If you’re looking for new ideas to sell your CBD products online, that means you already know about cannabidiol and their popularity in the wellness and health world. Many online companies are introducing CBD into their eCommerce shops. As per the Forbes report, the industry will reach $16 billion in revenue by 2025, and there is no doubt about it.
After the declaration of the 2018 Farm Bill, several eCommerce businesses are looking for payment gateways that enable CBD merchant processing. The demand of people for CBP products is increasing, and business owners are stocking up their offline and online stores with different CBD products to meet customers’ needs.
As this is a high-risk industry, you need to understand what is required to legally process CBD business payments.
What is CBD?
CBD was discovered around 80 years ago, and there are still so many things we need to know about this chemical compound. CBD is found naturally in both hemp and marijuana plants. But, a lot of CBD products available in the market are created from hemp plants. With the increasing demand for CBD products among people, it is quite evident that businesses could make a significant profit by selling this compound.
Is CBD Legal?
The high risk of CBD and the fact that marijuana will remain illegal in the industry make accepting online payments a little restrictive for merchants. CBD products derived from marijuana are not legal at the federal level. Just like hemp, marijuana or cannabis is a part of the cannabis family. One primary difference between both plants is that marijuana produces over 0.3% THC, which is the plant’s psychoactive element.
The confusion between marijuana and hemp has caused a controversy among hemp product providers who are struggling to find processing solutions to accept online payments for selling CBD products.
Even if you own a business specializing in selling hemp-derived CBD products, you still need to invest in the right CBD payment processor designed to optimize high-risk payments.
What You Need to Look for in a CBD Payment Processing Gateway
As per 2018 reports, the sales rate of CBD products in the United States ranged from $600 million to $2 billion, and it is expected to cross $22 billion by 2022. That means a significant number of eCommerce business owners are looking to invest in a CBD payment processor. But, here are a few points you need to look into before opening a CBD seller account.
The first step you need to ensure is that the CBD payment processor you are choosing can deal with high-risk transfers. The reason is that the industry is highly prone to payment frauds and chargebacks, and there are minimal CBD payment processing service providers who are ready to take or handle risks linked to such transactions. To avoid hefty fines later, make sure your potential CBD payment processor is all set to deal with high-risk transactions.
Another point is that – never go with a company that charges an immense amount for their services. There are payment processing providers who charge a registration fee, whereas some don’t. You also need to consider other charges, including statement fees, terminal fees, non-compliance fees, compliance fees, and chargebacks. Keep all these points in your mind, look for different options, and pick the one you find reasonable for you.
When it comes to handling online and offline CBD product transactions, you should be prepared for every worst scenario. While finalizing your payment gateway, ask your service provider how they manage payment disputes and prevent their clients from frauds. In this case, customer support is something you must look for. Ensure the CBD payment processing you are hiring is offering 24/7 customer support to help you deal with payment problems whenever they appear.
Every CBD payment processor will ask you to sign a contract, and the deals and fees of every business are different. It would be best if you take your time to pick one that suits your company the best. It is also suggested to stay away from companies that focus on establishing long-term partnerships only, especially when they don’t have testimonials to prove their claims.
Choose the Right CBD Payment Processor
As we all know, competition is very tough in the CBD field. So, if you want to boost your business profit and customer retention rate, you need to be at the top of your game. The right CBD payment service processor can provide you with customized payment solutions that fit your business the best. They can make transactions smooth by eliminating the hassles linked to accounting, administrative tasks, and business upkeep, frauds, chargebacks, and more. Overall, choose your payment processor wisely by keeping your business goals in your mind.