All About CBD And Cannabidiol
Well CBD or cannabidiol is a chemical compound which is found in cannabis plant as well as the hemp plant. CBD oil can be extracted and refined from both the plants. If you are involved in cbd sales business, you can extract oil by yourself in your firm or hire the services of any third party oil extracting firm. Oil thus extracted contains THC (tetrahydrocannabinol) which is a psychoactive constituent of cannabis or also refer to as isomers of cannabinoid.
If the amount of THC present in CBD oil decides whether it is illegal or legal. If CBD oil extracted from hemp contains less than 0.3 % thc, and it is considered as legal under laws of many nations, but when the concentration of THC is more significant than 0.3 % like that in oil extracted from Cannabis plant or marijuana plant it is considered as illegal to sell.
What is CBD business?
A CBD business is just like any other business like buying or selling, but the fact is that you cant sell your CBD product on eBay or Alibaba or Amazon. To start your business, you should have your own E-commerce site with all the authorization needed by the local government. After having your website ready and authorization done you should also have a CBD merchant account and payment gateway to process your payment from your customers across many nations.
How To Get A CBD Oil Merchant Account?
It’s a challenge to get a CBD oil merchant account because it is still considered as an illegal product in many nations as it is derived from marijuana and processors classify this industries as high-Risk Industry, but then also report says that CBD industries will hit $ 20 billion in sales by the year 2024.
Only some banks of few countries can process you a CBD oil transactions. Namely these banks may be from
- The Czech Republic.
Follow Simple Steps To Open A CBD Merchant Account.
- Research your GEO as CBD is only allowed to sell in a few countries.
- Prepare your processing history (should be a minimum of six months)
- Choose payments methods (Card Type).
- What payment model you need either recurring or one-time payment or even both.
- Fill in the merchant account application, and you will be assigned a dedicated support assistant for further processing.
CBD Merchant Account Fees
Quadra Services is a sales partner of various payment processors, and we assure you that your application will be processed with as low fees as possible with the best processor for your business need. We as a reseller doesn’t cost you any commission. The Fees associated with CBD merchant account is as follows:-
- Merchant Discount rate (MDR): It is a nominal fee which is charged to the merchant for accepting payment via debit or credit card transaction
- Fixed transaction Charges: It is a fixed charged that will be charged by the payment gateway for every single transaction.
- Gateway Fee
- Monthly Fee
- Reserve Charge
- Chargeback Fee: In layman terms, a chargeback is just a reversal or money back. It is a buyer protection method which gives assurity and confidence to the customer that in worst case if the customer doesn’t get the product or services for which he has already been paid, then he will get his money back
What Is The Reason For High Prices For A CBD Merchant Account?
The reason behind the high prices for a CBD merchant account is that it is considered as illegal product by many governments and for each and every product made out of it needs approval. The product undergoes a check and after satisfying all the aspects the product will be approved. The chargeback ratio for CBD industries are quite high which ultimately results in high price for a CBD merchant account. The solution can be first opt startup cbd payment gateway and after having a stable business with your potential customer you can go for a dedicated CBD oil merchant account.
Need more information about how Quadrapay can help then email us on [email protected]