CBD industry is growing very fast day by day and future of this industry is unlimited. Researchers are finding CBD as an extraordinary substance as it is becoming a promising treatment for epilepsy, forms of cancer and depression.
CBD or cannabidiol are manufactured from the hemp plant, this is high risk industry and getting a merchant account for such business is a bit tough nowadays. Below are 5 essential things required to open a CBD merchant account.
1. Healthy Processing History
Processing history is a bank statement and this should be as long as possible in case of high risk businesses. This is because on basis of processing history you will get merchant accounts in future and they will check that history if it is not healthy then you may have difficulty in opening merchant bank accounts.
2. High Volume
Banks usually do not entertain any high risk business less than $100,000 per month. This is all because they want an old account of the company and want to see if they are capable of running the business or not as in such case most of the companies are short term. Not because they cannot run the business but because chargeback and roll back ratio is also high for such businesses.
3. Strong Financials
This is also a very essential factor that major banks observe while opening merchant accounts as those companies which are healthy with bank balance cannot be successful in high risk business. And banks do not want to waste there precious time in short-term businesses.
4. Get An EU Registration
Merchants need to have EU registration something we can help merchants with.
5. Few Chargebacks
Controlling Chargeback is really very necessary in any business because this will directly reflect your processing history. To maintain your processing history healthy you need to take care of this part of your business.
Will Payment Processing for CBD Ever Get Easier?
Definitely, this business is growing very fast and in future people will get a way to have high risk business accounts easily as compared to today’s time.
As marijuana is linked with CBD, this business will remain high risk business. However, with continued evidence of health benefits, as well as continued investment by VC’s we believe banks will view this industry as less risk.
Every merchant account approved by TOVO and its acquiring banking partner includes access to the approving bank’s payment gateway. To learn about CBD Oil Payment Processing, call us at +1 530 388 5968 or click here to set up your personalized payment consultation.