Business Top Tips: Payment Processing for CBD Business
With the increasing number of CBD businesses around the U.S in the brick and mortar and online industry, consumers prefer to opt for secured payment processing methods. The astonishing fast-growing industry will likely witness $16 billion revenue by 2025 in the U.S alone. Moreover, cannabis oil or CBD has become very popular in the health and wellness sectors.
By NANCY R FERNANDEZ
While the industry is growing at a fast pace, the consumers have become more aware of the illicit association with other Cannabis plants. The ambiguous legal status made it pretty problematic for the users to purchase CBD products from e-commerce platforms. In fact, many business owners have put regulatory constraints on the payment options. Hence, many B2B business holders integrated trusted payment processors to facilitate the transaction and manage the day-to-day purchases to avoid legal obligations.
Importance of Payment Processor in a CBD Website
Let us take a look at the various importance of payment processors:
- Multiple Payment Options
The more options a payment structure has, the more convenient it would be for the users. CBD processors accept both credit and debit cards to enable the customers to choose their preferences.
- Smooth Payment Integration
An integrated payment processor makes the payment method smooth. It enhances the payment workflows like billing and accounting.
- Better Customer Service
The right customer service provider will always provide you with improved customer service. It will help troubleshoot the issues, data security, protection, and more. Moreover, it also enables dealing with chargebacks and alternative payments. If you’re looking for the best in class, and most affordable merchant account provider for CBD business, we recommend you go for a CBD merchant account with Shark Processing where you will get easier, and hassle-free services with better customer support.
- Better Scaling
Just like other eCommerce businesses, CBD platforms should be like a well-oiled machine. It will ensure the platform is up to date.
What to Consider in a CBD Payment Processor?
One should look for secured merchant transactions. Here is a list of ten considerations to select secured payment solutions.
- High-Risk Availability
The CBD payment processor must be secured enough to handle high-risk transactions. This prerequisite is that CBD is fairly a new industry, therefore prone to fraudulent payment. Moreover, an industry with a grey legal status must have a secured payment gateway.
For this reason, only a handful of companies would agree upon providing a secure payment service. Also, the industry is risk associated; hence merchants should find a company that agrees to operate a high-risk sector.
- Simple Integration
No one wants to involve in a complicated trial. Moreover, shifting from an e-commerce site to a brand new platform is not simple. This process is not only time-consuming but also very deflating. It is also like investing in the business from scratch.
Therefore, it is better to look for a processor integrated with your existing site. Go for a company that is flexible to integrate an advanced payment automation processor within the existing system. This is the reason a huge part of CBD payment processors prefers using API integration to make the payment gateway easy for all.
- Low Fees
You have already spent a lot on the business and the website as well. Now, you should find a way to cut down the cost. Moreover, while finding a reliable payment processor, you should not be loaded with hefty upfront charges. In fact, many companies can charge an additional amount for account registration; however, this can be avoided. You should find a service provider to offer you less service charge.
Also, you can avoid the burden of a specific percentage of the surplus payment gateways to process the transaction. In case it doesn’t suit you, you can look for an additional profit margin. Take a glance at the surplus charges for promoting the right CBD processor:
— Statement charges
— Compliance charges
— Terminal charges
— Non-compliance and annual fees
Before establishing a secure payment gateway, you must analyze the additional charges and their benefits.
- Customer Support
Next comes effective customer support. You should be prepared to witness any situation. Hence, backing up with an efficient customer support team can eradicate all the transaction pitfalls. Also, before signing for a particular payment gateway, let the members take account of their team support.
Also, personalized customer service can reduce the pain of handling major transaction issues. Overall, this will enable your platform to mitigate the risk of fraud, disputes, and other payment-related issues.
- Availability of Point-of-Sale
Save extra time to avoid administrative duties. You can also get a few bucks for administrative responsibilities. Payment processors with POS or point-of-sale system integration can help you manage online and offline transactions. In addition, it will also provide you with accurate reports gleaned. One can also improve store profitability, loyalty, business intelligence, and more.
Overall, POS software helps you to make a lucrative business decision. In fact, you can also control stock input and output.
- Affordable contracts
In the CBD business industry, most payment processors require a sign of agreement before the deal starts. However, there are certain restrictions and points that are likely to be added to the agreement. Hence, it is better to avoid the contracts. In fact, it will be much better to avoid long-term partnerships. However, if you find good positive testimonials and reports for the company, you can grab the offers immediately.
- Website compliance
It is one of the fundamentals to come to terms with the company. The payment processor should be compatible with the existing website and its integrated system. Moreover, it should enhance the features of the websites and complement the status. In a nutshell, a secured payment processor should be well-matched with the website and its fundamental metrics.
- End to end payment processing
A robust payment processing system establishes the link between your business and the customer. While front-end processors are directly connected with the card association and the facility’s authorized transaction, the back-end processor helps settle funds and acquire the result within the scheduled time frame.
While the opportunities of the CBD businesses are expanding, they should find out a well-framed payment processor to expand the possibilities. Plan your payment methods very accurately, and do not let the high-risk factor discourse business growth.