Points You Must Know About CBD Friendly Payment Processors
What Is The CBD Product:
You would have heard about CBD, a new class of products, and if you are curious about what they are and what major features they can offer you, then you are in the right place. You can open a business that sells CBD products. We will provide you with important information that must know before starting a business with CBD products or dealing with CBD friendly payment processors.
CBD is an acronym for Cannabidiol is a substance derived from the hemp (Cannabis sativa) plants. You may already have the knowledge that marijuana derives from Cannabis plants. But, there is a significant difference between CBD products and marijuana. CBD products contain a minimal to nil amount of THC (tetrahydrocannabinol), whereas marijuana has a high amount of THC. Though this is no longer the case, CBD-based products were illegal under federal law until very recently. CBD products are now considered legal in the majority of European countries. European countries allow people to purchase and distribute CBD products with less than 0.3% THC while taking proper care of the distribution.
CBD Products Are Considered Risky Because:
CBD is considered to be a high-risk product in the processing category, thereby making it very difficult and expensive to get a CBD payment processor.
- Many merchants make false claims regarding the efficacy of the CBD products, thereby selling CBD products with a much lesser amount of THC.
- CBD products have high chargeback rates, and people tend to worry about legal issues whilst distributing the product.
- Chargebacks and frauds are common in most businesses, but the chance of experiencing fraud is much higher with CBD products.
Hence, due to the risk in the business, it becomes very important to make a calculated decision before dealing with a CBD payment processor. No matter what your business goals are, choosing a CBD friendly payment processor is a very important decision which is not to be taken lightly.
The Points To Look For That Will Make You A Good CBD Friendly Payment Processors:
You must ensure to always look for good CBD friendly Payment Processors as it minimizes the risk for your business. Here are some si factors to consider while looking for a provider that offers you reasonable prices, fair contract terms, and high-quality customer service.
Most of the high-risk payment processors are going to cost more than the low-risk payment processors. If you want to get the CBD products, you must accept a high rate pricing model.
- High-risk Availability:
You should choose the friendly CBD payment processors that can deal with high-risk transactions because the CBD products industry is prone to many payment frauds and chargebacks. Only some of the CBD payment processors are associated with this type of transaction. Always ensure to look for the company having experience in this sector.
- Customer Support:
The CBD friendly payment processors account that proved to be most successful is the one that offers high-quality customer service. Always pay attention to the payment processors that support you when you have any issues and help you. Always ensure that it allows you to handle disputes that will minimize the chances of disputes arising in the first place.
- Availability Of POS:
Always look for friendly CBD payment processors with point-of-sale (POS) availability. POS availability helps you to manage both online and offline transactions. POS software has accurate reports which help the store profitability to be increased and increases your reputation in terms of customer loyalty, business intelligence.
- E-Commerce Support:
You can open an E-commerce website to increase the sales of your CBD products and reach as many customers as possible. It is recommended to visit a provider before starting the website. The provider can help you to set up a high-quality payment website that will allow you to process transactions over the internet.
How To Apply For Merchant Account With CBD Friendly Payment Processors:
European countries have legalized the use of CBD-based products for medicinal purposes. But, there are specific procedures that you must follow to sell CBD products and become a CBD merchant with CBD payment processor. You have to follow special guidelines and comply with all applicable laws and regulations to produce and sell your product legally.
Conclusion For CBD Friendly Payment Processors
It is advised to take your own time and ensure that the CBD friendly payment processors have other additional and customizable services that they offer. Every company has a different and unique approach, and you need to understand that you cannot depend on the cards for all the payments.