The growing popularity of plastic, checks by phone and other modern forms of payment is rendering cash a less liked alternative among merchants and customers when it comes to selling and buying services and goods.
As a result, business success today depends on the ability to accept multiple forms of payments. Yet getting payment processing is still a struggle for entrepreneurs in the cannabis space like the ones that sell CBD Oil.
Payment processors choose companies depending on their risk factors, and selling CBD means you won’t easily qualify for an account. Read on to find out why businesspeople like you won’t get an account when the time comes to begin processing payments.
First, while many states across the United States have legalized CBD, other states still consider its possession and consumption illegal. Most traditional processors and some modern processors prefer dealing with perfectly legal entities as dictated by the stringent federal banking laws.
As a result, CBD businesses struggle to cope with these regulations as cash remains their only means of trading. As expected, dealing on a cash-only basis is slowing down the industry which is straining to thrive in an era where some customers no longer even carry cash. Stores that want to sell online are stranded because cash is not an option. Plus, handling cash means the business owners must worry about security.
Though states that have decriminalized CBD have set payment processors free to begin considering account applications from companies selling CBD, the challenge remains with the entrepreneur to see to it that they find a dependable payment processor. And because a regular payment processor won’t offer the best terms, negotiations are often more successful when dealing with a high-risk payment processor.
Such unforgiving terms may tempt business owners to try tweaking their firm’s risk factor to obtain an account— an act that is quite risky. Concealing the real dealings of your business can help win you an account, but this may later lead to contract termination and a tainted reputation when your processor eventually finds out the truth.
So when looking for a CBD oil merchant account, make sure to be ready with all the requirements most modern merchant processors list for high-risk businesses. Be transparent about your entity’s dealings and be prepared to accept the restrictions placed on your business during the probation phase.
For CBD businesses, obtaining a payment processing account is difficult but not impossible. The market has several devoted processors willing to work with high-risk accounts.
Author bio:Electronic payments expert Blair Thomas is the co-founder of high-risk payment processing company eMerchantBroker. His job includes helping merchants start taking checks by phone. He’s just as passionate about his business as he is with traveling and spending time with his dog Cooper.