How to Acquire a CBD Merchant Account

May 14, 2023

CBD Merchant Account

Looking for a CBD merchant account? You may need a high risk payment processor if you’re starting your business online. CBD is a unique substance that straddles the line in a unique regulatory environment.

Cannabidiol, abbreviated as CBD, is one of 113 active cannabinoids identified in cannabis. CBD oil is a compound in marijuana that offers many benefits without any psychoactive effects. Health specialists are currently researching the benefits of CBD. Studies will show if it’s useful for treating major ailments and illnesses such as depression, cancer, epilepsy, and much more.

Why Is CBD Considered High Risk?

Because of the questionable nature of this product, it has been categorized with banks and CBD payment processing companies as high risk. This is due to the simple fact that CBD oil is manufactured from the hemp plant. A bank does not want to support a product that has varying legal concerns. It’s increasingly difficult for retailers to secure a CBD payment gateway for a merchant account.

Getting approved for high risk merchant accounts without enduring the hassle of being declined by mainstream processors isn’t difficult. Choose an experienced and reputable credit card payment processor like PayKings. The only way to get accepted for a CBD merchant account without the added challenges is to work with a company that is very experienced in the high risk industry.

Different Types of CBD and Products

There are several different kinds of CBD products on the market today. Since CBD companies are considered high risk, it is good to know the types of products they sell, which make them a higher risk.

  • CBD Tinctures
  • CBD Capsules
  • CBD Concentrates
  • CBD Topicals
  • CBD Spray
  • CBD Vape
  • CBD Hemp Oil
  • CBD Flower
  • CBD Edibles
  • CBD Pet Products
  • CBD Isolate
  • CBD Suppository
  • CBD Skin Products
  • CBD Hair Products
  • CBD Transdermal Patches
  • Water Soluble CBD
  • CBD Softgels
  • Emulsified CBD

Finding Your CBD Payment Processing

PayKings is among the most respected and knowledgeable CBD payment processing companies in the industry. Our team of experts specializes in high risk merchant accounts, such as CBD oil merchant accounts. We offer 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.

CBD Payment ProcessingAside from the risk from the reputation that comes with approving a CBD merchant account, another reason a business might be considered high risk relates to their ratio of chargebacks. Chargebacks add to the fees that businesses are required by credit card suppliers to pay. This covers the losses due to disputed or fraudulent transactions.

CBD 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 by chargebacks and fraud. The more a company is associated with chargebacks, the larger the risk.

High Risk Business Classification Factors

  • Business Location
  • Business Size
  • Credit History
  • Credit Card Processing Background
  • High Chargeback Ratios
  • Industry Type
  • Whether the business operates exclusively online (Ecommerce)

The application process can become very complicated and involved. So applying for a CBD oil merchant account with a professional in the field is critical to your business’ success.

PayKings helps countless hard-to-approve merchants get approval for a CBD merchant account with our in-house pre-underwriting services that cater specifically to your high risk business needs.

You get a quick and free quote with PayKings today. We’re here to offer your CBD business the best possible payment processing solutions at the lowest possible rates. If you are looking for sustainable, long term financial solutions, let PayKings help you discover the financial success you’re capable of.

May 14, 2023 | High Risk Merchant Account | Dustin