Why a CBD Merchant Account is considered High Risk?

Why a CBD Merchant Account is considered High Risk?

CBD merchant account is considered a high-risk because number of reasons, high charge-backs and fraud, because CBD oil, crumble, concentrates and pretty much all CBD products are made from Marijuana and may contains small traces of THC in it. Since this is regulated heavily by state, most banks in USA refuse to take a risk and be connected to any Marijuana or CBD merchant account providers, making the task of obtaining CBD credit card payment processing almost impossible.

That means you will need a High-Risk CBD merchant service provider that works with high-risk industries, specifically with CBD merchants. You will need one that is dedicated to and up-to-date with the ever-changing CBD federal regulations.

Banks who do choose to work with high-risk industries will be strict and impose high rates which in return will cause profit loss. Instead of generating more money through a dependable payment processor, you would be dealing with constant charge-backs and fraud claims. This makes it harder for your business to flourish. That’s where CBD Merchant Service come in play we want your businesses to sky-rocket with the right services, like us!

Cannabis products all around are illegal in most of states (at least for recreational purpose) and Marijuana is one of the most controversial drugs on the market. There is a stigma and many people don’t understand there are different forms of marijuana. Marijuana is made up of 400 different types of compounds and from these compounds, CBD is found. CBD has different characteristics from marijuana that people don’t know of. CBD causes a different effect on the person than for example THC (also compound of Marijuana) such as that it doesn’t cause psycho activity unlike THC. What does that mean? Well basically it won’t get you high. This also means CBD industry is classified and regulated differently in legal matters.

It’s important to know that the THC levels itself are strictly regulated by the law. The limit is typically as low as 0.3 and anything below that would be fine with the law. So what is the catch? If you use a CBD product that is derived from Hemp then the amount of THC you will get is most likely legal. On the other hand, CBD derived from the Cannabis flower is more potent in THC percentage. Legal THC level regulations depends on your state laws regarding CBD as it varies. Your business will need a CBD merchant account provider who works with high-risk industries such as CBD or cannabis, has a deep knowledge of the industry and stay up to date with constantly changing CBD law regulations.

We want our clients to have low rates and a reliable service for their business. CBD Merchant Service connects with banks who work with CBD merchants. The application processes is fast and easy, and with us your CBD business is in the right hands! Call us at (877)-996-2795 to apply for CBD Merchant account or with any questions in regards of your application.


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