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CBD Payment Processing
Despite its rise in popularity, many CBD retailers are having trouble selling their products. With demand continuing to rise, it's essential CBD businesses find a way to facilitate payments for CBD products.
As more retailers see the financial benefits of selling products containing cannabidiol, there are increasing numbers of companies who are eager to market CBD products. As well as new CBD businesses being formed, there are a number of existing retailers who are adding CBD-based goods to their product lines. These large companies, such as Holland & Barrett, don’t seem to be held under the same restrictions as CBD-only shops, and that’s not likely to change anytime soon.
When high demand warrants the continual restocking of products, it's normally good news for retailers and consumers alike. However, the difficulty in accepting online payments for CBD products has led to widespread difficulties in the industry.
“Why Won’t Anyone Take My Money?!”
When retailers sell goods online, they typically use a range of payment processing options. These are well-known and recognised by consumers, so they legitimise the business's commitment to security and reassure the customer that their financial information is being processed safely.
Payment methods, such as PayPal, Square, Stripe, Amazon Pay, Mastercard SecureCode and Verified by Visa, are all popular processing methods and are all used frequently by consumers when they're shopping online. However, they all have another thing in common too: they can't be used to process payments for products which contain CBD.
As financial institutions typically see CBD as a high-risk product, they're unwilling to allow their payment processing facilities to be used to sell CBD products. This means that consumers who are eager to buy CBD and retailers who are eager to sell it are unable to do using popular payment processing methods.
Although this has undeniably had a limiting effect on the market so far, there are alternative options which are now available. Whilst you can't use some of the more established online payment processing services to facilitate CBD sales, there are a range of user-friendly CBD payment processing options you can use online.
PayPal’s refusal to offer payment processing for CBD companies mainly comes down to the fact that PayPal turns to the United States for the vast majority of regulatory oversight. Cannabis sales are not legal at a federal level in the US.
So, while the sale of CBD may be legal in the UK, because PayPal follows US restrictions, it still classifies CBD as a narcotic. This makes it very risky for anyone selling CBD using PayPal… you could easily have your funds frozen or your account locked. Plus, there is no process of appeal in place either, so PayPal and other platforms like this are not a viable option for online CBD payments.
CBD Payment Solutions
One way around the problem would be to create an online store that sells non-CBD items. This would have to be running for several months, and be actively trading. You can then start introducing CBD products to your inventory. This, however, would take a fair amount of time, and you’re still not entiurely guaranteed that the processors won’t pull the plug on your business.
Using a high-risk payment processor is another option. The processing fees will be slightly higher than a regular processor and the holding term longer, but it’s a perfect solution for CBD payments online.
The C* Word have partnered with Zotto. A merchant bank and payment processing provider which allow companies to sell products containing CBD, online. Dedicated to providing online payment facilities to markets which are typically seen as high risk, Zotto can facilitate secure payment processing for CBD companies quickly and easily. Using their automated merchant on-boarding applicants are guided through the application process, too, you can be up and running in 24 hours! You can apply right here!
With a range of options available, you can choose from a start-up merchant solution, a subscription-based account or even an offshore merchant account when you use Zotto payment processing services. For retailers who want to offer CBD payment processing online, companies like Zotto are making it possible.
Another option for online payments for CBD is Go Cardless. Often used to facilitate recurring payments, they also offer a one-time direct debit option. This enables customers to make a one-off purchase and CBD products aren't currently prohibited.
Furthermore, companies can also accept online payments via a direct bank transfer when they are selling CBD products online. Although this option is a little more time consuming for customers, and, therefore, not the most attractive option, it does remain a viable way to accepting online payments for CBD.
To find out more about online CBD payment processing, contact the C* Word, get in touch with us here!
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