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How Synthetic Paraphernalia Can Deter Merchant Acquirers

Synthetic pot may not sound harmful, but it is. A case study outlined by G2 last year highlighted a food ingredients company laundered for a spice drug syndicate. The psychoactive substance, also known as synthetic marijuana, potpourri, herbal incense and K2 continues to gain popularity. This year alone, spice has captured widespread media attention, following mass overdoses in FloridaNew York and California.

This makes it hard for merchant acquirers to trust these businesses. And, it isn’t synthetic pot shops that are selling “Spice”, but rather convenience stores and local mom & pop shops. So, you can see how “Spice” and other synthetic marijuana products can cause issues. But, the problem doesn’t just hit those who sell it. Merchant account providers are cautious to house merchants due to these risks. They are legitimate risks, but merchants still need merchant accounts. So, what do you do? Well, you look for the best choice for your business.

We all know that no two merchant account providers are the same. Some cater to mainstream businesses, and others cater to high risk businesses. But, all high risk businesses are not all the same, so if you have a high risk business this makes it even harder to get a merchant account. You need to ask questions. Ask if they have dealt with your specific business and its specific issues. While a convenient store may have issues with synthetic pot, a car dealership is not. While both industries have high chargeback percentages, they are totally different businesses, and you need a merchant account provider who recognizes this.

Also, look to other merchants in your area with similar businesses and ask their opinions. This is often the best free advice you can get. Checking out industry ratings and the Better Business Bureau (BBB) is a great opportunity, too. And never be afraid to back away if the merchant account provider you are interested in isn’t cutting it. Never sign on the dotted line unless you are 100% sure. This is your business and what you do for this can help set your business up for success – or failure.