As the owner and operator of an online CBD business, you know a great deal about why customers are demanding your topicals, tinctures, vapes, edibles, and other cannabinoid products. You also are aware that the CBD industry can be highly lucrative for hard-working entrepreneurs who make intelligent decisions about the running of their companies. What you may not have fully grasped is the importance of partnering with a company that will provide you with a merchant account for CBD businesses. 

Entering the high-risk business arena.

In spite of the fact that your CBD store is entirely legal and you adhere to all the licensing requirements and regulations that apply to it, your enterprise will be automatically placed in the “high-risk business” category. It is given that designation because of the above-average instances of fraud, chargebacks, and card-not-present transactions you encounter. Many lenders also have concerns about the reputational taint your products might leave as well as the sheer number of regulations you must follow. The result is that financial institutions believe CBD stores like yours pose a higher risk of defaulting on payments.

As a high-risk business, you can expect applying for a high-risk payment processing account to potentially take longer and be more involved. Additionally, you will most likely pay higher per-transaction and monthly fees, particularly in the beginning. Even so, there are good high-risk account providers and bad ones. Look for these crucial qualities in the vendor you ultimately choose.

1. Transparency.

Certain fees might be understandably higher, but you deserve to know exactly what you will be expected to pay and why. Do your research to learn which charges are negotiable, and compare those among several competing companies. Although cheaper isn’t always better, you shouldn’t have to break the bank to run a CBD business.

2. Prompt, responsive customer service.

Online stores like yours serve customers day and night. But when your payments system goes down, everything comes to a screeching halt. You need a high-risk merchant provider with agents who understand the equipment they sell and can help you troubleshoot and solve issues fast. They should be available 24/7 by phone, email, SMS, and chat to ensure that your interruption time is minimal.

3. Expertise in the CBD industry.

This sector is governed by a complex web of rules and regulations. Moreover, fraud and other security issues can quickly devastate your profits if not attended to effectively and proactively. A high-risk payment processor with a proven track record of success in the CBD industry is an indispensable ally to help you navigate the complexities that come hand in hand with this type of business.

4. Makes security a priority.

Data safety is important for all businesses, but it is especially relevant in the CBD industry and other high-risk sectors. That’s because fraud and chargebacks occur more often, leaving you more vulnerable to hackers and identity thieves. These risks are drastically reduced when you work with a merchant account provider who offers fraud protection and address verification tools as well as adhering to the data security standards put forth by the payment card industry. Your slightly higher account fees are worth their weight in gold if they help you to avoid being the victim of a data security breach.

Making it big in the CBD realm requires a great deal of hard work. As part of building a solid, profitable business that addresses the needs and expectations of customers, make your relationship with a high-quality payment processing company one of your first priorities. It will provide you with the strong foundation of transparency, affordability, security and customer service that will combine to foster your success.