My CBD Oil Merchant account is closed. What should I do?

Merchant Services Q&ACategory: CBD Merchant AccountMy CBD Oil Merchant account is closed. What should I do?
Bankim Chandra Staff asked 5 months ago
1 Answers
Bankim Chandra Staff answered 5 months ago

The account may be closed because of many reasons. Lets look at top reasons and solutions/next steps.

  1. Processor closed Down. They surrendered there licence or were forced to. The year 2020 has been catastrophic for many processors. We have seen many large processors going out of business. However this does not mean that you can not approach another PSP. If you were approved by an EU processor for CBD oil sales then approach another processor that is allowed for same region. We have seen approvals coming in similar situations. In some cases merchants may also get lower rates then the previous processor. Think it like this. The processor closed down and shut down all accounts. The industry will know about the same and will not blame you for that if your transaction history does not have risk spikes.
  2. You exceeded CB Ratio. In this case if your account was not reported at TMF/Match records then another processor may say yes but you should be ready for additional risk mitigation steps. These may include higher MDR, Rolling Reserve and delayed payouts. Along with that the processor may also ask you to use security filters like AVS and 3DS.
  3. You went over max ticket size or monthly sales volume limit. You still can try your luck with another PSP however do not repeat the same mistake. If your volume is high enough get accounts with multiple providers.

Hope this helps. Happy Processing!