Business is booming for companies that sell products which contain cannabidiol, or CBD. Credit Card Processing for CBD businesses has become somewhat easier, but there are still some hurdles to be cleared. While there are other options, most established businesses prefer to have merchant accounts that allow them to accept and process payment cards directly.
Predictably enough, some banks refuse to do business at all with companies which sell CBD-based products. Others are happy to do so, but impose restrictions that detract from the value of the services they provide. When assessing the available options, focusing on a couple of key issues will make it easier to single out the best merchant account for any CBD business.
Identifying the Right Merchant Account for Any CBD Company
Although CBD is not even specifically regulated at the federal level, its association with psychoactive marijuana can arouse concerns among financial institutions. In reality, CBD can just as well be isolated from specially bred strains of hemp that contain almost no THC.
Even so, the stigma attached to CBD has so far limited the number of credit card processing options for businesses that produce or sell it. As such, it will be generally be even more important than usual to put plenty of effort into choosing a merchant account. Some of the issues that will most often be significant include:
- Cost. Financial institutions that issue merchant accounts to CBD businesses tend to charge higher rates than those that do not. At the same time, fees vary widely enough that it will always be wise to look into the overall cost of using each processing service. Failing to do so can cost a CBD business far more than might be expected, in the long run.
- Terms. Some companies that offer merchant accounts to CBD companies also insist on especially long contracts. That could also prove expensive, especially if the market improves to the extent that the average cost of a merchant account drops significantly.
Making the Most of a Steadily Improving Situation
While there are certainly some CBD-friendly merchant accounts that are better avoided, there are also an increasing number that make sense for many businesses. In every case, being careful to assess all the relevant details will inevitably pay off.