Because of the legal gray areas around CBD products, finding a payment processor able to service the complexities of this industry can be a challenge for CBD merchants. While accepting ACH or credit card payments for a high risk business is a challenge for many merchant services providers, FLEX Payment Solutions understands the market and can provide the CBD merchant account you need to process CBD payments and make your business a success.
Considering a proven payment processor capable of effectively servicing high risk businesses? Contact us today to discuss your CBD merchant account and begin to accept credit cards or ACH today.
While CBD is now considered legal in all 50 states, there are still various restrictions and regulations on its use and sale in some jurisdictions. This includes accepting ACH or credit card payments and is due to its source being from both marijuana and hemp cannabis plants.
Marijuana contains higher amounts of the THC chemical responsible for the high sensation and has only been made legal for recreational use in a handful of states. Others have limited its use to purely medical use, while in others it remains largely illegal.
CBD is also regulated by the FDA when sold as a food, supplement, drug or cosmetic and currently remains illegal to transport over state lines in these forms. This makes sales out of state a controversial subject and therefore categorizes a CBD merchant account as a high risk business for a credit card processor.
Due to the high-risk labeling of CBD by many providers, general merchant accounts with any of the big-name providers are at risk of being flagged and suspended for anything they perceive to break the rules. If your a CBD business that accepts credit cards or ACH, the shutting down of your main payment sources can have disastrous effects on a business and with no alternative way to collect payments, it can be the death of a new enterprise.
Dedicated CBD merchant accounts are designed to deal with the complexities of the CBD industry. CBD payment processors like FLEX understand the legalities of these products and are ranked superior to these out-of-the-box alternatives. Most importantly, our CBD merchants don’t have the risk of sudden suspensions of their account for trying to process legitimate payments.
The Hemp Farming Act of 2018 legalized the use of cannabis plants with THC levels of 0.3% or less (categorized as hemp) for production. This made it possible for producers to limit their risk and gain access to grants and insurance as well as easing the process for those who sell products containing CBD.
Today, 33 states have legalized the use of medical marijuana, and 14 further states have allowed limited use of CBD. In 11 states recreational use of marijuana is now legal while a further 16 have decriminalized the drug. While marijuana is still not legal at a federal level, these increasing freedoms are propelling the acceptance of CBD.
FLEX Payment Solutions understands the complexities of CBD payment processing and the effort it takes to appropriately service the CBD market – we are more than up to the challenge of processing high risk merchant accounts. Our team is dedicated to maintaining high standards creating a long term partnership with your business and working through problems as a team. Our bank partners feel the exact same way and are proud to contribute to the growth of a space they support. Whether you’ve had your account suspended, are setting up for the first time, or are a veteran in the industry, we look forward to serving as your trusted CBD payment processor going forward.
Speak with us today about accepting ACH or credit card payments for CBD.
