- September 29, 2018
- Posted by: ipaytotal
- Category: Best Merchant Accounts for CBD Oil, Cannabidiol & Hemp Payment Processing, Cannabis Banking & Payment Processing Solutions, cannabis industry merchant processing, Cannabis Merchant Accounts, CBD and Hemp Businesses, CBD credit and debit card payments, CBD Merchant Accounts, high risk merchant account application process
It’s not an uncommon thing for every wise person to inquire on how to achieve great results. We know with certainty that when you were about to start college, you made some findings. You ensured that you knew what the course requirements were before finalizing your decision. It’s alright if you didn’t attend a college but it’s sure that you have once had some feelings. Of course, it was to that special one who happens to be your present wife. Due to your findings, you were able to devise the best plan on how to make her yours.
Where are we heading with the above?
Your inquiry is indeed a good step in the right direction.
Before we dive into the matter, we need to understand matters surrounding CBD oil business.
What is CBD oil business about?
CBD oil; the short form for Cannabidiol Oil is derived from the hemp plant and cannabis. It has, of recent, become one of the popular plants in the marijuana industry. Unlike other plants that have bad effects on people, CBD oil offers numerous medical benefits. From such benefits is it’s being used for treating the tumor, cancer and even severe knee problems like arthritis.
Furthermore, considering these aforementioned benefits, it has become a lucrative investment to be considered. As a result, it has brought in lots of revenues for both individual and state levels. We believe it will continuously attract more attention to new investors.
Unfortunately, it has faced several setbacks because of its source i.e. Marijuana and cannabis. That’s why it’s regarded as a high-risk business. Other challenges are legal regulations and payment gateway processing constraints.
None other than lack of awareness is responsible for such sentiment.
It will be great if the banks and other financial institutions learn more about CBD. This will expose them to facts and likewise speed up payment processes.
This is why to truly succeed online, it’s pertinent to get a merchant account. Importantly, it has to be long-term, professional and reliable one.
What is the importance of operating a CBD merchant account?
The following are some of the important things to know:
- Acceptance of online payments: your customers will be able to pay through either credit card or debit card transactions.
- Avoidance of legal and payment gateway problems: When you have successfully opened the account, payments will be highly secure and effective.
- Financial account functionality: It’s going to allow easy financial flow. That is, between the merchant account itself and the card issuing banks.
What are the things to know while creating a CBD Oil Merchant Account?
1) Up-to-standard and Compliant website
Without forgetting that the essence of the merchant account is for payment. Such transactions take place online through the CBD payment gateway on their website. This website must be professional and of high standard according to the law. It should boldly contain the terms and conditions as well as the return policy. It must have the following details as well:
- Official company number(s)
- Head office and branch addresses.
- Company email addresses
- SSL certified: Having your website show the secure message using the “https” extension, prevents fraud.
Lest we forget, all items must have legible description and price.
All the above are related to website logistics but they are not all.
2) Monthly estimated calculation for processing
Another thing to note as well as the processing amount on a monthly basis. Provided you neither have a negative account nor frequent occurrence of overdraft, you are safe. This means that your bank account balance should fall within the “positive” or “healthy” section.
Though the aim is to be able to process above $10,000 worth of orders. Having this figure once does not automatically qualify one but the CBD merchant processing history should be at least six months worth. This places you well as a great investment for bank processor. Anything other than this shows that your company is financially unstable.
3) Importance of low chargebacks
Before adequate approval can be made, there have to be low chargebacks. If your business has chargebacks lower than 1% of your total monthly volume and total monthly transactions, you are safe. This is because that’s the standard for consideration. However, anything just above 1% makes it hard to enable a CBD oil merchant account approval.
We can assure you that passing the above requirements will certainly place you in a good position for securing credit card processing. Though you may find that some CBD merchant account providers will only approve eChecks but not the actual processing.
What are the Vital materials necessary for CBD Merchant Account Opening?
The application process for CBD merchant services takes place online. It involves filling out forms, providing some paperwork and documents were necessary at their appropriate categories.
The following are some of the documents that are required to be submitted:
- Permanent Valid ID cards: Examples that fall in such category are International passport and local government issued driver’s license.
- An official bank letter accompanied with your statement of account for the last three months transaction processes.
A note of warning and caution:
As we have rightly stated concerning the difficulty in securing a CBD merchant account, it will be bad if we allow it to be closed. You may ask the question ‘why’. One of such ways is selling marijuana, hemp, kratom, cannabis on a CBD Oil ONLY merchant account. Once you have your account closed, the chances of getting another one are very slim. Your CBD Oil merchant business account remains only for the sale CBD Oil products.
Making the right choice for CBD Merchant Account Provider
Even though your CBD merchant business is considered as a high risk one, we at Ipaytotal provide you with the necessary services. Our vast experience of the industry makes it possible for us to set up your merchant account in a timely and secure manner.
We provide you with the best support that assists you to grow your business. This makes it easier to get better rates, faster funding, and certainly, the removal of issuer declines.