Payment Processors That Work For CBD Industry. How To Find One?
Technical Information – Related MCC
MCC 5499 – Misc. Food Stores – Convenience Stores and Specialty Markets
As a Merchant service consultant, we usually get this question. This is a crucial question because finding a CBD oil payment processor is exceptionally challenging. The reason that makes the industry difficult in terms of accepting credit card payments is a combination of various legal issues and risk appetite of PSPs. Many payment processors refrain from CBD oil merchants only because they are not interested in venturing into the High-Risk Merchant Processing Industry. Having said that there are still a few options that are available that can help you process CBD oil transactions. In this simple article, we will talk about how you can easily find a processor that will help you to accept CBD product transactions.
But before we talk about identifying the processors, let’s talk about the CBD Payment Gateway prerequisites.
- To get approved by a CBD oil processor, you must have an active website.
- The website should display all the products that you wish to sell online.
- Your website should have detailed information about the composition of the product that you wish to sell.
- The pricing structure should be easy to understand.
- As much as possible, you should refrain from using images of Marijuana leaves or any related plants or seeds.
We have seen many applications getting rejected just because the merchant used the images of Marijuana leaves. One must understand that he is not selling marijuana leaves but is selling CBD oil.
- A fully functional website has a better chance of approval than a partially develop website. You should not be in a hurry to apply for to payment processes for CBD oil processing before your website is fully live. Please keep in mind that there are very few options. If a processor rejects your application, then there may be a possibility that you may have to wait for 3 to 6 months to re-apply to the same processor.
- Your company details like the company number, address, phone number, any licences, laboratory certificate should be there on the website. This helps the processor to have more trust in your organisation as well as it helps your customers to have confidence as well.
KYC documents for CBD payment processing solutions.
Whenever you apply for a CBD payment processing solution, you will have to submit a set of documents. In the Merchant service industry, this set of material is known as KYC or know your customer. Sometimes these documents are also known as KYM or Know your Merchant. The objective of the document set is to identify the original owners of the company. The jurisdiction where the company is registered as well as the banking institution where the funds will be settled. Before making an application to any processor, make sure you have all the necessary documents ready.
Now that we understand about the website and the KYC requirements for CBD payment processor let’s look at how to find one that will work for you. Finding a processing company for CBD oil business in the European Union or European economic area might not be as tricky as the US. In the European Union, you can easily find credit card as well as debit card processing companies that will be interested in evaluating your application on a case-by-case basis. When it comes to the United States of America, getting approved for a Card processing solution is still a challenging task. Having said that there’s no harm in working with an independent contractor like Quadrapay which will eventually send your application to some high-risk payment processors that may be able to assist you with either Credit Card processing or Echeck Payment Gateway solution for your business type.
To get more information about how you can quickly get processing solution for your CBD oil business in European union as well as the states of America send us an email on [email protected] and we will be happy to assist you.