Nowadays, a lot of CBD merchants want to provide their clients a way to pay for their dispensary products with a credit card either online or in-store. Of course, there’s a reason for this. Aside from being secure and safe, credit cards are also more convenient. Furthermore, people tend to spend more if they use a credit card.
Unfortunately, it’s hard to find a credit card processor or a bank that will work with CBD merchants. It can be extremely hard to look for a payment processor that will work with CBD vendors.
So, how do you find the right dispensary credit card processing solution?
What is the Best Dispensary Credit Card Payment Processor?
The ideal dispensary credit card payment processor is the one who considers your business as a legitimate one. They should always listen to your needs. They will help you look for a solution that is ideal for all of your needs.
It does not matter who you choose for your dispensary credit card processing. There are a couple of factors that you have to consider first. This includes:
- Clear terms and conditions
- Accept every credit card brand
- No increases in rate
- Low minimums per month
- Have experience with online shops and can provide a payment gateway for CBD
- Have experience with CBD businesses
- Have experience with high-risk businesses
Why Is It So Difficult to Look for a Dispensary Credit Card Payment Processor?
You may know this already, but CBD is extracted from marijuana or hemp. However, the legality of the product greatly depends on the levels of THC and where the CBD is extracted. Hemp-based CBD is generally legal in all 50 states. The reason for this is that it contains small amounts of THC. On the other hand, marijuana-based CBD isn’t legal in states where marijuana is illegal since there are huge levels of THC in the product.
The government is planning to legalize marijuana in the entire country. However, as of today, the ability to make marijuana legal or illegal belongs to the individual states.
Because of that, merchant service providers and banks do not want to go through all the legalities that surround marijuana, hemp, or CBD. A lot of merchant service providers simply reject the service. This will help protect them from possible legal problems and headaches.
Because of the murkiness of legality in their state, CBD vendors find themselves having to fight a difficult battle. As of now, states have different standards on cannabis products they allow.
Even if a CBD vendor is lucky to find a dispensary credit card processor, they will still have to pay huge fees. The reason for this is that they know you’re desperate for an account. A couple of them will claim they’ve got competitive rates. Unfortunately, the truth is that they’ve got extremely high rates. Thus, make sure you do your research first.
Aside from that, the processor might even drop the account without any warning. For instance, PayPal is known for dropping accounts and holding funds rather than releasing them to the vendor.