Business owners understand why it’s important for customers to have the ability to pay for goods and services quickly and easily. A 2019 study found that 51 percent of consumers are paying with debit or credit card over cash and check, with card payments accounting for $6.48 trillion in the U.S. in 2017, according to the Federal Reserve. If your company isn’t equipped to handle credit and debit card processing, your business runs the risk of falling behind. Getting a credit card processor is fairly simple and straightforward for most businesses.
However, for businesses labelled high-risk, similar payment solutions providers aren’t so easy to find. These include CBD stores and legal marijuana dispensaries, and business located within tribal reservations.
Problems and restrictions in the current system
Though legal in most forms across a majority of the United States, CBD is still considered by many as a high-risk industry. As such, most big-name banks or common payment processors are not willing to take a chance on smaller CBD shop owners.
Fortunately, there are companies that are willing and able to partner with these business owners and assist them. These companies can not only help with payment solutions but also with growing their business. However, not all payment solutions providers are created equal, so here are a few things to consider:
The credit or debit card processing company that you choose should have a history of working with companies in your industry or situation. They should have experience dealing with the compliance necessary to provide guidance throughout your partnership together. Specialist knowledge is required for businesses operating in the CBD and hemp-derived industry, pawn lending, state and tribal lending, and vape shops.
It’s important to find a partner that doesn’t require you to uproot your entire system. Credit and debit card processing is popular with customers for a reason; it’s convenient. Once your system is set up, it should retain its simplicity.
Any problems you run into should be easily overcome by your payment solutions partner. Any time that is lost due to a system going down could mean a loss of customers and profit. When considering a partnership, ask about their systems and processes. Find out how they can integrate with your current system and adapt to the processes you currently use.
Fees and contracts
Unfortunately, there are companies who try to take advantage of the hurdles that businesses, such as those in the CBD industry, have to jump over. All payment solutions providers charge fees, this is how they operate their own business and provide services to their customers. However, merchants shouldn’t settle for a provider who charges too much, or suspiciously too little, for credit and debit card processing.
Your potential partner should offer full transparency. This includes the fees they charge, the services they provide for these fees and being able to explain all of the contract details.
Even with the best laid plans, problems will arise, no matter which provider you partner with or type of business you own. For merchants like those in the CBD industry, there are even more issues they can run into. Besides having to overcome legal gray areas, these companies often have to deal with payment fraud, chargebacks and inconsistent suppliers.
Reputable payment solutions providers should be able to provide support for any type of credit discrepancy that comes up. They should be able to provide you and your business the support you need. Since hours vary across businesses, find a partner that offers personalized customer service at any time of the day.
Failing to ask important questions can often prove detrimental to small business owners. It could even result in failed compliance and losing the important certificates or licenses required to operate.
Processing available from FLEX Payment Solutions
Processing payments is essential to every business, whether starting from the ground up or part of a multi-million-dollar company. FLEX Payment Solutions is 100 percent compliant, can streamline your payment processing, reduce fraud and keep costs low.
Here are some of the methods of payment processing we provide:
· Credit and debit card processing – Available to any legal business types, including state and tribal lending, hemp-derived CBD, pawn lending and vape shops.
· ACH – Make business or consumer money transfers quick and painless by utilizing fully electronic transactions through the ACH network.
· eCheck 21 – When ACH is not an option, our eCheck 21 solution settles electronic payments over the check network with the same settlement and return reporting timing.
No matter what your business goals are, choosing a payment processor should not be taken lightly. FLEX began offering a single proprietary payment program to the market in February of 2017. Since then it has added three new payment solutions, while helping process $180M+ for a vast portfolio of clients. Our team is focused on always providing top of the line service, while growing our programs to fit the unique challenges that the future presents.
If you’re interested in learning more about credit and debit card processing, contact us.