In recent years, the CBD payment processing industry has experienced significant growth, driven by the booming cannabis market. Projections suggest that the CBD sector, within the next two years, will contribute $16 billion in revenue to the overall cannabis industry. [1] As businesses respond to this demand surge, the need for a reliable CBD payment gateway becomes crucial. This article explores the evolving landscape of CBD payment processing, covering essential information for various business categories.
Evolving Legal Landscape
Governments worldwide are becoming more lenient towards the cannabis industry, backed by evolving medical research on its benefits. Policy changes at federal and state levels have opened new opportunities for banks, payment processors, and CBD merchants. The 2018 Farm Bill, signed by President Donald Trump, legalized hemp and CBD products, providing a framework for businesses to operate within certain regulations. [2]
Understanding CBD: Hemp vs. Marijuana
CBD, or Cannabidiol, is a natural derivative of the cannabis plant, specifically from the hemp and marijuana strains. Hemp contains minimal THC (tetrahydrocannabinol) and high CBD, making it sought after for its health benefits without psychoactive effects. In contrast, marijuana has high THC and low CBD, making it psychoactive. Both hemp and marijuana, however, share the presence of CBD.
Diverse Uses of Hemp
Hemp finds applications across various industries due to its versatility. It's utilized in textiles, foods, beverages, body care products, medicines, and more. This infographic illustrates the extensive range of products derived from hemp.
Health Benefits of CBD
Scientifically proven health benefits make CBD popular among consumers. From anti-anxiety and anti-inflammatory properties to pain management and stress regulation, CBD offers a diverse array of advantages. An infographic highlights the multitude of benefits associated with CBD oil.
Why CBD is Considered High Risk
Despite its growing acceptance, the cannabis industry, including CBD, is labeled high risk for several reasons. Factors such as the nature of products, industry regulations, high transaction volumes, and the potential for risky customers contribute to this classification.
Securing a CBD Merchant Account
A CBD merchant account is essential for businesses looking to accept digital payments. High-risk payment processors play a crucial role in facilitating these transactions, given the continued stringent regulations surrounding CBD products.
Accepting Payments for CBD Products Online
The increasing demand for CBD products necessitates offering various payment options to consumers. CBD e-commerce payment processing becomes vital for businesses aiming to expand their online presence. Integration of a CBD payment gateway is a seamless process with high-risk payment processors.
Choosing the Right Payment Processor
Selecting a high-risk CBD payment processor requires careful consideration. Key factors include compatibility with high-risk transactions, easy integration, POS system options, cost, transparent fee structures, fair contracts, and responsive customer support.
Benefits of a High-Risk CBD Payment Processor
Partnering with the right high-risk payment processor offers numerous advantages. These include providing diverse payment options to customers, increasing sales, and ensuring attentive customer service.
Tips for Merchant Account Approval
The competitive CBD industry demands thorough preparation for merchant account approval. Complying with laws and regulations, maintaining a healthy credit score, stable sales volumes, researching payment providers, and educating oneself about the CBD industry are key steps toward approval.
Why Choose ECS for CBD Payment Processing
ECS offers tailored high-risk payment processing services to meet the unique needs of CBD businesses. With advanced fraud prevention, secure transactions, competitive rates, and world-class support, ECS stands as a reliable partner for CBD payment processing.
The CBD payment processing landscape is dynamic and requires careful navigation, especially for high-risk businesses. Choosing the right payment processor, understanding the legal landscape, and ensuring compliance with regulations are essential steps for success in the evolving CBD industry. Partnering with a reputable high-risk payment processor like ECS can provide the necessary support for businesses to thrive in this lucrative market.
FOOTNOTES:
Author
Writing for Touchsuite, Jonathan Bomser, is a technology and marketing expert with over 30 years of industry experience. He is a businessman, writer, artist and musician. He has vast knowledge of finance, business and technology. Jonathan is currently founding, investing and board advising in several early stage and start up companies. Jonathan has been involved in Technology, Media, Marketing and Advertising for a multitude of Fortune 500 companies for over 30 years.He has served as a strategic, creative and marketing executive and consultant for both parent companies and subsidiaries at AOL, The National Football League, The Walt Disney Company, NBC, MTV, Viacom, Time Warner, USA Today, Alliance Entertainment, WPP, Penguin USA, along with numerous other established companies, start-up ventures and reorganizations.Jonathan was the CEO and Founder of BigLinker.com, which was acquired by Ziff Davis (Nasdaq: ZD) in 2021, CEO and Founder of TownTarget.com from 2013-2015 which was acquired by Touchsuite/American Bancard in 2015 and previously Bomser Payan Interactive Agency from 2008-2012 which was acquired by Big Step Interactive/Digital Marketing Associates. Jonathan was the key developer for the technology used to power many of their successful digital campaigns. Clients included national brands such as Adidas, PNC Bank, Massage Envy, European Wax Center and others.Jonathan has also helped manage the technology initiatives, creative strategies and business development for AIM Pages.com, AOL’s Social Network. Since May 2006, Jonathan has also been consulting for technology, marketing, sales and creative strategies for Veoh.com, BigString.com, Vuguru.com and others. Before consulting for these major companies, Jonathan was a principal in En Pea Productions,Inc. which was a television production company focused on reality television, commercials and music videos. Jonathan is also the former Board Member, CEO and President of WoozyFly.Inc. Trading on under the symbol WZFY.Jonathan's current projects at AccountSend.com, VocalChimp.com and CoolValidator.com
Touchsuite is located in Boca Raton, FL and is a payment processing and point of sale company that specializes in merchant accounts, point of sale systems, Grubbrr self-ordering kiosks.
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