Merchant Account Approval for CBD Businesses
CBD Merchant Account: CBD abbreviated as Cannabidiol, is a chemical compound from Cannabis plant. It’s a naturally occurring substance that’s used in products like oils and edibles to impart a feeling of relaxation and calmness. Unlike its cousin tetrahydrocannabinol (THC), which gives a person high when consumed. That is the reason CBD business is considered as a high-risk business and if the account gets approved, the merchant would be given a high-risk payment gateway. However, CBD is not psychoactive.
The laws concerning the consumption and sale of cannabis and related products such as CBD and hemp oils in several states in the US are undergoing a drastic change. Despite the legalization, many merchant account providers are reluctant to place an approval for these High-Risk Merchants of CBD, as they fear there would be another change perhaps soon.
Steps For A Merchant Account:
The CBD falls into the grey area depending upon its cultivation and extraction. Possession laws for cannabis vary from state to state, and natural marijuana derivative cannabidiol, or CBD, faces more concentrated regulations due to its more medicinal focused uses.
The CBD industry is regulated still, it is expected to be a market of $2.1 billion in the year 2020.
Laws and regulations around the production, sale, and consumption of CBD in the US varies by state to state, but on a local level, CBD is classified as a schedule I drug under the Controlled Substances Act. The classification means federal law enforcement agencies can shut down CBD production and businesses against consumers because of a sudden decision. For this reason, the CBD and hemp oil industries are considered high-risk by acquiring banks that supply businesses with debit and credit payment processing services.
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Certain Steps To Set Up A CBD Or Hemp Merchant Account:
If you as a merchant for CBD products does not have a high-risk merchant account, funds in your CBD merchant account can be frozen or shut down completely, you can even be put on the Match or TMF.Before you set up the CBD or Hemp business, here are a few steps you can take to get a high risk, genuine CBD merchant account up and running:
- Research The Local Hemp Cultivation Laws – Knowledge of Local Laws would be very important as they vary from state to state. There is a license allotted to each Hemp business and the merchant. It is unlawful for a merchant who does not hold a license issued by the government, or who is not an agent of a licensee, to cultivate, handle, process or market the industrial hemp plants or seeds or any substance derived from Cannabis or hemp.
- Get A Company Registered And Prepare Compliant Website – Get your company registered and prepare the website enlisting the products you wish to sell. The website should be proper and have all the content as per the business plan, proper checkout page, transparent and compliant with SSL security.
- Get A Genuine And High-Risk Merchant Solutions Provider – A high-risk business demands proper high-risk platform to process payments for your business. The payment gateway could be properly validated and should be compliant as per the acquiring bank.
- Complete The Application And Submit All The Documents – Complete the application validating all the documents to support your application as it will be underwritten by the acquiring bank and will finally provide you with a high-risk merchant account.
For more information, you can call us at +1 855-465-4723 or visit merchantstronghold.com and check our services.