**UPDATE** Not only are the laws changing with regards to CBD but so are the payments options, since the passing of the 2018 Farm Bill much has changed for merchants selling CBD. For the most up to date information and options for accepting payments for CBD see our newest article here!
FACT: No E-commerce site selling CBD (Cannabidiol) can accept credit cards with a traditional merchant account.
FACT: No domestic bank will knowingly provide a credit card merchant account to CBD and hemp oil merchants.
FACT: CBD merchants face a major challenge in finding reliable, affordable, transparent payment solutions.
FACT: Despite ALL these facts, there is a solution!
Currently 47 states allow the sale of cbd, 29 states have legalized medical cannabis which includes CBD and there are 18 more that allow the sales of cbd only for medical purposes. And these state laws are continuing to change as more states legalize cannabis and/or CBD oil, whether for recreational or medicinal use, through vote or legislation.According to Greenwave Advisors the market for CBD is expected to reach $3 billion by the year 2021. Cannabidiol oil (most often referred to as “CBD” or “CBD oil”), while it is derived from the cannabis plant, it is extracted from low-THC strains of the plant that produces a therapeutic oil that is non-psychoactive.
There have been many studies that have shown the benefits that CBD can have for a variety of different ailments, ailments such as epilepsy, seizures, chronic pain, inflammation and even Cancer.
Even so, because of CBD’s association with marijuana and the fact that it is considered an illegal substance by the federal government makes it a challenge for online and brick and mortar establishments alike to find a reliable way to take payments for the products their customers so desperately need. The main goal is to get this very much needed product to the customer with the least amount of difficulty and friction possible. This is exactly why it is so important for businesses in the CBD and hemp industry to find and partner with a reputable payment processor.
And the only reliable way to do that is to offer your customers the ability to order and pay for their products on your online/Ecommerce website through a processing platform that enables your products to be sold, processed, and ultimately funded to you without a hitch.
But how do you do that when you can’t get a merchant account to accept credit cards?
A lot of processors will lead you to believe that you can accept credit cards for your online CBD sales and ensure you that they have a “100% domestic, US based” merchant account for accepting credit cards. This is simply untrue. Why do they say it then? Well, because what they are referring to, without actually stating it in their advertising, is a merchant who only sells topical CBD creams and ointments. When we are talking about ingestible CBD oils and supplements there are NO “domestic”, traditional banking options which will include a merchant account that will knowingly allow you to accept credit cards for this type of CBD sales.
Yes, there are offshore merchant accounts that can be set up where you can accept credit cards. They definitely come with their own host of risks to your business. Offshore high risk accounts are most certainly aggregate accounts where the provider is attempting to hide the true nature of the business by burying it within a multitude of other accounts and processing everything together through one account. These types of accounts also often come with rolling reserves and fund holds. Not to mention they are usually extremely expensive and come with high decline rates. They are definitely at risk for being shut down any moment therefore paralyzing your business until you find another account or another option.
It is absolutely imperative for your CBD businesses to have a reliable and transparent payment option, not only for the health of your business but for the health of your customer base as well.
How can you accomplish this goal?
The only way to have a reliable and transparent option for payments is to have a payment method that is not only divulged to, but also condoned by the bank you are working with. The only payment option that fits this criteria is the CBD Payments Program available through Bankcard Brokers.
I can’t understate the benefits of having domestic and transparent payment services offered to CBD (oral and topical) E-commerce companies. First off being domestic, or within the U.S., is a key component of acquiring a payment processing solution that you can count on. Offshore merchant accounts for high risk businesses have strict rules for chargebacks and also tend to have a very high decline rate. This is because the authorization is done in a foreign cuntry so oftentimes the customers bank will decline the payment because they think there is fraud. Unless the customer thinks to call their bank and let them know these transactions will be happening, which is pretty unlikely. Offshore accounts are very volatile which puts them at risk for shut down without a moment’s notice.This would cripple an online business. With a domestic account where the bank is fully aware of the products you are selling there is much less risk of business being interrupted due to an account shut down. Our CBD Payment solution is a hybrid account where all authorizations happen domestically. This one advantage gives your customers the ability to make secure payments for the products they need without worry of being declined. They will be able to go online to your website, pick out the products they need and add them to their cart and purchase those products confidently through a secure gateway with their Visa/MasterCard information.
The cost of processing credit cards with this type of account is significantly less, to the tune of about half the cost compared to an offshore high risk account.
Quick approval and ease of integration is another benefit of having a domestic banking solution. Our secure payment gateway easily integrates with your current shopping cart.
How would you like to experience more consistent cash flow? Offshore merchant accounts will not only subject you to rolling reserves and fund holds, but they usually only fund once a week. With our domestic CBD Payments Program you can enjoy not only quick funding into your business bank account but possibly daily deposits, depending on your volume, giving you more consistent access to your cash flow.
As always, Bankcard Brokers diligently works to cultivate reliable and transparent banking relationships that give us the ability to support and enable the CBD industry. Due to the changing needs of the CBD industry we are constantly creating innovative products that will surpass the security concerns of accepting payments online. We appreciate how crucial reliable and affordable merchant services are to your business. Through our many years of experience we have learned to focus on your needs, whether through our numerous banking relationships, our state of the art payment gateway, fraud prevention tools or unparalleled customer service. We have a simple philosophy – “to always act in the best interest of our clients transparently, legitimately, and credibly while backing it up with World Class Service.”