risk merchant, you know that your industry comes with abnormally high chargeback volumes. Stripe does not have expertise in high risk, nor do they want to. So, this is why high risk merchants cannot look to Stripe for long-term processing solutions.
Stripe’s CBD Policies
This process could take weeks due to the size of PayPal’s platform. Since PayPal does not allow high risk industries to use their platform, CBD merchants are out of luck. On PayPal’s policy page, it states that products containing Cannabidiol may not be sold using the platform. PayPal does not accept or facilitate any CBD payments. This is because the regulation on the sale of CBD products is constantly changing. So, PayPal does not want to worry about being in regulatory compliance by banning this sale. The same can be said for other high risk industries. PayPal’s policy states that any business deemed as high risk will not be supported on their platform.
High risk merchants who establish payment processing via traditional platforms are sure to run into some trouble. PayPal, Stripe, or Square just can’t fit a high risk merchants needs. So as a high risk merchant, it is essential to understand payment processing in your industry. As a high risk merchant, there are plenty of reliable options out to choose from.
The Stripe CBD policy has similar restrictions to other traditional payment processors. Their popularity in traditional processing often confuses high risk merchants. Many high risk merchants don’t even think twice when signing up for Stripe’s platform. But unfortunately, a merchant’s high risk business will likely be shut down once discovered on Stripe. Stripe’s policies state that high risk industries are restricted from using any aspect of the platform. Among those explicitly stated is any Cannabidiol product. Stripe’s CBD policy is zero tolerance. This means if a merchant is discovered selling CBD, they’re account could be frozen. Now, it is up to the merchant to establish a high risk merchant account to regain their business and funds. Once this is done, Stripe can release funds and deactivate your account.
Keep your CBD merchant account protected and know the policies of traditional payment processors.
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For bank transfers just simply give us a message and we’ll provide you with the details.
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You simply must be prepared for the worst case scenario when it comes to dealing with online and offline transactions for CBD-related products.
With the above information in mind, take the time to ask a CBD payment processor about any additional and/or customizable services that they can offer. Since every company’s approach is unique, it is crucial that you can depend on a CBD credit card processing platform for all of your payment needs.
Not every payment processor will require you to sign a contract that is binding in order to do business. Each company’s fees and contracts will differ, so allow yourself enough time to ponder over which one suits your CBD company the best.
For example, if a customer wants to issue a $200 chargeback on a recently submitted order, you need to understand exactly how these types of situations will be handled by your chosen CBD payment processor’s customer service team. After all, the level of service they provide will reflect on you as a business.
Ultimately, this kick-started plenty of research into a molecule that has since been hailed as a medical marvel ingredient.