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Navigating Payments - The Best CBD Credit Card Processors in the Market |
You'll need credit card processing services when you make sales if you run a CBD store, whether it's in real life or online.
But it might be hard to find a CBD merchant services company that can assist you with that.
You're in the right place, thank goodness. We'll help you find the right company so that you can start taking payments for your store right away.
Find out what to expect when you go to open your merchant account and what you should avoid. We can also help you learn more about the credit processing business.
First, though, let us talk about the CBD merchant account and payment processors that we think are the best.
Easy Pay Direct has carved a niche for itself in the high-risk payment processing industry, making it an excellent choice for CBD businesses.
Their platform is built to handle the unique challenges that come with high-risk industries, such as higher chargeback rates and stricter regulations.
Easy Pay Direct offers a comprehensive suite of features designed to ensure smooth, secure, and efficient payment processing.
These include advanced fraud protection, chargeback mitigation tools, and a dedicated account manager who provides personalized support to help navigate the complexities of high-risk payment processing.
The company's robust infrastructure ensures that transactions are processed quickly and securely, minimizing downtime and maximizing operational efficiency.
- High-Risk Specialization: Easy Pay Direct is specifically tailored to meet the needs of high-risk industries like CBD. This specialization means fewer chances of account holds or closures, providing peace of mind for business owners.
- Advanced Security: The platform offers state-of-the-art fraud protection and chargeback mitigation tools, which are crucial for maintaining the financial health of a CBD business.
- Dedicated Support: Each client is assigned a dedicated account manager who provides ongoing support and guidance, ensuring that any issues are promptly addressed and resolved.
- Cost: The premium features and high-risk specialization come at a higher cost compared to some competitors. Businesses need to weigh the benefits against the higher fees.
- Onboarding Time: The approval process for Easy Pay Direct can be lengthy, which may delay the start of payment processing. This could be a drawback for businesses looking for a quick setup.
2. PaymentCloud
PaymentCloud is a top-tier choice for CBD businesses due to its flexibility and commitment to customer service.
Unlike many payment processors that shy away from high-risk industries, PaymentCloud embraces them, offering tailored solutions that meet the unique needs of CBD merchants.
They collaborate with a network of banking partners to find the best fit for each business, which significantly increases approval rates.
PaymentCloud provides a wide array of services, including point-of-sale (POS) solutions, seamless ecommerce integration, and comprehensive fraud protection. Their customer-centric approach ensures that businesses receive the support they need to thrive.
- High Approval Rates: By working with multiple banking partners, PaymentCloud increases the likelihood of approval for CBD businesses, which can be a significant advantage in the high-risk payment processing landscape.
- Comprehensive Solutions: PaymentCloud offers a full suite of services, including POS systems and e-commerce integrations, which cater to both brick-and-mortar and online CBD businesses.
- Customer Service: Known for its exceptional customer support, PaymentCloud ensures that help is always available when needed, providing peace of mind for business owners.
- Pricing Transparency: Some users find PaymentCloud's fee structure to be less transparent, requiring detailed discussions to understand all costs involved. This could be a concern for businesses that prefer clear, upfront pricing.
- Contract Terms: PaymentCloud may require long-term contracts, which can be a drawback for some businesses, especially those looking for more flexible terms.
eMerchantBroker (EMB) is a highly respected payment processor in the CBD industry, known for its reliability and extensive experience in handling high-risk accounts.
EMB offers a wide range of services, including high-volume processing, ACH payments, and chargeback prevention, making it a versatile choice for various business needs.
Their expertise in high-risk payment processing ensures that CBD businesses can operate smoothly without worrying about sudden account closures or other disruptions.
EMB's focus on customer service and support further enhances its appeal, providing businesses with the tools and guidance needed to succeed in a challenging industry.
- High-Risk Expertise: EMB's extensive experience in handling high-risk accounts ensures stability and reliability for CBD businesses, reducing the risk of account disruptions.
- Versatile Services: EMB offers a variety of services, including high-volume processing and ACH payments, catering to the diverse needs of CBD businesses. This versatility makes EMB a one-stop-shop for all payment processing needs.
- Chargeback Prevention: EMB places a strong emphasis on reducing chargebacks, which is crucial for maintaining a healthy bottom line. Their chargeback prevention tools help businesses minimize financial losses and maintain their reputation.
- Cost: EMB's premium services come at a higher price point, which might be a concern for smaller businesses with tighter budgets. It's important to consider whether the benefits justify the higher costs.
- Application Process: The application and approval process for EMB can be rigorous, which might delay setup. Businesses need to be prepared for a thorough vetting process before they can start processing payments.
These three companies stand out in the CBD credit card processing market, each offering unique strengths that cater to different business needs.
By carefully evaluating their pros and cons, you can find the best fit for your CBD business and ensure smooth, secure, and efficient payment processing.
CBD payment processing enables businesses like yours to accept various forms of payment, including credit cards. Without such services, you'd be limited to cash and checks.
Partnering with a payment processing company that specializes in high-risk industries—like CBD—can help you reach a broader customer base and boost your sales.
Most consumers prefer using credit or debit cards for transactions, making it crucial for your business to accept these payment methods.
High-risk enterprises, such as those dealing in CBD products, must collaborate with payment processors equipped to handle their specific needs.
You have several choices for processing payments in-store and online, and you can combine these options based on your business requirements.
If your CBD business operates from a physical location, a POS system or credit card terminal is essential. These systems accommodate EMV chip cards, magstripe cards, and mobile wallets like Apple Pay.
POS systems offer additional benefits, such as inventory management, payroll handling, and employee scheduling.
For those who prefer not to use a POS system, a virtual terminal is a practical alternative. This system operates online, allowing you to enter customer payment details manually.
Virtual terminals are versatile and can handle phone orders (MOTO payments) as well as in-store sales.
If your CBD business is online, you'll need a payment gateway. This system integrates with your online store’s shopping cart, managing transactions seamlessly as customers enter their payment information.
Payment gateways can also be integrated into mobile apps if your store offers one.
For CBD retailers who need to process payments on the go, mobile payment processing services are ideal.
This involves using a mobile app or card reader to handle transactions, which is useful for trade shows or farmers markets.
Many merchants prefer payment aggregators like Square or PayPal, but these can be problematic for high-risk businesses. Issues include:
- Frozen Funds: Excessive chargebacks can lead to frozen funds, creating significant problems for your business.
- High Fees: Payment aggregators often charge higher fees compared to merchant account providers.
- Account Termination: Aggregators may shut down accounts, leading to loss of funds, a common issue for high-risk merchants.
Some payment aggregators, like PayPal, do not support CBD transactions, and attempting to deceive them about your products could lead to account closure and fund loss.
Opening a merchant account involves various fees, including:
- Application and approval fees
- Monthly statement fees
- Monthly and/or annual fees
- PCI compliance fees
- Payment gateway fees
- Virtual terminal fees
Transaction fees typically depend on the payment method used. For instance, a transaction with an EMV chip card might incur fees of 3.99% + $0.50.
High-risk merchant accounts often require rolling reserves, where a percentage of your sales is held in reserve for six months to cover potential chargebacks.
After six months, some of these funds may be returned to you, but some providers may maintain this requirement throughout the contract.
Most providers will require a contract. Be sure to understand the contract's terms, including fees and cancellation conditions.
Avoid long-term contracts if possible, as early termination fees can be substantial.
Payment processors offer various pricing models:
- Flat-Rate Pricing: A single rate for all transactions, simplifying accounting but potentially higher overall costs.
- Tiered Pricing: Charges vary based on transaction categories (qualified, mid-qualified, non-qualified), with non-qualified transactions incurring higher rates.
- Interchange-Plus Pricing: Transparent model where fees are based on credit card company rates plus an additional processor fee.
Determine how quickly you can start processing payments. Some high-risk providers can set up your account within days, while others may take up to 14 days for equipment delivery.
Account approval can be completed in as little as 24 hours.
Inquire about available hardware and software, and avoid leasing equipment if possible. Buying outright can save money.
When evaluating payment processors, consider the following:
- Customer Service and Support: Reliable support is crucial for resolving issues.
- Accepted Payment Types: Ensure the processor supports a variety of payment methods, including mobile wallets.
- Fraud Protection: Your provider should help you maintain PCI compliance to protect customer data.
CBD businesses are categorized as high-risk due to the legal ambiguities surrounding CBD products.
This designation means higher processing costs. However, investing time in researching the best merchant account providers can maximize your profits and ensure you receive the services you need.
Consider potential future expansions, such as online sales, and choose a payment processor that can accommodate your evolving needs.
Choosing the right payment processor is crucial for the success of your CBD business. With the unique challenges that come with high-risk merchant status, partnering with a provider that understands these nuances is essential.
Easy Pay Direct, PaymentCloud, and eMerchantBroker each offer valuable services that cater to the specific needs of CBD merchants.
By selecting a provider that aligns with your business goals and processing requirements, you can enhance your transaction capabilities and set your business up for long-term success.
- Easy Pay Direct: Offers robust fraud prevention and customizable solutions tailored for high-risk CBD businesses.
- PaymentCloud: Provides specialized support for CBD merchants with a wide range of payment options and excellent customer service.
- eMerchantBroker: Known for competitive rates and extensive experience in managing high-risk accounts, making it a reliable choice for CBD merchants.