Do you run a business that offers CBD oil? You might be in a great spot, as the demand for CBD oil and other CBD-related products is on the rise. People are exploring what makes CBD useful, and many people who have tried it know how effective it can be for their needs. It can help relieve anxiety and may also help people feel more confident. It has also been found safer than what most people might expect.
The CBD oil market has been growing in the last few years and so is the demand for a CBD oil merchant account. The industry will likely grow at a compound annual growth rate of about 36 percent before the end of 2023. More companies are offering CBD products than ever, plus there are many new ways how people can use CBD oil for their demands. There’s no telling how far the market can expand at this juncture.
CBD Oil Merchant Account
Running a CBD oil website can be a profitable endeavor. However, the process of obtaining a CBD oil merchant account can be a challenge. While CBD oil is being widely accepted throughout society, merchant account providers still consider it a high-risk product. People trying to sell CBD oil might have a tougher time getting merchant accounts.
The CBD industry is a high-risk field, meaning that chargebacks and fraud are more likely to happen on websites that offer CBD products. Your business could lose money from all these issues, making your entity one that some merchant account providers might want to avoid. Those who are accepted may be subject to higher interchange rates, extended contracts for service, and higher fees for chargebacks and other concerns.
The legality of CBD oil is also a concern. The Controlled Substances Act cites that CBD oil is a Schedule I drug. It is still legal in various states, but the federal classification means that a law enforcement entity could shut down a CBD website. A bank might not be willing to support a CBD-based business if it is constantly in jeopardy of being taken offline for legal purposes.
The good news is that you can still get a CBD oil merchant account if you look in the right places. You can get a high-risk merchant account that will help you accept credit and debit card payments from your customers.
Steps to Get Your CBD Oil Merchant Account
Check your local hemp laws first.
Be sure before acquiring your merchant account that it’s legal for you to handle CBD-related products. Make sure you are legally offering CBD oil that you know where you get your product from and that it is safe to provide online.
Provide an organizational structure chart.
A structure chart can illustrate your business operations. You can show a bank or account provider your business has a solid foundation for operation. High-risk businesses will need to provide these details to help account providers see that their entities are suitable for operation and are at minimal risk.
Include the processing history for your business for the last few months.
Get enough processing reports for at least the last six months highlighting what you have been doing with your company over that time. List the total volume of orders, the number of transactions you complete, and any chargebacks you might have. The provider may determine your risk surrounding how much you process each month, how much people spend on each card transaction, and how often chargebacks occur.
Provide details on your website.
Your website must meet all PCI DSS standards. A PCI-compliant website will be encrypted and will include a complete privacy policy. It must also offer transparent details on your pricing and shipping efforts. Your website also needs to keep all credit card data secure to where it is only accessible on a need-to-know basis.
The risk management department at whoever you apply with will review your website and your application.
Each merchant service provider has distinct rules for who can safely handle merchant accounts.
You will then get access to your merchant account after you are fully approved for work.
Your account will let you accept payments from others after you are approved.
You will appreciate how easy it can be for you to get a merchant account ready for your CBD oil business. But be sure when looking at your account that you’ve got the support you deserve. There are a few things worth exploring when looking at a high-risk merchant account:
- Be sure whoever you hire can respond to your needs as soon as possible.
- Transparent pricing is critical for all accounts. Your platform should include a sensible pricing structure that you understand.
- The merchant service provider can offer various tech items that fit your needs. These include APIs to help you accept online payments, useful physical card kiosks, and various computing items.
- Favorable membership terms are always worthwhile. The best services offer monthly rates that don’t require long-term contracts.
- Merchant service providers can also offer quality security features like a chargeback prevention system and a fraud detection program.
All these details could still change depending on what happens with CBD legislation. There’s a potential that CBD could be fully legalized throughout the country. It would be easier for you to get a merchant account if this happens, but there’s no guarantee that this will happen. The potential for this to work is still out there, especially since the market is continuing to grow. General public sentiment surrounding CBD and other cannabis-related items has also been improving, meaning there’s a potential that a merchant service provider may not see your business as much of a risk after a while.
Bottomline
Your CBD oil business will be more successful if you have a suitable merchant service account. Be sure when getting your business ready that you have the support of a merchant service account provider that will help you with all your needs. You will have an easier time accepting payments when you have an account that works and fits your demands.
