Hemp-derived products, including CBD products, have been a growing market for the past several years. As many states have passed regulations that make cannabis legal for medical and recreational purposes, it has helped fuel interest in a wide range of new products.
As such, the number of hemp-derived products has grown. Hemp plants can also be grown to produce CBD products. Many of these products are very profitable for businesses that sell them.
Even with these changes, hemp-derived products and CBD products are still considered high-risk by many payment processing service providers. This can make obtaining a CBD merchant account difficult when you want to expand your product lines to include hemp-derived and CBD products.
Can Businesses Legally Sell Hemp-Derived and CBD Products?
A common question that arises frequently when talking about hemp-derived and CBD products is whether it is legal to sell them. Part of the confusion is because cannabis (marijuana) is often associated with hemp and CBD. While they are related, hemp plants and cannabis plants are different strains from the same plant family.
Understanding the differences of hemp and marijuana can help you navigate the cannabis market. Hemp plants are classified as any cannabis plant that has 0.3 percent or less THC—the chemical composition that causes the “high” feeling people experience from marijuana. This means hemp plants will not get you “high” and you will not experience any noticeable psychoactive effect. Yet, hemp plants do contain CBD, which is a legal substance. So, hemp plants and CBD products made from hemp plants are legal in the U.S.
However, products made from cannabis plants are only legal in states that have passed laws making medical marijuana and/or recreational marijuana legal. It is essential to know this distinction if you want to open a business that sells hemp and CBD products or expand your current business to sell these products.
Why Do I Need a High-Risk Merchant Account for Hemp-Derived and CBD Products?
If you want to accept credit card and debit card payments for hemp-derived products and CBD products, you will need a high-risk merchant account. Since this market segment is still fairly new, it is taking time for deregulation to occur to move hemp and CBD products from high-risk to mainstream.
In addition, there are questionable producers of such products that deter payment processing providers who want to provide access to merchant accounts for businesses that want to sell hemp and CBD products. Luckily for you, there are service providers that do offer high-risk merchant account solutions for businesses interested in selling hemp and CBD products.
Finding a High-Risk Merchant Account Provider
The first thing you want to do is verify that the merchant account service provider specializes in high-risk CBD merchant accounts. Even if you have a regular merchant account, you will still need a high-risk account to sell hemp and CBD products.
If you are already operating a high-risk business, such as online gaming, vaping products, etc., you just need to confirm with your merchant account provider they will also allow you to process transactions for hemp and CBD products.
Some key factors to look at when choosing a high-risk merchant account provider include:
- The provider already specializes in high-risk merchant account services for payment processing.
- The provider has clear and upfront pricing plans without any hidden fees or excessive charges.
- The provider makes it easy to integrate your existing website payment gateway and/or credit card and debit card processing equipment with your new high-risk payment account.
- The provider offers access to CBD payment processing equipment and gateways when you are starting a new business.
- The provider offers flexible contract periods and no termination fees after fulfilling the contract period.
- The provider provides access to exceptional customer service and support when you need it.
Most importantly, it can be a good idea to shop around and not sign up with the first high-risk merchant service provider you find. You want to make sure the service provider you select is able to meet your needs and objectives. By taking the time to consider your options, you can capitalize on the potential profit you could earn from hemp-derived products and CBD products.
For further information about setting up a CBD merchant account, questions about high-risk merchant accounts, or payment processing solutions for your business, please feel free to contact Adept Payments at 888-732-3838 today! Let us customize a solution that best suits your business needs and objectives.