How to Choose the Best CBD Payment Processing Company

Introduction         

Customers are becoming well aware of the benefits of CBD products. Due to this growing trend, customer interest, and profitability, more and more owners are attracted to start a CBD business. 

This business has enormous revenue potential, with the CBD therapies category alone projected to earn $9.30 billion in 2026 at a compound annual growth rate of 27.4%.

Businesses in the CBD sector are actively looking for dependable and secure payment processing options to simplify their online transactions in the current digital environment.

Choosing the ideal CBD payment channel can be an intimidating task, especially as the demand for CBD products grows.  

Well, if you also want to get started and are looking for a reliable payment service provider, then this comprehensive guide has got you covered. 

We will be covering the challenges that CBD businesses face when it comes to finding reliable payment service providers, how to find reliable payment service providers, and the best companies offering the services. 

Also Read: Why do CBD struggle with Payment Processing and How to Fix it? 

What is CBD payment processing? 

CBD payment processing is the handling of transactions related to the sale of CBD products derived from hemp plants. It can be difficult for companies in the CBD market to find appropriate payment processing solutions because of the complicated legal and regulatory environment surrounding this sector.

Conventional payment processors frequently express hesitation to collaborate with CBD retailers because of worries about the legality of CBD goods, chargeback risks, and regulatory compliance. 

Because of this, CBD companies need to look for specialized payment processors that can provide the most effective and seamless payment processing solutions while also understanding the particular requirements and difficulties faced by the sector.

These specialist CBD payment processors provide customized solutions made to meet the unique needs of CBD companies while guaranteeing adherence to all applicable rules and legislation. Businesses can safely take payments for their CBD goods by collaborating with a trustworthy CBD payment processor. This will streamline transactions and promote expansion in the quickly growing CBD market.

Also Read: Why do CBD Business Struggle with Payment Processing?

Why Is Getting the Best CBD Payment Processor Important in 2024?

• Diverse Payment Options Available 

CBD payment processors accept credit cards, debit cards, digital banking, buy now pay later(quite popular nowadays), and a range of other payment methods as well. These are among the popular and convenient payment methods for end users. And, in order to sustain and thrive in this competitive market, you need to offer what your customers want. If you can’t provide this, chances are your customers will seek out alternative suppliers.

• Increased Sales Opportunities: 

Convenience plays a significant role in purchasing decisions. When customers can easily complete transactions using their preferred payment method, they’re more likely to make a purchase. This can lead to higher conversion rates and increased sales for your CBD products.

• Simple integration with your current systems

You may incorporate the CBD payment processing system into your current business processes seamlessly. Even better, payments can be combined with those from other workflow components like billing, accounting, customer relationship management (CRM), and more. You can view every aspect of your business, including sales, revenue, average order value, and more, with these end-to-end integrations.

• Enhanced Customer Experience & Retention 

A seamless and hassle-free payment experience contributes to overall customer satisfaction. When customers can easily navigate the checkout process and complete transactions, they’re more likely to have a positive shopping experience and return to make future purchases, while fostering brand loyalty and long-term relationships with the customers.

• Better customer assistance & support 

The benefit of CBD payment processing services is that 24/7 troubleshooting and customer assistance can be included in the package, as long as you choose the correct processor. Reputable suppliers may also help with fraud prevention and data security, protecting your clients when they purchase CBD products online. 

• Access to Chargeback Protection: 

Chargebacks can be a significant concern for CBD businesses, particularly due to the high-risk nature of the industry. Many CBD payment processing systems offer chargeback protection services, helping you dispute illegitimate chargebacks and recover lost revenue. This proactive approach can safeguard your bottom line and preserve your business’s financial stability.

Also Read: How to Choose the Best CBD Payment Processing Company? 

Things to Consider Before Choosing the CBD Payment Processor!

Only consider the contracts that make sense.

To conduct business, not all payment processors will demand that you sign a legally binding contract. Fees and contracts vary throughout companies, so give yourself plenty of time to figure out which one best fits your CBD business.

It is best to avoid organizations that only form long-term agreements and have strict standards, especially if they lack sufficient testimonies to back up their claims.

If a company catches your eye but only provides a partnership with the condition that you pay an early termination fee (ETF) if you decide to go somewhere else, then you need to be prepared to negotiate these terms. 

Customer support 

Robust & ongoing customer support is another crucial consideration when choosing a reliable payment service provider. When interacting with both online and offline transactions for products related to CBD, you should always be ready for the worst-case situation.

Let’s take a scenario where a customer wishes to charge back $200 for an order they recently submitted. In that scenario, you should know exactly how your CBD payment processor’s customer service team will handle these circumstances. Ultimately, the caliber of service they offer will represent you as a company.

Ask a team member how they handle disputes and how fraud prevention will reduce the likelihood of disputes occurring in the first place before selecting a payment gateway. Personalized customer service is preferable, but if you can’t find one, look for a company that has a customer service team to handle calls and emails around the clock.

Look for payment processing partners who provide competitive and transparent prices.

Many processors take advantage of CBD businesses by charging higher costs and levying hidden costs because they know that obtaining a merchant account is more difficult. They accomplish this through exceptionally high fees, pricing tactics, and frequent rate increases. This is the point at which your processor’s reputation matters. 

You require a trustworthy payment partner, has clear pricing, and doesn’t charge extra for unnecessary services. It should always be clear to you how much and why you are paying. Thus, to make the best choice, be sure to evaluate all of the CBD payment processing businesses available on the market, paying particular attention to their availability and affordability.

Provide Omni-Channel Payment Support 

Being able to meet your clients where they are—in person at your store, online, at an event, or anywhere else—is essential if you want your business to expand – now or in the future as well. Not every processor of payments for CBD can handle payments through every channel.

As your firm grows and expands, it is preferable to have a well-defined strategy for where you intend to sell your goods in the future. Next, confirm that your payment processing company can assist you in achieving those objectives. However, you must choose a partner who provides omnichannel payment assistance to enable flexibility and growth for your organization.

A Comprehensive Merchant Account Approval Process

Many people believe that faster is better, but this is not always true when it comes to applying for a CBD merchant account. Make sure the payment processor does improved due diligence and comprehensively underwrites new accounts before registering for a CBD merchant account. 

For other kinds of businesses that want to take payments, instant approvals are excellent, but if you sell CBD, steer clear of them. Your account may be abruptly frozen, placed on hold, or terminated if your company routinely violates the processor’s policies on the sale of CBD and associated products.

Can handle high-risk transactions(seamlessly)

Your CBD payment processor must be able to handle high-risk transactions. Because the sector is still in its early stages and exists in a legal gray area, only a few CBD payment processing services will be prepared to take on the risks involved with this type of transaction, such as credit card fraud and chargebacks.  

Look for a payment processing provider that has substantial experience with businesses working in high-risk sectors.

Integrates with your existing platform with ease

It can be quite frustrating and time-consuming to have to move an e-commerce site to a completely new platform in order to integrate a CBD payment processor. And, you don’t want that, right? 

So, avoid adopting a CBD merchant processing system that forces you to use its current platform at any cost. Rather, choose a provider that allows you to effortlessly integrate their credit card processing system for CBD with a variety of e-commerce applications.

Businesses that are able to provide these services are more likely to be able to help you and make you feel at ease as your business grows.

Compliance and Regulation

Compliance and regulation are of course very important in the CBD industry due to its complex legal landscape. CBD businesses must navigate various regulations at both the federal and state levels, including restrictions on marketing claims, THC content limits, and labeling requirements. 

When choosing a CBD payment processing company, it’s crucial to ensure that they have a thorough understanding of these regulations and are fully compliant with them. This includes adhering to guidelines set forth by regulatory bodies such as the Food and Drug Administration (FDA), the Agricultural Improvement Act of 2018 (also known as the Farm Bill), and state-specific cannabis regulations. 

Accepted Payment Methods

While customers are purchasing CBD products, you want to offer them the convenience and ease of offering a range of payment methods, so that they can make payments seamlessly. It enhances the customer experience and increases sales for CBD businesses. 

While credit and debit card payments are commonly used, it’s also beneficial to accept alternative payment methods such as ACH transfers, e-wallets, and even cryptocurrencies like Bitcoin. Providing multiple payment options caters to different customer preferences and can help capture a broader customer base. 

Reviews and Reputation

Researching the reputation and reviews of a CBD payment processing company can provide valuable insights into its reliability and customer satisfaction. Look for reviews from other CBD businesses to know about their experiences with the company. Pay attention to factors such as uptime reliability, responsiveness of customer support, transparency of fees, and overall ease of integration and use from their users to make the right decision. 

While no payment processor will be without some negative feedback, consistently negative reviews or recurring issues mentioned by multiple customers could be red flags. If that bothers you, then skip that one and if it’s not, then go ahead.

Also Read: Secure Payment Processing for CBD Ecommerce

The Top 6 CBD Payment Processing Providers! 

CBD Merchant Solutions 

CBD Merchant Solutions is the leading payment processing provider company. We understand the distinct requirements of CBD businesses. Our merchant payment solutions are custom-designed to cater to the unique needs of the CBD industry, ensuring that you receive a solution tailored to your specific business model and compliance needs.

Here’s why our merchant solution is the right choice for you:

1. Minimize Risks: Compliance with regulations is critical in the CBD sector to mitigate risks associated with non-compliance. With CBD merchant solutions, you can rest assured that our credit card processing service prioritizes strict adherence to regulatory guidelines, helping you minimize the risks associated with legal and regulatory challenges.
2. Transparent Transactions: Transparency is paramount in fostering trust and credibility in the CBD market. Our payment processing service promotes clear and transparent transactions, providing your customers with confidence in their purchases. By ensuring transparency at every step of the transaction process, we help you build trust with your customers and maintain long-term relationships. 
3. CBD & Kratom Approved: We understand the unique needs of CBD and Kratom businesses. With CBD Payments, you can rest assured that our services are tailored to meet the specific requirements of these industries, allowing you to process payments with confidence and peace of mind.
4. Process with EMV/NFC & Virtual Terminal, or Online Processing: Whether you prefer in-person transactions using EMV/NFC technology, virtual terminal processing for phone or mail orders, or online processing for e-commerce sales, we’ve got you covered. Our versatile payment processing solutions support a variety of transaction methods, giving you the flexibility to choose the option.

Total processing 

Total Processing is the top CBD payment processing solutions provider for CBD businesses. They have been in this industry for quite some time now and understand the challenges that CBD businesses face and provide highly customized solutions accordingly.  

Here is what Total Processing offers:

• Handling Chargebacks: CBD and other high-risk industries frequently struggle with chargeback management. Total Processing offers solutions to help.
• Building Trust: They place a high emphasis on open communication and robust security protocols in a sector where skepticism is common. This helps organizations preserve confidential data and foster a culture of trust. 
• Expert Advice: They provide specific assistance since they recognize the particular difficulties that companies in the CBD sector encounter. 
• Complete Payment measures: Chargeback alerts, dynamic routing for higher transaction approval rates, and a variety of fraud prevention measures are all included with Total Processing.
• Digital-First Approach: They prioritize solutions that end users really need in this digital dynamics, such as data analytics and mobile optimization, among many other things. 

Square 

Square provides CBD businesses with a dedicated payment processing program. The program provides everything you need to run your CBD business, including hardware, payroll, next-day funding, and compliance with laws like the 2018 Farm Bill. It also guarantees compliance with such requirements.

Square provides quick and effective service to entrepreneurs in the CBD sector, allowing you to start working right away.

Here are the benefits of choosing square: 

• FDIC-insured business checking account: With this account, you may access your sales earnings immediately and avoid the typical delays that come with standard banking procedures. Furthermore, there are no overdrafts or monthly fees.
• Sales data and reports. You can analyze sales trends and comprehend client preferences with the Square dashboard, which provides a comprehensive view of total sales, real-time statistics, and consumer insights.
• Excellent integration and e-commerce tools. Square works with WordPress, WooCommerce, Shopify, and other platforms in addition to its free online store.
• A wide variety of hardware. Square offers a range of hardware options, all of which are free of charge. These include a dual-screen POS register, a tiny contactless chip reader, a fully functional card terminal, and a mobile card reader.

PaySafe 

Paysafe is another significant provider of payment processing services, with over 250 payment methods available to suit to your clients’ needs. Its payment methods include credit and debit cards, digital and virtual wallets, prepaid coupons, and bank transfers. Paysafe also allows you to process payments in over 40 currencies and simply handle international transactions.

• Comprehensive Security: You can upgrade to Paysafe’s Enhanced Security Package for an additional fee. It has a team specialized in identifying and restricting payments from suspicious IP addresses or regions. Additionally, it prevents fraud during checkout by utilizing cutting-edge security technologies including address verification and end-to-end encryption.
• PaysafeCash. Through Paysafecash, your clients may make online cash payments for their CBD goods. Every online transaction is converted into a barcode, which clients can scan and pay for with cash at any of Paysafe’s 200,000+ partner locations in 29 countries.
• Range of diverse payment methods available: There are numerous payment channels available. Paysafe offers support for MOTO, digital invoicing, pay-by-link, and QR code payments, allowing you to adapt to varying client preferences. For regular payments, it even allows subscription-based billing.
• Free card reader for mobile devices. You’ll enjoy Paysafe’s free mobile card reader if you own a physical CBD store because it makes accepting payments in person simple. 

Easy Pay 

Easy Pay Direct offers a range of customizable features that can be tailored to your unique requirements if you want to optimize the operations of your CBD business. As one of the leading CBD processing companies, it provides a variety of features that are intended to improve and simplify your business transactions.

• Easy & effortless setup: Easy Pay Direct’s ability to quickly set up a CBD merchant account is one of its most notable advantages. You may set up your account and begin selling your line of items in as little as 48 hours, which simplifies the process. 
• Comprehensive payment solutions: Easy Pay Direct guarantees that you can stay in business even in a cutthroat market by providing a comprehensive payment solution for high-risk business demands.
• Lesser commissions: Easy Pay Direct is dedicated to providing the best prices and personalizing financial solutions. This implies that you can retain a larger portion of your hard-earned earnings while still giving your clients access to a safe and dependable payment method. 
• Constant and robust backing: In the unlikely event that you have issues, Easy Pay Direct can help you get your CBD merchant account back. This guarantees that you won’t be abandoned and that you may carry on conducting business successfully and profitably.

Payment Cloud 

Another excellent CBD processing provider for your organization to think about is Payment Cloud. Working with CBD can be a challenging endeavor because of its high-risk nature as you traverse the CBD market. Payment Cloud, on the other hand, is a dependable option in the market because it specializes in these high-risk transactions.

Why Opt for Payment Cloud As your CBD business payment processing provider? 

• Secure Payment Solutions: In the major CBD and cannabis markets, securing secure transactions is critical. In this digital age, having a safe and dependable payment gateway is essential for selling CBD products online. PaymentCloud provides just that.
• Flexible payment solutions: PaymentCloud guarantees quick approval for merchant accounts containing CBD. This enables you to profit swiftly from the CBD market’s constant growth. They offer flexible banking solutions and cheap rates that are geared to your specific company requirements.
• Dedicated customer support: PaymentCloud’s dedication to customer service is what really makes it stand out from the other top CBD processing businesses. They serve firms involved in the CBD industry by providing round-the-clock assistance. Regardless of your size—a tiny startup or a multinational corporation, PaymentCloud offers individualized support to make sure your company operates efficiently.

Conclusion  

To sum it all up, choosing the best payment processing solution for your CBD business is crucial. It’s like finding the perfect partner to support your growth and success in the industry. We’ve explored different options and highlighted their benefits, helping you make an informed decision.

Whether you’re looking for seamless transactions, regulatory compliance, reliable customer support, or competitive pricing, there’s a payment processing company out there that fits your needs. By choosing wisely, you can streamline your operations, build trust with your customers, and pave the way for long-term success in the CBD market. 

So, take your time, weigh your options, and find the payment processing solution that aligns with your business goals. With the right partner by your side, you can navigate the complexities of the CBD industry with confidence and achieve your business objectives. 

To make your decision easier, you can book your free demo with us. Our team at CBD Merchant solutions can help you with the demo and setup. So, what are you waiting? Get in touch with us right away!