Everything You Want to Know About CBD Merchant Services

When you have finally decided to start a CBD business, it would be better to know how CBD business can be managed successfully. One important aspect of CBD business is online business transactions. Rarely a business today would not like to establish an online presence. So the idea of conducting business solely through the brick and mortar store doesn’t stand true. Therefore, a merchant would have to find a merchant account and a payment processor to facilitate transactions.


Well, the ground reality of the online CBD business isn’t pleasant as it may seem. CBD although an element or ingredient of Marijuana, isn’t used for the same purposes as marijuana is used such as for drugs. Unfortunately, some banks and merchant services providers are still hesitant to take CBD businesses on board. The only way to successfully settle in is to consistently look for the banks that are willing to provide you the merchant services. 


Before getting into the nitty-gritty, let’s first understand what is CBD merchant account and high-risk business.

CBD Merchant Account

CBD Merchant account is a high-risk merchant account that facilitates the online business transactions of CBD products. Since CBD business falls under the category of high-risk business many banks avoid taking the responsibility of processing such transactions. Thus, it becomes important for businesses to have a CBD merchant account that helps in processing their business transactions.


High-risk Business

 Businesses that have a high risk of credit fraud and chargeback are termed high-risk businesses. Few examples of high-risk businesses are given below.

  • Online Gambling, Online Gaming, and Casinos.

  • Sports Booking.

  • Travel and Advanced Booking.

  • Subscription-based services.

  • Telemarketing services.

  • Bitcoin Mining or Forex Trading.

  • Cannabis Products / Head Shops.

  • Pharmaceuticals.


Why is CBD Business classified as a High-risk business?

Legal status and regulations Although, CBD business is legal in many states, only a few regions paint the picture of the whole CBD business as dark. There is no clarity about how to deal with these products in such regions. So considering such a scenario CBD business is considered as a high-risk business.

  • Credit Card processing risks

CBD businesses pose a risk of credit card fraud to banks. Many businesses try to use the traditional route of credit card processing but that can be risky. This is because they might get flagged because of the nature of business and trying to manage business transactions using a different bank can be time-consuming. This will be devastating for the business. 

What all should you look for in a CBD Merchant account and payment gateway?

The obvious thought that might come into mind before looking at the different options is what factors should be considered to finalize a CBD merchant account. Don’t worry we got your back. We will provide you all the factors that should be considered for selecting your CBD merchant account.

  • High-Risk Availability

  • Easy payment Integration

  • Low credit card processing

  • Reasonable Contract Terms

  • Enhanced customer support

  • Payment Method Availability

  • Clear Terms of Service


 Stepping into the CBD industry might be easy but it isn’t really easy to bypass the complexities that you might face in setting up the online CBD business.

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