Performance Card Service (PCS) is highly experienced in CBD credit card processing and other CBD payment processing options. We have helped many companies overcome the payment challenges that come with being in a high risk business.
CBD Merchant Account
Complete Merchant Services for Sellers of CBD Oil Products
Why a CBD Oil Merchant Account Is Hard to Get
The CBD industry has certainly seen a surge in development and popularity over the past couple of years, but CBD merchant account providers have not kept pace. Scrutiny and regulations by regulatory agencies and the financial sector always accompany this industry. Banks and processors are often hesitant to support CBD products.
Cannabidiol or CBD is one of the hundred plus cannabinoids that are present in cannabis plants. CBD can be used for a multitude of ailments such as pain, anxiety, insomnia and movement disorders. People ingest CBD in several ways including inhalation, sublingual, and even in a lotion or salve. A common misconception is that CBD is the same as its cannabinoid cousin, THC. It is not. THC is the most psychoactive cannabinoid in cannabis. Most CBD products usually contain less than 0.3% THC, which is the threshold for most credit card merchant account providers to support it.
In the U.S., the first CBD-based drug, Epidiolex, has been approved by the U.S. Food and Drug Administration (FDA) as a treatment for epilepsy. While CBD is not a scheduled drug and is legal in all 50 states, Epidiolex is listed as a Schedule V drug by the U.S. Drug Enforcement Administration (DEA). Unfortunately, the drug has a litany of side effects that make using CBD in its raw form more desirable. Even though CBD is legal in the U.S., banks and processors still regulate when they will support it. We recently saw the mainstream processor Elavon and its partnership with U.S. Bank support CBD products for about six months, until they abruptly stopped and left many CBD merchants without payment processing.
How PCS Helps
PCS understands the need for quality and stable CBD oil merchant processing solutions and works closely with merchants to ensure they find a good fit.
We highly recommend utilizing our eCheck service in tandem with a credit card processor. eCheck is not governed by Visa/Mastercard so the chances of getting shut down are minimized. We have found that eCheck processing is a great alternative to credit cards and has actually kept many of our clients in business when they experienced issues with credit card processing. For CBD merchant services, we also have a handful of processors and banks that will approve CBD merchants for credit card processing based on their profiles. Startup and smaller volume CBD merchants may find that pricing is higher and approvals are not as easy, but we can still ensure placement with the best options available. Most established CBD merchants usually find the approval process easier and that more cost-effective options available.