CBD Payments Merchant Accounts
CBD Merchant Account | CBD Credit Card Processing
A CBD merchant account is simply a merchant account that allows you to accept credit card payments, but has been approved by your provider for selling CBD-derived products.
CBD Credit Card Processing | CBD Merchant Account
Goods derived from CBD oils have been available for several years, but the 2018 Farm Bill’s legalization of hemp accelerated the market for CBD products. Unfortunately, the payment processing industry has been slow to embrace this new category of products, making it difficult for CBD entrepreneurs to obtain a merchant account that will allow them to accept credit and debit card payments.
Cannabidiol (also known as CBD) is a phytocannabinoid extracted from hemp (Cannabis sativa) plants. You’re probably aware that cannabis plants are also used to make marijuana. CBD products differ from marijuana in that they contain very little or no THC (tetrahydrocannabinol) or any of the other psychotropic compounds found in marijuana. To put it another way, CBD products will not make you “high.” Despite this clear contrast, CBD-based products were unlawful until just a few years ago under federal law. While this is no longer the case, CBD laws differ significantly from state to state.
Almost all states now permit the purchase or distribution of hemp-derived CBD products containing less than 0.3 percent THC, but each state has its own set of regulatory criteria.
Despite the fact that medical marijuana and, by extension, CBD products are now legal in the majority of US states, most banks and credit card processors have been hesitant to approve CBD businesses for merchant accounts, and many of these businesses have had their accounts shut down without warning. In this post, we’ll provide you an update on the current legal status of CBD products (as of September 2021) and suggest a few merchant account providers that accept businesses selling them.
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What Is The Process For Opening A High-Risk CBD Products Merchant Account?
eDataPay CBD Payment Processing Gateway
As you might guess, the processing industry has classified CBD goods as high-risk, making obtaining a merchant account far more difficult and expensive. Businesses can be designated as high-risk for a variety of reasons, but the most common ones for CBD products include (1) unproven claims about the efficacy of the goods, (2) high chargeback rates, and (3) legal difficulties influencing the product’s distribution.
The FDA has not approved or validated the supposed positive effects of CBD oils, as it has not done with many other nutraceutical products (FDA). Because there is currently little or no peer-reviewed research available to evaluate the advantages of CBD consumption, marketers have been quick to promote CBD as a potential remedy for… well, just about anything. CBD was first promoted as a means to help you relax and relieve stress, but it’s now being touted as a cure for melancholy, anxiety, and even autism (at least by some individuals).
CBD Requires High-Risk Processors
A CBD merchant account is a merchant account that has been approved for the sale of CBD products in any or all forms. Most popular merchant account providers (and even several high-risk specialists) will not allow merchants selling CBD products because they are deemed extremely high-risk.
Chargebacks are a known danger for almost every sort of business, but the likelihood of suffering one with CBD products is substantially higher. Unfortunately, the above-mentioned unverified claims of CBD’s good health effects make it much more likely that customers will file a chargeback if they believe the CBD-based product they purchased did not help them or make them feel any better.
Businesses who sell a product that is on poor or ambiguous legal basis are also avoided by banks that underwrite merchant accounts. CBD laws currently vary greatly from state to state, posing a number of legal challenges for CBD businesses.
CBD Credit Card Processing | CBD Merchant Account
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CBD Oil Companies with High-Risk Credit and Debit Card Processing
With secure credit card and debit card processing, CBD Merchant Credit Service Solutions lets businesses optimize their online selling potential. Visa, MasterCard, American Express, Discover, Diners Club, and JCB are all accepted. We also accept all debit cards, including PIN-based and PIN-less debit cards, as well as signature debit.
CBD Merchant Services can enable card present point of sale transactions as well as card not present eCommerce, Mail Order, and Telephone Order transactions, regardless of how and where you accept payments.
CBD/Hemp Oil ECheck Processing
While debit and credit cards are the most well-known electronic payment methods, businesses can take one-time or recurring Automated Clearing House (ACH) Network payments straight from their customers’ bank accounts for a cheaper transaction cost than debit and credit cards. Businesses can even convert paper checks accepted at the point of sale to electronic checks (E-checks), allowing cash to be deposited faster and more securely.
CBD Payment Gateway for eCommerce
Merchants may securely and reliably authorize and settle card transactions using the managed payment gateway solution, which is offered in collaboration with American Express. It has cutting-edge capabilities for protecting sensitive card data, which can help shops satisfy PCI DSS regulations.
Wireless Transactions
CBD Mobile gives you the control you need over your wireless payment terminal portfolio while giving you the flexibility you need. CBD Merchant Pay makes use of a PCI-compliant processing environment.
ATM Services for Medical Marijuana Businesses
EDataPay.com is a fully managed, PCI-compliant communications solution that provides safe, high-speed transaction transfer for ATMs, POS terminals, and Kiosks. The type of equipment used, transaction volumes, or site requirements are all unrestricted.