CBD Merchant Account Solutions

CBD merchant accounts are not given to just anyone. The laws concerning the CBD industry differ from state to state and there is still a stigma attached to CBD because of its proximity to marijuana. Banks hesitate to trust these types of businesses.

Again, we know different, but the old guard in charge is struggling to change their views and until the world has caught up, it will be difficult for CBD business banking to be legitimized. Not to worry, that’s where we come in!

First Card Payments monitors CBD regulations throughout the country very closely. We anticipate changes and work to make sure that all CBD credit card processing is never interrupted.

We work on merchant accounts for CBD startups and multimillion-dollar CBD product manufacturers. Size doesn’t matter here; what matters is the integrated functionality to ensure you can accept and process payments for your CBD products.

Why Banks Hesitate to Approve CBD Merchant Accounts

Businesses in the CBD industry are finding it difficult to obtain a merchant account in part because it is not regulated enough. Banks and ISOs aren’t certain if a company is selling CBD that is within the 0.3% THC or less (which makes the product legal by FDA guidelines).

Some banks will provide merchant processing for CBD businesses, but they will only take a few clients at a time. When they have stopped accepting business, another bank will fly in and take on some business as well.

Unfortunately, not all banks are maintaining due diligence when underwriting these accounts. As a result, certain banks have stopped working with CBD businesses for now. Fewer banks are offering CBD credit card processing and the list for approval is long.

Lower Fees for CBD Merchant Accounts with First Card Payments

Just because the CBD industry is considered high risk doesn’t mean you should pay exorbitant fees for merchant services; however, the fees are somewhat higher than a traditional merchant account considered low risk by the merchant processing industry. One way First Card Payments helps your CBD business lower merchant account fees is by preventing or otherwise mitigating chargebacks!

For 99% of CBD businesses, we can cut fees by 25%.

The 2018 Farm Bill & How It Affects Your Business

Marijuana is considered a Schedule 1 drug by the FDA. CBD is not the same as marijuana and is thus treated differently by the government.

The 2018 Farm Bill stipulates that CBD, which has a THC level of 0.3% or less, is not considered a schedule 1 controlled substance; however, every state has different laws and regulations which they can change at any time.

Since CBD is not classified as a Schedule 1 drug, major banks and ISOs stepped into the CBD arena, approving all CBD accounts with the least amount of documentation possible–driver’s license, voided check, utility bill, and an application. Unfortunately, as each state’s laws differed, those who were approved for a CBD merchant account had the rug pulled out from under them due to the extremely light underwriting. Many were forced to cease all their CBD business.

Soon, different banks had different underwriting guidelines that may have included a charge of accounts, licenses from the Department of Agriculture, full product lists, and much more. The differences in these guidelines allowed banks to figure out better solutions for CBD merchant processing.

It’s a mess, but a very profitable mess. As mainstream businesses capitalized on the CBD craze, CBD has become a billion-dollar industry. Regardless of the current laws in your area, First Card Payments offers solutions for your CBD company.

Consulting Services for Your CBD Business at FCP

We are in your corner and we can help you figure out the financials of your CBD business.

Unlike our competition, we guide your business towards quick approvals and long-term merchant processing success. The success of your CBD business is our success as well.

The experts at First Card Payments work with you to strategize and make the most of your CBD merchant account. For instance, our chargeback prevention tips will help you keep those rates low so your business can benefit from lower fees. We will help you grow without being limited by merchant processing caps. We like to set our clients up with backup accounts, thereby giving you an added layer of protection if an account gets terminated for any reason.

Give us a call and experience the First Card Payments difference.