1. CBD processing still needs a medium-to-high-risk processor
CBD payment processing is quite popular at the moment. And anytime a market is hot, people come out of the woodwork to take advantage of it. For certain sorts of businesses, this may be acceptable. But in a highly regulated business like CBD, this isn’t acceptable.
There are still a lot of bad actors out there with dodgy solutions that might be shut down at any point. Regrettably, these businesses aren’t interested in assisting you or your business. Their primary aim is to make a profit.
They utilize misleading sales practices to entice businesses with cheap rates while failing to disclose all fees and charges. Then, they bind merchants to extended, difficult-to-terminate contracts with hefty early termination costs. And, to acquire permission, fraudsters often mix code your merchant ID, putting your merchant account in danger of deletion.
CBD businesses should partner with a reputable high-risk payment processor. One that’s a well-known firm with expertise in both high-risk solutions and the CBD business.
2. Even with a trusted payment processor, “low fees” aren’t always enough.
CBD retailers are considered high-risk by processing banks. The charges will be somewhat higher as a result. So, it’s understandable that merchants would want to get the best rate available to safeguard their profits.
It’s worth noting, though, that the “rate” isn’t necessarily the whole cost. This is one way some salespeople deceive merchants into thinking they are receiving a “good deal.” They may promise you a modest percentage mark-up, but the per-transaction cost will kill you. Alternatively, the extra costs, yearly fees, monthly fees, and assessments may be excessive or even unneeded. If the rate seems to be too good to be true, they are most certainly compensating in some way.
Merchants should ensure that any and all costs not included in the “rate” are fully disclosed. This is the only method to determine your “effective rate,” or the exact cost of your credit card processing rate.
3. Are they in favor of retail sales?
Many CBD processors refuse to sell to the general public. This is due to their inability to keep track of the items on your shelf. Banks may examine all of the items you provide via an eCommerce CBD business to ensure they meet the criteria. They may also keep an eye on the inventory following the first inspection. They can’t, however, send someone out to a retail site repeatedly. As a result, many processors choose not to deal with retail.
Retail CBD businesses must ensure that they are obtaining the finest solution for their requirements. They must, however, ensure that the solution is clear and that the bank understands what they are offering.
4. To be compliant, keep a watch on your marketing
Violations of the FTC and FDA requirements for marketing CBD products are the fastest way to have your merchant account closed. Your acquiring bank’s policies are based on FDA and FTC recommendations. They also check merchant sites for compliance on a regular basis. If they discover anything suspicious, they have the authority to freeze or even shut your merchant account.
5. Things to look for in a processor
Keep in mind that obtaining a dependable merchant account option for your CBD website will need some knowledge. Right now, everyone wants to profit from this market. However, it’s critical that you become choosy about who you deal with. You can do well to check CBD payment processors review for proper insight.
Many factors will influence the sort of merchant account and payment gateway that is ideal for you. A knowledgeable MSP will consider the CBD goods you’re selling, the site builder you’re using, and your shopping cart.
An experienced supplier will be able to see problems before they become problems. Working with an unskilled supplier can just make things more difficult for you.
