A payment processor is an essential part of any business. Payment providers help your CBD merchants accept multiple payment methods, integrate payments with their systems, and keep payments safe and secure.
There’s a lot to consider when finding a suitable payment processor for your CBD merchants. In this article, we will make that task easier by helping you discern what kind of payment processor your CBD merchants need and point out six mistakes to avoid when choosing a payment processor.
What Kind of Payment Processor do CBD Merchants Need?
Businesses in the cannabis industry are labelled high-risk because they are at a higher risk of fraud and chargebacks. This means that your CBD merchants cannot work with an ordinary payment processor. Instead, they will need to work with a payment processor that can handle high-risk transactions.
The best payment processors for your CBD merchants will have a proven track record of experience working with businesses that are considered high risk. This will not only ensure they can quickly and adeptly problem-solve any issues that may arise, but also ensures your CBD merchants receive their payments safely and securely.
6 Mistakes to Avoid When Choosing a Payment Processor
Choosing a reliable payment processor is one of the most important steps your CBD merchants take to ensure a straightforward payment process for their customers. However, there is a lot of information to take in, so It’s easy to overlook important factors.
Here are six things your CBD merchants should avoid when choosing a payment processor.
1. Not Watching Out for Hidden Fees
Every payment processor has specific rates and fees for its services. Payment processors charge different rates depending on factors such as the type of credit card a customer uses and how the transaction is processed.
Generally, the lowest rate a payment processor will charge your CBD merchants is a qualified rate. A qualified rate typically applies to certain cards that are physically swiped through a card terminal.
Another rate that payment processors charge is called a non-qualified rate. This rate applies to online transactions and credit cards that offer customers rewards. Your CBD merchant’s customers will be more interested in these because they provide givebacks, cash bonuses or loyalty points.
Payment processors advertise the qualified rate more to attract customers. Your CBD merchants may be attracted to those that offer low rates. However, your CBD merchants should be aware of the hidden fees that the payment processor might not highlight, like cancellation, withdrawal, and batch processing fees.
2. Losing Fast Access to Their Money
When ecommerce became popular, businesses often wouldn’t have access to their money due to investigations of suspicious activities. Today, your CBD merchants won’t have to worry about that because a payment processor needs a good reason to freeze their accounts. A payment processor should be able to easily clear up any valid sales that trigger an anti-fraud response.
Your CBD merchants should work with a payment processor that gives them quick access to their money when they need it so they can continue to run their business with access to cash flow.
3. Not Giving Customers a Full Range of Payment Options
Customers like having different payment options. Some customers will leave without completing their purchase if the payment option they prefer is unavailable. Having multiple payment options increases the chances for your CBD merchants to make a sale.
Additionally, CBD merchants can reduce cart abandonment if they provide numerous payment options. When looking for a payment provider for your CBD merchants, ensure that you choose one that will give them multiple payment options that are easy to integrate into their existing system.
4. Getting Stuck with Responsibility for Data Security
Online fraud and scams are increasingly becoming more widespread. Stealing customer information like credit card information and personal identity is a serious problem for most retailers. It might be expensive for your CBD merchants if they have to handle data security independently. Therefore, it is essential that your CBD merchants work with a payment processor with a secure and reliable data protection system.
5. Overlooking the Need for Setup and Support Assistance
It’s crucial that your CBD merchants work with a payment processor that offers a simple setup and does not require tech experts to keep things running. Additionally, your CBD merchants should seek a payment processor that provides excellent support assistance anytime they need it.
6. Handling PCI Compliance on Their Own
The Payment Card Industry Data Security Standard (PCI DSS) is a set of requirements that governs how customer data is secured. The standards regulate how to process, store, or securely transmit credit card information. Your CBD merchants should work with a payment processor that is PCI compliant so that they do not have to take on the workload or potential consequences associated with data security.
Final Thoughts
A suitable payment processor should provide several benefits to help your CBD merchants run their business safely and efficiently. As a CBD payments reseller, you must know the mistakes to avoid when looking for a payment processor. Ensure that you research and talk to the payment processing company to help your CBD merchants find the best payment provider for their CBD business.
How Can Merrco Help?
Merrco is a payment processing company that will provide your CBD merchants with seamless and secure payment solutions. We have products and services that will help your CBD merchants run their businesses smartly and efficiently. If you have any questions on how best we can assist your clients with their payment solutions, don’t hesitate to contact us at info@merrco.com or call us on our toll-free line at 1-800-957-0534.