Payment Processing & Banking Services for CBD Companies

When you see vendors selling CBD gummies and other products online, you are likely unaware of the struggles they face. Contrary to what you may have read online, CBD is not legal in all 50 states. Yes, you can find products easily online, and in most states, they are shipped to your door with no problems.

Some ‘holdout’ states don’t make it so easy, however. This is only possible because the FDA has yet to legalize cannabidiol fully. The 2018 Farm Bill allows for the growth of industrial hemp in America as long as it doesn’t contain more than 0.3% THC. However, the legislation has made no provision for the legalization of any cannabinoid, including CBD.

This lack of federal approval has led to issues with CBD payment processing. Even though it is a multi-billion-dollar industry, finding CBD banking services is a real challenge. The cannabinoid is still technically a controlled substance. As a result, the banking sector doesn’t want to touch the companies involved in the sale or manufacture of CBD. These financial institutions fear government reprisals. One possible penalty is the loss of their banking license.

Even Amazon doesn’t allow brands to mention ‘CBD’ in their product descriptions. Instead, sellers must classify their products as ‘hemp.’ With traditional options mainly off the table, how do organizations in the niche handle CBD payment processing? Let’s find out in this article.

Are There CBD-Friendly Financial Institutions?

Despite the challenges, there are CBD banking services available. In the main, they are classified as ‘hemp friendly.’ Here are three entities that could meet your needs. Please note that these are not recommendations. There is no guarantee that any of these organizations will help with CBD banking.

Silicon Valley Bank

A subsidiary of the SVB Financial Group, this high-tech commercial bank has funded more than 30,000 start-ups to date. Its headquarters are in Santa Clara, California, and it has become one of America’s largest banks. According to its mission statement, it reduces the barriers of entry for entrepreneurs in areas that other institutions won’t.

According to Silicon Valley Bank, CBD is a ‘wellness’ product. As a result, it could offer science and healthcare industry services.

North Bay Credit Union

Located in Santa Rosa, California, North Bay Credit Union openly admits to helping cannabis companies with their transactions. However, despite this admission, it completes the process confidentially. It also limits the size of deposits to help manage capital ratios.

Chase Bank

Seeing this corporate giant on the list is probably a major surprise. However, don’t get too excited. Chase Bank will help CBD-related bank accounts. What it won’t do is provide CBD payment processing services. It will likely offer a broader range once legislation such as the SAFE Banking Act passes.

What About CBD Payment Processing Services?

Once you go outside the traditional banking industry, there are many CBD payment processing gateways to choose from. Indeed, you can use eCommerce platforms such as BigCommerce to find dozens of options. When selecting such a possibility, here are a few things to look for:

• The ability to handle ‘high-risk’ transactions.
• Easy integration.
• POS availability.
• Contracts with reasonable terms.
• Relatively low fees.
• Excellent customer support.

Unfortunately, you have to understand that CBD payment processing services charge higher fees than the average. Vendors can justify the added expense due to the level of risk involved. It would help if you looked for a company that doesn’t charge a high upfront fee. However, you must still contend with the following:

• Monthly or annual fees.
• Terminal fees.
• Compliance and non-compliance fees.
• Statement fees.

Here’s a list of several highly-rated, trustworthy CBD payment processing services:

• USAePay
• NMI
• PayKings
• Easy Pay Direct
• SMB Global
• iPayTotal
• PayWize
• PaymentCloud

In the main, these companies charge reasonable fees and have a reasonably high level of customer service. PaymentCloud, for example, offers 24/7 live support, mobile payments, and POS systems. It even has credit card and shopping cart integration.

It is essential to read the fine print when choosing a CBD payment processing service. iPayTotal, for instance, has a minimum weekly sales limit of $1,500. Customers must also prove at least four months of CBD payment processing history. This means showing bank statements with the name of the company, refunds, and chargebacks.

Final Thoughts on CBD Banking and Payment Processing

CBD brands such as Premium Jane certainly don’t have it easy. They have to search hard to find adequate CBD banking. Fortunately, the number of CBD payment processing services has grown significantly in recent times.

This enables Premium Jane to focus on providing some of the best CBD products on the market. It sells CBD oils, topicals, capsules, gummies, and pet products. Go to its official website now, and you could avail of a 15% discount as a first-time customer.