Merchant Monday Newsletter

CBD & Hemp Industry
Merchant Monday Newsletter - CBD & Hemp Payment Processing
CBD Payment Processing and Merchant Services - TouchSuite is a leading high risk payment processor

Have you noticed, CBD is Taking Over The World!

Since the legalization of industrial hemp in 2018, the CBD industry has boomed in the United States with the market projected to cross $23 billion this year (2023).

Non-intoxicating CBD commodities such as oil, chewable, and lip balms have become popular among people of all ages, throughout different countries. As consumer awareness regarding CBD products increased, numerous entrepreneurs have jumped to capture the promising market.

With such a growing demand and building competition, you need to prioritize the steps involved in marketing your CBD store effectively in the long term. You can get the upper hand over your competitors by investing in clever strategies that will bring you a steady stream of loyal customers.

CBD Payment Processing

Why CBD Merchants Are Getting Shut Down

Common Mistakes to Avoid as a CBD Venture

It might become alluring to boast about the medicinal properties and benefits of your CBD products during your marketing campaign. However, the Food and Drug Administration (FDA) does not permit this.

Here is a list of things that you should avoid saying while you pitch your CBD products to potential buyers:

  • Unproved Assumptions

When advertising your CBD products, you cannot legally recommend your products to customers for their medical conditions. In essence, you cannot say anything that doesn’t come from a reputable source.

  • Health Claims

If you claim your CBD products as a commodity that can help with various health conditions, then you should stop immediately. FDA labels such marketing as deceptive and this could hurt your brand name.

  • Things that are Not Approved by the FDA

All CBD products, according to the FDA, must comply with all relevant laws, such as the Federal Food, Drug, and Cosmetic Act (FD&C Act). The FDA has stated that adding CBD to food, dietary supplements, or pet foods is illegal.

Furthermore, you should practice caution when marketing your CBD products on social media platforms. Several platforms have certain restrictions that you need to keep in mind. Moving cautiously on social media platforms will give your business a platform to steadily expand.

How can TouchSuite Help your CBD Business?

To run a profitable CBD business, you need a high-risk payment processor who understands your needs.

TouchSuite handles all of your CBD merchant transactions, saving you time and stress. We are up to date on all of the current regulations that can be difficult to keep up with on your own. With a competitive advantage in everything we do, we strive to deliver the most effective results and identify the most profitable opportunities for our merchants.

CBD Store - Payment Processing Solutions

"need to knows" about marketing CBD

To expand your CBD business, you need to understand several marketing challenges that every CBD marketer faces at one time or the other. Clear knowledge of these obstacles will help you find suitable solutions to hit your marketing goals.

The Biggest Challenges in CBD Marketing- 4 Major Obstacles to Consider

Despite the growing popularity and awareness related to CBD products, these are some hindrances that every CBD business is likely to encounter.

1) Strict Regulations

After the 2018 Farm Bill, the CBD industry rapidly grew. However, the law revolving around CBD products is still stringent.

Several states have not legalized CBD products, while many others are strict about the preparation of these products. Therefore, the marketing strategies you choose to opt for should be compliant with the existing laws.

According to FDA, CBD marketers are required to follow the guidelines as dictated by the Federal Food, Drug, and Cosmetic Act (FD&C Act).

As a general rule, you should not claim that your products are medically proven treatments for illnesses or are dietary supplements. The FDA can consider your claims as deceptive and add complications in your way.

2) Consumer Apprehension

In a survey by Quartz, it was revealed that approximately 38% of the American population is not aware of the side effects of consuming CBD products. Another 33% are apprehensive about the side effects of the products.

Such apprehension and lack of understanding will complicate CBD marketing and efforts need to be made to promote the CBD market to the general populace.

3) Ambiguous Target Market

Understanding the target demographics is crucial for any business. However, for CBD businesses, factors related to demographics, location, and usage of the buyers are of immense importance.

In a Gallup study, it was revealed that in America, more males used CBD products in comparison to women. However, it was found that more women used these products for anxiety-related issues than men.

Hence, it is clear that you cannot generically pitch your CBD goods. Your marketing should be relevant and specific to the symptoms and conditions of your target customer.

4) Payment Issues

Strict rules and regulations surrounding CBD products place them in the high-risk category. Consequently, the majority of payment processors are unwilling to work with businesses that market CBD goods.

Therefore, it is crucial to find a CBD payment processor who is capable of dealing with high-risk transactions.

Creating the Ultimate Marketing Strategy to Promote your CBD Store

It is apparent that competition in the CBD industry is fierce along with several factors that might limit your business. However, with the help of a stellar marketing campaign, you can capitalize on the market and grow your CBD business.

Here are some impactful tactics to boost your business in 2022:

1) Competitor Research

In the CBD industry, several businesses like you are selling their CBD products. Researching their success story will provide you with several valuable insights that you can apply to your business.

Your competitor research should be focused on questions such as:

  • What is the main selling point of their products?
  • Who are their major buyers?
  • How effective are their marketing tactics?

Observing rival businesses is a clever way to get an ‘already-proven’ roadmap for our business. Therefore, investing your resources in competitor research is vital for business success and expansion.

2) Find the X Factor with a Unique Value Proposition (UVP)

In a market filled with competing CBD brands, your brand products must stand out from the crowd. Ultimately, an alluring UVP is your key to emerging as a top CBD marketer.

Building a Unique Value Proposition for your brand is not tedious if you tailor your branding according to the benefits of the customer. Take into consideration the various challenges of your customers and how your CBD products can help.

An attractive UVP is concise, meaningful, and impacting.

3) Invest in Social Media Marketing

CBD advertising is still forbidden on most social media platforms. However, in 2022, it is crucial to have a strong online presence.

Platforms such as Facebook have relaxed their advertising policies revolving around CBD products where you can advertise your offerings. However, your ads cannot contain any images of the products.

On the other hand, Google does not allow the advertising of CBD products. Therefore, you should be cautious while growing your online presence on social media by opting for platforms with relaxed rules.

4) Create a Stunning Business Website

It is essential to build a user-friendly website to bolster the online presence of your CBD business. For a niche market such as CBD products, an engaging website can make all the difference.

Ensure that your website is filled with content and visuals that throw light on relevant questions that potential customers might have in mind.

In the age of technology and information, your best bid to stay ahead of the competition is to have a website that is aesthetically pleasing and informative.

5) Hire a Suitable Payment Processor

Since CBD is classified as a high-risk proposition, you must work with an experienced payment processor that will help expand your business.

Getting a reliable payment processor for your CBD business is essential to navigating your way around the industry in a compliant way.

How can Touch Suite Help your CBD Store?

Touch Suite handles all of your CBD merchant transactions, saving you time and stress. We are up to date on all of the current regulations that can be difficult to keep up with on your own. With a competitive advantage in everything we do, we strive to deliver the most effective results and identify the most profitable opportunities for our merchants.

Compliance advice for CBD Payment Processing and Merchant Services

Compliance Guidelines for CBD & Hemp Websites

If you are in the CBD or Hemp industry, it is important to be aware of website compliance guidelines. There are a number of regulations that must be followed in order to ensure that your website is compliant with state and federal laws. In this blog post, we will discuss some of the most important compliance guidelines for CBD and Hemp websites.

Label Designs

One of the most important compliance guidelines for CBD and Hemp websites is that all products must be clearly labeled. This means that all products must have a label that includes the name of the product, the amount of CBD or Hemp extract in the product, and any other active ingredients. Additionally, all labels must be accurate and free of false or misleading claims. 

Additionally, when it comes to following product placement guidelines, ensure that each product shows the front of the label and displays the amount of CBD in the product along with the amount of CBD per serving. It is important to show on your label what the product is and if it contains Isolate, Broad, or Full Spectrum CBD/Hemp Oil in it. 

Displaying Your Products Online

Along with displaying the front of the label, it is crucial to show the side and have the barcode and QR code displayed. Typically on the right side of the label along with Active Ingredients. It is strongly suggested to avoid the word supplement because it is a gray area for CBD/Hemp/Cannabinoids. The QR code should direct people to a landing page with all the COAs (Certificate of Analysis) or lab results. Below is an example.


In addition, be careful with placing icons on your labels. Do not just place Organic, THC Free, and Gluten Free without compliance with your manufacturer. 

Adding the words THC free on the front of the label is not recommended if the product is isolate or broad-spectrum. If the product is Full Spectrum (less than 0.3% THC) – Be sure to place this on the sides of the label so consumers know. 

QR Codes and Testing

A strong recommendation is to add a Dynamic QR code, versus a static one. A dynamic QR code will allow you to update the QR code without having to place a new one on your labels. It will automatically update when you change the settings. Learn more about Dynamic QR codes by clicking here.

Another important compliance guideline for CBD and Hemp websites is that all products must be tested by an independent third party. All products must meet strict quality standards in order to be sold on your website. Independent testing ensures that your products are safe and effective for use by consumers.

Claims on Website

Most importantly when it comes to compliance, you cannot make any medical claims on your website. This will put you at risk of being shut down or banned by the FDA.

If you would like to place benefits you can explain in terms of this product may benefit mood, sleep, energy, etc. 

Avoid statements such as this product will reduce inflammation, and anxiety, and help with cancer. These are big no-no’s and could be a primary reason your CBD business would get shut down by any payment processor.

When building your website, it is important to place the lab results, terms of service, return policy, refund policy, privacy policy, shipping, and delivery policy in the footer for all web pages. See below as an example.


You must also place an FDA disclaimer in the footer, for example…

FDA DISCLAIMER: The statements made regarding these products have not been evaluated by the Food and Drug Administration. The efficacy of these products has not been confirmed by FDA-approved research. These products are not intended to diagnose, treat, cure or prevent any disease. 

Following these guidelines will ensure that your CBD or Hemp website is compliant. These guidelines will help you avoid potential problems. Understand that the guidelines provided are for educational purposes and rules and regulations can change at any time based on the content provided. Additionally, by complying with these guidelines, you can provide your customers with peace of mind knowing that they are purchasing safe and high-quality products from your website.

If you have any questions about compliance with CBD and Hemp websites, be sure to contact us and we will be happy to provide a FREE consult with our in-house marketing team. 

CBD Industry Stat of the Month - Feb 2023

Stat of The Month

CBD Industry Stat of the Month - Feb 2023
Upcoming Payment Processing Events - TouchSuite

Upcoming Events

Alternative Products Expo - Ft. Lauderdale 2023 (AltProExpo 2023)
CBD Payment Processing and Merchant Services - TouchSuite is a leading high risk payment processor

Growing With TouchSuite

We know the ins-and-outs of the CBD and Hemp industry like nobody else. Schedule a meeting with Henry Mashburn to learn how we help merchants like you grow and thrive: Meet with Henry Mashburn

Henry Mashburn - TouchSuite CBD & Hemp Payment Processing

Henry Mashburn
Account Executive / High-Risk
CBD Payment Processing

📱: 561-425-8128    
☎️: 1-800-793-3250 x 1590✉️: hmashburn@touchsuite.com
🗓️: Book my time