If you're an entrepreneur looking to get into the lucrative CBD oil business, finding the right payment processor is one of the most important decisions you'll make. But if you’re new to merchant services, CBD payment processing can seem complex and confusing. You likely have a lot of questions about how to accept payments legally and avoid potential pitfalls.
This beginner's guide is designed to explain the key things you need to know as a new CBD seller. We'll provide tips on choosing the right processor, integrating the latest payment technology, staying compliant, and avoiding common issues CBD merchants face. Whether you're opening up a new online CBD store or adding hemp oils to your current retail shop, read on for a breakdown of the basics so you can start processing transactions smoothly and securely.
Since CBD is still considered high-risk, not all merchant services providers will take on CBD clients. It’s important to find one well-versed in this industry who can offer terms that work for your business. Here are top things to consider:
Specialized in CBD/high-risk processing - They should thoroughly understand CBD selling compliance and provide tailored solutions.
Competitive rates & fees - CBD merchant accounts often have higher fees, but look for the most reasonable pricing. Interchange-plus pricing is most optimal.
Full-spectrum processing - Can they handle processing for all CBD products, including oils, topicals, edibles etc.?
Seamless integration - Seek processors that easily integrate with platforms like Shopify for a smooth customer checkout experience.
Dedicated account management - Having an expert contact who personally handles your account ensures better support.
The payment processor should offer leading-edge technology designed for ecommerce businesses like:
Omnichannel processing - Seamlessly process transactions from brick-and-mortar sales, ecommerce, over the phone, on mobile etc.
Point-of-sale integrations - Pair your POS system to their payment gateway for in-store sales.
Online shopping cart integrations - Plug their gateway into your website checkout page to collect payments.
Mobile card readers - Accept credit cards anywhere via Bluetooth card readers. Useful for deliveries, events, or a pop-up shop.
Reporting tools - Track all your transactions and sales data through their portal to gain business insights.
Operating legally and safely is a top concern in the CBD space. Be sure your processor keeps up with evolving industry rules such as:
State/federal regulatory changes - Are they monitoring news on CBD’s legal status to ensure your processing adheres to the latest laws?
Compliance training - Do they provide ongoing education on compliance best practices for selling hemp-derived CBD oil?
Merchant account reserves - Some hold a reserve percentage from your sales in case a chargeback occurs. Understand their policy.
Partnered with compliant CBD brands - Reputable processors service legally operating brands that follow proper testing and labeling protocols.
With the right partner guiding you, processing CBD oil sales while staying compliant doesn’t have to be confusing. But thorough research is required when selecting your CBD merchant services provider.
As a high-risk industry, CBD businesses encounter unique hurdles when securing merchant processing. Be proactive in avoiding problems like:
Unexpected frozen/closed accounts - This occurs if your processor lacks experience properly underwriting CBD merchant accounts.
Limited payment options - Only accepting credit cards will narrow your customer base. Make sure they enable ACH payments, checks, and wire transfers too.
Difficult chargeback disputes - An unversed rep without CBD dispute experience can mishandle chargebacks and cause you to lose cases.
Hidden fees - Some overly complex processors tack on unnecessary fees left and right that eat into your profits.
Lack of dedicated rep - Frustrating issues arise from working with a different rep each time rather than your dedicated account manager.
SlidePay offers CBD and high-risk merchants end-to-end support for processing oil, vape, and CBD infused product sales with advantages like:
By partnering with specialists like SlidePay who understand the intricacies of high-risk CBD merchant processing, you benefit from purpose-built solutions. You’ll get leading-edge payment technology created specifically for ecommerce and brick-and-mortar sales. Ongoing compliance insights ensure you operate safely. Competitive interchange-plus pricing and dedicated account management provide value. And seamless POS and shopping cart integrations make accepting transactions easy.
As a new CBD oil merchant, avoid headaches by letting the experts handle your processing. Contact SlidePay to experience high-risk merchant services designed around your specific business needs.
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