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CBD Merchant Account
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- 99% Approval Rate!
- No Application Fee
- No Setup Fee
- No Contract
- Bad Credit OK
- Fast 24 Hour Approval
- Chargeback Prevention
- Next Day Funding
We at Merchant Marvels specializes in credit card processing services for high risk merchants.
Contact us to increase your sales and pay less in processing fees.
Why cbd is considered as high risk business?
Due to the numerous medical and physiological benefits of CBD, which scientists have recently found, CBD products have grown in popularity. The number of businesses providing CBD tablets, gummies, sweets, lotion, lotions, and other products has exploded in the last few years, and by 2024, it is predicted that the global CBD market would surpass $20 billion.
Most of CBD products are now legalized and are being manufactured and sold. While laws differ from state to state, practically all of Europe has ruled CBD legal as long as the THC content is less than 0.3%. Opportunities for business owners and investors alike have arisen as a result of the legalization of CBD products and their growing popularity.
Products containing CBD have a wide range of possible health advantages, including the reduction of inflammation, discomfort, and anxiety. In addition to being non-addictive and having few adverse effects, CBD products are a desirable option for natural alternatives to conventional pharmaceuticals.
Because the CBD market is growing so quickly, it is crucial to conduct your homework before investing in any CBD businesses. Investigate a company’s financial soundness, product caliber, and track record of customer service before making any final selections. CBD businesses find it challenging to obtain the funding and banking services they require to develop and run efficiently. Due to their connection to cannabis, CBD products are subject to strict regulation by numerous government organizations. The U.S. Food and Drug Administration (FDA), for instance, has not yet authorized CBD products for use in treating illnesses.
Because the CBD market is still relatively new, there aren’t any standards or quality controls. Due to this, it may be challenging for customers to understand exactly what they are buying when they buy CBD products. The CBD industry is expanding despite these obstacles and is predicted to do so in the years to come. With more research and development, perhaps some of these obstacles can be removed, making it simpler. The CBD Industry’s Challenges The CBD sector faces another challenge with payment processing. CBD products are subject to a number of complex rules and restrictions, making the industry high-risk. Due to the legal issues, many conventional banks and financial institutions are hesitant to cooperate with CBD enterprises. Due to this, CBD businesses find it challenging to obtain the funding and banking services they require to develop and run efficiently. Due to their connection to cannabis, CBD products are subject to strict regulation by numerous government organizations. The U.S. Food and Drug Administration (FDA), for instance, has not yet authorized CBD products for use in treating illnesses. Because the CBD market is still relatively new, there aren’t any standards or quality controls. Due to this, it may be challenging for customers to understand exactly what they are buying when they buy CBD products. The CBD industry is expanding despite these obstacles and is predicted to do so in the years to come. With more research and development, perhaps some of these obstacles can be removed, making it simpler.
Why is the CBD Industry Considered High Risk?
Despite the fact that new CBD businesses are opening up on a daily basis, the industry is regarded as high risk for a number of reasons.
Complex laws and regulations
Although the laws and rules guiding the production and use of CBD have recently changed, there is still a great deal of confusion. Many people still associate CBD with marijuana and its potent effects. Payment processors avoid these companies due to the ambiguity surrounding the manufacture and usage of CBD.
Negative public perception
Because CBD is poorly understood, many people confuse and link it with marijuana and the potentially harmful effects of THC. They lack the necessary knowledge about CBD's many therapeutic benefits and relaxing properties. People are unaware of the distinctions between THC, CBD, hemp, and marijuana and instead misuse these terms. Applications for merchant accounts from CBD businesses are routinely denied for this reason and to protect their reputation.
Slow and costly licensing
Even though CBD is already legal, many manufacturers and distributors must abide by numerous regulatory requirements. It takes time and money to apply for a license to sell CBD products, and there are other charges involved. Securing a license takes a long time, and getting a loan for this firm is considerably harder.
Increased incidence of chargebacks and fraud
Transactions in the CBD business can occasionally be challenging because this venture is still young. Customers often demand refunds or returns which negatively affects a companies’ standing while increasing the risk level of such a business.
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How Does Being “High Risk” Affect Your Chances of Opening a Merchant Account?
Few banks will comprehend your firm due to the nature—and relative newness—of the CBD sector. Many organizations forgo providing services to CBD vendors out of concern for potential legal implications. (Even though it is entirely legal to sell CBD, and the market was worth over $620 million in 2018 alone.) Consequently, you might…
further identification and finance checks
Experience long application waits
Have your application rejected
Have existing accounts closed
This makes it challenging to sell your products in-person or online.
How Does Being “High Risk” Affect Your Chances of Opening a Merchant Account?
It is important to have an experienced processor when considering payment solutions. Leaving your payment processing in the hand s of a newbie or inexperienced merchant processor can quickly land you in trouble with the law-enforcement bodies.
Experience and a thorough understanding of how FinCEN, BSA, DOJ, CSA, and the Cole Amendment apply to various financial institutions are prerequisites for processing marijuana. It’s crucial that your payment processing business be aware of the legal framework governing the cannabis industry and, more critically, how to handle uncomfortable circumstances in which law enforcement suspects suspicious activity on your account and may attempt to freeze your funds.
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Signup Today For a Merchent Marvels Account
Why you should go for a merchant account for your cannabis business
Cannabis-related businesses need to be able to process credit card payments online. But for the most part, banking sectors and most payment processors do not support cannabis merchants. A number of CBD accounts are opened under false information for these reasons and are eventually closed when the payment processors learn the true nature of these businesses. Even worse, such businesses can end up on the blacklist with these payment processors, which might make it impossible for them to open merchant accounts in the future.
Sustainability depends on having a transparent cannabis merchant account. That way, you are able to process your payments online and you won’t be shut off every few months anymore.
Have your merchant accounts been closed before for your CBD business? What may be the reason? Why should you opt for high risk merchant account?
Cannabis is listed by most banks and card companies as forbidden merchants. Simply put, a cannabis credit card processing account is forbidden. Currently, it is not permitted to accept credit cards for cannabis and it has been made abundantly clear by FinCEN regulators that accepting credit cards for cannabis is a crime.
However, a lot of organizations continue to market “compliant” credit card processing for cannabis. Whatever method is used, it is illegal if the money is used to buy CBD products and comes from a credit card. Doing this lists your business as the subject of financial crime, whether and can get your accounts closed and blacklisted.
High-risk credit card processing and merchant accounts can provide reliable payment processing services to CBD businesses. They allow you to securely accept credit, debit, and other electronic payments within your organization, acting as the intermediary between your business and the banks that issue the credit and debit cards your customers use to make purchases.
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Pros and cons of high-risk merchant accounts
Pros
- Long-term expansion potential
- higher profits
- accepting a variety of currencies
- Maintain a reserve account with high chargeback protection
- processing of credit card transactions notwithstanding financial hardship or poor credit
Cons
- increased processing costs
- Reserve account that might be required and whose size could reach 50% of the monthly volume
- rolling reserve with a 180-day hold period following account closure
What things to consider before opting for any processor for CBD business
What Makes A Good High-Risk Merchant Account Provider?
CBD might be considered a “high-risk” business by some banks, but you shouldn’t have to pay a premium for the merchant services you are entitled to. The best account providers…
Don’t charge exorbitant fees
Provide you with the safety/security features you need
Have high acceptance rates
Provide excellent customer service
What To Look For in a CBD Payment Processing Gateway
Not all CBD payment processing gateways are the same. You need the services of high-risk payments experts that:
Handle credit card payments quickly and safely
Issue returns/refunds/partial refunds promptly
Improve the customer experience online/in-store
Why not to opt for 3rd party or low risk account for CBD business
Third-party payment processors (TPPP) act as the link between you and financial institutions. They accept payments from VISA, MasterCard, American Express, and Discover, but for CBD businesses this process is still illegal. There are also risks attached to the use of TPPP’s. Money is typically kept in the TPPP’s account, which is may or may not be paid to you. They might actually be violating card standards and endangering you and your company if you don’t have a transparent cannabis merchant account. Retailers of CBD and cannabis must use a payment processor that is compatible with cannabis and supports such transactions.
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On the other hand, a low-risk merchant may need to meet many requirements. The most important are: low revenue, few transactions, and low chargebacks and returns. These are additional characteristics of a low-risk merchant:
- Credit card transactions are $500 or less.
- Transactions add up to less than $20,000 monthly.
- The industry is considered low-risk – such as essential goods, clothing, household and baby items.
- The chargeback ratio is low – less than 0.9% of total transactions.
- Business is completed in low-risk areas – such as the United States, Europe, Japan, Canada and Australia.
- The rate of returns is low.
Most of these requirements are not true for BD businesses and creating a low-risk account under false pretences can get your account closed once discovered.
Does PayPal or Stripe support CBD business?
According to their policies, PayPal and Stripe do not engage in business with high risk merchants. This means that these payment processors do not accept or facilitate payments for CBD businesses.
Why we suggest opting for multiple accounts for cbd business
The importance of setting up multiple accounts cannot be overlooked. This is due to a variety of factors, including the capacity to track costs and security issues. A second account or even multiple accounts can provide you the chance to switch banks, which may be a good option if you can find a new business banking provider that offers better terms.
Having a back-up account helps you circumvent any potential risk to your funds, or unforeseen closure of your account. It can also be a way for you to keep track of your costs and profits as well as organize payments.
How can CBD payment processing benefit my business?
1. Simple integration of payment systems
New payment methods can be easily combined with other payments which improves payment options for customers.
2. Credit cards and debit cards are accepted by CBD payment processors.
One of the most widely used methods of payment for internet transactions is a credit or debit card. 44% of respondents preferred using a debit card to make payments, according to a Harris Poll study of more than 2,000 adults conducted in August 2017. Your clients may look for other providers if you are unable to deliver this. Because processors accept CBD payments, it will help you draw and keep consumers.
3. Customers can choose from different payment methods
A smart system will provide your consumers the choice to purchase CBD products using a range of alternative payment gateway choices, including gift cards, prepaid cards, bank transfers, and even buy-now-pay-later alternatives. This is in addition to processing credit and debit card payments.
4. Better customer service
If you choose the appropriate processor, 24/7 CBD payment processing services is and customer assistance can be bundled into the package. A trustworthy supplier can also help with data security and fraud prevention, protecting your clients when they purchase CBD products online.
5. Less likelihood of errors and discrepancies
Don’t take the chance of having to deal with discrepancies on top of dealing with client inquiries and adding new CBD goods to your ecommerce inventory. Instead of spending hours educating workers to correct potential accounting problems, consider relying on your payment processors.