What Is CBD Oil?
CBD is a compound taken from hemp plants that does not include large amounts of THC, which is the psychoactive/pain killing element in marijuana. CBD, however, contains a natural analgesic as well as anti-inflammatory and anti-anxiety properties.
Why CBD Oil Is Classified As A High-Risk Industry
Acquiring banks categorize CBD oil as a high-risk industry since it is derived from the hemp plant, even though it contains barely traceable amounts of THC, the psychoactive, pain-killing component of marijuana. Because the possession, sale, and use of marijuana remains illegal by U.S. federal law, some acquiring banks are cautious of offering credit card processing for CBD for such, despite the many health benefits of CBD. iPayToTal recognizes the requirement for people in the industry to have CBD payment processing solutions that work for both them and their customers.
Several people could know this, but cannabis, or cannabis, was widely popular as a remedy since ancient times. Following that, it was generally assumed that the ingestion of cannabis may lead to violent behaviors, insanity, drug misuse, dependence abuse, and criminal action. Cannabis was legalized in certain nations since it is non-toxicity, may be moderately utilized by adults and has some useful effects on health. Medical Cannabinoid – Medical cannabis is the term used to refer to the use of cannabis, cultivated with medical seeds, alongside other cannabinoid materials for treating health issues. Marijuana is a mixture of brown, green, crumpled and dried leaves from the cannabis plant.
This mix of leaves is rolled up and stained like a cigarette or cigar or smoked through a tube. Synthetic cannabinoids are available in some countries like dronabinol and nabilone. While in some nations the recreational use of cannabis is illegal, in some nations its medical use is legal. There are two species of cannabis that are capable of generating valuable amounts of psychoactive cannabinoids: Cannabis indica also Cannabis sativa. Cannabis is said to contain over 400 compounds, roughly 80 of which are regarded as cannabinoids. Cannabinoids are chemical compounds which act on cannabinoid receptors in the brain. The US FDA is presently analyzing over 20 cannabinoids for possible usage.
Nevertheless, certain studies claim that CBD has the possibility to treat a cough, nausea, inflammation, congestion, convulsions also even cancers. Medical cannabis may be utilized as an appetite stimulant, antispasmodic, antiemetic, also analgesic. Nevertheless, it’s Still not accepted by the US FDA for treating any condition or disease. Health Benefits of Medical Cannabinoid – Medical cannabis can be used to treat nausea and vomiting, or to stimulate appetite in HIV/AIDS patients, although further studies are needed to document this. Cannabis contains also been used to treat continual pain, including neuropathic pain, pain due to fibromyalgia also pain due to rheumatoid arthritis.
Some studies say that medical cannabis can be valuable in treating Huntington’s disease, Parkinson’s disease, bipolar disorders, anorexia nervosa, dementia, epilepsy also Tourette’s syndrome, but getting a proper merchant account for payment processing for CBD products (high-risk merchant accounts for CBD )is a very difficult task for retailers. At iPayToTal, we partner with experienced experts in both hemp and CBD oil payment processing. Providing you meet both industry and account provider standards our advisors can help.
Problems faced while obtaining a CBD payment processing merchant account and credit card processing solution for CBD.
The main problems faced by CBD products sellers in payment processing for CBD products are accessible to a proper online payment processing for CBD products. When processing with an aggregator the merchant account is under the aggregator’s name and the merchant has no control, merchant ID, descriptor or statements for the high risk merchant accounts for CBD.
Shopify has notified CBD related store owners who use their service that if their stores are found to be selling items that are high-risk, Shopify will close them. Due to the complicated legalities and disparate state and county regulations inherent with CBD related products, all CBD related products sold online are considered high-risk. So, what will Shopify do if you have a CBD related store? Your store will be closed. How can Shopify do this? Shopify partnered with a payment processor that has strong ties to national banks. Because federal banks won’t work with CBD related products, the processor Shopify uses won’t work with them, which means Shopify, in turn, cannot work with CBD products either. Additionally, Shopify is a closed system; you must use their default processor or get charged an extra 1-3% in order to use the third-party processors Shopify works with. However, if these processors find an issue during their underwriting vetting they may add your company to the TFM (Terminated Merchant Account) list, which is a public record of invalid accounts. If you have a website on Shopify, and if you have high-risk CBD items for sale, you don’t have a lot of choices if you want to protect, sustain and grow your business…if you stay with Shopify.
What choices do you have?
Many! The first step is to back up your ecommerce files. The second step is to move to another ecommerce software ASAP. Choosing an open source solution like WordPress with WooCommerce shopping cart software is our recommended solution. With an open source environment, you can choose from a variety of payment gateways that specialize in high-risk product sales. You can also have the freedom to host the site wherever you choose.
Many CBD merchants express to our consulting team that they run a perfectly legal business, yet still do not qualify for a means of accepting credit card payments like any other eCommerce merchants. The answer lies in the Merchant Category Code (MCC). MCCs are identifiers of the merchant’s industry and products/services sold. In this context, products that contain CBD are thrown into the same category bucket with marijuana and cannabis. Thus, it remains challenging for online CBD merchants to apply and get approved for a credit card processing solution. Most often, CBD merchants move from one credit card processor to another processor within a couple months. Having to switch credit card processors often requires those CBD merchants to have a flexible shopping cart that allows for integration with multiple credit card processors and payment gateway providers. We’ve encountered many CBD merchants who get approved for credit card processing after going through such an exhausting and time-consuming underwriting process to find out that the credit card processor and preferred payment gateway is not compatible with their online shopping cart.
Banks are more likely to turn down CBD oil credit card processing accounts. If banks are even the slightest bit suspicious that criminal activity is occurring through a card transaction, they have a legal obligation to report that to govern bodies. It makes it easier for them to not have such accounts. Visa, MasterCard, and American Express do not accept transactions for marijuana dispensaries at all.
CBD is traditionally been perceived as having legal and regulatory risks. As a result, merchants have been forced to pay exurbanite processing rates for their high-risk merchant accounts for cbd oil. Additionally, merchants that were early adopters in selling CBD products were forced to open offshore merchant accounts. These off-shore merchant accounts would indiscriminately raise fees, and negatively impact the cash flow cycles of business owners.
Selling CBD can be a massive task if you dont work with the right CBD payment processing company.Merchant account solutions which can accept CBD oil and other CBD related sales are not common.If you are selling CBD related products on your website, using woo commerce or shopify ,you need to work with a CBD merchant account provider who is experienced in working with CBD e-commerce merchants and has ready payment gateway plugins for woo commerce and shopify .Payment processing for CBD products can be difficult since its a huge task to identify which merchant solution for CBD shops or a payment processor for CBD is legitimate and which one is only interested in taking advantage of CBD merchants desperate to access payment processing services.
Credit card processing for CBD and cannabis can be difficult because your processor may suddenly close your account without any notice or your e-commerce platform may decide not to support the payment gateway used by your processor. It is important to work with a proactive CBD payment processing company one whose own business success relies on staying ahead of the laws and procedures affecting online CBD sales.
As awareness grows, so does the number of people looking to build a business around CBD – including financial services for CBD merchants. Starting online CBD business is a dream for many youngsters.All high-risk businesses can be a challenge to manage, but CBD payment processing presents unique issues. Every CBD startup faces the question of how to sell CBD online and how to choose a CBD payment processor?
The first question they need to answer is “how to start selling CBD products”.Offshore CBD payment processing can be an answer for hard to place merchants who need CBD oil merchant processing.When reviewing high-risk payments processors for your CBD e-commerce business, check to see if CBD oil merchant account provider is legitimate and has experience in the CBD payments industry or not.
Look for a processor who has an established business with a large percentage of high-risk customers – specifically CBD merchants and merchant accounts for CBD. These payments processors are incentivized to be proactive about providing new solutions, services, and guidance to CBD merchants. You want someone who will work hard for the success of your CBD merchant account approvals– and their own business.
You should be able to rely on your payment processor for services – and guidance – regarding payment processing regulatory requirements (PCI DSS), chargeback management, data security, and fraud protection. Also, make sure your payments processor provides with your own MID (Merchant ID) and descriptor. Charges will appear on your customer’s statements as your website, your phone number. With a MID your transactions will be listed under your chosen business name, not the processor’s name – which may confuse or worry your customers.
SEAMLESS AND SECURE CBD OIL CREDIT CARD PROCESSING SOLUTIONS FOR RETAILERS
We are happy to say we have reliable payment gateways and credit card processing recommendations for CBD oil website owners looking to accept sales online. If you are looking to sell CBD or hemp oil products on Shopify, WooCommerce, BigCommerce or any other major platform, we can help. CBD payment gateways for Shopify, WooCommerce, and BigCommerce. Historically, the market was notoriously difficult, but now we can recommend fast approval, low-cost CBD payment gateways to website owners looking to kick-start their businesses with an affordable payment gateway. We specialize in helping businesses like yours, whether your shopping cart and site builder is a WordPress & WooCommerce, Shopify, or any one of hundreds of others. Regarding CBD there was always one big, difficult requirement. HISTORY. You needed history to get an account, and you could not build a history without an account. If you were already online and selling for six months before an account was shut down- and you had a low return rate and low to no chargebacks, then we can probably could have helped you find an affordable CBD solution. If you were a start-up or used a site builder that restricts your payment gateway options, then there were not many options. Until now. Contact us any time to start accepting credit cards on your CBD site – even if you are a start-up.
If you have a solid CBD business and just lost your processing, it’s important for you to know that a payment gateway is only compatible with CBD if it is set up properly. To be sure you are set up with the correct merchant account on the back end can be a challenge. This is where we step in, to help guide you and to answer whatever questions you may have. Simply contact us using the form below to get started, or to ask us any specific questions you might have. CBD Oil is a growing industry in America and Canada, and its popularity is spreading like wildfire. If you are a Canadian CBD merchant, you can read about processing solutions here. Forbes recently reported a projection which states that the CBD industry will be a billion-dollar market by 2021 . The Forbes article is based on the research done by the Brightfield Group which say that 64.5% of sales are done online. If you’re reading up on this to prepare to take your business online, this should be especially interesting. There is little doubt the trend will continue. It’s an exciting industry, and if you do it right, you might be able to benefit from this industry’s current rate of success.
You don’t have to deal with the frustration that most CBD merchants experience during the process of endlessly searching for a payment processor. No more turning away customers who want to purchase CBD products with debit and credit cards. Because, the simple fact of the matter is, CBD and hemp based businesses deserve as fair of a chance to have access to the same merchant services as other industries. We recognize the need for people in the industry to have CBD payment processing solutions that work for both them and their customers. With a merchant account, previously only available to traditional, low risk businesses, your CBD business can get the credit card processing options you really need. Yes, We Approve CBD Vape Merchants. Often, payment processors may not tell you the limitations of which products their merchant accounts can support. As many merchants have learned, CBD vape merchant accounts are even more difficult to obtain than a purely CBD merchant account due to the added regulation of vape.
Steps To Get CBD Merchant Account :To get a CBD merchant account, one must follow several rules and regulations. Following are the steps that need to be followed to get your CBD merchant account:
- Maintain a Good Credit Card History – Business owners who are new to this business must maintain a good credit card history if they want to sustain their high risk merchant accounts for CBD oil. Owners who don’t have any overdraft fees or don’t have any history of low balances will have the best chance to get their merchant account.
- Maintain consistent Processing Volumes – Few merchant account owners won’t invest until they have enough demand for the CBD. One has to maintain a stable processing volume or a large volume of transactions. This will show the merchant account providers that you’re worth their investment and will make them invest more.
- Comply with Laws and Regulations – Before you start your business, check whether your state permits the sale of CBD or CBD related products. If you’re pretty much sure about the regulations, then get a licensing for your business. Merchant account service providers mandate a copy of licensing when you apply for the high-risk merchant accounts for cbd oil.
The 3 main benefits of using a high-risk merchant account for your CBD business include:
- Less Hassle When Chargebacks Happen – A low-risk merchant account comes with its risk: Too many chargebacks can lead to account termination, a concern for any business. A high-risk merchant account will protect your business from fraudulent chargebacks.
- Heightened Security Measures – While eliminating all fraudulent cards isn’t completely possible, it is possible to catch them through indicators and other detection techniques. High-risk merchant accounts use reliable detection techniques during the transaction process in payment processing for CBD products to figure out whether the card is legitimate. These techniques can protect the business, the merchant provider, and the card’s original owner from theft.
- Access to Larger Markets – Opening up a high-risk merchant account enables you to create a website for sales online and over the phone. Your website acts as a virtual catalog for offering products to anyone who has an internet connection.
As a CBD merchant, you’ll need to find a payment processor who works with high-risk businesses, a Credit Card Processor for CBD Oiland – best case scenario – one who is experienced in working with CBD e-commerce merchants.
It’s fairly easy to find high-risk payment processors, but it can be difficult to identify which high-risk payment processors are legitimate and which ones are only interested in taking advantage of CBD merchants who are desperate to access payment processing services.
It’s also important to work with a proactive high-risk payment processor, one whose own business success relies on staying ahead of the laws and procedures affecting online CBD sales – and a CBD infused products merchant account solution who actively works to keep you informed of changes and develops solutions to emerging problems in payment processing for CBD products/changes that could derail your business.
CBD Oil Payment Gateways
A CBD / cannabis oil payment gateway is an application service provider for e-commerce that acts as a bridge between the shopping cart or merchant’s website and all the monetary systems which are a part of the transaction, credit card issuing bank of the customer and the merchant account for the business. The payment gateway functions as an electronic funds transfer point of sale terminal in cyberspace.
A payment gateway provides a smooth and rapid transfer of information between the merchant website or interactive voice response service and the acquiring bank or front-end processor. The sequence of tasks that are performed usually only requires 3-4 seconds of time and is invisible to the customer.
The customer places an order on the merchant’s website by clicking on “place order” or “submit order” or equivalent button. Sometimes they enter card information on an interactive voice response service. If the order is placed on a website, the customer’s web browser provides the encryption of the information which will be transmitted from the customer’s web browser and the merchant’s web server. This typically is completed by way of Secure Socket Layer encryption (SSL).
The business then sends the transaction particulars through to their payment gateway which contains the data of their merchant account transaction. Typically, this is another Secure Socket Layer encrypted link to the payment server hosted by the payment gateway.
The payment gateway receives the transaction details from the business, then sends it to the merchant’s acquiring bank, which in turn sends the data to the customer’s issuing bank for authorization. The bank which issued the customer’s card gets the request for authorization and submits a reply to the payment gateway by way of the acquiring bank with an attached code for a response. The response code defines both the results of the request for authorization of payment—either “approved” or “denied” and the reason why the authorization was not granted.
The payment gateway receives the reply and sends it to the website or payment processing site where the interpretation and response is sent on the website (or whatever interface was used to process the payment) where it is interpreted and a relevant response then forwarded on to the customer.
On a daily basis or at the end of the settlement period, the merchant’s bank places the total of approved monies in the merchant’s regular bank account or whichever bank is designated by the merchant.
iPaytotal’s the mission is to bring well-established, proven payment processing, regulatory compliance, and banking services to the licensed recreational and medical marijuana industries, thereby reducing the risk of violent crime, illegal money laundering and violation of state marijuana regulations.
We have been professional consultants for CBD businesses helping them utilize the best CBD OIL Merchant Account Services and CBD and Hemp processing solutions available for their transactions. Although we offer incredibly low Interchange Plus rates to all our clients we still treat each account as individual and take the necessary time to fully understand your unique business model to enable us to make sure that you save the absolute maximum dollars each and every month in your payment processing for CBD products.
A CBD Payment Processor That Makes It Easy On You.
Since our bank is fully aware and in support of the CBD products you are selling, you are free to sell the products you want to sell. Take a look at the CBD products we can support: What Makes Our CBD Merchant Services Different? With so many processors promising different things, it can be hard to know which CBD merchant service provider to choose. We know our experience, transparent rates and fees and dedicated support team will win you over. When it comes to CBD merchants, nobody has been providing services even close to what we are able to offer now. Since our banking partner doesn’t view CBD as high risks, like the rest of the processing world, we are able to give our CBD merchants the best in merchant services. We treat your business the same as if you were just selling books, clothing or food. No offshore accounts, no high rate of transaction declines, no skirting the system or integrating with shady, proprietary gateways.From CBD credit card processing to chargeback management, we will help you find the right solution for your CBD and hemp business. This helps relieve some of the stress you have about finding the right merchant account at fair rates. Expert underwriters will understand your business goals before coming up with a custom solution. Our strong, existing relationships with domestic and international banks make transactions easy.
Our professional and dedicated team have established themselves in providing excellent service. We are highly recommended if you require prompt payment processing solutions for CBD Oil Merchants . We aspire to protect our esteemed clients from any kind of frauds happening in this risky industry. Our quality service will promote your business and expand your profit. We work legally on the basis of guideline provided by the state regulations.
We are sure that this expanding industry will go through regulatory changes that will make the monetary transaction easy for the merchants. The growing demand for CBD oil due to its health benefits this business will not be considered risky in near future. We also offer CBD credit card processing that will streamline your process. We would recommend you to fill out an app for a merchant account. Just fill our easy application for merchant accounts mentioned below. Call us immediately to collaborate with us and experience custom solutions for your business. Quality help and quick solution to any of your CBD oil business problem is our mission.