CBD is a booming industry, and if you’re looking to get into the market, you’ll need to open a CBD merchant account. This article will provide a comprehensive guide on how to do just that. We’ll discuss what CBD is, the benefits of accepting CBD payments, and the different types of cbd merchant account available. By the end of this article, you’ll know everything you need to open a CBD merchant account and start processing payments!
What is CBD?
CBD, or cannabidiol, is a composite found in cannabis plants. Unalike its more famous cousin THC, CBD does not have any hallucinatory effects. That means it won’t get you high! CBD has been shown to have a number of potential health benefits, including reducing anxiety and pain relief.
Why Accept CBD Payments?
As the CBD industry continues to grow, more and more businesses are looking to accept CBD payments. There are a few reasons for this:
- CBD is a high-growth industry: The CBD market is expected to reach $22 billion by 2022, so there’s huge potential for growth. According to projections, the CBD industry will continue to grow at a rapid pace in the coming years.
- CBD products are popular: A 2019 study found that nearly 40% of Americans have tried CBD, and of those who haven’t, 62% would be interested in trying it. That means there’s a largely untapped market for businesses that accept CBD payments.
- CBD is versatile: CBD can be used in a variety of products, including tinctures, topicals, edibles, and more. This makes it a great product for businesses in a variety of industries, from health and wellness to food and beverage.
- CBD has few processing fees: Because CBD is considered a high-risk industry, credit card processors typically charge higher fees for processing payments. However, these fees are usually lower than those associated with other high-risk industries.
Types of CBD Merchant Accounts
There are a few different types of CBD merchant accounts available, each with its own benefits and drawbacks. Here’s a quick overview of the most popular options:
- High-risk merchant account: A high-risk merchant account is designed for businesses that face higher odds of chargebacks or fraud. These accounts come with higher fees and stricter underwriting standards, but they’re often the only option for businesses in high-risk industries.
- Offshore merchant account: An offshore merchant account is a good option for businesses that have been declined by domestic banks. Offshore accounts come with lower fees and more flexible underwriting standards, but they also come with a number of risks, including higher rates of fraud and difficulty accessing customer support.
- Payment gateway: A payment gateway is a piece of software that allows businesses to accept online payments. Payment gateways typically have lower fees than merchant accounts, but they don’t offer the same level of protection against chargebacks or fraud.
Now that you know everything there is to know about CBD merchant accounts, it’s time to start shopping around for the right provider! Be sure to compare fees, underwriting standards, and customer support options before you make your decision. With the right merchant account provider, you’ll be able to start processing CBD payments in no time!