By triggered by 2018 Farm Bill, has broadened the horizons of hemp-derived cannabis products, providing nearly limitless opportunities for companies and brands in the CBD industry to expand what they can offer their customers. However, given the legal status of cannabinoids and the fluctuating regulatory environment surrounding them, blazing a path to prosperity in this new regime has not been easy. In this complex legal maze, his one key hurdle stands out: payment processing. Finding the right payment processor for cannabis commerce has been an uphill battle for online CBD suppliers. But the tide is turning, and some payment processors are paving the way for a more harmonious future for cannabis and e-commerce.
Which merchant account processes payments on the CBD website?
Finding merchant accounts and payment processors that simplify the transaction process can be frustrating, especially if you’re new to the world of e-commerce. The good news is that more and more payment processors are following this trend, but why?
The 2018 Farm Bill changed everything for the cannabis industry. now, Hemp-derived CBD products are considered legal under federal law. Since then, some states have passed their own restrictive laws targeting certain cannabinoids, and others may choose to do the same. However, for the rest of the country, the Farm Bill stipulates that cannabis products can be legally produced and sold as long as they are derived from hemp and contain less than 0.3% THC by dry weight.
While this doesn’t mean cannabis is completely legal, the Farm Bill made enough changes to allay some concerns in the financial industry. While legal uncertainty has kept financial institutions out of the cannabis industry, some have become trusted partners for CBD brands. This registered merchant account provider works with major credit card networks to enable CBD businesses and their customers to process payments online and offline.
Kind of like a payment processor GETTRX, Inovio, square and full bank An excellent choice if you are looking for a way to simplify the trading process, as we are well versed in CBD landscaping and have the ability to handle the legal complexities in processing high-risk industries like hemp. becomes.
But how do CBD companies choose payment processors to partner with?
What to look for in a CBD payment processor
Choosing the right merchant account and payment processor is essential to keeping your business running smoothly and providing your customers with a seamless and intuitive experience. Here’s a summary guide on some key factors to consider:
- You need to prioritize high-risk expertise because you want someone to take your side. Familiarity with the high-risk industry can give you peace of mind as you navigate the complex ups and downs of the CBD industry.
- It’s worth as much as your worst customer, so when dealing with CBD it’s always an advantage to find a payment processor with a good reputation and a good track record in the industry.
- Being transparent about your needs with potential payment processors helps set expectations. Also, using the term “high risk” is always a way to release tension. This helps set the scene and gives reputable processors context and reassurance about your intentions and products.
- Instead of rushing to the most famous, payment processor, take your time and really balance the possibilities. Some processors may be popular, but failing to meet strict underwriting standards can lead to unexpected shutdowns.
Why don’t all payment processors work for cannabis?
If you’re deeply involved in the cannabis world, you’ve probably already noticed that navigating the CBD world is no easy task for processors. This is a highly complex and highly regulated case where the two industries have to find common ground, but since CBD products often contain THC, he said it would be a major factor for many mainstream payment processors. considered to be at high risk.
Due to compliance complexities, conflicting federal and state laws, product safety concerns, laboratory reliability, and ambiguous federal regulations, not all payment processors are up to the challenge. Despite these obstacles, companies like GETTRX have addressed these complex issues and have become trusted partners for CBD brands.
Navigating these complex situations is not easy. Roberto SantoGETTRX President and CIO understands why some payment processors “Usually, processors classify CBD distributors as high risk, especially those without cards,” says Sato. “This categorization is primarily focused on legal and regulatory compliance concerns, the rigorous due diligence performed during onboarding and risk oversight by ISO, processors and sponsoring banks, as well as the interaction between federal and state laws and regulations. Aspects such as product quality, safety and overall reputational risk further complicate this assessment.”
So what can CBD companies do to ensure their products stand up to payment processor testing? purpose. Things like registering with Visa or MasterCard as a high-risk entity and allocating his $500 to each association show payment processors that it will be easier for CBD companies to work together.
“Make sure your products include valid and up-to-date lab reports, including certificates of analysis for each item listed,” says Sato. “Make sure your billing descriptor matches the company name on the URL, including comprehensive ingredient labels. Excludes products such as pre-roll products that contain
