Do you sell CBD oil from your place of business? Have you been doing all of your transactions by cash? If that is the case, you may want to consider upgrading to using a merchant account. Unfortunately, most of the merchant account providers out there are not willing to work with people that sell products that are derived from cannabis or marijuana. Despite the fact that there are thousands of medical reports that show that this substance is beneficial for the human body, and does not contain THC, they are still not going to allow the transactions to go through. That is why you need to find merchant accounts that are willing to work with people that are selling CBD oil. Here are some little-known facts about CBD merchant accounts that you should know before you sign up with one of these businesses.
Why Are Merchant Accounts Apprehensive About This Product?
There are many reasons why merchant account providers are not going to allow people that sell CBD related products to take transactions using their system. First of all, these businesses work directly with the bank. If the bank is not going to allow the sale of these products, then they will not be able to do that either. Second, some of these merchant account providers want to maintain a particular type of a reputation. They may have a large clients that are apprehensive about allowing what are called high risk products to go through their system. They could just as easily use another merchant account provider, and therefore they are catering to some of their larger clients that believe that the sale of CBD oil through their company would not be appropriate. However, it usually comes down to what is called the high risk product and service list on which cannabidiol is on.
How Many Different Products And Services Are On This List?
When you first look at this list, you will be amazed at how many different types of products and services are on there. It’s difficult to understand, mostly because many of the products that are being placed on the list are sold that stores all over the world. For example, there are certain merchant account providers that will not allow the sale of collectibles, ammunition, or the sale of magazines. On the list will also be firearms, collectibles, coaching, search engine optimization services, and also any transactions related to fantasy sports. If you sell travel related information, or if you are marketing a timeshare, you must find a completely different way of doing your transactions. One of the ways that people bypass this list is to use merchant account providers that will work with these high risk businesses.
How Do You Find These High Risk Merchant Account Providers?
There merchant account providers that are willing to work with these businesses are called high risk processors. They are going to do what other merchant accounts will not, mostly because they realize that there is a large segment of the businesses that deal with these products regularly. Therefore, this is an opportunity for them to not only provide these services, but they can also charge more for them. Most of the companies that you find are going to charge you more for every transaction, and also charge you additional fees for all of the physical products that you are using. This would include the payment processing equipment that you are leasing from them. It is important to note that you are leasing equipment. Some of them have a clause in their documentation which will require you to pay for the entirety of the lease you decide to back out. Therefore, you need to be very careful when choosing these companies that may have more stringent rules than regular credit card processors.
Little-Known Facts About CBD Merchant Account Providers
There are some things that you may not know about the merchant accounts that people that sell CBD are using. First of all, these companies that sell CBD face many challenges that other companies never will. As mentioned before, there are so many medical reports about the benefits of marijuana, and despite CBD not having any of the mind altering properties of THC, they still lump everything together. They will refer to these reports as unsubstantiated health claims, and therefore will not provide you with the service. However, CBD merchant account providers are different. They recognize that it is beneficial. Moreover, they recognize that there is a large portion of the marketplace that needs this product. It is because of this that they will provide this for businesses that are selling cannabidiol, and they have created a literal empire of companies that use just a choice few merchant account companies.
More Fees And Unique Lease Agreements
When choosing one of these companies, you need to be very careful about the amount of money that they are charging you for the services. For example, you can almost assume that every transaction that you do, the percentage that they are taking of each transaction, will be significantly more than what you will pay with a regular merchant account. Likewise, you are leasing this equipment from them, you will have to pay more money. What is not as well-known, other than the lease agreement that is hard to get out of, they will charge you additional fees, as well as penalties, that the other companies are not. Even though they are one of the few options out there for people that sell these marijuana related products, they are not making it easy. There are a few, however, that are doing their best to make this affordable for CBD retailers.
It is so important that you find a reliable business that will provide you with a merchant account for a minimal amount of money. Although it will be higher, they will not hide, in their fine print, all of the extra fees that you will have to pay for various reasons. If you can, speak to people that you know that are in the same industry and find out what merchant account provider they are using. This will make it easy for you to get signed up right away with these merchant accounts without having to learn all of the little-known facts about CBD merchant account providers that can often lead to paying more money.