If we had to choose a high risk industry for which we get the most inquiries lately, it’s payment processing for CBD oil. The popularity of industries fluctuates. We used to receive many calls about online tech support (an industry plagued by chargebacks and fraud) and e-cigarettes (new regulations), which have since become somewhat difficult for which to find merchant accounts.
We don’t see that happening with CBD oil.
For CBD merchants, there is good news. Back in June of 2016, we had written a blog detailing what we need in order to get a CBD merchant account: Large volume (about $100,000 monthly) and European registration. We’ve since come across a far more feasible solution and we already have CBD merchants processing payments.
We’re on board with CBD, not only because of its health benefits, but we feel with more and more banks warming to industries like CBD and hemp, the closer we’re getting to mainstream banks processing payments for medical and recreational marijuana, of which we’re a big proponent.
About our CBD oil solution
Payment processing for CBD oil is getting easier. We see it as a sign of the times, though it is still viewed with risks by some banks. Instabill has the acquiring banking partners in place to offer competitive solutions. Among the things we need from merchants includes:
- $10,000 per month ($2,500 per week) in volume
- Processing history to show you can make good on such volume
- U.S. registered owners – who must have a social security number
“It is a great, growing industry,” said Instabill Sales Manager Wendy Jacques. “More banks should take it.”
Why some banks remain lukewarm about payment processing for CBD oil
The hesitation about offering payment solutions for CBD is its association to marijuana, which remains a divided issue. It was evidenced earlier this month when U.S. Attorney General Jeff Sessions reversed former President Barack Obama’s stance on marijuana – deferring to state governance for legislation – back to federal oversight and harsher restrictions.
As long as the growth, sale and use of marijuana remains illegal by federal law, banks will be hesitant to offer merchant payment solutions for marijuana-related products. While Mr. Sessions’ latest announcement may be a step back, it cannot erase the progress that has been made: 30 states, along with Washington, D.C., have legalized marijuana for medicinal purposes while eight states have made legal recreational use. More are sure to follow.
What are the health benefits of CBD?
Studies continue regarding the health benefits of CBD. There are positive signs pointing to many ailments, including:
- Reduction of pain and inflammation
- Treating epilepsy, especially in children
- Helpful in diminishing acne and wrinkles
- Curbing anxiety, depression and nausea
We have solutions in place
Instabill has solutions for payment processing for CBD oil in place, with several merchants processing. Better, we offer live support through our expert merchant account managers for the life of your merchant account relationship with Instabill. Speak with us today, or anytime between Monday and Friday (8 a.m.-6 p.m., U.S. eastern time).