How to Acquire a CBD Merchant Account

December 28, 2018 | High Risk Merchant Account | PayKings

Cannabidiol, abbreviated as CBD, is one of 113 active cannabinoids identified in cannabis. Cannabidiol or CBD oil is a compound in marijuana that offers many benefits without any residual effects of becoming high. Health specialists are currently describing the benefits of cannabidiol to be effective in treating major ailments and illness as depression, cancer, and epilepsy, and so much more.

Because of the questionable nature of this product it has been categorized with banks and payment processing companies as high risk, namely due to the simple fact that CBD oil is manufactured from the hemp plant. This kind of reputational risk makes it increasingly difficult for CBD oil retailers to secure payment processing and get approved for a CBD oil merchant account.

Getting approved without enduring the hassle of being declined over and over again and jumping through hoops only to be told that your business is too risky for payment processing is exactly why it’s essential get started from the get-go with an experienced and reputable credit card payment processor, like PayKings. Working with a company who knows the high risk industry and the specific needs of your business model is the only way to get accepted for a CBD oil merchant account without the added challenges.

Where do I Turn for a CBD Oil Merchant Account after being Declined?

PayKings is among the most respected and knowledgeable high risk merchant account payment processing companies in the industry. PayKings and our team of experts specialize in high risk merchant accounts, such as CBD oil merchant accounts; offering the best payment processing solutions at the lowest possible rates in the business.

Classifying businesses within certain industries, including many eCommerce businesses, is an essential deciding factor for banks and payment processing aggregates regarding their assessment of the risk involved in doing business with them.

Aside from the reputational risk that comes with approving a CBD oil merchant account, another reason a business might be considered to be high risk has to do with their ratio of chargebacks. Chargebacks add to the fees that businesses are required by credit card suppliers to pay to cover the losses due to disputed or fraudulent transactions.

CBD oil merchant accounts are deemed as high risk according to the banks’ underwriting procedures. One of the ways that financial institutions or payment processing companies calculate risk is determined based on chargebacks and fraud. The more a company is associated with chargebacks, the larger the risk.

Risk classification is also based on the following factors:

  • Business location
  • Business size
  • Credit history
  • Credit card processing background
  • High chargeback ratios
  • Type of industry
  • Whether a business exclusively operates online (eCommerce)

Applying for a CBD oil merchant account with a professional in the field is critical to your success, for the application process itself can become very involved, as you can see.

PayKings has helped countless hard-to-approve merchants get the approved for a CBD oil merchant account with our in-house pre-underwriting services that catered to the specificity of your high risk business needs.

You get get a quick and free quote with PayKings by clicking here. We’re here to offer your business (in this case, your CBD oil merchant account) the best possible payment processing solutions at the lowest possible rates. We’re in this for the long haul and want to see your business to the financial success it’s capable of.

December 28, 2018 | High Risk Merchant Account | PayKings