Also known as Cannabidiol; CBD is a natural product which is extracted from the cannabis flowers. This plant has a long history for being a very rich source of medicines. It has proven to be very useful in controlling anxiety, blood pressure and other properties. Those who deal in CBD products are the CBD merchants
Important points on CBD Merchant Account
An online account through which you can accept payment via debit or credit card, is known as a merchant account. Here are some important points you need to know about CBD business
- It comes with high level of legal and financial risks.
- The laws with respect to cannabis products are not defined in clear terms; as a result, companies find it difficult to operate.
- There are no defined health risk guidelines with regards to cannabis
- The nature of the product is one of the reasons which needs to be taken into consideration.
Those merchants who deal in CBD products are in a high risk zone, which means that they have to face high fees and different types of restrictions. Since it’s a high-risk business, it can be difficult to find a traditional merchant, as no one would be willing to take additional risk, knowing all the complications involved in this particular business.
How to get hold of a CBD Merchant Account?
Here are a few important things you need to know for getting a CBD Merchant Account
- Know the Industry: It is very important for you to have a clear idea about the industry and risks associated with it
- Good Credit Card History: If you don’t have an impressive credit card history, in that case, the chances of being rejected by a payment provider increases. It is important that a low chargeback ratio is being maintained.
- Stable the Processing Volume: It is important to have a stable processing volume, as no merchant would take the risk of investing in your business, if you don’t have an impressive volume if card transactions.
- License: It is absolutely essential to get hold of all the important an relevant documents. It is also important to have a business license before applying for a high-risk merchant account.
- Disclaimer Policy: Having an attractive website would add to the credibility of the business. It is also important to ensure that it had a disclaimer policy mentioned in clear terms.
- Find an Account Provider: In order to find a reliable account provider, it is important to carry out some research. Shortlist the ones which deal in high-risk businesses.
- Make a List of Providers: After short listing the merchants, it is time to make a list of good and reputed providers who would be interested in your type of business.
- Reputation of the Merchant: It is absolutely essential to make sure that a reputed merchant is chosen. Going through his credentials and user reviews would give some idea.