U.S. consumer sales of cannabidiol (CBD) are expected to reach around 1.91 billion U.S. dollars by 2022¹, which would represent a significant increase from around half a billion U.S. dollars in 2018.
You would think that such a robust, rapidly expanding industry offering various products and an increasing customer base would be sought after by banks and the credit card industry. As you are aware, that is hardly the case. Most banking institutions have turned a cold shoulder to Cannabis Related Businesses (CRBs) and Marijuana Related Businesses (MRBs). Even the payment processing industry has avoided CBD merchants for the most part as well. While many consider this treatment unfair, it has lead to significant challenges for CBD retailers and online businesses to find merchant accounts that will allow them to accept credit and debit cards.
Although they currently allow purchases of hemp-derived CBD products that contain less than 0.3% THC, CBD laws vary from state to state. Each state imposes specific legal requirements for CRBs and MRBs. A merchant processing company that accepted you in the past could close your account suddenly. Termination may have had nothing to do with you but rather changes in internal or legal regulations affecting the processor.
Many high-risk merchant processors also charge high fees due to your business’s high-risk classification with more restrictive policies than standard accounts. Some restrictions include increasingly high chargeback fees, hidden costs in your contract, and significant fees should you choose to terminate your contract.
Like consumers of any other product, you want to create customer confidence by offering the ability to pay with their credit or debit cards. When you choose the right merchant processor, you are adding legitimacy and security to your high-risk business without a high cost as the business owner.
Unity Payments is a processor specifically designed to offer CBD businesses like yours’ advantages such as no contracts, no cancellation fees, locked-in service rates, 24/7 tech support, loss prevention specialists, and the ability to accept all major credit cards. Unity Processing is powered by Nuvo Company, an established leader in the merchant processing industry with over 35 years of experience serving various businesses, enabling Unity Payments to absorb a higher amount of risk.
Source: ¹ Statista – Total U.S. cannabidiol (CBD) product sales from 2014 to 2022