Health experts are finding the benefits of cannabidiol are extraordinary. CBD is a promising treatment for epilepsy, forms of cancer and depression, among other ailments.
We at Instabill think the future is unlimited for the CBD industry, and we’re hardly alone.
Since it is manufactured from the hemp plant, however, it is considered a high risk industry, and securing payment processing for CBD businesses is challenging. Thus, our in-house expert on high risk payment processing, Wendy Jacques, offers five things merchants need to open a CBD merchant account.
1. Healthy Processing History
With all high risk merchant accounts, having a lengthy processing history is always good. For CBD merchants, banks like to see at least six months’ worth.
2. High Volume
Bringing on a high risk merchant needs to be a worthwhile investment for a bank, Ms. Jacques noted. “$100,000 per month or above in processing is what banks want to see.”
3. Strong Financials
A while back, we read about how medical and recreational marijuana was drawing the interests of many venture capitalists. Surely, merchants don’t need to be VCs to open a CBD merchant account, but banks want to see a business bank account with a healthy balance.
4. Get an EU Registration
At the moment, Instabill has only international banking solutions for CBD merchants. Hence, merchants need to obtain an EU registration, something Instabill can help with.
5. Few Chargebacks
Underscoring healthy processing history, a CBD merchant’s chargeback rate simply must be low. We often blog about chargeback mitigation, which takes some effort, but there are a number of small steps a merchant can take to reduce chargebacks.
Will Payment Processing for CBD Ever Get Easier?
We think it eventually will, and here’s why:
Because it is tied with marijuana, banks will always view CBD businesses as a risk. However, with continued evidence of health benefits, as well as continued investment by VCs, we believe banks will, in time, view the industry with less risk.
In the meantime, Instabill, a longtime provider of high risk merchant services, can offer CBD merchant account options. Contact a live merchant account manager for a free CBD merchant account consultation at 1-800-318-2713 or by clicking the live chat link below.