With the easing regulatory atmosphere for cannabis related products, the business community has been somewhat slower to feel secure in this space. Specifically, even as many businesses form to market cannabidiol products, very few established credit card processors will accept your business. This extends to merchant account providers who see such businesses as high risk.
There are several reasons for these barriers to establishing a CBD business with credit card and online payment options. First, there is uncertainty about legislation in various jurisdictions and what products are approved. As the result of the recent emergence of CBD policies for accepting business by credit card and processing, companies fail to distinguish CBD from cannabis. This creates uncertainty for businesses operating in this market.
The second reason is the uncertain nature of chargebacks. Lacking experience with successful completed sales of CBD products, companies shy away from the risk of chargebacks. The unfulfilled expectations of customers of these products leads to claims for refunds at a rate higher than for established products where chargeback history has been established.
The third reason is the tarnish of the reputation for “drugs.” It is a new thing for stores selling CBD products to be legitimate businesses, and the aura of illegitimacy hangs over the industry.
Some processing companies such as AVP , have specialized in helping businesses operate in such a way as to minimize chargebacks, improve customer satisfaction, provide clear statements of product benefits, explain charges in clear and simple language, and many other steps that make the business more attractive to payment gateways. Leading companies stay current on legal and regulatory issues and are able to provide assurances to gateways that businesses are sustainable. They have identified which companies are receptive and established credibility with them in bringing new applications to them for acceptance. AVP provides a vital bridge between newly formed companies selling CBD products and the banks and gateway providers, and assists these firms in establishing vital online payment options for sales.
- Educating new sales companies in business practices that aid in acceptance
- Advocacy for vendors with processors and banks as to regulatory compliance.
- Processing ability for major credit cards
- Terminal integration with retail, online and virtual terminals
- Set up integration with many main software packages
- Third party gateway compatibility
- Expertise in the field to know which firms are more receptive
- Support on business practices that assist maintaining accounts