In recent years, the popularity of hemp-derived cannabinoids has soared, thanks to their potential health benefits and versatility. However, for businesses in the hemp industry, one significant challenge remains: merchant payment processing. In this blog, we will delve into the world of hemp-derived cannabinoids and explore the crucial aspects of merchant account processing, accepting credit cards, and payment processing solutions.
Hemp-Derived Cannabinoids: A Growing Industry
Hemp-derived cannabinoids, including the well-known compound CBD (cannabidiol), have witnessed a surge in popularity. Consumers are turning to these products for relief from various ailments, including anxiety, chronic pain, and insomnia. Additionally, the versatile nature of hemp-derived cannabinoids allows for a wide range of products, from oils and tinctures to edibles and skincare items.
This burgeoning industry offers immense potential for businesses, but it comes with its fair share of challenges, particularly in the realm of payment processing.
The Role of Merchant Account Processing
Merchant account processing is a crucial component of any business, including those in the hemp-derived cannabinoid industry. It enables companies to accept payments, including credit card transactions, from their customers. However, due to the complex regulatory landscape surrounding hemp and CBD products, many payment processors are hesitant to work with businesses in this space.
Despite the 2018 Farm Bill, which legalized the cultivation of industrial hemp, there is still confusion and inconsistency at both federal and state levels regarding the legality of hemp-derived CBD products. This ambiguity has made many traditional payment processors cautious.
As a result, businesses in the hemp industry often find it challenging to secure reliable and affordable merchant account processing services.
Accept Credit Cards: A Necessity for Business Growth
Credit card payments are a cornerstone of modern commerce. They offer convenience for customers and help businesses thrive. Accepting credit cards can significantly expand a hemp-derived cannabinoid business's customer base, as it caters to consumers who prefer the safety and convenience of card transactions.
However, the journey to accepting credit cards can be fraught with obstacles for hemp-related businesses. Many payment processors classify these businesses as high-risk due to the aforementioned legal uncertainties, which can result in higher processing fees and stricter underwriting requirements.
Payment Processing Solutions for Hemp-Derived Cannabinoids
While the challenges may seem daunting, several payment processing solutions are emerging to cater to the needs of the hemp industry.
- Specialized Payment Processors: Some payment processors specialize in high-risk industries, including hemp-derived cannabinoids. These companies have a deep understanding of the legal landscape and offer customized solutions to address the unique challenges faced by businesses in this field.
- CBD-Friendly Banks: Some banks are more receptive to working with hemp businesses than others. Finding a bank with experience in the industry can be a game-changer for businesses looking to accept credit cards and simplify payment processing.
- CBD Payment Gateways: There are CBD-specific payment gateways that focus exclusively on the hemp industry. These gateways are designed to cater to the unique needs of CBD businesses, providing a seamless and compliant payment processing experience.
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.
Recent Posts
