CBD Merchant Accounts: What You Need to Know
- Posted on: Mar 13 2018
The marijuana industry is growing every day, as more shops open and states continue to legalize its use. It’s bringing in record numbers of profits for businesses and states. The legal marijuana business hit $9.7 billion in North America in 2017, according to a report from cannabis industry analysts Arcview Market Research. This represents a 33 percent increase over 2016.
However, this is not to be confused with Cannabidiol oil (CBD), which has been found to have a wealth of medical value. As a result, we’ve seen the industry grow at a rapid rate over the last year, with products ranging in everything from skin cream and tinctures to even CBD infused pet products.
As we’ve watched this growth, we noticed a severe lack of CBD Merchant Account options, that were not risky Offshore solutions. Payment Processors and Banks have traditionally stayed away from the industry, turning down business owners seeking to make a presence online. Many resorted to using payment platforms, like Stripe or Pay Pal only to be shutdown a short time later. To be truly successful in the CBD space online, you need a reliable, long term merchant account solution.
“We struggled finding the right merchant account provider for months. We were very specific in what we were looking for and were not going to settle for anything less than the best in all areas. When we met Nico at a conference, he was attentive and professional. Through Pinpoint, he was able to meet all the criteria we were looking for. The staff was amazingly proficient in meeting our needs and getting us approved quickly. They delivered exactly what they said they would. We have been beyond pleased with the service and results from processing. We would highly recommend Pinpoint to anyone for processing needs! ”
Stephanie Curran, CEO Biolief, LLC
Why CBD Is Considered High-Risk
The fact that CBD is manufactured from the hemp plant designates it as high-risk. Right or wrong, this, coupled with other factors like bad press and the incorrect stigma that CBD is a drug, results in very few banks being willing to process such payments. If only the Banks would further educate themselves, they would understand this could not be further from the truth.
Little Choice for CBD Merchants
Unfortunately, there are currently very few providers that can place CBD vendors. These providers’ ability to place vendors changes erratically. In addition to this problem, most sellers of CBD may expect to pay higher than average rates. This is because account processors translate risk to higher rates. You could also be exposed to rolling reserves or occasional fund holding.
Despite these challenges, it’s still important that CBD merchants are able to take card transactions. It offers convenience for customers and security for your business. Accepting card payments is necessary for your business to grow.
Choosing the Right CBD Merchant Account
With so many inconsistent and unreliable providers, you may think there is no real option for CBD merchant accounts.
Pinpoint Intelligence, however, has introduced a Domestic payment processing solution for the CBD industry. Pinpoint isn’t just a payment processor, we’re a payments partner, here to help you grow your business. This translates to better rates, quicker funding, no reserves and the elimination of issuer declines.
We believe that even though your business is considered high-risk, it doesn’t mean you should be stuck with few options at high prices. Our background in the high-risk processing space, allows us to understand your concerns and frustrations. We’re here to make setting up and using your merchant account a painless process, one where you will always be aware of what’s going on.
We offer a quick and easy approval process, so you can focus on growing your business to the next level. Our in-house underwriting, risk and technical team work together to get your application processed and your account set-up the right way. As you work with us, we offer support and strategies to deal with chargebacks and reduce them. You can use our tools to get a better picture of your payment processing ecosystem.
We are straightforward and transparent. You’ll never be in the dark about your status. We also won’t pile on fees that reduces your margins. Pinpoint is your reliable, stable processing partner.
Accounts Customized to Fit Your Needs
With Pinpoint, you’ll never be just another account. As your business needs change or shift, we’ll be there to customize the features you need. We can offer you payment processing in-store and online. The payment information of your customer will always be secure and safe.
To learn more about applying for a CBD merchant account, contact Pinpoint today. We’ll help you every step of the way. We’ll take care of payment processing, so you can focus on your business.
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