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CBD a burgeoning industry
Approvals on a case-by-case basis
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Of all the inquiries we receive regarding the high risk industries for which we process credit card transactions, questions regarding CBD oil merchant accounts come the most often. To say it is a burgeoning industry is a giant understatement.
While payment processing solutions (other than straight cash) continue to remain elusive for the marijuana industry as a whole, the health benefits of CBD oil, extracted from the cannabis plant, is widely gaining popularity.
CBD merchant accounts: Why is CBD oil considered high risk?
Simply, CBD is considered high risk because it is extracted from the marijuana plant. Marijuana growth, use and sale remains illegal according to U.S. federal law, although 29 states have legalized medical and/or recreational use and many more are going to follow. While THC produces the hallucinogenic effects from marijuana, CBD has only minuscule amounts of THC, not nearly enough to produce the ‘high’ that THC does.
Thus, what the federal government deems illegal – even though 29 state governments voted it legal in some form – makes acquiring banks nervous, especially those banks in the U.S. We feel an alternative solution to cash is long overdue, and that credit card processing for marijuana businesses cannot be too far off in the future.
The health benefits of CBD
According to many studies, CBD is a proven healing agent for several illnesses and conditions:
- Reduces inflammation, relieves pain
- Remedy for anxiety and depression
- Used to treat insomnia and sleep disorders
- Proven effective in treating epilepsy and seizures
- Effective in treating acne and other skin conditions such as eczema
- Reportedly stops the growth of some cancerous cells
- Evidence suggests it curbs addiction to opioids
- Improves heart health by clearing blockages
4 things that improve a business’s approval for a CBD oil merchant account
Like other high risk merchant accounts, Instabill merchant account managers and acquiring banking partners require several KYC documents and solid financial history to provide approvals for CBD oil merchant accounts. We offer approvals on a case-by-case basis.
- Payment processing history always helpful: Ideally 3-6 months of payment processing history is suggested.
- Solutions for CBD startups: Instabill has multiple banking partners for CBD oil merchant accounts, one of which will accept startup businesses contingent of the aforementioned KYC documents.
- High volume: At one time we required very high monthly volume from CBD oil merchants, but having found new solutions recently, processing minimums are not as stringent as they once were. We like to think it is a sign that banks are warming to the CBD industry.
- Money in the bank: Behind every high risk business is money – healthy financial backing and strong personal financials – which lends favorably to merchant account approvals.
Discuss the possibilities with us
Instabill merchant account experts are available Monday through Friday from 8 a.m. until 6 p.m. at our U.S. headquarters in Portsmouth, N.H. With a 10-minute conversation, we’ll provide a framework to get CBD oil merchant accounts approved and you processing payments.