The CBD market is growing, with more and more businesses selling CBD products. CBD comes from marijuana plants and hemp plants as an extract. CBD provides the benefits of marijuana, like pain relief, without the THC component, which results in feeling “high.”
Even though marijuana has been legalized in numerous states for medical and recreational use, it is still listed at the federal level as an illegal Schedule I drug. As such, many merchant credit card processing service providers still view CBD as a high-risk type of business.
What Is High-Risk Credit Card Processing?
High-risk credit card processing refers to a select group of business operations where credit and debit card transactions come with increased risks. For instance, many CBD transactions are completed online. As such, the business owner rarely has access to the physical card for a chip-based or swiped transaction.
Furthermore, there are many credit card processing companies that will not even consider processing transactions for high-risk businesses. This can make finding a merchant service provider difficult.
Fortunately, several merchant service providers do cater to high-risk businesses and provide credit and debit card processing services—although you do need to be aware of certain restrictions that can be associated with high-risk credit card processing, such as:
- Increased Processing Fees for Transactions
- Limits on the Volume of Transactions Per Month
- Limits on the Dollar Amount of Transactions
You may also find that you could have a higher volume of chargebacks with high-risk processing.
How to Find the Best Credit Card Processor for CBD Products
A common mistake high-risk businesses make is to choose the first credit card processor for CBD products they find. Understandably, you want to get your CBD products business operational and have the ability to accept credit cards and debit cards.
Yet, it is best to shop around and compare the services and associated fees between different service providers before making a decision. Some of the important things you should be looking at when comparing merchant service providers include:
- Does the service provider have clear pricing plans, rates, and fees without any hidden charges or extra fees?
- Does the service provider help you select a pricing plan that fits with your current sales volume and needs?
- Does the service provider offer the option to change pricing plans as your business grows and your needs change without charging fees to change plans?
- Is it easy to obtain customer support and service when you have questions or concerns about your merchant account?
- Does the merchant service provider cater to high-risk businesses, including those that sell CBD products?
- Can you sell other high-risk products and use the same merchant account?
- Does the service provider offer other business solutions for high-risk businesses?
A Great Rate Doesn’t Imply the Best Credit Card Processing Provider
Simply basing your decision on the rate offered by the credit card processing provider is never a good idea. You need to look at the big picture that includes comparing per-transaction rates, customer support and service, and other such considerations. Sometimes, paying a little more for exceptional service and support is well worth it when you operate a high-risk business.
For further assistance in obtaining a merchant account for your CBD products business or, if you are looking for a better credit card processor for CBD products, please feel free to contact Adept Payments at 888-732-3838 today! Let us customize a plan that best suits your needs and objectives.