If you are in the CBD industry, then you know the challenges the industry faces in processing payments. This is because CBD is still a relatively new industry, and many banks and processors are hesitant to work with businesses in this space. However, there are still some fantastic solutions available for CBD merchants. In this blog post, we will discuss how to secure a CBD merchant account, and what to look for when choosing a processor.
What to look for when choosing a CBD merchant account provider?
The first step is to find a reputable merchant account provider that specializes in high-risk industries. There are a few things to look for when choosing a merchant account provider, such as:
- A proven track record of working with high-risk businesses – The CBD industry is still considered high-risk by many processors, so it’s important to find a provider that has experience working with businesses in this space.
- Competitive pricing – Make sure to compare pricing between different providers to ensure you are getting the best rate.
- Industry experience – The provider should have a good understanding of the CBD industry and the unique challenges that come with processing payments for businesses in this space.
- Flexible terms and pricing- Some providers may be willing to work with you on custom pricing and terms, so be sure to ask about this when shopping around.
- A user-friendly platform – You should be able to easily navigate the provider’s website and understand their pricing and terms.
- Excellent customer service – The provider should have a team of knowledgeable customer service representatives who can help you with any questions or issues you have.
Now that you know what to look for when choosing a CBD merchant account provider, let’s discuss how to actually get one.
Getting a CBD Merchant Account
The process of getting a merchant account for your CBD business is relatively similar to the process of getting a traditional merchant account. However, there are a few things you will need to keep in mind:
- Your business type – Make sure to let the processor know that you are a CBD business. This will help them properly underwrite your account.
- High-risk merchant account fees – You can expect to pay higher fees for a high-risk merchant account, so make sure you are aware of this before signing up for an account.
- CBD product type – The processor will also need to know what type of CBD products you are selling. This is important because some processors may not work with businesses that sell certain types of CBD products.
- Sales volume – The processor will want to know how much sales volume your business does on a monthly basis. This information will help them determine if your business qualifies for a merchant account.
- Average transaction size – The processor will also need to know what your average transaction size is. This information helps them understand the risk associated with your account.
Once you have all of this information, you can begin shopping around for a CBD merchant account provider.
If you are in the CBD industry, then you know that processing payments can be a uphill challenge. However, there are still some great options available for CBD merchants. In this blog post, we discussed how to secure a CBD merchant account, and what to look for when choosing a processor. Be sure to keep these tips in mind when shopping around for a merchant account provider.