Since the landmark 2018 Farm Bill, the CBD industry has faced a paradox. While the bill’s passage marked a significant milestone, the ensuing period has been fraught with challenges, particularly in securing reliable and transparent payment processing services.
The Struggle for CBD Merchant Account Services
The initial excitement surrounding the legalization of CBD soon gave way to the harsh realities of operating within a complex and often ambiguous legal framework. The absence of clear FDA guidelines for CBD products further exacerbated this situation, leaving entrepreneurs grappling with a maze of banking and payment processing obstacles.
Early Days: Turbulent Times for CBD Payment Processing
In the nascent stages of CBD’s legality, domestic banks were reluctant to offer services to CBD merchants. This reluctance led to an array of improvised and often precarious payment solutions. Businesses found themselves navigating a sea of offshore processors, blockchain wallet solutions, and other less-than-ideal methods, all fraught with high fees and operational complexities.
The situation reached a tipping point when Elavon, a major payment processor, terminated services for its CBD merchants, leaving many in a lurch and, worse, on the Terminated Merchant File (TMF). This move significantly hindered these businesses’ ability to obtain future merchant accounts.
Emergence of Viable CBD Payment Solutions
Despite these early challenges, the industry has gradually seen the introduction of more transparent and reliable CBD payment solutions. This evolution is a testament to the resilience and innovation within the CBD sector.
Finding the Right Merchant Service Provider
Selecting a merchant service provider is a critical decision for CBD businesses. It’s essential to partner with a provider experienced in the high-risk sector and specifically versed in CBD and cannabis-related payments. Transparency, security, and customer service are key factors to consider when evaluating potential providers.
Ensuring that your provider is an ETA-Certified Payments Professional adds an extra layer of trust and expertise, ensuring that your business’s payment processing is in knowledgeable hands.
Real CBD Merchant Accounts: Stability and Transparency
Today, CBD merchants have access to domestic acquiring banks offering stable and transparent merchant accounts. These accounts cater to a wide range of CBD businesses, from e-commerce platforms to brick-and-mortar stores, and even new startups. With card brand compliance and no hidden fees, these solutions represent a significant advancement for the industry.
Getting Approved: A Streamlined Process
Obtaining a CBD merchant account is more involved than standard retail accounts, but it’s a manageable process with the right guidance. A comprehensive application package, including lab reports and other supporting documents, is crucial for a smooth approval process.
Tips for a Smooth Approval Process
- Single Application: Submit only one application to avoid red flags.
- Supporting Documents: Gather all required documents, including lab reports, before applying.
- Legible Application: Ensure your application is complete and legible, ideally typed.
- Correct Signature: Understand the required signature format, whether digital or handwritten.
- Complete and Accurate Submission: Submit a complete application package in one organized file.
Choose a Trusted Partner for CBD Merchant Services
Bankcard International Group has been a long-standing advocate for fair and transparent payment processing in the cannabis industry. Our commitment to “legitimacy, credibility, and transparency” has driven us to forge partnerships that provide sustainable growth and support for CBD businesses.
If you’re seeking a reliable merchant account for CBD payments, consider us your go-to partner. Our dedication to service excellence is what we like to call the “BIG Difference!”
