CBD is one of the fastest-growing industries in the United States. Businesses are appearing all over, and entrepreneurs are scrambling to get their products on shelves before they run out of stock.
So you’ve just opened your CBD business. You have a great product, and you’re ready to get started! It’s no secret that running a new business can be challenging, but it is important to do all the little things right.
One of those little things is payment processing for your CBD company. From setting up an account with one of the many available processors to handling customer service issues and more, there are a lot of “little” tasks that can make or break your customer experience.
That’s why we’ve created this blog post – to give you some helpful tips on what you need to know about payment processing for your CBD company so that you are all set for success!
What is CBD or CBD oil?
The lesser-known cousin of THC, Cannabidiol (or CBD for short), is the second most active chemical compound found in the cannabis plant. While THC is an active ingredient in cannabis that stimulates the high user experience, CBD does not give users that euphoric feeling.
Recently, CBD has gained momentum in the media as a remedy for pain relief and other illnesses like anxiety and insomnia. You see influencers on social media adding it to their morning smoothies or even promoting CBD-infused sports bars.
That’s the beauty of CBD: it comes in many forms, including oils, extracts, vapes, capsules and topicals. There are also food or beauty care items infused with CBD, and as a future CBD business owner, you have plenty of potential products to choose from.
Is CBD legal?
The short answer is yes. A slightly longer answer is also yes, as all 50 states allow you to sell and purchase CBD products, but you need to be aware of various levels of restriction that vary state to state.
The 2018 Farm Bill legalized hemp in the United States, which removed all hemp-derived products (including CBD) from the Controlled Substances act. This means that CBD is legal if it comes from hemp but not from the marijuana plant, even though it’s the same molecule.
Additionally, all CBD products sold in authorized places limit the content value of THC, regardless of the form it comes in. So as long as you keep the THC content levels under 0.3%, you should have no problem with the law and not require a medical marijuana license.
So if you are considering starting a CBD business, go for it, but make sure you keep the everchanging CBD laws and regulations top of mind.
Now that we’ve established the legality of CBD and all the different products you can sell with this cannabinoid, let’s see how payment processing can make your CBD business idea a reality.
What is a CBD payment gateway?
A CBD payment gateway exists to make it easy for your customers to get their CBD products. This is a processing system that allows customers to securely buy their CBD products with credit cards or alternative payment methods, such as debit cards, prepaid cards and bank transfers.
CBD merchants need to carefully select trusted payment processors for their business, as CBD transactions are considered high-risk. Unfortunately, that means that your business might be more vulnerable to fraud and chargebacks.
As a result, only a few payment processing services are ready to take on the risk associated with CBD – like Merrco, which offers a secure payment processing solution for cannabis and regulated businesses.
Why does finding a CBD payment processor matter?
There’s no way around finding a CBD-friendly payment processor for your business. How else would you keep the business running without being able to accept payments from your future customers?
Whether your customer is in your retail store, or shopping online, you’re responsible for building the most pleasant shopping experience. Providing a familiar and easy way to pay and check out is a critical part of the ideal experience.
This is why choosing a payment processor should be at the top of your list. Besides being handy for daily payments, they can also allow you to provide better customer service and shopping experience.
But before you complete any merchant account application, you need to understand all the terms and costs associated with that processor. These include:
Rates and Fees: The cost is always an important variable to consider. Make sure you understand all the fees associated with your future CBD payment processor, such as audit, termination, monthly/annual fees and others. Reputable processors can require a hefty registration fee upfront, but many will provide their services free of charge or for a reasonable rate without sacrificing quality.
Contracts and Cancellation Policies: Every payment processor requires you to sign a contract agreeing to do business. Each company’s policies and agreements will differ, so give yourself enough time to consider which one suits your CBD company’s interests best.
Integrated Ecommerce: Switching ecommerce sites for a payment processor can be straining and time-consuming. Go for a payment processor that allows you to integrate their CBD processing system on your terms seamlessly. Well-known CBD payment processors that offer an API, which seamlessly integrates into most ecommerce platforms, will enable you to monitor your payment gateway.
Good Customer Service: You need to find a company that values customer feedback and has 24/7 customer service. This way, they can quickly respond to any disputes and even reduce the possibilities of disputes arising in the first place. Systems fail sometimes… and that is where the demand for good customer service appears.
You can also find more tips of what to look for in a trusted CBD payment processor here.
How can Merrco help?
Merrco is among Canada’s top cannabis payment processing providers, offering intelligent, transparent and secure payment solutions.
Merrco helps CBD companies in the US by keeping customers compliant in regulated industries, while giving you an edge over your competition with intelligent, simple payments that are tailor-made just for your business.
Understanding the complexity of payment solutions specific to your CBD business is our specialty. We have experience providing cannabis retailers, producers and operators with transparent, compliant and sustainable payment processing solutions.
We offer ecommerce, virtual terminal, mobile, recurring and card-present payment solutions with reliable online recording abilities, including:
Conclusion: Merrco is a trusted CBD payment processor.
By 2024, the CBD market anticipates $20 billion in sales. With a correct approach, it could be a great industry to venture into for any new business owner.
Finding a trusted payment processor is a massive step in the right direction for any CBD business. And with Merrco’s support, your business will have an industry-leading payment experience.
Still have unanswered questions? Our payments experts have experience working with a wide range of companies in different sectors. Contact us today, and we can help you find the right solutions for your business.
Call us at 1-800-957-0534 or email us at firstname.lastname@example.org.