High-Risk Merchant Account for CBD Clients
High-Risk Merchant Account Explained
A high-risk merchant account is a bank account designed for companies that are in the high-risk space. Banks have ranging criteria, but they all consider potential risks and take them into consideration when granting an applicant’s application.
In many cases, banks have to offset the extra resources your account requires by categorizing it as high risk. The first thing a processor will do is look at your product or service and determine there’s an increased chance of fraud associated with it. This risk has consequences – not only does that mean you’ll incur more chargebacks on friendly transactions but also means higher fees for processing time.
CBD – A High-Risk Industry Explained
Legally restrictive industries such as Hemp or CBD will more than likely put you in a high-risk category. This is because of the legal gray area surrounding the industry. In recent months there’s been an uptick in state legislation meant towards regulating this burgeoning industry; however, because each individual state sets its own regulations on cannabidiol products (CBD) such as oils and tinctures, laws remain ambiguous concerning its use.
The result is that many of these companies have only been able to operate in a limited capacity due to their inability to get the meet the ranging testing standards required in different states.
CBD What Can High-Risk Merchant Providers Do To Help?
There are many different merchant account providers, and each one specializes in its own unique value add. Some offer instant approvals while others allow cash discounting, higher chargeback rates, and Crypto acceptance. These niche solutions should be heavily reviewed by a business owner when finding the best merchant account for their business.
What To Look For In A High-Risk Merchant Provider
Finding the most reliable merchant services can be a daunting task. But when you’re deciding on what payment processing to use for your business, it’s important that you find one with low rates, transparency, and responsiveness at its core – after all, your merchant account provider will be handling the most important part of your business, money!
The best way to do this? Research different companies, talk to the providers themselves and ask about the three key components until you find a trustworthy and low-cost fit for your company.