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High-Risk Merchant Services: What They Are And How They Can Benefit Your CBD Business

High-Risk Merchant Services: What They Are And How They Can Benefit Your CBD Business

The popularity of cannabis, specifically CBD products, continues to grow as the years go by exponentially. Additionally, not for the same reason as it was known for notoriously. From being infamously known as an illegal substance susceptible to abuse, cannabis is now seen in a more positive light, thanks to the numerous studies conducted that enumerated the many benefits of cannabidiol or CBD. CBD’s popularity skyrocketed when the 2018 Farm Bill was passed, making CBD legal at a federal level.

Presently, more states and countries have considered legalizing the use of marijuana in their area. As of April 2021, there are 48 states in the United States of America, and there are 47 countries that have legalized the use of cannabis products.

The demand for CBD products also continues to grow. When you look for CBD products online, you will find various CBD for sale: from oils, edibles, and vaporizers with benefits that range from beauty (skincare and cosmetics) to health (pain relief, etc.). As of 2020, the CBD market is estimated to have a global market value of USD 24.6 billion.

Despite its promising future, CBD businesses continue to face challenges due to the many federal regulations on CBD products. As mentioned earlier, there are a lot of different CBD products found in the market, and these products fall under categories (food, drugs, cosmetics, dietary supplements, and medical devices) which are under the jurisdiction of the Food and Drug Administration (FDA), therefore making CBD products included in FDA’s jurisdiction.

FDA has placed a lot of strict regulations and restrictions on selling CBD products. One important example would be the regulation that only allows CBD to be an ingredient in cosmetic products while at the same time prohibiting including it as an ingredient in food and dietary supplements.

CBD Businesses As High-Risk Merchants

FDA regulations, in turn, cause another major concern for CBD businesses because of the many federal and legal regulations that CBD businesses have, they are considered high-risk merchants. As indicated in their very name, high-risk merchants are businesses that are more susceptible to risks because of many factors, one of which is having strict legal regulations.

To be labeled as a high-risk merchant is a major concern for CBD businesses. Major payment processing firms like Mastercard, Visa, American Express, Square, Stripe,

PayPal, and Shopify refuse to process cashless, limiting these businesses to just accepting cash transactions. It may initially seem hopeless for CBD business owners, but fortunately, there is a solution to all their payment processing woes: high-risk merchant services. High-risk merchant services are, simply put, accounts that provide high-risk merchants, like CBD businesses, a safe gateway to process cashless transactions, allowing them to operate like any other normal, low-risk merchant.

More than being a safe gateway for cashless transactions, availing of a high-risk merchant service has many other benefits. One of them is because they specialize in high-risk merchants like CBD businesses. They already know how to work with CBD businesses safely.

High-risk merchant services also have advanced fraud prevention measures in place. Additionally, should a CBD business want to add more services, there are high-risk merchant services capable of customizing each account according to the business owner’s preference.

What To Consider When Deciding On A High-Risk Merchant Service

Due to the increasing volume of high-risk merchant services available in the market, it is crucial to do thorough research on which high-risk merchant service is most beneficial for your CBD business. Here are a few things you can consider while deciding on which high-risk merchant service is best for your business:

  1. Expertise and Reputability. One of the important things to consider when deciding on a service provider is that they should have an in-house team with prior knowledge and experience in high-risk handling businesses. One indicator of this would be their reputability in the industry. Are they being recommended by other CBD businesses as well? Are they known in a positive light?
  2. Customer service. The very nature of CBD businesses requires close supervision of the changing legal regulations surrounding their business and processing cashless transactions. With this, the service they provide must provide businesses with customer service representatives that are always available whenever they need help or have inquiries about their business. One must consider if the high-risk merchant service has customer service available on a 24/7 basis to assist them.
  3. Security. High-risk merchant services must constantly be updated and be very strict about following legal regulations to ensure the safety of their clients while they run their businesses. Another important thing to consider is if they provide effective anti-fraud solutions to ensure that your business is protected from fraudulent activities.
  4. Transparency of Fees. While it is true that CBD businesses might have to spend a little bit more because high-risk merchant services have specialized expertise on handling these accounts, there shouldn’t be any hidden additional fees when you avail of their services. There should be full disclosure and a breakdown of all the fees that you should pay.

 CBD businesses prefer High-Risk Merchant Pay because aside from being a safe gateway for cashless transactions, they offer businesses the choice to customize their account according to their preferences. High-Risk Merchant Pay also has relationships with banks across the globe, expanding your business’s reach to international customers while at the same time also ensuring your CBD business safe and easy international transactions. More than that, they accept 169 global currencies. They are compatible with 175 global shopping cart platforms, allowing your customers to purchase in their native currency and providing payouts in your currency, making transactions easier and seamless for both you and your customers. High-Risk Merchant Pay also has an in-house expert team that is dedicated to helping your CBD business.

While CBD businesses experience many challenges, the ROI is exponential in growth and is worth it. As long as you do your thorough research on expanding your business and avail of the services that will secure and benefit your business, and you are brave enough to take calculated risks, your business will be successful.