Selling CBD Online Is Changing
March 11, 2023 | Merchants | Dustin
CBD is a rising industry in the global marketplace of eCommerce. In the past, It has faced some challenges but the process of selling CBD online continues to evolve. As a result, new kinds of CBD and ways to enjoy it have changed. The healing properties have come to reach numerous products across various markets. These range from CBD vape oil to CBD infused beauty products. As a result, consumers have made one thing clear: CBD is here to stay. The myriad of health benefits plus the ability to manufacture them into different products has evolved CBD into a billion-dollar industry. However, revolutionary CBD products have not always been simple for merchants to sell due to strict regulations.
Cannabidiol products derived from natural hemp, also known as CBD, was removed from the DEA’s list of Schedule I drugs in 2018. Schedules I drugs have no medicinal purposes and is highly addictive. However, many new clinical studies on CBD have found that they provide various health benefits and aren’t addicting. This finding has challenged the world’s view on CBD, ultimately leading to its declassification as a high risk drug. The DEA’s current ruling on CBD is that it must contain less than 0.1% THC as part of an FDA-approved drug. This federal action has granted access to the sale of CBD products in the United States, creating a new, legal industry.
CBD & eCommerce
In the two-year span since CBD’s legalization, it has evolved the health and wellness industry tremendously. With an enormous following and considerable research conducted, CBD is unlike any other product to hit the wellness market. CBD can aid and improve nearly every aspect of the body. Research and testimonials of long-time users have reported alleviated anxiety, depression, pain, diabetes, and skin improvement. One of the most impressive uses is pain management by those suffering from chronic illnesses and cancer. CBD is an alternative to traditional pharmaceuticals. The products contain derived CBD from hemp as well as other natural ingredients.
The health components in CBD infuse into vape products, tinctures, and oils. Due to the wide variation of CBD products, the internet creates the perfect market place to buy and sell. Selling CBD products online opens merchants up to a global market. Buyers can easily research, navigate, and purchase CBD products all in one place. Additionally, with the wide array of CBD products to choose from, buyers are sure to find the right product to fit their lifestyle.
However, as CBD merchants broaden their markets through eCommerce, it makes it difficult to regulate. As a cannabis derivative, CBD is still highly regulated. eCommerce is a card-not-present transaction. This allows buyers to make purchases only using the card number. This is a high risk payment method for a product like CBD. In most cases, buyers of CBD must be over the age of 21. Validating that a buyer is of age is a difficult task for eCommerce since the buyer and seller both are not present. Fortunately, this burden is taken off of high risk CBD merchants with the help of a specially designed payment processor. With a high risk CBD payment processor, merchants ensure a buyer’s age is confirmed before the sale is facilitated.
How Has Selling CBD Online Changed?
Since the legalization of buying and selling CBD in all fifty states, banks and payment processing has further clouded the waters of this high risk industry. Only banks that specialize in high risk industries opt in to facilitate the sale of CBD products. Because different CBD products call for different regulations, it would be impossible for a traditional bank to keep up. Luckily, high risk payment processing solutions stay privy with regulation for CBD industries and evolve as federal laws change. Merchants who sell heavily regulated products such as CBD vape oil as an alternative for tobacco smokers pose a high risk to traditional banks with ordinary processors. However, with the implementation of a high risk payment processor, merchants can ensure buyers are of age and the sale can go through.
Today, merchants who sell CBD online know that it is imperative to have high risk processing solutions implemented so that their business can run smoothly. The process of selling CBD continues to become more streamlined as payment processing technology advances. High risk payment gateways that specialize in the sale of CBD products have the capability to approve and deny payments in real time. This is done so by checking the funds in the buyer’s bank account. If funds are sufficient, the sale is approved. The high risk gateway keeps CBD merchants’ inventory and cash flow protected all while preventing fraudulent transactions.
CBD Merchant Accounts & PayKings
PayKings continues to further evolve the CBD industry by establishing reliable high risk payment processing solutions for merchants that need it most. Taking the complexity out of online CBD sales, PayKings can establish high risk credit card processing, merchant accounts, and payment gateways for CBD merchants. As leading experts in high risk payment processing solutions, PayKings understands what CBD merchants need to streamline their online sales. PayKings has connections with numerous credit card companies that are willing to take on the CBD product industry. Without compromising quality or security, PayKings focuses on providing merchants with the most competitive rates.
PayKings knows it is imperative for CBD merchants to establish high risk payment processing solutions with the best in the industry. Our team of CBD industry experts is waiting to assist merchants in making their ideal high risk solutions a reality. The unparalleled customer support offered by PayKings can optimize your high risk gateway for a streamlined, user-friendly experience. PayKings can even help you integrate your new high risk solutions into your already existing website or mobile app.
At Paykings, we understand the importance of establishing your high risk merchant account. Start today with a free quote from PayKings and receive your high risk CBD processing solution in as little as 48 hours!
March 11, 2023 | Merchants | Dustin