Selling topical CBD beauty and wellness products offers the potential for significant profits. However, the industry can be tricky to navigate, especially for novice business owners.
While it might be tempting to save money by partnering with an offshore payment processor, it is highly recommended that you work with a provider headquartered domestically.
Regulatory compliance
Although the 2018 Farm Bill legalized hemp-derived CBD products, the state and federal laws that regulate their marketing and sales remain opaque.
A U.S.-based payment processing company has specialized knowledge of compliance requirements at every level. This expertise helps reduce the risk of regulatory violations or financial penalties.
Friendly to high-risk businesses
The nature of CBD sales places you in the high-risk business category. U.S.-based providers are willing to operate in this complex landscape and have worked hard to establish relationships with like-minded banks and lenders.
As a result, you will find it easier and more secure to process customer payments.
Reduced risk of chargebacks and fraud
Statistically, this industry poses a higher-than-average risk of fraud and customer chargebacks.
Your domestic payment processor is specially qualified to assist you in reducing these fund disputes and implementing strategies to thwart identity theft and fraud in ways that their foreign counterparts cannot.
Advanced security features
A home-based CBD merchant provider is also an expert with the Payment Card Industry Data Security Standard (PCI DSS), a set of measures put in place to protect cardholder data.
Additionally, they provide security features, including encryption and tokenization, as well as anti-fraud software. These precautions help to prevent data breaches and build trust between buyer and seller.
Integration
Your CBD operations are complex, involving additional software for conducting online transactions and streamlining overall operations.
A home-based provider knows how to help you integrate your systems into a cohesive unit that supports better customer service and inventory management, as well as amplified sales.
Payment option support
Customers tend to become loyal to companies that allow them to pay using their method of choice.
A U.S.-based payment processing company can get you set up to take the most popular types of transactions. These usually include credit cards, debit cards, digital wallets like PayPal, and even ACH Pay by Bank transfers.
Real-time transaction monitoring and reporting
It is better to detect abnormalities and intercept fraud as it is happening than to deal with its consequences later. Domestic merchant account providers offer tools and training to help you monitor transactions in real time and detect suspicious activity.
They also enable you to generate reports for analyzing sales trends and ensuring compliance with state and federal regulations.
Partnering with a U.S.-based payment processing company is a game-changer. It gives you access to established relationships and a proven track record that can foster customer trust and enhance the stability of your CBD business.
Once you find the right domestic provider, you can look forward to smoother compliance, minimized risks, and a firm bedrock of confidence that you can build upon for years to come.
