Establishing Your CBD Merchant Account

CBD News Bulletin

The rising needs and research emerging about cannabis products have highlighted the potential for this industry to continue to boom in the coming future. With this expansion comes a plethora of CBD and Hemp products that have absolutely changed the market. CBD and hemp products are no longer exclusively just for a group of certain individuals, but rather added into a variety of markets.

Specifically, cannabidiol or more commonly referred to as CBD, is derived from the marijuana plant and can be a natural remedy for a number of ailments with none of the psychoactive side effects associated with THC. Of the many forms of cannabidiol products that PaymentCloud can process, CBD Oil is possibly the most outstretching. Depending on the type of oil, the purported effect can range from calming to even pain relieving. These oils have the versatility to be added into just about anything, whether that be your morning cup of coffee or your face moisturizer.

Were You Turned Away for CBD Payment Processing?

Once you’ve organized your business, you’ll want to begin the steps of setting up an account in order to process payments from your customers. Unfortunately, for most CBD merchant accounts, very few credit card processors will approve your business because of the association with cannabis. Likewise, very few merchant account providers will want to give you an account to begin the process of selling. This occurs because CBD products are labeled as ‘high risk’ to these merchant account providers and banks are very selective with the types of business they will service.

Although popular with small businesses, aggregators such as PayPal, Stripe, and Square don’t support any business associated with CBD products. Even if you begin the process of setting up your merchant account with one of these service providers, you run the impending risk of having your account closed when they realize your business includes CBD products.

Why is CBD and Hemp Oil Still Considered High Risk?

CBD and hemp products remain high risk for a number of varied reasons, but specifically, there exist three main determinants: legislation, risk of chargebacks, and reputational risk.

Although legislation has become more favorable regarding any by-products of cannabis or hemp, for many processors, this industry is still a taboo subject. Mainly this comes from the association of CBD with the physical cannabis plant and it’s containment of THC, even though the products we support do not have psychoactive properties. Unfortunately, the misconceptions continue and merchants with legitimate businesses selling regulated CBD products are penalized for it.

The second reason CBD merchant accounts are labeled high risk lies in the sometimes unpredictable nature of the products. The purported benefits of cannabinoid oils cannot fully be verified beyond personal testimonials and therefore can have higher rates of chargebacks from customers whose expectations were not met. However, these chargebacks can be mitigated by providing clear, concise descriptions of products among other preventative tactics.

Lastly, CBD products such as oils, tinctures, and skincare can be flagged as high risk because of their sudden emergence into the market. Not long ago all cannabis products--containing minute amounts of THC or not--were deemed federally illegal and thus merchant accounts could not be obtained. Just recently, the Farm Bill of 2018 allowed for CBD products to escape the ‘Substance 1’ label as those substances contain over the accepted, regulated level of THC. Despite this federal ruling, the bill allows individual states to create their own parameters around cannabidiol products.

This bill being passed is the leading factor in why CBD is on everyone’s minds. The market is now open for these businesses to thrive in a once untouched vertical.

All of these factors combined shed some light on why any account selling CBD products is automatically labeled ‘high risk.’ Banks will then refuse to run the risk of being associated with these merchants. Down the line, the payment gateway providers partnered with these specific banks will not have the capability to service ‘high risk’ merchants, even if the reasoning is something as simple as selling CBD products.

Luckily, at PaymentCloud we’re different, and so are the processors we connect you with! Because we specialize in getting high-risk merchants approved, we are able to service a wider variety of businesses that may have been flagged. Unlike other service providers, our banking partners won’t penalize your business simply because of the association with CBD or hemp products.

The Importance of Partnering with a Seasoned CBD Payment Processor

With greater acceptance of CBD products in the marketplace, we've been able to get thousands of CBD payment gateways approved. Our representatives know the most painless ways to assist in opening your merchant account so you can begin processing payments as soon as possible.

No more jumping through hoops to get your merchant account set up, just to be turned away in the end. Once approved, your CBD payment gateway can take as little as 24 hours to become active and able to process payments. Whether you need a physical card terminal or an online gateway, we have the means to get your business up and running.

Integration is now easier than ever! We are compatible with every third party gateway and almost every ecommerce website platform including Shopify, WooCommerce, Magento, Volusion, PrestaShop, BigCommerce, WordPress and many more.

When you have been approved for your merchant account and begin processing payments, it’s important to figure out a strategy for keeping chargebacks to a minimum. Not only will this save you money in the long run by eliminating fees, but it will also keep your account in good standing according to the guidelines set forth by the bank.

CBD & Hemp Products We Support

  • Skincare
  • Beauty products
  • CBD Pet Products
  • Tinctures & Oil
  • Pain Relief Sprays
  • Teas
  • Supplements & Capsules
  • Hemp Oil

How PaymentCloud Handles CBD Merchant Processing

Unlike other merchant services providers, CBD accounts don’t deter us from delivering you the same high-quality customer service and reliability that all of our merchants receive. We work around the clock to ensure the entire process is done securely and as quickly as permitted by our approval window.

In addition to our familiarity with the industry, we update our handling of CBD accounts as new legislation comes into effect. With the expectation for the industry to surge over the next few years, our staff is dedicated to keeping current with the updating legislation as each state currently has different policies regarding any cannabis product.

Benefits of Opening a Hemp Oil Merchant Account

  • Processing ability for credit and debit cards (Visa, Mastercard, Discover, and American Express)
  • Processing ability for retail, MOTO, and card not present sales
  • Integration with both retail terminals, virtual terminals, and online shopping carts
  • Processing for start-up businesses
  • Ability to integrate with many popular platforms (Shopify, WooCommerce, Magento, WordPress etc.)
  • Third party gateway compatibility
  • Representatives that know the industry and exactly how to process your account
  • Updated policies regarding changing legislation

Our dedicated staff is familiar with the cbd oil merchant processing industry as well as providing service that works for every merchant we encounter. When it comes to getting your account approved, knowledge is power.

If you’re ready to put your CBD or hemp business on the map and begin processing payments for potential customers, reach out to us today. You can contact our knowledgeable team directly or by filling out an inquiry application.

Full-Service Merchant Services

PaymentCloud is a full-service ISO dedicated to providing innovative solutions and unparalleled customer service. The merchant services field is antiquated to say the least; we aim to break out of the status quo. Our suite of innovative services was built to save you time and money.

Quick Deposits

As a business owner, you should never have to wait for access to your hard-earned capital! This is the reason PaymentCloud offers next day funding for ALL card types. We understand that merchants have bills to pay and need funds to run a successful business on a daily basis, so we do not make you wait to access your funds.

Next day funding benefits…

  • Businesses that process the bulk of transactions in the evening
  • Businesses located on the West Coast
  • Merchants who process heavy volume during the weekend
  • Businesses that have daily or weekly expenses like weekly payroll, restocking inventory and shipping costs

Your business already earned the money, so you shouldn’t have to wait for it! Contact PaymentCloud today to learn more at 1-800-988-2215.

Innovative Technology

PaymentCloud is an industry leader in product innovation and cutting-edge technology. We provide our merchants with payment processing solutions customized to their businesses types. Our terminal selections include the latest in EMV Smartchip technology, wireless options, countertop devices, and PIN Pad options.

We also offer mobile processing hardware and applications, tablet POS systems, and our secure online payment gateways. Your account executive will assess the needs of your business and set you up with the solution that best fits your needs.

Dedicated Account Rep

At PaymentCloud, customer and technical support are aspects of the business that we take seriously. Each of our account representatives is rigorously trained in merchant services, product specifications, pricing structure, and technical support. When you set up your account with PaymentCloud, you will be assigned one of our expert account representatives who will set you up with everything you need to process with us. Our customers’ needs and success are our first priority.

Your account representative will:

  • Assist you with filling out your application, which will help you get approved quickly
  • Walk you through setting up your equipment or electronic processing software
  • Go over pricing structure and Visa/MasterCard rates and fees
  • Notify you when industry and/or security updates arise
  • Provide you with personalized customer service when you need it and contact us

Competitive Rates

PaymentCloud is proud to offer competitive rates for payment processing services, including highly affordable equipment leases for terminals that accept swiped credit cards and keyed-in transactions. We’ll work with you and compete with other processors to give you our most affordable rates. We even offer FREE rate comparisons to show just how much you save.

Call a PaymentCloud account executive at 1-800-988-2215 to learn more about our low rates.

Complete payment processing solutions for thousands of clients nationwide