Owning a CBD business or purchasing any CBD-related item has never been an easy or relaxing feat, with the government trading system making it more and more difficult to make purchases. If you haven’t heard, major U.S. banks, including payment processors, have lately turned against CBD, dropping their current CBD brand clients. Elavon Inc., the country’s largest CBD processing company, announced on March 14, 2019, that it would cease all CBD- and hemp-related transactions, giving present merchants 45 days to cancel their accounts. This created a lot of confusion within the community, but it also created distrust and failed attempts from both the clients and the retailers of CBD products to embark on a smooth trade. Finding reliable nationwide processors is the first way to go about it. If you are looking for a reliable CBD nationwide processor, drop by CBD Nationwide to know more.
What To Look For In A CBD Payment Processor?
Because competition in the CBD industry is tough, you should be at the top of the game if you want to maximize profit possibilities and client retention. A CBD payment service can give your company the ideal personalized solution while alleviating administrative, bookkeeping, and business maintenance issues.
- Affordable Prices: Any high-risk business owner will be more expensive than a comparable low-risk account. Expect tiered pricing, higher statement, compliance, monthly and annual fees, rolling reserve limitations and other costs. Owners of small businesses should shop around for the greatest deals.
- Having The Right Contacts: Longer-term agreements and early termination fines, auto-renewal provisions, and other unpleasant terms is the unfortunate truth for CBD businesses. Knowing your options and contractual conditions can assist you in making smarter, more long-term judgments.
- Having The Right Hardware: If you want to sell CBD goods from a physical location, you’ll need a tabletop credit card terminal or a mobile barcode scanner with a card reader. Your system should be able to accept both magstripe and EMV cards and contactless cards like Apple Pay if it is NFC-capable.
- Having an Integrated eCommerce: You’ll want to offer your products online to broaden your potential consumer base, especially considering the expanding number of individuals who buy on their smartphones. While the legal difficulties surrounding CBD sales make this more difficult, committed high-risk merchants can give your business secure payment gateways that can exclude clients who live in areas wherein CBD products are prohibited.
- Solid Customer Support: Above all else, customer service is what genuinely distinguishes average processors from truly exceptional ones. CBD and other high-risk businesses are more likely to have customer service concerns, so look for a supplier with an excellent track record of successfully addressing them.
Ways The CBD Industry Can Process Payments
- Credit Card Processing(Domestic): That’s what everyone wanted, and it’s what Elavon delivered, and it’s what just one bank can now deliver. Companies that haven’t applied yet and aren’t producing at the minimum of $200,000 in sales per month shouldn’t spend their time registering before the smoke clears.
- Domestic Solutions for E-Check: Brands of any size can use domestic e-check solutions. This non-banking alternative payment option has been mostly untouched by recent developments. While e-check percent rates are often lower than international processors, they come with monthly fees and setup expenses.
- Credit Card Processing (Offshore): This is open to businesses of all sizes, mainly in the European Union, where CBD regulation is rather lax. However, circumstances have tightened recently. MasterCard is currently mandating that a corporation have an EU address to accept MasterCard transactions via an EU merchant. By the year’s conclusion, Visa is scheduled to implement this policy.
- Specific Terminals for Payments: If you’re swiping your credit cards on the go, you’re in luck, as some credit cards have payment terminal providers, such as Naturepay or GreenBox, which are still in business. This is the method that dispensaries employ. The money from the just-swiped card is to be automatically deposited into your respective bank account.
With an increasing amount of eCommerce CBD firms entering this dynamic sector, some payment processing providers have noticed the demand and taken on the risk by providing merchant processing gateway systems. Business owners will have to depend on CBD payment processors to safely, effectively, and courteously handle high-risk transactions until cannabis is completely legal and federally controlled. Having the right processor sure makes things a bit easier on everybody.