CBD Merchant Account Solutions
Fast Approval + 25% Lower Fees
First Card Payments has over 20 years of experience in merchant account services for the CBD industry.
CBD oil and CBD-related products are part of an emerging market that is expanding at a fast rate. Though CBD offers a variety of life-changing effects for people all over the world without the psychoactive component THC, the CBD industry is still seen as taboo and illicit. A high-risk CBD merchant account may be difficult to obtain as a result of the stigma surrounding the industry.
As a reliable payment processing company , First Card Payments offers CBD merchant account services for what banks and ISOs consider a high-risk industry. There is no stigma here. One day the rest of the U.S. will understand that CBD is a powerful healing product. It is being used all over the world in many different types of applications.
eCommerce has expanded the reach of CBD throughout the U.S. but businesses struggle to find CBD payment gateways and credit card processing to meet their needs as well as those of their customers.
Don’t let a merchant processor take a huge percentage of your profits as the CBD industry soars to a multi-billion dollar valuation. Keep fees low and work with our experts at First Card Payments.
Click to Call – (877) 441-6801
Benefits of Partnering with FCP for Your CBD Merchant Account
With the enormous growth that CBD businesses have experienced in the last several years, banks and ISOs see a budding new billion-dollar industry that they want to tap into. CBD businesses must be able to accept credit cards , just like any other industry these days. First Card Payments will guide you through all the twists and turns of this process in order to get you approved for not only a merchant account for your CBD business but a backup account as well.
The relationships with banks and ISOs we have fostered over the last two decades allow First Card Payments to provide excellent services and low fees to high-risk merchant accounts in the CBD industry and beyond.
Particularly related to financial partners, it helps to trust the people you work with; at First Card Payments, we offer that level of honesty and transparency. We take care of the payment processing and your CBD merchant account so you can focus on your business.
- Edibles, such as gummies and chocolates
- CBD lotions and creams
- Vape cartridges
- Food and water
- Bath and body
- CBD for pets
Why a CBD Merchant Account Is Tough to Find
CBD merchant accounts are not given to just anyone. The laws concerning the CBD industry differ from state to state and there is still a stigma attached to CBD because of its proximity to marijuana. Banks hesitate to trust these types of businesses.
Again, we know different, but the old guard in charge is struggling to change their views and until the world has caught up, it will be difficult for CBD business banking to be legitimized. Not to worry, that’s where we come in!
First Card Payments monitors CBD regulations throughout the country very closely. We anticipate changes and work to make sure that all CBD credit card processing is never interrupted.
We work on merchant accounts for CBD startups and multimillion-dollar CBD product manufacturers. Size doesn’t matter here; what matters is the integrated functionality to ensure you can accept and process payments for your CBD products.
Why Banks Hesitate to Approve CBD Merchant Accounts
Businesses in the CBD industry are finding it difficult to obtain a merchant account in part because it is not regulated enough. Banks and ISOs aren’t certain if a company is selling CBD that is within the 0.3% THC or less (which makes the product legal by FDA guidelines).
Some banks will provide merchant processing for CBD businesses, but they will only take a few clients at a time. When they have stopped accepting business, another bank will fly in and take on some business as well.
Unfortunately, not all banks are maintaining due diligence when underwriting these accounts. As a result, certain banks have stopped working with CBD businesses for now. Fewer banks are offering CBD credit card processing and the list for approval is long.
Lower Fees for CBD Merchant Accounts with First Card Payments
Just because the CBD industry is considered high risk doesn’t mean you should pay exorbitant fees for merchant services; however, the fees are somewhat higher than a traditional merchant account considered low risk by the merchant processing industry. One way First Card Payments helps your CBD business lower merchant account fees is by preventing or otherwise mitigating chargebacks!
For 99% of CBD businesses, we can cut fees by 25%.
The 2018 Farm Bill & How It Affects Your Business
Marijuana is considered a Schedule 1 drug by the FDA. CBD is not the same as marijuana and is thus treated differently by the government.
The 2018 Farm Bill stipulates that CBD, which has a THC level of 0.3% or less, is not considered a schedule 1 controlled substance; however, every state has different laws and regulations which they can change at any time.
Since CBD is not classified as a Schedule 1 drug, major banks and ISOs stepped into the CBD arena, approving all CBD accounts with the least amount of documentation possible–driver’s license, voided check, utility bill, and an application. Unfortunately, as each state’s laws differed, those who were approved for a CBD merchant account had the rug pulled out from under them due to the extremely light underwriting. Many were forced to cease all their CBD business.
Soon, different banks had different underwriting guidelines that may have included a charge of accounts, licenses from the Department of Agriculture, full product lists, and much more. The differences in these guidelines allowed banks to figure out better solutions for CBD merchant processing.
It’s a mess, but a very profitable mess. As mainstream businesses capitalized on the CBD craze , CBD has become a billion-dollar industry. Regardless of the current laws in your area, First Card Payments offers solutions for your CBD company.
Consulting Services for Your CBD Business at FCP
We are in your corner and we can help you figure out the financials of your CBD business.
Unlike our competition, we guide your business towards quick approvals and long-term merchant processing success. The success of your CBD business is our success as well.
The experts at First Card Payments work with you to strategize and make the most of your CBD merchant account. For instance, our chargeback prevention tips will help you keep those rates low so your business can benefit from lower fees. We will help you grow without being limited by merchant processing caps. We like to set our clients up with backup accounts, thereby giving you an added layer of protection if an account gets terminated for any reason.
Give us a call and experience the First Card Payments difference.
How to Apply for CBD High-Risk Merchant Account
While the debate regarding the legalization of marijuana continues across the country, the use of CBD, a vastly different product than marijuana, continues to be stigmatized as well. Although this alternative treatment has been controversial, many health experts have also described its health benefits, especially in treating depression and epilepsy.
If you’re running a CBD business, you may find it difficult to apply for a payment processor because you’re tagged as a high-risk merchant. But with these tips, you will not only make the application process easier, but you’ll also have a better chance of approval.
Describe products clearly and accurately.
One of the reasons CBD is such a controversial industry is that there are no proper regulations in place to ensure that CBD products are used only for medical purposes and not as an addictive drug.
So if you don’t want to be snubbed by banks and financial institutions, your product descriptions should be thorough, accurate, and clear. Most merchant account providers would only approve companies selling CBD products with less than the allowed 0.2% THC content in their product.
Build good credit standing.
Since you’re already in such a highly controversial industry, you don’t need any additional red flags to make banks question your credibility even more. If you don’t have a business credit score yet, this is the time to build one and maintain it so it’s easier for you to prove your credibility as a business.
Now if you already have a bad credit history, it’s important to improve the credit rating of your business . Pay off any pending debt, save up enough money in the bank and make sure that you don’t incur too many chargebacks because this could hurt your chances of getting approved for an account.
Prepare all the necessary documents.
Aside from the application, you also need to prepare some documents to help prove the credibility of your CBD business. These include a government-issued ID such as your driver’s license, three months of your most recent bank statements, your EIN or SSN, a bank letter or pre-printed voided check, and of course, a secure and fully operational website. Underwriters will look into these documents as they review your application for a CBD merchant account; having them handy will show banks that you are reliable, prepared, and trustworthy, which can only increase your chances of getting approved.
Look for the right payment processing gateway.
Finally, it’s very important to find the right payment processing partner to provide you with a high-risk merchant account. For one, your payment processor should be capable of handling high-risk transactions to avoid friendly fraud and high chargeback rates that could hurt your reputation badly. It wouldn’t hurt to find a payment processing gateway that can already provide you with point-of-sale (POS) if needed. First Card Payments will help you choose among the best POS systems for CBD stores .
You should also look for a partner that charges reasonable fees so you don’t end up paying more than what you’re earning.
At the end of the day, getting approved for a high-risk CBD merchant account will boil down to how prepared you are when applying for one.
Do You Need Merchant Account Services for Your CBD Oil Business?
CBD oil, also known as cannabidiol, was once a niche product, but with the legalization of large scale hemp production, it has become one of the hottest new products in cities across the country. As entrepreneurs seek to develop new businesses and deliver broader consumer access to products, however, they often encounter one recurring problem: it can sometimes seem almost impossible for a company selling CBD to find a merchant processing partner.
Many credit card processors and acquiring banks deem CBD merchants to be a part of a “high-risk” industry, owing to its currently unregulated status as a “nutritional supplement.” In an era of transactions increasingly conducted almost exclusively through phones and cards, accepting cash-only is not a viable option. At Premier One Payments, we make it easier to obtain a high-risk CBD oil merchant account, so you can continue to build your business.
We understand how crucial it is for businesses creating CBD products to be able to accept and process credit card transactions, both online and in stores – not only for cash flow but in some cases even to demonstrate the viability of the business to investors. Premier One, therefore, offers an extensive range of services designed with the specific needs of companies such as these in mind, including seamless integration for digital payment process as well as robust chargeback protection. With our efforts contributing to your business’s ability to generate revenue, stability and a platform for future growth are comfortably within reach.
Why You Might Have Trouble Finding a CBD Oil Merchant Accounts
What does it mean to be “high risk,” and why is it so tough to find CBD merchant processing? The answer to that is complicated, but it ultimately boils down to just one word: uncertainty. Although the 2018 Farm Bill did legalize hemp production and set maximum, legal thresholds for the psychoactive component of the hemp plant, THC, it left CBD oil in something of a legal grey area. Compounding this uncertainty is the slow speed with which the gears of legislation turn along with administrative turnover.
The result is a confusing patchwork of state and federal laws that leave many banks wary of accepting payments from CBD merchants. Their concern is easy to understand: these institutions fear a sudden regulatory shift against CBD, which could negatively impact a considerable number of businesses. Thus, they decline to do business with you based on the level of assessed financial risk to their operations.
There are other reasons your business may receive a “high-risk” classification after delving into CBD offerings. Supplements themselves are often regarded as risky due to the high number of chargebacks that can occur – especially for companies that sell CBD oil-based products primarily online. Customers may feel as though their products “didn’t work” or did not deliver the type of results they expected and begin to initiate chargebacks, which can quickly prove expensive both for acquiring banks and the merchants themselves. Ultimately, this ties back to regulations again. Since the FDA does not evaluate the efficacy of supplements, merchant providers are less willing to provide acquiring services for merchants who may face complaints more often.
Because many of the big banks and card processors have chosen to rate merchants dealing in CBD as “high risk,” it’s often challenging for even established operations to make headway with these organizations. In fact, even businesses with accounts in otherwise good standing may find their services frozen if they decide to begin offering CBD products in higher volume. For existing businesses looking to expand into selling CBD oil, the risk of having your primary source of revenue cut off can be an unpleasant prospect to consider.