A significant growth is forecasted for the CBD market and many investors want to take part in the emerging industry. In 2017, the CBD market value is said to be at $202 million. As per the report of the Hemp Business Journal which is a market intelligence firm, a 700% growth is expected from the CBD market which totaled about $2.1 billion by 2020. Businessmen saw this opportunity to capitalize on CBD products.
CBD or Cannabidiol which is one of more than the 85 cannabinoids that can be derived in cannabis plants which appears to have therapeutic benefits which includes antioxidant and neuroprotective properties that are said to cure pain, inflammation, epilepsy and even cancer.CBD is mostly used for health reasons and is the main focus of many product research that is set to target the general health and well-being of those who will use the said products. CBD is non-psychoactive and won’t cause a high. There had been many studies that have proved that CBD has beneficial medical benefits.
Cannabidiol is not listed in the Controlled Substances Act, unlike THC and marijuana. CBD that has less than 0.3% THC is legal to be purchased and to be imported even without prescription in all the 50 US states. With the loosened restriction of CBD in the United States, opportunities have been created for cannabis farmers, CBD producers, and CBD distributors. Just this year, FDA has approved a medicine that contains cannabidiol as the active ingredient.
With CBD as being a hot product that is showing a huge growth potential in the market, many merchants are opening up stores that sell CBD products. But a merchant must not only focus on finding quality CBD products to be sold to customers but also find ways to make the buyers become repeat customers. And this is not easy with many merchants opening up their CBD stores whether it be online or a retail store.
How to set up a successful CBD Business
1. Source Quality CBD Products/CBD Oil
Merchants must make sure that standard procedures are being followed in growing the hemp plants where CBD oils are extracted from. Also, a COA or Certificate of Analysis must be asked from the supplier to attest the purity of the CBD product and to be able to make sure that the CBD product follows the 0.3% THC limit.
2. Acquire Business Registration
A business registration is always a must when setting up a business even if the business is relatively small in nature or even in an online platform. CBD Merchant Account providers also check for law and compliance of the CBD merchant applying for a CBD Merchant Account.
3. Have a professional looking, up to date and secured website
A website is very essential nowadays especially for those that are doing online business. This is the first point of contact with the customers and must be able to showcase the products and entice the customers to buy. Aside from a quality design and applicable content the website must also contain the details like the Business name, official company number, address of both the head office and the branches if there are any, company email addresses, product images with proper and detailed description and the corresponding prices, terms and conditions and also the return policy. It must also be SSL certified to prevent fraud.
4. Find the best CBD Merchant Account
Getting a CBD Merchant Account Provider that will provide the necessary CBD oil merchant processing like payment processing may not be easy as CBD products are derivative of cannabis plants which are still illegal in many parts of the world. Although CBD is considered safe and non-psychoactive, the association with cannabis makes it considered as high-risk. Many banks find dealing with CBD Merchants very risky. Although it may take a little longer than the usual application, it is still possible for CBD Merchants to acquire a CBD Merchant account as it is needed to accept web payments for online and even retail stores with e-commerce.
What to look for in a CBD Merchant Account Provider?
- A reliable CBD Merchant Account provider with no aggregates or third parties.
- A secure CBD sales payment system where that can allow the transfer of funds from the customer to the merchant where they have ordered and purchased the CBD products and CBD oils. A safe payment gateway protects all sensitive information from both parties. They must also be PCI compliant and must have the latest securities to detect fraud.
- It is best to find a CBD merchant account system that accepts multiple currencies and can readily convert currencies and calculate currency differences while also allow twenty-four hours a day transaction to cater those who live overseas. Getting CBD OIL Merchant Services that can provide a secure way for transacting CBD payments globally is also of utmost importance because CBD has already paved a way to the global market. Having a CBD Merchant account is almost a sure way to get increased sales and profits.
- A muti-bank processing must be provided by the CBD Merchant Account Provider. A minimum of at least four banking solutions where credit and debit card payments can be disbursed can be very beneficial with the CBD Merchant because of limited risk of overexposure to banks, a reduced chargeback ratio and being able to process payments even in the event of account closure in one bank.
- The feature of chargeback alerts can also be beneficial and helpful for merchants to be able to fight chargebacks. Chargeback alerts are notifications that serve as an advanced warning to merchants that the cardholder’s account has been compromised or is initiating a chargeback. This allows the CBD merchants to prevent the fulfillment of the order, review the transaction carefully, give a refund if necessary or file for a chargeback dispute should they the transaction legit.
- A competitive and cost-effective processing rate must be given to the CBD merchant.
The CBD Merchant account provider must be able to help the CBD merchants with protecting their businesses from sudden account closure, fraudulent transactions, and lower chargeback.
To learn more about CBD Oil Payment Processing, call us at +44 800 776 5988 or click here to set up your personalized payment consultation.