When a customer strolls into your shop, chooses the product they want to purchase and brings it up to the counter to buy it. You tell them the price, but then they hand you a credit card instead of cash. It is very frustrating to inform them that your business does not accept credit cards. The customer, without any cash on them, then has to put the product back and walks out of the store, not likely to return. They’ll find somewhere else, like a gas station, that accepts credit cards to fulfil their CBD needs. Most customers prefer to pay with Credit Card instead of Cash.
Sales are going northwards, and you accept payment from both credit cards and cash. The business is growing and more customers are coming in each day. Then suddenly, you get an alert that your merchant account provider has dropped your business, no longer letting you accept credit card payments since you’re considered high risk to your payment processor for selling CBD products, even though the products are completely legal and offer promising health claims, all while you require age verification for purchases. It wasn't even your fault that you lost your account, but it's the few bad apples that ruin it for everyone. You scramble around to find a new processor, one that will accept high risk business types.
Every CBD merchant processor you’re looking for, though, has high fees that will take advantage of you for years. They know you’re desperate and think they can make a ton of money off of that situation.
If you've ever tried to sell CBD products online, you understand the depth of the struggle in trying to secure an online account. Dough Merchant Services Processing specializes in both brick and mortar and online CBD accounts with a 99% approval rate for our CBD merchants.
We understand that every business is different, and listen to each business owner to fully understand the best solution for your needs. This isn't a cookie cutter business, and getting the right merchant account services for CBD can set you up for success for years to come.
If you're looking for an online CBD merchant account, you've come to the right place. Our staff is trained to get to the bottom of what will work best for you while keeping the fees low so you can grow your business. You could just accept cash, like plenty of other CBD businesses, but that would severely limit your customer base. You could stick out amongst other CBD stores, or do exactly what they are doing. Think about the necessity of accepting credit cards this way: Each customer that you have to turn away because of your inability to accept credit card payments is a purchase lost. But how many sales are you actually turning down in the long run?
CBD Merchants who accept credit cards typically see a 20% higher ticket than their cash-only counterparts.
Each customer that you turn down will probably not come back again, because they’ll always assume that you can’t accept credit cards, even if you begin to accept them after they came in. Each customer that was initially turned down, then, could turn into tens of hundreds of dollars lost in future purchases by their assumption that you don’t accept credit cards.
So, being able to accept credit cards really will turn into countless purchases down the road as customers know they are able to use a credit card and come back to your business because of that convenience.
Finding a high-risk payment processing solution that keeps your business running smoothly is critical for your online business. Dough Merchant Services knows how frustrating it can be for a high-risk business in the CBD oil industry to obtain the right payment processor. Finding the best credit card payment processing might seem daunting for even the most experienced CBD merchants. If you don’t know where to begin, we’re here to help you make the right steps towards finding a high-risk CBD merchant account and CBD payment processing solution that fits your business needs.
As a CBD merchant, it’s important to understand why payment processors are often difficult to obtain (and retain) for sales in the CBD industry. CBD product sales are considered to be high risk in the online merchant account world due to the nature of how the oil is cultivated. CBD is a legal product; however, it is derived from the same plant which breeds it’s illegal and notorious cousin Cannabis. The very notion sends banks and lenders into high alert often resulting in your CBD oil merchant account being deemed high risk. Right now, CBD is categorized as a high-risk business regardless of what kind of CBD products you carry in your online store.
Alternatively, being high risk does not mean you’re out of luck when it comes to eCommerce and payment processing online (also known as card-not-present transactions). Dough Merchant Services is an expert at finding the best way to expand your market to deliver your services and products. Dough Merchant Services is committed to finding the proper credit card processing solutions you need to dominate the online presence. Dough Merchant Services offers completely customizable CBD merchant processing options to solve to your business needs. Dough Merchant Services makes it easy to obtain a CBD oil merchant account. Dough MerchantServices understands that your online CBD business is your lifeline. And when your credit card payment processor suddenly shuts down your merchant account, you’re left feeling completely helpless. Fortunately, having a payment processing company such as PayPal, Square, or Stripe shut down your merchant account does not mean you’ve reached the end of the road. Quite the opposite. Dough Merchant Services can not only help you recover your CBD merchant account; we are the complete solution for your high-risk business needs.
First, it is important to understand exactly what recovery means. If your CBD merchant account has been shut down through PayPal, Square, or Stripe you cannot get it back up and running through those payment processing companies. This termination means your business has been restricted from using many online credit card processors for your CBD product sales. Funds that remain in your merchant account often cannot be accessed until you are able to establish high risk credit card processor specifically tailored for your CBD merchant account. Termination of CBD merchant accounts often causes a lapse in incoming payments leading to insufficient funds in your accounts. CBD merchants often find themselves in a desperate situation, owing their bank despite being unable to generate sales or access funds.
When your CBD merchant account is shut down, it is critical to act fast and know where to seek help. Dough Merchant Services will help you get your account recovered the right way and can offer the high-risk payment processing solution your CBD merchant account needs. With your business back up and running in no time so you can get back to what matters most – running your online CBD business. Selling CBD online is a high-risk business for more reasons than solely due to its association to Cannabis. There are several other factors that deem CBD a high risk in the payment processing realm. First, an ecommerce CBD sale is an online sale. Meaning, the sale is processed as a “card not present transaction” which is inherently high-risk payment processing. Additionally, high risk CBD businesses have very high discount rates and large security reserves (also known as a rolling reserve). A business is usually classified as a high-risk merchant if the industry they’re in has a higher risk of fraud and chargebacks. In the case of being a CBD oil merchant, the high-risk label is typically due to the business being a reputational and legal risk for banks and lenders due to FDA regulations in the United States.
As a CBD oil merchant looking to sell their products in an online market, it’s important to understand that credit card processing providers, like Stripe and PayPal do not specialize in high risk industries and therefore cannot process payments for them. Merchants who offer high risk services or CBD products must consider a provider that specializes in high risk processing industries and can help you establish your high-risk merchant account.
For businesses that are considered high risk, it is important to align yourself with the right CBD merchant processing providers. Dough Merchant Services is a high-risk merchant account provider that is trusted and proven to process transactions for your high-risk business. We offer custom tailored solutions to merchants in the CBD oil industry that need a payment gateway for selling their CBD products in an online market. With a CBD payment processor that fits your business, you are able to get set up with legitimate debit and credit card processing. Dough Merchant Services will expertly pair you with a solution that is willing to accept the liability for the increased risk associated with your high-risk business. The Best CBD Payment Processor
It is without question that the cannabidiol (CBD) industry is one of the fastest growing markets. Everyday Americans are seeking relief for issues as varied as joint pain and as a form of skincare. The growing popularity has undoubtedly captured the attention of both natural products and specialty retailers alike, as they cash in on this miracle elixir.
The Hemp Business Journal estimates that hemp-based CBD sales will reach a staggering $646 million by 2022. More than 25 percent of these sales will be coming from natural and specialty retailers.
CBD is a naturally occurring element found in marijuana and hemp plants. It was discovered back in 1940 and is known as a Phyto cannabinoid. This substance can be taken into the body in various ways, including: inhalation of CBD smoke or vapor, an aerosol sprayed into the cheek, and by mouth.
In July 2019, there were 33 U.S. states, plus the District of Columbia, that legalized cannabis in some form. However, the cannabis plant is still classified as a Schedule 1 narcotic. Plus, there are many FDA regulations to navigate through.
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To clarify, only hemp-derived CBD products are approved to sell online. Also, there are states that prohibit both the sale and consumption of CBD. Still, other states limit the type of CBD product that can be sold in the state, or they may require a special license.
