Tips for finding a CBD Payment Processor in 2023
3 January 2021
Cannabidiol, or more commonly known as CBD, is becoming one of the fastest-growing industries, making way for multiple business opportunities. It is predicted that growth will exceed projections. If you have decided to jump on the CBD bandwagon, you may be looking for CBD payment processing methods for your business. Unlike other businesses, this can be a little trickier to navigate. The 2018 Farm Bill Removed CBD from the federal Controlled Substances Act and the oversight of the Drug Enforcement Agency to the hands of the FDA (Food and Drug Administration).
Even though CBD products have been somewhat legalized, the FDA is still in the process of devising regulations. This means that many payment processing companies and banks are reluctant to accept payments related to CBD products as they are concerned about the risk of federal intervention. However, there are payment processing companies that are open to processing CBD payments.
Why is CBD payment processing so important anyway?
Without a CBD payment processor, you would not be able to accept payments or ship orders. This will be a stumbling block for your CBD business. This especially true if you are looking to grow your business online. A CBD payment processor will help you to manage all your transactions from your online CBD store to your brick-and-mortar store ensuring that you can accept payments, ship orders, make profits, and keep your business running smoothly.
What about high-risk payment processors?
Since CBD products are associated with cannabis, it is no wonder there is still a degree of stigma and debate surrounding its riskiness. Many popular payment processors are still skeptical when dealing with transactions relating to CBD products. For this reason, many of them do not accept payments for CBD products at all. This means that CBD business owners have had to desperately find payment processing companies who do accept CBD related payments and transactions.
The benefits of CBD payment processors
Any business needs a payment processing method for obvious reasons, but what exactly are the benefits for your CBD business? As a CBD business owner, you don’t want to be in a position where you are unable to accept or make a payment when you need to as this will just set your business back. So, let’s take a look at the benefits of using CBD payment processors.
- They accept both credit and debit cards: If you’ve ever been in the position of wanting to make a payment using your debit or credit card at a facility that does not accept this method of payment, chances are you were frustrated, to say the least. Customers want convenient payment methods and are likely to choose competitors who do offer the payment methods of their choice. This is also one of the preferred methods of payment by most customers.
- They provide payment alternatives: Payment processors provide other options for your customers too, such as bank transfers, vouchers, and lay-buy options. Many customers sought out these alternative methods when they are unable to use debit or credit cards or they have other motives, such as purchasing a voucher as a gift for someone.
- They allow the integration of payments with current systems: Having the power to integrate your CBD payment processing system with your online CBD store is advantageous and convenient. It also provides avenues to merge payments with important administrative functions such as invoicing and accounting processes.
- They assist with customer service: Anytime a customer purchases a product, customer service becomes imperative as issues can arise so proactivity is key. A CBD payment processing system will help to provide data security and fraud protection services, protecting your customers and preventing payment problems. You need to ensure your payment processor includes these kinds of services.
- They decrease the chance of mistake making: It is physically impossible to have your fingers in all the pies. Using a CBD payment processor will help alleviate unnecessary stress allowing you to focus on other aspects of your business. If you do not need to stress about it then why should you? Using a payment processor for CBD products helps to minimize mistakes such as accounting discrepancies, etc.
Factors to consider when choosing a CBD payment processing company
As mentioned earlier in this article, CBD payments are considered high-risk by large banks and many other popularly used payment processing companies such as PayPal. However, there are payment processing companies that are willing to deal with CBD businesses. Many of them offer the same benefits as those offered to low-risk businesses. CBD business owners must consider the following factors when choosing a CBD payment processor:
- They need to be compatible with your CMS (content management system) or e-commerce site: This will make payment processing simple
- They offer point-of-sale availability (POS): This helps reduce the administrative load associated with payments.
- They offer reasonable charges: You can expect to be charged with higher fees since CBD payments are regarded as high-risk, but it is important to find a CBD payment processor who offers the best service at reasonable rates.
If you wonder whether PayPal accepts payments for CBD products – check the list of the current CBD-friendly payment-companies below.
Payment processing companies that deal with CBD payments
Here is a list of some of the highest-rated CBD payment processing companies currently:
The bottom line
Providing secure and efficient payment options for your customers is important to establish customer satisfaction. To be an efficient CBD business, you should have CBD payment processing that incorporates every payment method available.
This allows you to expand your business exponentially. Choosing the right CBD payment processing company will also help you to comply with regulations, manage your payment administration systems, avoid unnecessary dilemmas, and negotiate reasonable charges for your CBD payments.
If you need help integrating the payment gateway to your side or choosing the right payment processor, feel free to reach us out anytime. At Digital Octane, we provide a variety of digital services for CBD Businesses.