If you are in the CBD industry, then obstacles must be part of your operations. From high rates and unexpected events when trying to create payment channels. Even though accepting card payments is a great selling point, most processors avoid such businesses due to the association with cannabis.
CBD business owners must therefore struggle to meet compliance standards and pay higher fees trying to find a viable solution. While these issues are hard to deal with, the secret is finding the right CBD processing partner. Here are some tips to help your search.
Comprehensive Merchant Account Approval Process
Applying for a CBD merchant account is safer if the approval takes a little more time. Unfortunately, some companies may process applications faster only to find out later that the business sells products outside the risk profile. This puts businesses at risk of not processing payments. When looking for CBD payment processing, ensure they perform due diligence and thoroughly underwrite new accounts.
A Sponsor Bank That Understands CBD
To avoid future account closures and freezes, you must trust all the parties involved in facilitating transactions. For example, the risk tolerance of the sponsor bank will determine whether the payment processor can provide CBD merchant accounts. In addition, sponsor banks ensure business owners get their money and card companies get their fees. This means having proper underwriting controls giving you confidence that your account will not be dropped.
High-Risk Availability
The CBD payment processing service you choose should be in a position to handle high-risk transactions. However, considering the CBD industry is marred with card fraud and chargebacks, it still stands in the legal grey area. This leaves only a few CBD payment processing services available for high-risk transactions. The company should also be open about its underwriting process when creating a new account.
Reasonable Fees
You will likely be met with hefty upfront fees when looking for a reliable CBD payment processor. While most processors consider these costs effective for high-risk businesses, you must consider convenience. Established payment processing companies may need fees for new accounts, but some provide these services affordably. Ensure that the payment processing of your choice offers convenience and affordability that matches your business needs.
Reliable Customer Support
Customer service is the biggest factor that distinguishes ordinary processors from the greatest ones. CBD merchants are in a high-risk industry, and customer support issues are more frequent. You, therefore, need a provider that can effectively resolve issues. A reliable payment CBD payment processing company must be built to handle transaction issues like scams and fraud. These companies must therefore cater to merchants when the need arises.
Availability of POS
A CBD payment processor with point-of-sale (POS) availability saves you time and money during operations. POS integration enables you to manage online and offline transactions with accurate reports. You can increase store profitability and customer loyalty through easy access to the sales portal. POS software also assists in making better business choices by controlling stock input and output from a single point.
With the information above, take your time to analyze your processor's ability to offer customizable services. Despite the high-risk CBD industry, you need a provider that meets your unique business needs. These services should also guide you on fraud protection, data security, and regulations to guide you on the right path.
