What to Consider When Choosing A Processor?

• Transparency

Selecting a merchant processor involves more than just the initial cost. Many merchants might offer you a simple pricing model, but this might include hidden fees or conditions in the contract, allowing them to increase the price later. We prioritize transparency at Host Merchant Services, your trusted processor for CBD and other high-risk businesses.

Our fees are transparent and properly communicated, and we don't impose termination fees if you decide to conclude your contract with us.

• Simplicity

Handling credit card transactions on-site should be a seamless experience. Your payment processor should ensure that the customer can easily swipe or pay through their card. With Host Merchant Services, we aim to make the process straightforward and hassle-free for merchants and their customers.

• Accept Major Brands

The capability to accept a wide range of card brands is crucial for your payment processor. If there are restrictions on certain card brands, you might might lose business. To avoid such setbacks, ensure that your payment system and processor can accept a variety of credit cards.

• Keep Fees In Check

High-risk merchants often encounter exorbitant fees from processors. It's essential to secure a merchant account that not only offers competitive rates but is also transparent about its fee structure.

Look for a processor that remains cost-effective without concealing fees that may escalate over time.

Products Types Host Merchant Services Support for CBD Merchant Account

We are happy to provide merchant accounts to companies that sell conventional CBD products with THC contents of less than 0.3%, which is the legal limit in areas allowing cannabinoid products. We can support you with the following types of products.

• CBD Gummies
• CBD Isolate Oils And Tinctures
• CBD Topicals/Balms
• CBD Water
• Vaporizer Options
• CBD Drops
• Cannabis Edibles
• Organic CBD Capsules

Our supported businesses sell products falling within legal limits for THC content and only in places where cannabinoid items are permitted.

Why Are Standard Merchant Accounts Not Good for CBD Merchants?

Securing a CBD merchant account can pose challenges, given the stringent regulations set by federal and state governments and card brands. Many processing companies hesitate to onboard CBD merchants due to the intricate compliance measures involved.

CBD merchant accounts are often deemed too risky by payment processors for several reasons:

• If the CBD products have not received approval from the FDA, raising concerns about their safety and effectiveness.
• Additionally, state laws surrounding the sale and distribution of CBD can vary widely, generating uncertainty for financial institutions.
• Reputational issues also play a significant role in labeling CBD merchants as high-risk, as the industry remains relatively new and largely unregulated.
• Many customers may dispute charges if the items purchased do not meet expectations.
• Chargebacks are a common problem with CBD transactions due to potential customer satisfaction problems and the prevalence of keyed-in transactions in this market segment.

Overall, the combination of legal ambiguity, health concerns, and the risk of higher fees makes CBD merchants a cautious undertaking for banks. At Host Merchant Services, we view this as an excellent opportunity to associate with businesses in the CBD industry.

With over a decade of expertise in high-risk merchant accounts, including those within the CBD merchants, Host Merchant Services is committed to delivering well-informed and trustworthy solutions for all your payment processing requirements.

Partnering With a Trusted “High-Risk” CBD Merchant Account

When obtaining a CBD merchant account, getting approved by any provider is not the end of the road. It is crucial to ensure that you are set up with a stable long-term merchant account to avoid potential issues down the line. Many payment processing companies may offer instant approval without thoroughly underwriting your business, which can lead to troubles once they realize the nature of your products.

Payment aggregators like PayPal and Stripe don’t offer their services to CBD merchants. The companies that often “accept” this category, like Square, are ill-equipped to handle high-risk industries such as CBD high-volume sales. This oversight can result in frozen funds or even account shutdowns, leaving merchants in a precarious situation. To safeguard against these pitfalls, you must partner with a provider that understands the unique challenges of selling CBD products and can offer reliable and secure payment processing solutions tailored to your business needs.

Partnering with an experienced merchant service provider focused on high-risk industries like CBD is crucial for your company's success. As a payment solutions firm with deep roots in the CBD sector, Host Merchant Services has helped countless CBD entrepreneurs set up merchant accounts. When you choose to work with Host Merchant Services, you gain access to our specialized knowledge and our extensive network of relationships with payment providers built through many years in this field.

 

What Are the Processing Fees and Other Charges for CBD Merchant Account?

Your CBD business's specific credit card processing rate will vary depending on various criteria, such as the type of transaction, form of payment (online vs. offline), etc. The usual range of fees for processing payments for CBD is 2% to 5%. We will evaluate these parameters and then establish your pricing. Other payment card processing costs, such as associated merchant account fees and monthly fees, are not included.

At Host Merchant Services, we provide upfront pricing that is transparent and free of long-term commitments or hidden costs. During onboarding, your personal account manager will take you through every contract detail.

Integrations for Seamless Payment Processing for CBD Merchant Accounts

A payment gateway facilitates smooth and secure financial transactions in today's digital age. Without a reliable payment gateway, businesses may encounter delays, errors, or even security breaches during the transaction process. This is where Host Merchant Services delivers an outstanding integration solution that fulfills all the requirements of modern enterprises. With its sophisticated technology and seamless user interface, Host Merchant Services ensures that every transaction is processed efficiently and safely. HMS' integration with payment processors like Authorize.Net, NMI, and Transaction Express allows businesses to streamline their payment workflows and offer customers a hassle-free experience from beginning to end.

Maintaining a trustworthy payment gateway such as Host Merchant Services is essential for any company seeking to conduct efficient and successful transactions online. Host Merchant Services utilizes advanced yet straightforward solutions to validate transactions securely. Its integration solutions work hard behind the scenes to process payments reliably so you can focus on helping your customers easily complete purchases. Host Merchant Services understands business needs and works to deliver transactions quickly while protecting sensitive financial details.