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CBD Merchant Account

General
With the recent legalization of cannabidiol (CBD) and other cannabis products, more and more merchants are choosing to open a business that can provide consumers with both medical and recreational cannabis products, including CBD. The CBD industry is rapidly growing in the United States and consumers can purchase CBD products online as well as at physical stores.Despite a constant surge in demand and superb market potential, the CBD industry is always under the radar of governmental organizations and financial institutions. Since the risk associated with payment processing in the CBD Industry presents a dynamic set of challenges, CBD businesses are constantly looking for solutions. Fortunately, securing a merchant account for your CBD business is easy with HRMPay. Simply fill out our quick form and a member of our Team will reach out to you to complete your application.
Why Are CBD Businesses Considered High-Risk?
Cannabidiol, or CBD, is a derivative of cannabis that can be extracted from both hemp and marijuana plants. CBD is sold in a variety of different forms. Due to federal laws regarding marijuana and THC products, many banks are not willing to open accounts for CBD merchants, regardless of state laws in the merchant or bank’s primary location. CBD is a high-risk product because its parent element: marijuana, remains illegal according to federal laws. Additionally, CBD processing requires a high-risk merchant account because of the potential risk of chargebacks and risk associated with the CBD industry. Risk of Chargebacks Acquiring banks and payment processors underwrite merchant accounts based on risk. The unpredictable nature of CBD products and CBD legislation result in banks viewing your business as high-risk. Operating in the eCommerce space, in general, means that you run the risk of chargebacks. eCommerce is already considered high- risk because customers can easily dispute transactions with their issuing bank when unhappy with a purchase or forgot that they made an online purchase. This, added with the misconceptions surrounding CBD, means that your business is considered high- risk for banks. HRMPay, however, has solutions for you to obtain a CBD Merchant Account. Chargeback Protection Our multi-bank processing capabilities help high-risk merchants prevent high chargeback ratios, but we also work hard to help our CBD merchants protect their bottom line by preventing unnecessary chargebacks. HRMPay provides merchants with technology designed to identify vulnerabilities within their system to limit instances of unjustified chargebacks. Some of the ways CBD merchants can prevent fraudulent chargebacks on their own include: • For brick-and-mortar retail locations, train employees to ask for photo identification with all credit card transactions and have them double check that the name is the same on both cards. • For brick-and-mortar retail locations, utilize time-stamped video surveillance for the cash register area. Be sure that the video captures the customers’ faces. This can be used to cross-reference with the time stamp on the credit card transaction and provided as additional evidence in disputing chargebacks • Retain all credit and debit card receipts. File them with care and keep them easily accessible in case a chargeback is initiated, and proof of the transaction is required. • Never process any transaction that is suspected of being fraudulent without confirming the information with both the customer and card-issuer. Industry Risk CBD products often come with various health claims by businesses that market CBD products. Unsubstantiated health claims are claims that the FDA has not verified. Any information claiming that a product could impact health is a health claim, especially when it is considered a positive claim. If your product falls in the unverifiable health claims category, it will be tagged “pseudo-pharmaceuticals.”, which would not be an approved processing product. Your CBD business will automatically be labeled as a high-risk. For this reason, it will be difficult or impossible to find banks that accept CBD business. Fortunately, there are other solutions available, including working with HRMPay. We concentrate on placing high- risk CBD merchant accounts and have a solution for your needs. For more information, contact us or fill out our quick form application to get started. Keeping CBD Merchant Accounts in Good Standing As a new industry, it is important that CBD merchants maintain their accounts with banks and credit card processors. Building good histories will increase the likelihood that banks eventually see CBD merchants as a legitimate and viable business that they are willing to work with. Some things merchants can do to keep their accounts in good standing include: • Maintain a good history with credit card processors • Consistently perform a high sales volume • Keep a high balance in business accounts • Dispute chargebacks whenever possible and back up disputes with strong evidence • Remain transparent in all communications with your banks and payment processor Adhering to these standards is something any business should strive for, however, for a high-risk industry, it is more important than ever. In addition to creating a better name for the industry, merchants who keep their accounts in good standing increase the chances of raising their sales potential and processing limits.
CBD & Hemp Products HRMPay Supports
HRMPay supports businesses selling traditional CBD and hemp-derived products falling within a 0.3% THC threshold and operating in locations where cannabinoid-derived products are legal. Supported products include:• CBD for Skincare• CBD Tinctures & Oil• CBD Supplements and Capsules• CBD Beauty Products• CBD Pain Relief sprays• CBD Pet Products• CBD Ingestibles• CBD Drinks• CBD Teas• Hemp Oil• Kratom (check your local laws on Kratom as it is not legal in all US jurisdictions)
CBD Credit Card Processing Rates & Fees
Choose a CBD merchant processor who understands your business needs, industry-specific aspects, and budget. As a high-risk merchant, you’ll likely be faced with higher fees than low-risk merchants. While fees shouldn’t be the only reason you decide to work with a merchant services provider, they should be considered since it will determine how much money your business pays to process credit cards. The rate will be determined once your merchant account is approved.The exact credit card processing rate you can expect for your CBD business depends on several factors, including your business’s level of risk and whether you sell your products online or in person. HRMPay will review your application and assess these factors. Rates for CBD payment processing typically range from 2.85% to 5.5%. There could be other credit card processing fees like monthly fees, interchange fees, and related merchant account fees. That said, we offer competitive rates and transparent pricing with no hidden fees or long-term contracts.
What Documentation Is Required to Obtain a CBD Merchant Account?
1. Color Copy of Driver’s License or Government Issued Photo ID2. Document showing Proof of Company Registration (Sole Proprietorship, LLC, ETC)3. Voided Check/Bank Letter4. 3 Months Bank Statements 5. 3 Months Processing Statements (if available)6. EIN Letter7. Articles of Incorporation8. Fulfillment Agreement (if applicable)9. List of suppliers for CBD products10. Lab Results / Certificates of Analysis for products sold on website11. Website 1. URL/Website must have THC of .3% or less and/or Legal in ALL 50 States2. Website must have legal company name and address listed on footer of landing page; terms & conditions page; privacy page; refund/return policy; shipping policy; contact page with customer service number and card brand logos on the checkout page.
CBD Merchant Account Types that HRMPay Supports.
HRMPay offers the following solutions for CBD merchant accounts: • CBD Retail: Solutions that are best suited for traditional brick and mortar retail settings with reliable internet. A retail CBD merchant account allows you to accept credit/debit transactions in-person or card-present.• CBD eCommerce: Solutions for vape/e-cigarette products and accessories. For eCommerce CBD merchants, our state-of-the-art payment gateways provide you with everything you need to accept online payments securely. • CBD Payment Gateways: HRMPay offers a multitude of gateway options for our merchants. Whether you are a high-volume eCommerce merchant or a newer merchant, we have the best solutions for those merchants who make most sales via eCommerce. • CBD MOTO (Mail Order/Telephone): With a virtual terminal, you can accept payment details from your customers via phone and email. Our virtual terminals’ have an easy-to-use interface which makes it easier than ever to accept card-not-present payments.• CBD Mobile: Mobile vape/e-cigarette merchant accounts allow businesses to accept in-person payments via your cellphone. These solutions are perfect for selling at special events/conventions. CBD mobile merchant accounts are typically priced similarly to retail accounts as the chargebacks/fraud are usually relatively low.
Why Open a CBD Merchant Account with HRMPay?
1. To Accept Credit Cards: If you operate either in a brick-and-mortar retail location or an online website, you’ll need to be able to accept major credit cards to maintain a successful business. 2. Payment Gateway and Platform Integration: Our payment gateway integration into many of the popular website platforms, including Shopify, WooCommerce, Magento, and WordPress. This means that you won’t have to switch your platforms after spending long hours and tons of money developing the perfect website. 3. Customer Service: Our Customer Service Team understands the CBD industry and how to keep you processing efficiently and effectively. HRMPay provides you with the option to accept credit card payments for your CBD business either in your retail location or on your website, giving you the best opportunity for success. When you partner with HRMPay, you also partner with a large network of payment solutions providers. We offer outstanding fraud and chargeback protection, as well as exceptional customer support. We have strong relationships with many of the largest acquiring banks who work with high-risk merchants both in the United States and offshore. We utilize a variety of processing techniques to ensure that CBD merchant processing is a smooth and simple process for our high-risk accounts. Some of the features of your CBD merchant account include: • Multiple payment processing relationships to assure placement of your merchant account • 24–48-hour settlement to merchants • Secure payment gateways • Chargeback alerts • Chargeback disputes • Fraud prevention and protection tools • Competitive processing rates • Quick approval of your merchant account In addition to providing outstanding customer service, HRMPay supports integrations directly into the software, systems, and tools you already utilize within your operations. We maintain a variety of partnerships with industry-leading payment gateways and payment platforms to include: • Authorize.net • NMI • USAePay • WooCommerce • Magento • WordPress • Shopify • BigCommerce We can integrate with the most popular platforms to help you successfully sell your CBD products. Once HRMPay has your merchant account boarded, you will be ready to transact your CBD transactions promptly, effortlessly, and conveniently! Sign up today! quick form