Getting your Hemp Oil Business started can be quite difficult and one of the key challenges you will face is getting a hemp oil CBD merchant account. In fact, finding a payment processor for your CBD merchant account can significantly add to the difficulty of getting your CBD business started. There are some key steps that you will need to take in order to make sure that your business is successful and getting a CBD merchant account from the right payment processor is one of them.
This article focuses on getting a Hemp Oil CBD merchant account, why it is needed, and what to expect and what to look for when choosing a payment processor that approves a high-risk business such as CBD.
What is a CBD Hemp Oil Merchant Account?
By starting a Hemp Oil CBD business, you become a merchant of this product. And hence, you will need to find a company that acts as the intermediary between you and any of the financial institutions you are involved with. Payment processors are companies that authorize transactions and are on the side of their merchants to make sure that they get paid on time by transferring funds as well as providing added services e.g. card acceptance, customer support, and security solutions. In order to acquire all these features and benefits from a payment processor, you will need to get a Hemp Oil CBD merchant account.
Once you have obtained a CBD merchant account, you will be able to provide your customers a payment gateway which they will use to pay for your products. Any payment your customers make within your provided gateway will be monitored and handled via your payment processor in order to reach the bank, and ultimately reach the pocket of your business.
When Will I Need a Hemp Oil CBD Merchant Account?
Getting a Hemp Oil CBD merchant account from a CBD-friendly payment processor is a foundational, integral step, but it won’t be your first matter of business. It is recommended that you first set up the initial framework of your business before reaching this step. This includes a business name, a logo, an established LLC, a bank account, a private label partner, and a website.
Why Are CBD-Friendly Merchant Account Providers Rare?
On your search for a reliable CBD-friendly merchant account provider, you will come to realize that there aren’t many out there. Chances are that you have already heard or noticed this when getting started with your Hemp Oil CBD business. The reason behind it is that payment processing companies and banks are not too fond of working with the Hemp Oil industry. This is because this industry, regardless of how rapidly growing it is, is considered high-risk.
Why Are Hemp Oil CBD Businesses Considered High-Risk?
Banks and payment processors consider CBD businesses high-risk. CBD is one of the several industries that is considered high-risk. Other high-risk industries include timeshares, vaping devices, travel services, pharmaceuticals, online dating, online gaming, etc.
Companies that offer financial services such as low-variability and low-risk of change, and with Hemp Oil’s constant legal confusion, payment processors and banks feel apprehensive to get involved and wind up charging a pretty penny to Hemp Oil merchants. The high cost and unwillingness of banks to work with Hemp Oil businesses is conflicting and disappointing because of the current legal status of CBD and its overwhelming ability to help those in need.
Fortunately, as Hemp Oil and CBD products become more commonplace in society and consumer interest is developed, more and more people are interested in starting Hemp Oil businesses. As a result, more companies are emerging on regular basis looking to meet the CBD-friendly payment processing demand.
What to Look for in a Hemp Oil CBD Merchant Account Provider?
Following are some things you should look for in a CBD merchant account provider:
- Willingness to Partner with High-Risk Businesses
Your first priority should be to find and partner with a payment processor that is willing to work with high-risk businesses. There are payment processors out there that understand that a high-risk business does not mean a lower chance for success and they are willing to partner with such businesses to help take their customer accommodation and expertise to the next level.
- Experience Working with CBD Businesses
You should choose a payment processor that has experience working with CBD businesses so that they can guide you through working with e-commerce platforms, payment gateways, and other evolving challenges. Partnering with a payment processor that is not very familiar with the CBD industry could result in poor overall experience.
- Access to a Big Network of Financial Partners
Having the business go offline and being unable to accept customer payments is probably the biggest nightmare of any business owner. That’s why it is recommended that you find and partner with a CBD merchant account provider that has access to big network of financial partners so that you can have assistance when you meet a road bump.
- Additional Services Provided
You want to be able to trust your CBD merchant account provider. Payment processors are the experts a lot of merchants turn to for guidance about their business’s financial aspects. So, it is recommended that you make sure that the merchant account provider offers various additional services e.g. a merchant ID (MID), fraud protection, data security, chargeback management, and more.
- Long-Term Commitment
Once you partner with a payment processor, you will want the partnership to work for the long-haul so that there are no unnecessary shifts. As your Hemp Oil CBD business evolves, you will want a merchant account provider that can adapt and shift with you. So, ask your payment processor about their experience in working with both small and large businesses.
Choosing a reliable merchant account provider is the key to your business success. However, it can be a difficult task, especially for a high-risk business e.g. CBD. Fortunately, there are CBD-friendly payment processors out there that are willing to work with Hemp Oil CBD businesses. You just need to do your research to find them. Following the above-listed tips will help you in this regard.
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