Despite CBD’s growth in popularity, the complicated legal status and chargeback risks have kept payment processors from working with merchants offering CBD. With mainstream companies like PayPal or Square showing almost no tolerance for CBD processing.

Merchant account providers, such as PayPal prefer merchants that are considered low risk and meet the following standards

• Low Risk Categorized Products
• Under $20,000 in monthly sales
• Credit card transactions under $500

CBD and High-Risk Merchant Accounts

Selling CBD immediately categorizes you under high risk, regardless of whether you meet the financial requirements. To thrive as a CBD merchant, you need to set up a high-risk merchant account.

These are key elements to consider when choosing the best merchant account provider for CBD.

• Low-Cost Chargeback Fees

High risk businesses are charged higher chargeback fees based on their risk category. Prioritize finding a provider that has support in place to lower your chargeback risk.

• Contracts With Short Terms

Merchants are often locked in a long-term deal for their account, which is limited based on the risk level of CBD at the time. However, the regulations on CBD products are constantly changing, so searching for short-term contract deals that allow you to adjust your business quickly along with the industry is critical.

• Cancellation Fees

Merchant banks can charge a hefty cancelation fee if closed before the contract’s expiration date.

• No Automatic Renewal

Automatic contract renewal is often standard for high-risk merchants. Again, with CBD’s regulations always in flux, familiarize yourself with your contracts’ cancelation policy and renewal dates, so you’re not stuck in an outdated deal that ends up costing you more money than needed

• Payment Gateway

You will need a payment gateway to accept online credit card payments. If that’s a priority, be sure your provider’s gateway has a system to filter out selling to states where CBD is still illegal.

• Responsive Customer Support

You’ll be running into numerous roadblocks running your business, make sure your provider is equipped to efficiently solve the problems you can’t fix by yourself.

• Low Rolling Reserve

A processor will often hold a percentage of a merchant’s monthly sales, called a reserve. Make sure you understand how that reserve will affect your operations and account for it

• Pricing Methods

Most high-risk merchant processors usually offer only tiered pricing. Ideally, interchange-plus pricing is what you should be looking for from your processor. Interchange-plus pricing provides a clearer more affordable pricing schedule for your business. Fully analyze your contract so you know exactly what pricing they offer.

CBD Merchant Processing Fees

Now that you understand what you’re CBD business needs in a merchant account, let’s go over the common fees you’ll be charged for running it.

• Processing fees

Understand how your merchant account provider handles processing fees. Whether it’s interchange-plus, tiered, or flat, know exactly what method you’ll be working with.

• Setup fees

To set up an account, high risk merchants usually charge very high fees. Be aware of what you’re being charged and talk with your merchant bank to see if you can work out a more affordable deal for your business. At Revitpay, you’ll find that we charge reasonable prices which on are the lower end of the spectrum in comparison to our competitors.

• Miscellaneous fees

Familiarize yourself with any extra fees you may be charged. Whether it’s PCI Compliance fees, chargeback fees, or cancelation fees, have a decent understanding of what they are and why you’re being charged

Find a Well-Equipped Provider

Do a deep dive to find a merchant account provider with a history in CBD or other volatile high-risk businesses. They’ll be fully equipped to accommodate the constantly shifting regulations and keep your business up and running.

Here at Revitpay, we fully understand the accommodations high risk CBD merchants need to efficiently operate and adjust for further growth. Contact us today to get set up with the perfect merchant account for your business.