High-Risk CBD Merchant Accounts Made Simple
If you run a CBD business, it won’t be long before you realize that most merchant account providers do not want to deal with you. This is because selling CBD is regarded as a high-risk industry. The rate of refunds in this business is high, not to mention the amount of legislation that companies have to conform to if they wish to sell CBD. It really isn’t a surprise that most merchant account providers will steer clear of CBD companies.
Of course, we here at Merchant Authority understand your need for quality CBD merchant processing services. When you work with us, you will be on the path towards finding the perfect CBD merchant account for your business.
While we can’t prevent your business from being a high-risk merchant. This is natural due to the business that you are operating in, we can help to ensure that the risk is kept to the minimum. This is not only beneficial to the bank providing the merchant account, but it is also highly beneficial to your bottom line. It means fewer chargebacks, and often far lower fees for payment processing services.
Use our fast application to get a custom tailored merchant account that fits your needs.
Standard Merchant Accounts Can Be Shut Down!
A lot of the people that come to eMerchant Authority have had their merchant account closed down elsewhere. You have to remember that most merchant account providers will have terms that dictates that they can shut down your account the second that they deem you to be too much of a risk. PayPal and Stripe are notorious for this. If you have too many chargebacks, or these merchant accounts realize that you are working in a high-risk industry, then your account will be closed. There will be very little comeback to this. However, you will be left with the inability to process payments for your business. If your account has been closed down elsewhere, and you do not seek out an alternative merchant account, then you could lose your company.
Even worse many of these merchant accounts that shut down your payment processing will hold onto your funds for months at a time. This is to help cover them in the event of any chargebacks. So, not only will you have lost access to your payment account, but there is a massive chance that a lot of the money that your business has made will be held onto. It is no wonder that so many companies go bankrupt when their merchant accounts are gone.
How To Select A Payment PRocessor For Your CBD Business
Ideally, you would choose a high-risk payment system before you even go to one of the ‘safe’ merchant companies that may close down your business. However, if that isn’t possible, you do need to be working with a team that can get you back up and running as soon as possible. That is what we here at eMerchant Authority do. We help those that may be setting up their first CBD company or those that have recently lost their merchant account and need to find a brand-new one to replace it as quickly as possible.
Since eMerchant Authority works with high-risk merchants on a daily basis, including those in the CBD industry, it means that you do not have to worry about huge holds being placed on your money or, worse, losing your account completely. We have a payment solution to suit every CBD merchant. It is what we do. We already understand the risks of the business, but we have decided to work with these merchants anyway. This is because we believe that every CBD company operating legally should be allowed to accept payments.
How We Can Benefit You
If you sign up to PayPal or Stripe right now, we are certain that you will be instantly verified for an account. The problem is that while you may be able to accept payments for a short period of time, it will eventually stop. In order for companies like PayPal and Stripe to make money, they want businesses to sign up as quickly as possible. After all, the quicker they make the process, the more money they can make. However, the job of these companies isn’t done as soon as sign-up is complete. Your account will go through an underwriting process to determine whether you are a risk. If they discover that you have CBD products for sale, then your account will be shut down. All money left in your account cannot be withdrawn for six-months.
There is no way around this. Every company that sells CBD products and accepts payments via PayPal and other similar services will eventually be closed down. It isn’t a question of if, it is a question of when.
Since you probably do not want to wake up every single day wondering whether that is the day you lose your merchant account, it is probably best to do things correctly at the start. This means contacting us here at eMerchant Authority. We can work with you to help get your merchant account set up and, no, we are not fussed if you sell CBD products. In fact, we welcome it with open arms
Credit Card Processing for CBD Companies
Laws in the United States related to the sale of products derived from the cannabis plant are strict. Your payments need to conform to certain regulations, otherwise you will be falling foul of the law. This can lead to hefty fines. Thankfully, when you work with eMerchant Authority, you will be working with a company that has experience and has designed processes to ensure that everything is completed ‘above board’.
Please do bear in mind that we can only work with those that sell CBD products. This means nothing that contains THC beyond the legal minimum. This is due to federal regulations.
Why CBD Merchant Accounts Are Deemed to be High Risk
The main reason is because if you are selling online, then you automatically have a high risk. Anybody can type in any legal card number they want and make a purchase online. You do not meet the person physically. This means that almost every single online transaction carries a small degree of risk related to chargebacks. However, CBD is one of those industries where the risk of chargebacks due to fraud is even greater. Merchant account providers do not want to deal with this.
What you have to remember is that if a chargeback is made on a transaction, it is made against the merchant account. The merchant account provider will pay for the chargeback, and then they will ask you for the money. If you do not have the money, then the merchant account provider will have made a loss. Due to the larger number of chargebacks in the CBD industry, the risk on the merchant account provider is even greater. They do not like this and, as a result, most will steer clear of high-risk companies.
In addition to this, there are several legal processes in place that regulate how payments from CBD products are dealt with. Most payment processing solutions do not have these systems in place and, as a result, they steer clear of payments. It would be far too costly for them to implement a system like this.
Hemp Merchant Accounts
If you wish to open up a hemp merchant account today, then start your application here at eMerchant Authority.
Once you have started the application process, we endevour to complete it within 48-hours. This will allow us to analyze your business and choose the best merchant account package for you. Once everything is set-up, your company will be able to start accepting high-risk payments at a low fee, all without the risk of losing your business ‘overnight’.
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