Paying by credit or debit card is one of the most popular ways to carry out online transactions. According to a survey of over 2,000 people that was carried out by Harris Poll in August 2017, 44% of people preferred paying by debit card. If you can’t provide this, chances are your customers will seek out alternative suppliers.
However, as a Schedule I substance that has not yet been legalized at the federal level, suppliers are limited in regards to CBD payment options. After all, banks and financial institutions run the risk of federal intervention if their clients are accepting payments for cannabis-derived products like CBD.
The nation began to take a more progressive stance on cannabis, as marijuana became legalized in Oregon, Alaska, Washington, Maine, Hawaii, Nevada, and Colorado in the late 90s.
1. CBD payment processors accept credit cards and debit cards
CBD payment processing will aid you in attracting and retaining customers, since processors accept these favored types of transactions.
“Our fulfillment is on autopilot. ShipBob saves us so much effort, and the opportunity cost savings has been substantial. ShipBob’s platform is easy to use and navigate, the interface is intuitive, and the analytics are very clearly laid out. Today, our health and wellness brand sells three CBD products in the United States.” Yannick Crespo, Co-Founder & President of Pot d’Huile
By 2022, Statista predicts that the U.S. CBD market is on-track to earn $1.8 billion in legal sales.
CBD products are being tightly regulated by the Food and Drug Association (FDA). Because of this, CBD is considered a high-risk category and, consequently, ecommerce store owners must adopt suitable payment options if they are to reap the rewards.
Either way companies have other options available to them. For alternative CBD payment gateways and merchant accounts speak to our experts today.
From time to time merchant banks change their criteria and attitude to risks. Subsequently CBD merchant accounts and payment gateways can be terminated. Businesses could of had an account approved by PayPal and then received notice quite quickly OR they could have been processing card payments for some time with a bank such as Viva Wallet, who changed their guidelines meaning CBD accounts are no longer acceptable.
When making an application to a CBD payment processor, it’s essential that your case is packaged correctly, giving you the highest chance of being accepted. Listed below are examples of what would be expected in a successful CBD oil merchant account applicant;
Cannabis oil payment processing applications
The industry can be a profitable one. However, securing CBD oil merchant processing can be incredibly difficult! Although currently legal, there are very few merchant banks that will accept applications from CBD merchants. The reason for this, understandably, is the huge risk involved. When applying for CBD credit card processing, it’s important to allow up to three weeks before having your account approved. It’s also sensible to expect to pay higher rates and fees.
CBD stands for cannabidiol, which is one of the compounds found in cannabis. CBD oil is rising in popularity both in the UK and worldwide. The press widely report on the potential health benefits, but also the possible risks when using CBD products, hence why the sale of the oil is controversial.
Although finding a credit card machine for a CBD business can be difficult, there are options available to UK based retailers. Our experts will guide you through from application stage to delivery of the terminal. To start your CBD application with a UK based provider, speak to us today.
Libby James is co-founder, director and an expert in all things merchant services. Libby is the go-to specialist for business with more complex requirements or businesses that are struggling to find a provider that will accept them. Libby is regularly cited in trade, national and international media.