First and foremost, let’s address the elephant in the room: the CBD industry, though growing rapidly, is still marked as high-risk by financial institutions and service providers. This label stems from legal inconsistencies across various jurisdictions, societal stigma, heightened chargeback rates, and a maze of regulations that can frustrate even the savviest of entrepreneurs.
Consequently, traditional payment gateways often shy away from CBD merchants. The risks are deemed too great, leading to a harsh reality where CBD merchant accounts are not just rejected but can be abruptly terminated.
Here’s where specialized CBD payment processors come to the rescue! These processors understand the legal intricacies and have tailored their services to mitigate the risks associated with selling CBD – necessary for stable, uninterrupted business operations.
Beyond just transaction processing, CBD payment gateways offer valuable advice on staying within legal boundaries, something you might not get from standard processors. Plus, they often have extra tools and services, like help with fraud, managing chargebacks, and even financial services (like loans), all geared towards CBD businesses.
In this article, we’ll guide you through choosing the best CBD-friendly payment processors – let’s get started!
What to look for in a CBD payment processor
When venturing into the CBD market, the choice of a payment processor is not just a routine business decision. Let’s break down what you should look for in a CBD payment processor:
Can process high-risk transactions
The ‘high-risk’ transactions of cannabis-based products face more scrutiny due to the legal gray areas and fluctuating regulations surrounding CBD. This means dealing with higher processing fees, stricter scrutiny from financial institutions, and the risk of sudden account closures, which can impact your bottom line and disrupt your business operations without warning.
That’s why it’s important to partner with a payment processor that specializes in handling high-risk transactions. Such a processor understands the unique challenges of the CBD industry and can navigate these turbulent waters, ensuring that your transactions go through consistently and your business operations remain uninterrupted.
Integrates with your eCommerce platform
If you’re selling online, which most CBD businesses do, your payment processor’s compatibility with your eCommerce platform is non-negotiable. Let’s say you’re using a platform like WooCommerce; you need a processor that integrates smoothly with it.
Look for a processor that offers clear API availability, especially if an official connector or extension isn’t available for your platform. The setup should be straightforward, with minimal disruption to your existing setup. The key elements here include:
- Ease of integration.
- The functionalities supported.
- The overall impact on your user interface and shopping experience. You don’t want your customers to jump through hoops just to make a purchase.
Point-of-Sale (POS) availability
Whether you have a physical store or plan to participate in pop-up markets or trade shows, having a payment processor that either includes its own POS functionality or supports easy integration with existing POS systems is a game-changer. This integration is critical for:
- Unified inventory management.
- Real-time data updates.
- Simplified day-to-day operations.
Examining top payment processors for CBD businesses
With the specific needs of the CBD industry in mind, it’s crucial to select a processor that facilitates smooth transactions and aligns with the unique requirements of your business.
It’s important to note that the following payment processors generally cater to transactions involving hemp and hemp-derived CBD products that contain 0.3% THC or less, aligning with the legal thresholds in most states within the United States.
📌 This list serves as an informative guide rather than a direct endorsement from Saucal, offering an overview of some popular and reliable options in the market.
1. Authorize.net
While Authorize.net does not officially list CBD payment processing as a service, it is a known fact in the industry that they are receptive to high-risk payments, including those from CBD businesses. This makes them a viable choice for CBD business owners looking for a processor with a strong track record and wide acceptance.
Authorize.net offers a range of services including:
- Fraud protection.
- Advanced security features.
- User-friendly interfaces that make it a comprehensive option for businesses seeking a payment processor that can handle high-risk transactions effectively.
2. Square
Square‘s reputation as a reliable payment processor extends to the CBD industry. Their platform is designed to accommodate the specific needs of CBD business owners, offering services such as loans tailored for CBD businesses, which can be a significant advantage for growth and expansion.
Square’s transparent fee structure is particularly appealing:
- Online transactions incur a fee of 3.8% plus 30 cents.
- In-person transactions are charged at 3.5% plus 10 cents.
- Keyed-in and Card on File transactions cost 4.4% plus 15 cents.
Additionally, Square’s integration with WooCommerce and other eCommerce platforms ensures a seamless transaction process, enhancing the overall shopping experience for customers.
3. PayKings
PayKings specializes in high-risk transactions, making it a strong contender for CBD businesses. With over 20 proven bank relationships, they offer a reliable network for payment processing.
Their chargeback prevention measures and fast approval for CBD oil accounts demonstrate their commitment to supporting the specific needs of the CBD industry. This focus on high-risk accounts means PayKings is well-equipped to handle the challenges and nuances of CBD transactions.
4. Payanywhere
As a CBD-friendly payment processor, Payanywhere offers a range of facilities tailored to high-risk businesses. It stands out for its:
- Transaction security.
- Customizable pricing plans.
- User-friendly interface.
- Compatibility with online platforms like WooCommerce.
Payanywhere’s commitment to customer support ensures that business owners have the necessary assistance to navigate the complexities of payment processing.
5. PaymentCloud Inc.
PaymentCloud Inc. is another excellent option for CBD businesses, especially those dealing with high-risk transactions. They offer robust transaction security, fast processing times, and ease of integration with platforms such as WooCommerce. Their customer support is tailored to help businesses manage the intricacies of CBD transactions, providing a level of service that is both comprehensive and industry-specific.
6. PayDiverse
PayDiverse is designed to cater to the unique needs of high-risk CBD businesses. They offer fast payouts, which is critical for maintaining cash flow in a CBD business. Their compatibility with WooCommerce and other platforms, along with their fraud detection and chargeback prevention tools, make them a well-rounded option for CBD merchants.
Set up your CBD store on WooCommerce with Saucal
Engaging with a WooCommerce expert like Saucal can ensure not only the seamless integration of a payment gateway but also navigate the intricate regulatory landscape surrounding CBD transactions, thereby safeguarding your business from potential pitfalls and ensuring compliance with stringent industry standards.
Kostas Seresiotis, Senior Product Engineer at Saucal
Establishing an online presence for your CBD business doesn’t have to be complicated or stressful. With Saucal‘s expertise in WooCommerce, setting up your CBD store can be a rewarding experience.
Let’s explore how our team at Saucal can be the ideal partner in this journey, addressing the unique challenges of the CBD industry and ensuring your business thrives online:
- Saucal’s expertise in WooCommerce: WooCommerce is a powerful and versatile platform, perfectly suited for CBD businesses. It offers high-security standards, resilience, scalability, and easy integration with various payment processors. Saucal’s proficiency in WooCommerce ensures that your CBD store uses all these benefits. From ongoing website maintenance to ensuring smooth functioning, Saucal’s team is equipped to handle every aspect of your WooCommerce store.
- Easing the process of CBD transactions: Managing the intricacies of CBD transactions can be daunting. Saucal simplifies this process by guiding you through the setup of a CBD-friendly payment processor on WooCommerce. With Saucal’s support, you’ll find that integrating a payment gateway is not just about technical setup; it’s about understanding and navigating the complex regulatory landscape surrounding CBD transactions. This expertise safeguards your business from potential pitfalls and ensures compliance with stringent industry standards.
- Custom introductions to payment processors: Saucal goes beyond just setting up your store. We can facilitate custom introductions between your CBD business and payment processors that align with your specific needs. This tailored approach ensures that you’re partnered with a processor that understands the nuances of CBD transactions and is a good fit for your business model.
Take inspiration from Saucal’s case study with Hello Mood, a CBD business that benefited immensely from Saucal’s WooCommerce expertise. This real-world example demonstrates how effective Saucal can be in transforming your CBD store into a successful, smoothly operating online business.
Running a CBD store on WooCommerce requires continuous attention and maintenance. Saucal’s WooCommerce maintenance services are designed to alleviate these burdens via:
- Troubleshooting and technical support.
- Regular website updates.
- Saucal’s RADAR technology to detect maintenance or optimization opportunities, your store is in capable hands.
This proactive approach ensures your CBD store runs efficiently without complications.
Are you ready to set up your CBD store with a reliable, experienced partner? Get in touch with Saucal today and take the first step towards a successful, compliant, and smoothly running CBD online store!
