Cannabidiol also know as CBD has skyrocketed in popularity over the last few years. It’s become accepted by recreational users as well as a large part of the medical field.
CBD is similarly used as a treatment for for many of the same symptoms where medical marijuana has been prescribed. It’s also used recreationally in states that have legalized marijuana.
CBD is still considered a schedule 1 drug, which makes it tricky as it’s still technically federally illegal. The demand and usage are on the rise and business are actively cashing in on this industry, but they run into several problems when arranging merchant services.
It’s become increasingly difficult to reliable merchant accounts that’ll process CBD online and in brick and mortar storefronts.
The importance of getting a credit card processor that allows CBD and HEMP
CBD and Hemp merchant services can be difficult to get approved for due to the high risk placed on them by the financial services industry. Hemp and CBD merchants have found that banks are not as willing as the state governments about the ever changing opinions regarding this product. Read more about this issue at https://thesoutherninstitute.com/third-party-credit-card-processing-companies-that-work-with-cbd-and-hemp-sellers/.
This makes finding partners in financial institutions a complicated and frustrating task. The majority of banks that are part of the Visa and Mastercard network follow a charter. This means they’re allowed to operate between states, but the regulatory federal government control the majority of the banking practices.
Even though marijuana is recreationally legal in the state the operator wants to get a CBD account. Federal laws take precedence and force banks and financial institutions to abide by the federal law of the land regarding marijuana and could impose fines and I or remove their banking charter.
Who provides CBD and HEMP merchant accounts
There is a serious lack of payment processors and financial institutions willing to take the risk of offering a CBD credit card processing service. The hunt to find a reliable merchant can be daunting at best.
The key to finding merchant services is to ask the right questions and look to higher risk sales organizations that specialize in using multiple payment processors. Many merchants have found success using payment processors that specialize in the medical marijuana and tobacco industries.
How to get CBD and HEMP merchant accounts
Now that you know to look for a medium to high risk CBD credit card processing provider. You’ll probably be unable to use your local bank. There are thousands of general merchant services and credit card processing companies in the US, but you’ll find very few that specialize in CBD and HEMP credit card processing.
They will generally be the smaller and more niche oriented financial companies that are willing to take on the extra risk. A simple search on the web looking for higher risk medical marijuana and tobacco financial services will likely give you some options to start your search.
As ongoing evidence proves that not only the health benefits and continuing investments by VC’s, in time banks and financial institutions will view the industry as less risky.