Steps to Get Your CBD Oil Merchant Account
June 18, 2018 | Financial Problems
With the recent wave of cannabis legalization and decriminalization for recreational and medical use in the United States, entrepreneurs and corporations alike have been flocking to get on the ground floor of this booming industry. Possession laws for cannabis vary from state to state, and the natural marijuana derivative cannabidiol, or CBD, faces more lax regulations due to its more medicinal focused uses. It’s in how the CBD oil is cultivated and extracted that falls into a grey area of federal and state laws and can cause the sale of CBD oil and products to be high risk for acquiring banks looking to set up a CBD oil merchant account for retailers.
Although the CBD industry is highly regulated, the CBD market is expected to boom to $2.1 billion, a 700% increase, by 2020. Today, there are hundreds, if not thousands, of hemp and CBD venders in the market. But there is still plenty of room for forward thinking entrepreneurs to get in on the business. But before you make the moves to dive into this lucrative industry, make sure you understand why it is important to set up a high risk CBD oil merchant account for your debit and credit card processing needs.
CBD Oil Basics and How to Acquire a CBD Oil Merchant Account
For the uninitiated, CBD oil differs from marijuana in a few ways. For one, CBD is a cannabinoid that is part of the natural makeup of the cannabis plant. It has antibacterial, neuroprotective, and pain relief properties and has also been shown to help reduce anxiety, prevent seizures, and even lower blood pressure. CBD on its own is not a psychoactive chemical meaning it will not cause the intoxicating effects of consuming pure marijuana which contains illegal amounts of tetrahydrocannabinol (THC) along with various other cannabinoids. CBD oil on the market can be sold as a CBD isolate (just CBD) or a full spectrum oil that contains CBD, other cannabinoids, and minute amounts of THC (by law, less than 0.3% of bulk weight).
As mentioned above, laws and regulations around the production, sale, and consumption of CBD in the US varies by state to state, but on a federal level, CBD is classified as a schedule I drug under the Controlled Substances Act. Though CBD is legal in many states, the classification means federal law enforcement agencies can shut down CBD producers and press charges against consumers on a whim. For this reason, the CBD oil industry is considered high risk by acquiring banks that supply businesses with debit and credit payment processing services.
Take The Steps to Set Up Your CBD Oil Merchant Account
If you don’t use payment processing solutions that accept high risk accounts, like we do here at PayKings, funds in your CBD oil merchant account can be frozen or shut down completely after the bank’s underwriting process has found the industry as high risk. Before you set up your CBD oil business, here are a few steps you can take to get your high risk CBD oil merchant account up and running:
- Number one, you want to research your local hemp cultivation laws, or if your importing raw product, transit laws, and everything to make sure you’re on the right side of state laws.
- The next step is easy, because by reading this blog post on the PayKings blog, you’re in the right place to start looking for debit and credit payment processing solutions.
- Click here to apply for a free quote for your CBD oil merchant account. The experts at PayKings have relationships with 20+ acquiring banks and will work with you to get the best merchant account rate on the market.
Where they decline, we approve. Get started in the CBD oil industry today with PayKings!
June 18, 2018 | Financial Problems