If you are looking for CBD Merchant Processing, MobiusPay is the top place to start, as they now offer this service. This includes processing for hemp wholesale, distributors, sellers of hemp-derived products, or other verticals such as growers, CBD extractor, etc. Merchant processing for CBD businesses is considered high risk, and merchants must be licensed and compliant with all regulatory agencies. This blog will explore all of the things that you need to know to get processing for your business.
Why Are CDB Businesses High Risk?
There are many businesses that fit squarely into the high-risk category for companies that do payment processing. CBD companies and related businesses surrounding CBD may find it hard to get merchant processing. There are many reasons high-risk businesses are labeled that way, but in terms of CBD production and distribution, there are three primary reasons.
First, CBD companies have higher chargeback rates on average than lower-risk companies. Second, there are numerous potential legal issues affecting the distribution of CBD products. A third reason these companies can be high-risk is because of the unsubstantiated claims regarding product efficacy.
One Reason Many CBD Companies Are High Risk
The beneficial effects of CBD oils and other CBD products have not been approved or validated by the Food and Drug Administration. Since there is not much peer-reviewed research available to evaluate some of the claims associated with CBD, and since the list of things CBD is said to improve has continued to expand. While research catches up, CBD may find itself being considered a high risk to payment processors. At first, it was offered as a way to alleviate stress and relax, and as things have been added, the situation has become more complex.
What About Chargebacks?
Chargebacks are a known risk for many types of businesses. Some businesses have them at a higher rate than others, and CBD products and companies fit in this category. Chargebacks need to remain within thresholds to maintain a merchant account.
Selecting a company that provides the best tools to help keep chargebacks below this number is essential. There are many tools to assist your business, ask the team at MobiusPay for more information.
Legal Issues And High Risk
Another reason the CBD industry is considered high-risk is due to the current legal climate surrounding it. CBD-based products were listed as a Schedule I drugs until late 2018. This classification by the Drug Enforcement Agency affected their sale at the federal level, as well as transportation of the products. Many states have passed medical marijuana laws, however, that legalized the use of marijuana and CBD based products for medicinal purposes. Over ten states have also legalized marijuana for recreational purposes. This created some conflict overall, but in 2018, when the 2018 Farm Bill was passed, hemp-based products were removed from the Schedule I list. Due to variations in laws on the state level, it is essential to consult with an attorney or qualified consultants regarding the laws of your state.
Why Is Payment Processing Harder To Find?
There are a limited number of high-risk specialists in the payment processing industry that accept CBD businesses. MobiusPay is now offering processing for CBD merchants and businesses. With this newly announced ability to process CBD products online, so long as nothing is harmful to the public and regulations are followed, the services can provide huge benefits for a large number of businesses.
Finding A Good High-Risk Merchant Account Provider
When looking for a merchant account provider, you will want to consider the same things as a high-risk merchant than you would as a low-risk merchant. It is harder to find account providers that offer a fantastic combination of high-quality customer service, fair contract terms, and reasonable prices. Fortunately, MobiusPay excels in all these things. Talk to the team at MobiusPay, you can have your questions answered and get more information on the top services and products offered.
Contact one of our knowledgable team at firstname.lastname@example.org for more information.