Many people worldwide are making the switch from using cash to credit cards. In the US alone, over 191 million people own credit cards. This transition is due to a variety of reasons including convenience, earning rewards and the ability to track spending.
Your CBD merchants should be equipped to accept credit cards in order to increase their revenue and keep up with their competitors. However, as a CBD payments reseller, you may be wondering if it's worth it for your clients to start accepting credit cards as a payment method. After all, credit cards come with fees, and some of your merchant’s clients may prefer to pay with debit or cash. If your CBD merchants do not accept credit cards, they might lose out on extra cash flow.
There are several things to consider when thinking about a credit card payment method. This blog post will outline the four things your CBD merchants will need to start accepting credit card payments and the benefits of this particular payment method.
4 Things Your CBD Merchants Need To Accept Credit Card Payments
Now that the world is moving to a cashless mode of payment, it is time that your CBD merchants did the same by accepting credit card payments from their clients. Here is a list of the four essential things they will need to accept credit card payments.
1. A Payment Processing System
There is simply no way around this. If your CBD merchants want to accept credit card payments from their clients, they need a payment processing system. A payment processor ensures the transaction is complete by communicating the client’s details from their credit company to your CBD merchant’s bank.
2. Payment Gateway
Merchants who want to accept credit card payments need a way to transmit card and transaction information. A payment gateway is a digital interface tool that collects client information and transmits it to the payment processor, who then completes the transaction. This technology includes physical card reading devices and payment processing terminals in online stores.
3. POS System
For your CBD merchants to be able to accept credit card payments, they will need a Point of Sale (POS) system. A Point of Sale (POS) system is a place at which a client makes a payment for their goods and services. A POS system can either be online or in a brick-and-mortar store. POS systems come with credit card reading hardware like terminals, card readers, barcode scanners, and cash drawers.
4. Card Reader
For a credit card transaction to be complete, an authorization has to occur. A card reader is a device that deciphers information contained in a credit card's microchip, like the account number, cardholder information, and authorization code. Usually, card readers come with the POS system. However, if it doesn't, your clients might have to buy one that is compatible with their credit card setup.
How Your CBD Merchants Can Accept Credit Card Payments In 3 Easy Steps
Your CBD merchants might be considering accepting credit card payments from their clients but might not know how to go about it. So we have provided you with three steps to help your CBD merchants accept credit card payments.
1. Consider How You'll Accept Credit Card Payments
Your CBD merchants might want to start accepting credit card payments from their clients for various reasons. For example, their customer might prefer credit cards over debit or cash, as a payment method. Whatever the reason, your CBD merchants will need to decide how they will accept credit card payments.
Before setting up credit card payments, your CBD merchants need to understand how their clients use their credit cards. For instance, if their clients generally go to a physical location to make a purchase, then maybe they should accept credit card payments in store.
However, they might also consider accepting credit cards online, using a mobile card reader, or over the phone. Additionally, they will need to decide which major credit card networks they will accept.
2. Choose The Right Payment Processor
When a client swipes or inserts their credit card, there is a lot of behind-the-scenes work involved, like reviewing account details and authorizations. Your CBD merchants will need to partner with a reliable payment processor to make that possible.
You and your CBD merchants should consider the payment processor’s rates, experience, client service, and security when researching options. Your CBD merchants should also keep in mind that payment processors are a good fit for new or small businesses that do not have a large volume of credit card transactions.
3. Set Up Payment Terminals
After your CBD merchants decide on how they will accept credit card payments and which payment processor they will use, they will need to set up payment terminals. If they have a physical location for their business, they will need hardware like a card reader with an EMV Chip and a POS system. If they have an online business and are using an ecommerce platform, they will need to set it up to accept online payments. If your CBD merchants are unsure how to do this, they can always ask their payment processor for guidance.
Why Your CBD Merchants Should Have A Payment Processor For Their CBD Business
Having a suitable and trustworthy payment processor is essential for your CBD merchants. Payment processors provide your clients with several benefits such as:
● Multiple Payment Methods
● Easy Integration
● Improved Customer Service
● Security
● Flexibility
5 Reasons Your Merchants Should Accept Credit Card Payments
Credit cards, as a payment method, provide many benefits, such as:
Improved Cash Flow
Increasing the immediacy of cash flow is essential for any business to grow. Credit card payments are processed electronically, which is a much quicker method than checks that have to be cleared and cash that must be deposited. When a credit card transaction is complete, your CBD merchant’s payment processor will have the money deposited into their business bank account within days, giving merchants quicker access to cash flow.
Protection Against Unfair Payment Disputes
Sometimes, businesses have to deal with payment disputes. But credit card payment disputes are easier to resolve. This is because credit card payments go through an authorization process. So, if a client disputes a credit card charge, your CBD merchants can produce receipts and authorization documents to the credit card processor to show if the transaction was properly authorized.
Competitive Advantage
With the number of people using credit cards increasing, chances are your CBD merchants’ competitors are accepting them as a payment method. If your CBD merchants don't accept credit card payments they risk losing clients to their competitors. Accepting a popular form of payment offers the chance to adapt to the current market and stay competitive.
Increased Sales
Another benefit of accepting credit cards is that it has the potential to boost your CBD merchants’ sales. Not every client is comfortable paying your merchant with cash. By accepting credit cards your merchant can expand their client base by reaching a new demographic that prefers to pay with a credit card.
Credit Card Payments Help Legitimize Your CBD Merchant’s Business
Customers trust brands they know. When a merchant accepts credit card payments, they can leverage the reputation of major credit card companies like Visa, MasterCard, and American Express. The reputation of these companies legitimizes CBD merchants to their clients, helping build greater trust and loyalty.
Bottom Line
A large number of people prefer using credit cards to cash. Therefore, it is in the best interest of your CBD merchants to provide their clients with this popular payment option. Adding credit cards as a payment method will improve their cash flow, protect them against payment disputes, increase sales, and help legitimize their business. Additionally, credit cards are a safe and convenient payment method for their clients.
If your CBD merchants want to provide a quick and easy way for their clients to pay for their services, then credit cards are the way to go!
How Can Merrco Help?
If you're looking for a secure, efficient, and convenient credit card processing solution for your clients, contact Merrco today. We offer competitive rates, and our team of experts is here to help your CBD merchants start accepting credit card payments quickly and easily. Contact us today at info@merrco.com or call us on our toll-free line at 1-800-957-0534 to learn more about how we can help streamline your client's payment processing.