A merchant can be classified as high risk for a multitude of reasons. Some are the type of product or service that is offered, regulations within the industry, or the probability of financial difficulties. Legal compliance becomes a major obstacle in terms of shipping, privacy, and service policies. This combination translates to high fees and difficulty getting approval from a processing company to provide processing services. There are companies willing to provide services to high risk merchants and industries.
Approval for credit card processing for CBD domestic merchants is very difficult. It is important to note that CBD in this case refers to Cannabidiol which is a chemical compound found in cannabis. Not only is a CBD merchant account considered high risk, it is also considered illegal by the federal government. While many states have made medical marijuana legal and some have voted to make recreational use legal within state lines, it is still not legal on a federal level.
The fact that companies that specialize in accommodating high risk merchants have provides domestic CBD merchant services has sparked a debate among banks, merchants, states, and the federal government. People in favor of this bold move indicate that accepting credit cards is safer for customers and employees because cash only in dispensaries would make them targets for theft. Those opposed indicate that while cannabis is illegal, receipts that indicate a purchase can result in the card being canceled or fines from the federal government. Most receipts do not specify what the purchase was, only the total amount of the purchase and the date.
Features Included for Merchants
Licensed business owners seeking to open a cbd merchant account will enjoy dedicated support and other features of doing business with the processing company. Approval times average twenty-four to seventy-two hours. The lowest possible rates are charged, and a personal account manager is assigned to the retailer or wholesaler opening the account for one-on-one support. Full services include a risk assessment team, in-house underwriting, and complete technical support.
Other features are secure application processes and customized business services. Solutions to unique needs can include finding the best shopping cart integration application, a virtual terminal, or a point of service (POS) system for the physical location. Merchants can call for an appointment or apply right online to open an account. Provide more payment options to customers, reduce the amount of cash that is in the location, and enjoy the security and privacy experienced by merchants in lower risk classifications.