With many states in the country now pushing to legalize marijuana, it is only a matter of time until this herb becomes legal in all fifty states. Already, all states allow for CBD product use, and merchants are rising in numbers. One of the biggest drawbacks of starting a CBD business is CBD Payment Processing. CBD merchants often find themselves floundering in the search to find the right processor to meet their payment processing needs.
Common Issues with Payments
There are different issues CBD merchants can expect to deal with when taking credit and debit card payments. CBD merchants are considered high-risk, so many banks are unwilling to work with them. The laws seem to be changing so rapidly, many merchants cannot keep up and find themselves being unable to find a payment processor that will be able to meet their needs.
Chargebacks are a big problem with CBD merchants. Unfortunately, CBD merchants are at a higher risk for chargebacks, and they can give the merchant a bad reputation with payment processors. When the chargeback process is launched, the merchant is put through an investigation and required to pay a fee. When one happens, it may not be such a big deal, but multiple chargebacks can spell trouble for a CBD merchant.
Another issue is fraud. Although most CBD shop owners work hard to comply with laws, there are some unscrupulous merchants who attempt to sell illegal products under the guise of CBD. These merchants make things difficult for legitimate sellers who work to stay transparent and follow the law.
Choose the Right Payment Processor
Choosing the right payment processor is essential for the protection of the merchant. The payment processor should be one that has experience working with a range of high-risk merchants, including those who sale CBD products.
It is wise for merchants to carefully research their options and learn as much as they can about the risks before they decide on any payment processor. Taking time in the process will help to ensure the right financial institution is chosen for less aggravation along with chargeback services and fraud protection services.