What if you were missing out on a major opportunity to make a profit?
Right now, the CBD market is hotter than ever. In fact, this market is set to grow by 28.30 percent by the year 2028.
If you want to be part of this growing market, you’re going to need your own CBD merchant account. What is this account, and why is it so important to your business? Keep reading to discover the answers!
A CBD merchant account is one that allows you to accept credit card payments for various CBD products. Without such an account, your ability to sell CBD will be greatly limited.
Most people who dream of opening their own shop and selling CBD think it will be easy to accept payments. However, CBD is not like other products. It is considered a “high-risk” product, which is why it can be difficult for you to find a payment processor and get the account you need.
In order to get the best merchant account for CBD, you need to know a bit more about high-risk accounts and how they work. In turn, this can help you learn more about why CBD is considered high-risk in the first place.
High-risk accounts are labeled as such by different payment processors. These processors will dub certain accounts high-risk because those accounts are at greater risk of chargebacks and fraud. In some cases, it may also be due to the reputational risk involved.
The average payment processor wants transactions to go very smoothly. Chargebacks cause headaches for the payment processors, all while cutting into your profit margin. And investigating fraud as well as preventing future fraud can take a lot of time, money, and other resources.
Most payment processors consider CBD a high-risk product. As such, it can be difficult for new CBD merchants to find a payment processor that will allow the merchant to take payments for the products they sell.
bodyCBD merchants are labeled as high-risk by most payment processors due to the negative reputation of CBD. As such, most payment processors are hesitant to work with CBD merchants.
In recent years, CBD has become more mainstream and more accepted by the general public. And the product does not have the psychoactive properties of THC, meaning it can be sold in more places and to more people regardless of laws concerning marijuana.
However, most payment processors still associate CBD with THC because it is derived from the hemp plant. Thus, these payment processors want to avoid the potential reputational harm of helping to sell something that many people associate with illicit drugs. Fortunately, it’s still possible to find the right payment processor to help you begin selling CBD.
A merchant account for CBD allows you to sell CBD in all of its many forms. Depending on your business and your demographic, you can sell this CBD as either a health product or a beauty product.
To consumers, one of the best things about CBD is that it can be used in many different ways. It can be vaped, consumed as a capsule or edible, smoked, or sprayed. It can also be consumed via tinctures, concentrates, sprays, and so on.
In recent years, there have also been innovations allowing consumers to use CBD via a transdermal patch. CBD can now also be consumed via emulsified CBD and water-soluble CBD.
More recently, CBD merchants have been experimenting with CBD-based beauty products. This includes hair products and skin products. On top of that, there are even special CBD products designed for pets!
As you can see, there is no shortage of CBD products available to consumers. The good news is that once you have a CBD merchant account, you’ll be able to sell any and all of these products. However, it may take a bit of trial and error to determine which types of CBD products your own customers prefer.
The most basic function of a merchant account for CBD is simple. This account allows you to sell products that you otherwise could not sell. However, there are other benefits to these merchant accounts you should be aware of.
A good merchant account helps you to keep your financial accounts from closure. Such an account also helps you avoid potential transaction obstacles while making it easier to manage things like returns and refunds.
You will find a merchant account makes most of the daily aspects of running your business a bit easier. And as your new business expands and grows, the right merchant account helps scale to accommodate your growing needs.
If you plan on selling CBD, you need to find the right payment processor. However, some processors are better than others. How, then, can you find a processor that has everything you need?
Look for a processor that offers transparent financial details and upfront pricing. That way, you won’t encounter any expensive surprises.
Make sure the processor also provides multiple ways for customers to pay. In addition to major credit cards, a processor should also allow people to pay via gift cards, EBT, electronic checks, and more.
Always make sure your payment processor follows Payment Card Industry Data Security Standards. Not only is this compliance mandatory, but it helps to provide the security that you and your customers deserve.
Finally, make sure the payment processor has top-notch customer support. That way, if something goes wrong, you’ll have the support you need to fix it right away.
Now you know what a CBD merchant account is and why you need it. But do you know where to find the payment processor who can launch your business to the next level?
Here at Zen Payments, we specialize in helping businesses just like yours. To see how we can help you thrive, just contact us today!