Is There Any Simple Way to Get A Merchant Account for CBD Oil?
Frustrating, yes, but that’s the price you pay sometimes to get a head start in a new industry with such huge potential! So how can an honest company set up a merchant account for CBD oil sales without running into a brick wall?
Well, it is possible to find merchant processing for CBD companies these days – but possible doesn’t mean easy…as the Elavon clampdown on anything even slightly cannabis-related showed this last April 2019, even a solution that seems solid can be wiped out with one simple policy change.
Many CBD Merchants Get Around This Through Non-Disclosure
Before you get the wrong idea, let us make it 100% clear – we are not advising you fail to disclose the CBD side of your business with your payment processor. If you’d like to know more about what we do advise, we’d be happy to go over the options with you. You can book an appointment here.
Just to give a clear picture of the current situation, though, many CBD companies are still slipping through the cracks. This “don’t ask, don’t tell” approach has been particularly effective for businesses that already have another existing business and are quietly adding CBD to their product line without revealing it to their payment processor.
For newer businesses, however, it’s next to impossible to do this and fly under the radar, especially if you sell your products online – any credible payment processor will visit your website within the first day of reviewing your application, and come down on you hard.
If You Get Caught, You’ll End Up On The MATCH List!
Try sneaking by the rules and you might get away with it for a while, but chances are it’ll eventually catch up. And when that happens, you risk an inability to get a merchant account from ANYONE (even CBD-friendly merchant processors) for a matter of years!
Sure, you might be able to stay in business by partnering up with someone who has a clean social security number and is willing to put your business in their name, but that’s your only recourse.
And unless they are family, it’s not going to be easy.
This creates a big headache for a business trying to make money in an already risky, complicated market.
Our Advice: Commit to Hunting Down A Provider Who WILL Work With CBD Firms
Yes, it’s tough…but great businesses are built on solving big challenges.
A few things to keep in mind as you shop around
- Avoid all health claims on your website (or preferably anywhere) related to CBD. Health claims can disqualify you immediately.
- This isn’t traditional processing in a traditional industry. CBD is considered very high risk for financial institutions – so prepare for high rates and a required reserve.
- Be careful with approaching your current bank about getting merchant accounts for CBD oil if you don’t already know their answer. Even a simple inquiry can get your normal business tossed out, so do your research beforehand and know exactly what to expect.
- You also have the option of using offshore payment providers, who may be subject to a different set of laws that allow more flexibility. Contact us anytime if you’d like to go over a list of honest providers.
Bottom Line: Merchant Account Providers Are Still on High Alert About CBD Oil
(At least for now)
If you’re tired of trying to find a back alley through this bureaucratic nightmare, it can help to consult with a merchant services consultant with one eye on the industry – someone who knows which minefields to avoid and is constantly looking out for the strategies and contacts you need to stand on solid ground.
We specialize in merchant accounts for high risk industries, and would be happy to hop on a no-pressure chat, or you can contact us through Skype or e-mail.
Set up a time to discuss potential options at Rapid Financial Solutions.