While hemp and its products were legalized by the 2018 Farm Act, CBD companies have been having a hard time finding payment processing service providers. The existing ones who have been serving the industry are pulling the plug citing a variety of reasons, such as the unclear regulatory environment. Here are some options that CBD companies can consider if they find themselves locked out by their current payment processor.
Domestic E-Checks
Your company doesn’t need to be of a certain minimum size in order to enroll with a domestic e-check provider. This option doesn’t rely on banks, and the changes in the attitude of banks towards CBD companies hasn’t affected e-check service providers.
It is important to note that while setup and monthly fees are higher for e-check payment processing, the percentages levied against each transaction are lower than what domestic credit card processors charge.
Offshore Credit Card Processing
If domestic credit card processors are turning their back, offshore processors can be a viable alternative to keep your business working. For example, the regulations of the CBD industry in Europe are relatively loose, so it shouldn’t be hard for your company to find a credit card processor on the European continent.
However, some major processors, such as MasterCard, are beginning to demand that businesses which use its credit card processing services in Europe are required to have an address in Europe. Shop around until you find a credible processor who will address the needs of your company.
Payment Terminals
If most of the business of your CBD company is conducted offline, then it may be easier for you to avoid disruptions by turning to payment terminal providers. These are easier to find in the U.S. even if banks aren’t cozying up to the CBD industry.
The payment terminal provider puts all the money taken from customers who swipe their cards into a bank account that you designate. GreenBox and Naturepay are examples of payment terminal service providers that still work with CBD companies.
Even if the way CBD companies are being treated can be equated to what is happening to undocumented immigrants, it is still possible to make money in this industry that is growing rapidly. Analysts are convinced that major players like Wildflower Brands Inc. (CSE: SUN) (OTCQB: WLDFF) and Willow Biosciences Inc. (CSE: WLLW) need to find a permanent solution to this situation so that the CBD industry isn’t be bogged down by an inability to process the payments coming to them for the products which customers are scrambling for in the U.S.
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