Less than a few years ago, the U.S. made a progressive decision by legalizing the cultivation and sale of hemp at a federal level in the 2018 Farm Bill. This change opened the doors wide for payment processing agents to tap into this emerging industry and begin working with CBD merchants. The 2018 Farm Bill made it possible for payment processing reseller agents to start serving new clientele by helping them find a trusted CBD payment processor.
However, your CBD merchants face several challenges to carry out day-to-day operations. Many financial institutions choose not to work with CBD businesses because they are considered high-risk. This is why it’s so important that CBD payment processing agents help advise their clients toward a payment partner that specializes in high-risk merchant accounts.
In the simplest of terms, a payment processor is a service provider that handles credit or debit card transactions. They connect the business or merchant’s bank account and the cardholder’s account to facilitate an electronic money transaction.
This article will look at the benefits of choosing a payment processor for CBD merchant clients and the three ways a payment processor can actually help their businesses grow.
The Benefits of Having a Secure Payment Processor for CBD Businesses
Here are some of the benefits of choosing a CBD-focused payment processor:
A lot of high-risk businesses are a target for fraud. Payment processors typically offer a range of protection against fraud and scams. This is because payment providers have to be PCI compliant. PCI helps ensure that payment providers accept, process, store and transmit credit card information safely.
Multiple Payment Methods
Having a variety of payment options for customers cannot be emphasized enough. Consumers are getting away from cash to pay for their products and services, so it’s essential to accommodate clients with alternative payment options. A payment provider will help you diversify your options by providing a range of payment methods.
Easy Integration with Websites
The world has gone digital. For your clients’ CBD businesses to succeed, they need seamless integration with POS software, ecommerce shopping carts, online menus, delivery providers, etc. A good payment processor will easily integrate with other systems that help run a company more efficiently.
Improved Customer Service
Every business will face challenges. Sometimes, these challenges involve payment transactions. If there was an error while conducting the transaction, the payment processor is responsible for reversing the transaction or making any corrections that are necessary.
It’s imperative to set your clients up to work with a reliable payment processor and customer service team to support merchants. Having a customer support system that can correct issues quickly (before they impact the business’s reputation) is essential.
3 Ways A Payment Processors Can Help Your Clients’ CBD Business Grow
There are quite a few payment processors in the market today. Which means you have choices. However, they may not all come with similar features and benefits. Below, we’ve summarized the top 3 ways a payment processor could help a business grow.
1. Better Market Reach
Customers appreciate the flexibility and convenience that comes with having access to multiple payment options. Payment processors are the only system that allows your clients to accept multiple payment options. This could potentially increase the number of customers served, transactions made and a merchant’s conversion rate.
Additionally, accepting multiple payment options enables your clients to serve a larger pool of customers, which is critical for increasing online sales. Payment processors make that possible by providing electronic payment methods like credit or debit cards.
2. Secure Payments
Data breaches and scams are becoming an increasing concern. Several business owners have lost vast amounts of money and data due to data breaches, which is counterproductive to growing a business. Having a payment processor like Merrco that is PCI compliant and uses authentication, encryption and tokenization in its payment solutions helps your clients mitigate that risk.
Additionally, the data is automatically backed up with a trusted payment processor every time they complete a transaction, so the merchant does not have to worry about losing any vital transactional information.
3. Increased Revenue
Businesses are at a considerable disadvantage if they only accept cash. Currently, there are multiple payment methods available like digital checkout, mobile payments and bank transfers. A payment processor will help your business accept different modes of payment. In addition, electronic payment methods are relatively quick.
The moment a client makes a purchase, the money is deposited into the merchant account, which increases cash flow.
Additionally, having electronic payment methods affords the time lost by using checks, bills and invoices. Your CBD merchant clients could use that saved time to focus on other aspects of the business instead.
Choosing the right CBD payment processor that specializes in high-risk transactions is important, and positively impacts the growth of your clients’ CBD businesses. It will help the business and its clients receive quick and convenient payments, while giving them a competitive edge over other businesses.
Not only that, but a good payment processor has additional benefits like better market reach, secure payments, customer loyalty, increased revenue and reduced human error. So, make finding a suitable payment processor a top priority for your clients’ CBD business.
How Can Merrco Help?
Merrco is a payment provider that helps regulated businesses in Canada and the U.S. by providing intelligent and convenient payment solutions. Our payment solutions are seamless and make customer payments efficient and more accessible.