Thursday, April 14th, 2022
CBD payment processing has come a long way. Once seen as a controversial industry, CBD is now becoming mainstream. As the CBD market expands, there has been an increase in demand for CBD payment processing and merchant accounts.
The legalization of hemp-derived products has created a new opportunity for merchants and consumers.
But as a business owner, you know that success requires more than just having a great product and customer base. A critical part of your business operations is finding a merchant account provider and the payment processor to handle your credit card processing.
As a high-risk industry, the struggle for CBD merchants has been finding banking relationships willing to take the risk that goes along with selling CBD products. This lack of banking options has made it difficult for businesses to grow.
Many banks are still reluctant to get involved with hemp-related businesses or any cannabis-related industry due to the remaining legal uncertainty.
The inability to collect payments from customers due to the lack of banks willing to offer services to these businesses meant to turn to high-risk payment processing companies that charge exorbitant fees. Some resorted to cash-only businesses which brought new security concerns.
These problems hindered cash flow in the CBD sector slowing down merchants operating in a highly lucrative industry.
But now, there are alternative ways to accept payments for CBD oil and other products.
Alternative Ways to Accept Payments for CBD Products
The best payment methods for your CBD business depend largely on what types of products you sell and where your customers are located. For example:
If you’re selling CBD products in-store at a fixed location, then you should have at least one point-of-sale device that accepts credit cards as well as cash. EMV chip card technology is recommended to accept payments securely and minimize the risk of chargebacks due to fraudulent use.
If you’re selling CBD products online, then at least one eCommerce solution like debit cards, eChecks, or credit cards.
CBD merchants can also take advantage of new innovative solutions like crypto payments
Choosing a payment processor for your CBD business is a huge decision. The right payment processor can not only help you grow your sales but also ensure that you stay on the right side of the law. A wrong choice, however, could lead to frozen funds, compliance issues, and even criminal charges.