Why is it so hard to get a CBD payment processor?

Posted by jesuzaalex@gmail.com on August 27th, 2018

If you are stepping into the cbd industry or deal with the cannabidiol oils on local market and want to take it to international level, you will need a merchant account along with an ecommerce platform. It is because a merchant account helps a person in receiving the payment via debit and credit cards for their products. You can sale something to someone on global scale and you will be able to accept stuff from them in your merchant account via debit or credit card transactions. However, when you go out to find a cbd merchant account, you will have a real hard time in getting one.

Why cbd account is so hard to find?

Being a cbd dealer, you will be aware of the fact that it comes from cannabis. The fact that it is associated with hemp plant puts up a lot of question marks on its trading and selling. Most of the states and countries have declared it as an illegal drug which is why the banks and companies hesitate to partner with the merchants as the payment processor. And this is why you will have your merchant account request rejected by majority of the banks when you apply for the cbd merchant account.

But I am selling it for good so why I won’t get the account?

This is the question that most of the people will ask when they are rejected. There are several health benefits of cbd and many people use it regularly for medical purposes. In fact, there are some states that have declared the use of cbd legal while the thc is illegal. So, you might be looking forward to sell it for good so why you still won’t get the chance to acquire a merchant account?

Well, the association of cbd with hemp makes it a high risk trade. As stated, it is illegal in most parts of the world and this is the primary reason why the banks hesitate in accepting the payments for such trades. Therefore, you need a strong third party or an offshore company to assist you and help you in getting the cbd merchant account because no matter what you think and why are you selling it, the product still remains a high risk trade and this is why most of the banks will hesitate in giving you the merchant account for cbd.

Then what to do?

Search online and you will find some good companies that will provide you a cbd merchant account. Take a look at what they are offering to you. Generally, they charge processing rates slightly higher than what you are paying on average and you can expect that because there are only a few good vendors and this is a high risk market. Moreover, there are many security threats and problems associated with payment processing and you want to be sure that you get the authentic and secure payment gateway. So, be careful in your selection and do good research before choosing a company.