CBD Payment Processing in 2020

Still relatively new to the mainstream market, CBD is quickly becoming a household name. The compound's potential therapeutic and health benefits have created a real buzz, and everyone is interested in what CBD has to offer. In fact, analysts project the CBD industry to hit the $20 billion mark in sales by 2024.

The prospect of the CBD industry has prompted many to explore how they can start a CBD business. However, the industry is not without its challenges – especially given the ever-evolving legal landscape. CBD is still considered a high-risk business, which makes the process of getting paid for online sales quite complicated.

As an online retailer, it can be difficult to find a payment processor that will work with CBD. Your account may be closed suddenly by processors, or your e-commerce platform may decide not to support the payment gateway that your processor uses.

Finding a CBD processor is a little different from finding a payment processor for other types of businesses, and it’s very important to get it right.

Here’s everything you need to know about CBD payment processing in 2020.

What is a Payment Processor?

When you become a retailer of any product, you will need to find a middleman between you and the financial institutions involved. A payment processor authorizes transactions and ensures that you get paid in time by transferring funds. It also offers additional services such as customer support, card acceptance, and security solutions.

Once a customer pays via your online store, they will enter a payment gateway. The payment has to go through a payment processor in order to reach the bank, and ultimately make it to your business’ pocket.

CBD Oil and Payment Processors

When looking for CBD payment processors, you need to find those that take on high-risk clients. Although CBD oil is legal in most areas, it’s still part of the cannabis plant and associated with the cannabis industry. Therefore, it’s considered a high-risk product, which means that many financial institutions and commonly used payment processors, like Paypal, don’t accept CBD transactions.

As a result, many CBD brands and store owners have been left scrambling for CBD payment processing solutions to ensure they don’t miss the “Green Rush.” Other industries considered high-risk include online gaming, sex toys, gambling, tobacco, online dating, pharmaceuticals, Bitcoin, and firearms. 

Your payment processor will let you know whether or not they take on CBD clients, so be sure to find this out in advance.

Finding the Best CBD Payment Processing Provider

It’s not always easy to distinguish between legitimate payment processors and the ones who are merely interested in taking advantage of CBD retailers. It’s important to find proactive companies – those who stay ahead of the laws and procedures that affect your CBD business.

When reviewing high-risk payment processors for your CBD business, here are a few of the things you should check.

They have significant experience working with CBD retailers

Payment processors that are new in the industry are unlikely to have the necessary expertise to deal with payment gateways, e-commerce platforms, regulatory demands, and data security issues. 

They have a significant stake in working with CBD retailers

Look for well-established businesses that have a large percentage of high-risk clients. You also want to ensure you have a CBD payment processing provider that proactively provides new solutions, guidance, and help to CBD retailers; a provider that will work hard for the success of both your business and their own.

Wide and well-established network of financial services providers

Given the nature of the CBD industry, look for a payment processor that can quickly provide solutions to new challenges. You don’t want to be stuck with your business offline as your CBD payment processing provider scrambles to figure out a solution.

Ensure the processor easily integrates into your platforms and site

Ease-of-use is very important if you’re taking on CBD payments. Finding a CBD payment processor that allows you to plug and play will optimize your website and help you to get started sooner.

When you work with websites like Shopify and 3DCart, they give lots of information on which processors take on CBD retailers. From there, it’s easy to integrate an appropriate processor into your website – even if you know very little about programming, coding, web security, etc.

Conclusion on CBD Payment Processing

Finding a CBD payment processing provider is necessary so your business can take in revenue and reach new heights, like trusted and well-known brands such as Provacan. Payment processors are the professionals that will help you bridge the gap and earn a living selling in-demand, high-quality CBD products. 
 

Article by by provacan staff