Michael Hollis
Director of Sales
The CBD industry is a budding market thanks to recent changes in laws and public perception. As CBD continues to move deeper into the mainstream, savvy entrepreneurs are getting in on the financial action.
Once they start, they realize that in order to stay afloat they must maintain cash-only businesses because they can’t get approved for merchant accounts. Without a CBD merchant account, you can’t accept debit and credit cards for CBD edibles, hemp, and cannabis oil you sell. Luckily, we are willing to take the risk that banks won’t.
Though the industry continues to gain in popularity, banks and other financial institutions feel CBD businesses are took risky and/or will ruin their reputations as reputable lenders. Since they are reluctant to work with these businesses, merchants suffer, losing sales and customers.
Now, with EMB, a comprehensive, affordable CBD merchant account provider, you can get the payment processing you need for your CBD business. Since EMB specializes in high-risk merchant accounts, such as CBD businesses, it tailors payment processing solutions to meet individual merchant’s needs. Follow our practical tips and suggestions here to make the process of getting a CBD merchant account easier. Apply today to begin the process.
Obtaining a merchant account for CBD business isn’t like getting one for other, less speculative businesses. These businesses aren’t just high-risk because of the industry but because of the potential for excessive chargebacks. That’s why CBD business owners can’t walk into a bank and ask for an account to process credit and debit cards. Sponsor banks must allow CBD businesses in their underwriting guidelines for them to be approved for merchant accounts. Due to the controversy and legal unknowns surrounding this industry, many of the world’s largest and well-known banks won’t allow processors to underwrite these types of risky businesses.
That’s why you need to go to high-risk merchant account provider, like eMerchantBroker.com (EMB). When you move forward with EMB, forget about the frustration that many others experience when they search for a payment processor. Take your business to the next level by giving your customers options to pay for products with debit and credit cards. They not only deserve it, but they expect it.
Apply online today. After submitting your application, EMB’s underwriting team reviews the application, which can be completed within minutes online. Devoted to exceeding customers’ expectations, merchant accounts are approved in as little as 24 hours.
Expect federal, state, and local governments to scrutinize and pay very close attention to businesses that sell CBD products, therefore, know all the laws in your jurisdiction.
President Trump signed the farm bill into law in December 2018, legalizing hemp. Prior to this law, hemp and CBD extract were classified as a Schedule 1 substances, which is the federal Drug Enforcement Administration most restricted category. Now, any part, extract, or derivative of the Cannabis plant that has a THC concentration of not more than 0.3 percent on a dry weight basis is legal.
However, it is important to remember that states can have their own individual laws surrounding the legality of hemp and CBD products. Find out if your specific state permits the sale of CBD oil. If so, get any required licensing or comply with any other necessary regulations. Credit card processors may request a copy of the license when you apply for merchant account services.
Also, the federal law also fails to address the U.S. Food and Drug Administration’s (FDA) role in regulating the CBD and hemp industry. Today, the FDA considers dietary supplements and foods containing CBD unlawful. Until there is a court challenge or the FDA changes its position, merchants will need to do their best to ensure they are adhering to all laws.
The CBD rules and regulations will continue to change and evolve as the culture, landscape, and markets continues to adjust as well. This potential of change creates a lot of fear and anticipation among more traditional lenders. That’s why if you want to move forward and accept credit and debit cards, you must turn to EMB. Apply online today.
EMB will get you approved today for a low or high risk merchant account for your B2B, eCommerce, or Retail business at the most competitive rates.
EMB works with businesses that sell all types of CBD products, including:
Begin accepting credit and debit cards for CBD products today by filling out EMB’s simple online application. To swiftly move the process along, businesses need to make the following documents available to processors and underwriters:
EMB guarantees no approvals, but it does promise a quick and easy application process that can result in approvals in as few as 24 hours.
Despite conflicting laws and other loose ends, there are steps you can take to increase your chances of getting a CBD oil merchant.
First, have a handle on your finances. Financials that don’t show any overdraft fees or periods or low balances will have the best shot at getting a merchant account. Next, maintain a stable or a large volume of transactions each month will show merchant account providers that you are worth their investments.
Most importantly, figure out how to fight chargebacks. Too many chargebacks, which are when a credit card company forces a retailer to reverse the charges on a fake or disputed transaction, can destroy a business. Merchants get hit with hefty fees and put their merchant accounts in jeopardy if they fail to keep chargebacks under control.
Chargebacks prove that your business is inherently flawed either by the products you sell or your policies and procedures surrounding the purchase of them. Maybe you fail to clearly state your refunds and returns policy? Or maybe your contact information isn’t clear, and customers don’t know how to reach when they have problems? These issues can lead to chargebacks.
Therefore you need to take action to prevent them. Make sure all your policies are clearly displayed on your site and include them in confirmation and shipping emails. Also, make sure customers know how to reach you if there is a problem with the product or they are dissatisfied. Ensure customers know how their purchases will show up on their credit card statements. This will prevent a customer from disputing a charge because he/she does not recognize the business on his/her statement.
Finally, be aware of friendly fraud. Despite society’s seemingly open-mindedness to CBD, many do not want to share that they are buying and using these types of products. To combat this, keep records of purchases and record IP addresses, so that you can prove that a customer is just trying to get away with getting something for nothing.
EMB offers an elite chargeback alert and prevention system that allows merchants to prevent one in four chargebacks. EMB partnered with Verifi and its Cardholder Dispute Resolution Network (CDRN) and Ethoca’s alert system, so merchants could have greater control over resolving credit transaction disputes. This system allows you to achieve the greatest rate of chargeback resolutions with direct input in the process.
We recognize the need for people in the industry to have CBD payment processing solutions that work for both them and their customers.
As a high-risk specialist, eMerchantBroker.com (EMB) understands the challenges that CBD merchants face. Regardless of risk, EMB approves CBD merchant accounts to eligible merchants. EMB offers customized payment processing solutions for all types and sizes of companies.
To begin the process, apply online now. Merchants can get approved for a penny auction merchant account in as little as 24 hours. Once approved, EMB can set up chargeback management tools and payment gateways. Also, fraud filters also can be set up for online payments.
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Having a merchant account allows an account holder to take advantage of merchant cash advances. When a merchant is approved for an advance, the business agrees to receive a lump sum of cash in exchange for an agreed-upon percentage of future credit card sales.
Pricing varies depending on the merchant’s industry, past credit card processing history, the type of business seeking the account, average ticket sales, and average transaction volumes.
Yes, EMB works with merchants who are building their credit, as well as those who have poor credit. EMB also approves merchants that have no credit card processing history and businesses that have lost their merchant accounts due to high chargebacks.
Several factors influence a merchant’s risk level. Though only one factor likely will not get a merchant classified as high risk, a combination of these may: business size, location, and industry, credit score, credit card processing history, a industry’s reputation for excessive chargebacks, a prior history of high chargeback ratios, and whether a merchant exclusively sells online.
Virtual terminals are stationed on a merchant’s website, making it easy for customers to make a payment or purchase online. Merchants or a payment processor can easily set up virtual terminals, so online businesses can accept credit and debit card and e-check transactions.
A merchant account is a business account with an acquiring bank. Without this business account, which actually works more like a line of credit, a merchant cannot accept and process credit and debit card transactions. Businesses need a merchant account to accept major credit cards via a static point-of-sale terminal, mobile card reader, or through a virtual payment gateway.
After filling out EMB’s simple online application and submitting any necessary, requested documents, many merchants get approved within 24 and 48 hours.
EMB specializes in working with high-risk merchants. EMB works with many merchants, including but not limited to businesses in these industries: gambling and gaming, adult entertainment, nutraceuticals, vaping and e-cigarettes, electronics, tech support, travel, high-end furniture, weight loss programs, calling cards, e-books and software, and telecommunications.