CBD Payments Merchant Accounts

CBD Merchant Account | CBD Credit Card Processing

A CBD merchant account is simply a merchant account that allows you to accept credit card payments, but has been approved by your provider for selling CBD-derived products.

CBD Credit Card Processing | CBD Merchant Account

Goods derived from CBD oils have been available for several years, but the 2018 Farm Bill’s legalization of hemp accelerated the market for CBD products. Unfortunately, the payment processing industry has been slow to embrace this new category of products, making it difficult for CBD entrepreneurs to obtain a merchant account that will allow them to accept credit and debit card payments.

Cannabidiol (also known as CBD) is a phytocannabinoid extracted from hemp (Cannabis sativa) plants. You’re probably aware that cannabis plants are also used to make marijuana. CBD products differ from marijuana in that they contain very little or no THC (tetrahydrocannabinol) or any of the other psychotropic compounds found in marijuana. To put it another way, CBD products will not make you “high.” Despite this clear contrast, CBD-based products were unlawful until just a few years ago under federal law. While this is no longer the case, CBD laws differ significantly from state to state.

Almost all states now permit the purchase or distribution of hemp-derived CBD products containing less than 0.3 percent THC, but each state has its own set of regulatory criteria.

Despite the fact that medical marijuana and, by extension, CBD products are now legal in the majority of US states, most banks and credit card processors have been hesitant to approve CBD businesses for merchant accounts, and many of these businesses have had their accounts shut down without warning. In this post, we’ll provide you an update on the current legal status of CBD products (as of September 2021) and suggest a few merchant account providers that accept businesses selling them.

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What Is The Process For Opening A High-Risk CBD Products Merchant Account?

eDataPay CBD Payment Processing Gateway

As you might guess, the processing industry has classified CBD goods as high-risk, making obtaining a merchant account far more difficult and expensive. Businesses can be designated as high-risk for a variety of reasons, but the most common ones for CBD products include (1) unproven claims about the efficacy of the goods, (2) high chargeback rates, and (3) legal difficulties influencing the product’s distribution.

 

The FDA has not approved or validated the supposed positive effects of CBD oils, as it has not done with many other nutraceutical products (FDA). Because there is currently little or no peer-reviewed research available to evaluate the advantages of CBD consumption, marketers have been quick to promote CBD as a potential remedy for… well, just about anything. CBD was first promoted as a means to help you relax and relieve stress, but it’s now being touted as a cure for melancholy, anxiety, and even autism (at least by some individuals).

CBD Requires High-Risk Processors

A CBD merchant account is a merchant account that has been approved for the sale of CBD products in any or all forms. Most popular merchant account providers (and even several high-risk specialists) will not allow merchants selling CBD products because they are deemed extremely high-risk.

Chargebacks are a known danger for almost every sort of business, but the likelihood of suffering one with CBD products is substantially higher. Unfortunately, the above-mentioned unverified claims of CBD’s good health effects make it much more likely that customers will file a chargeback if they believe the CBD-based product they purchased did not help them or make them feel any better.

Businesses who sell a product that is on poor or ambiguous legal basis are also avoided by banks that underwrite merchant accounts. CBD laws currently vary greatly from state to state, posing a number of legal challenges for CBD businesses.


CBD Credit Card Processing | CBD Merchant Account

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CBD Oil Companies with High-Risk Credit and Debit Card Processing

With secure credit card and debit card processing, CBD Merchant Credit Service Solutions lets businesses optimize their online selling potential. Visa, MasterCard, American Express, Discover, Diners Club, and JCB are all accepted. We also accept all debit cards, including PIN-based and PIN-less debit cards, as well as signature debit.

 

CBD Merchant Services can enable card present point of sale transactions as well as card not present eCommerce, Mail Order, and Telephone Order transactions, regardless of how and where you accept payments.

 

CBD/Hemp Oil ECheck Processing

While debit and credit cards are the most well-known electronic payment methods, businesses can take one-time or recurring Automated Clearing House (ACH) Network payments straight from their customers’ bank accounts for a cheaper transaction cost than debit and credit cards. Businesses can even convert paper checks accepted at the point of sale to electronic checks (E-checks), allowing cash to be deposited faster and more securely.

 

CBD Payment Gateway for eCommerce

Merchants may securely and reliably authorize and settle card transactions using the managed payment gateway solution, which is offered in collaboration with American Express. It has cutting-edge capabilities for protecting sensitive card data, which can help shops satisfy PCI DSS regulations.

 

Wireless Transactions

CBD Mobile gives you the control you need over your wireless payment terminal portfolio while giving you the flexibility you need. CBD Merchant Pay makes use of a PCI-compliant processing environment.

 

ATM Services for Medical Marijuana Businesses

EDataPay.com is a fully managed, PCI-compliant communications solution that provides safe, high-speed transaction transfer for ATMs, POS terminals, and Kiosks. The type of equipment used, transaction volumes, or site requirements are all unrestricted.

 

What is CBD?

CBD stands for “cannabidiol,” which is one of more than 100 types of chemicals found in marijuana. Cannabinoids are chemicals found in cannabis and hemp that work with the endocannabinoid receptors in the human brain. Cannabis and hemp are very similar plants, but cannabis has a lot more Delta-9-Tetrahydrocannabinol (THC), the compound that makes people feel high.
 
CBD is not psychoactive like THC, so it won’t get you high. Instead, it has other benefits, like making you feel less anxious, helping you deal with pain, and a lot more. CBD users can get its medical benefits by vaping it, rubbing it on their skin, or taking it orally in the form of edibles or tinctures.
 
After the 2018 Farm Bill was passed in the United States, hemp could be legalized. This means that CBD and other products made from hemp and other cannabinoids are no longer Schedule I drugs. This has made it possible to sell CBD as a holistic medicine and harvest hemp to make things like clothes, bioplastics, and paper, to name a few uses for this unique plant.
 
Since hemp and CBD can be used for so many different things, it’s not surprising that the CBD market is expected to grow by 15 times in the next 10 years. Now is the best time to start selling CBD, but you should be aware of the risks. In fact, if you sell CBD products online, you are in a high-risk business.

What’s Next?

 
It can be scary to get ready to set up payment processing for CBD. We talked about the types of CBD that can be sold, why it’s high-risk, and what you and your processor need to look for, but we didn’t cover everything.
 
Don’t get down on yourself. Some payment processors still want to take a chance on you and join you on your journey into this growing industry. We’re proud to be one of these payment processors at eDataPay Merchant Systems.
 
We’ve helped our merchants for more than 20 years by being a top processor they can count on. eDataPay has always stood by its merchant partners, and we plan to keep doing so by processing your CBD products!
 
Click on the link below to go to our CBD payment processing page and find out more. You can also start your online CBD business right away.
 

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