The online CBD market has been on a tremendous rise in the past few years. Following the discovery of its several benefits, CBD for sale hit a high demand. The demand has reached a point where the CBD business rakes $20 billion annually. With this figure, the challenge of running a CBD business is possibly higher than it is in other industries.
Despite being one of the fastest-growing markets in America, the CBD market has its struggles, and most of it is about finances and legality. This article talks about the struggles with compliance, merchant processing systems, and how you could overcome them.
Challenges With The Bank
In 2018, the Farm Bill was signed into law by the Trump administration. The bill legalized hemp production for agricultural purposes. It also removes the plant from the list of controlled substances. While this is a positive light for the CBD business, many states reserve the right to ban its production.
Some states ban CBD production at their discretion, which has caused many to question the legality of the hemp business. To be sure, the hemp/CBD business is considered high-risk.
Therefore, banks take a step back. This challenge is a result of federal policies that put the CBD industry in a high-risk category. Banks are unwilling to serve because they don’t want to be involved in any event against regulatory policies.
Challenges With Payment Processing Companies
CBD companies also face challenges with merchant services, payment processing companies, and e-commerce generally. It is a known fact that most banks won’t work with CBD businesses because of the legality variation across the country. Of course, this makes processing online and in-store payments tough.
While some business owners have turned to merchant service providers, they have met with disappointment. Even though merchant service providers support the availability of CBD, they still see it as a high-risk venture.
Therefore, they consider the risk associated with a change in CBD policies, public perception, and a potential hurt to their image. As a result, many of the merchant industry’s big names will not work with CBD companies.
On rare occasions when CBD entrepreneurs find merchant providers willing to work with them, they experience hassle in payment processing. For instance, there is a high rate of declined payments, strict rules on chargebacks, and risk of scams.
What FLEX Payment Solutions Could Do To Help
Although CBD entrepreneurs’ challenges are numerous and real, some high-risk merchant service providers could help them overcome their challenges. FLEX Payment Solutions is one of the companies that work with you to combat payment hurdles.
Having experienced some of these hitches personally, the founders of FLEX Payment Solutions will rather not have you go through the same. Therefore:
- If an offer feels too good to be true, then it’s most likely not true.
- Companies make false claims about working with the bank. The bank hardly associates itself with any high-risk venture.
Here’s how FLEX Payment Solutions can help:
- FLEX Payment Solutions gives CBD businesses all the information they need to set up their payment system. It’s a high-risk credit card processing system.
- There is transparency in pricing, so you don’t have any hidden fees.
- FLEX Payment Solutions offers high-quality business support that helps you increase your profit margin.
- The providers have a domestic U.S sponsor bank that fully understands the CBD industry. Hence, supporting national payment methods that ultimately boost your income and ensure reliability.
- Foster loyalty between customers and sellers by providing seamless payment processing.
What You Should Expect
- Customer support with exceptional services that answers your question at any time of the day.
- A perfect payment platform that reaches every customer in the United States especially for online CBD sellers. Therefore, you can expect a diverse portfolio of payment methods within the country .
- POS payment options for fast and easy access to payment history.
Wrapping It Up
FLEX Payment Solutions is a family-owned business that offers quality services and exceptional risk management options. With this in mind, you can focus on growing your business while allowing them to handle payment processing. You can make a consultation before committing. The goal is to make business easier for you and your target audience.