The CBD oil industry has been booming over the past few years with these products becoming legal in more countries. If you are thinking of getting into this industry, you need to know everything you can before you start. One of the most important aspects of your business to focus on will be the payment solution. There are a number of issues that you will face with payment solutions for CBD oil products, but there are also some innovative solutions that you can use.
The Payment Solution Problems
Before you can look at the innovative payment solutions that you can use for a CBD oil product business, you need to know the hurdles that you face. A business that sells CBD oil products will not be able to use the traditional payment gateways offered to other retail businesses. This is due to the fact that CBD oil is still illegal in certain states and the state and federal legislation do not match in some areas.
This has led to a limitation in terms of payment solution for people in the CBD oil industry. Banks will not allow you to open a merchant account with them if you have this type of business because it is still technically illegal on a federal level. Other traditional online payment gateways are also wary of CBD oil businesses because of the regulatory uncertainty.
Traditional merchant account providers will also generally reject applications from CBD oil businesses. This is why you need to look at other solutions for your payment system. There are 2 systems that you should consider if you are going to be selling online and they are high-risk merchant accounts and cryptocurrency payments.
Using A High-Risk Merchant Account
Most CBD oil businesses will actually use a high-risk merchant account for their payments. These accounts work in a similar manner to the traditional merchant account, but the fees and oversight will be greater. If you are going to consider a high-risk merchant account, you need to know what you should be looking for in a provider.
Ideally, you will want to work with a merchant account provider that has a good history of working with CBD oil businesses. These providers will understand the challenges that this industry faces and will have accounts that are focused on helping your business. They will also be easier to open an account with because they understand the industry that you work in.
You also need to look at the fees that the merchant account provider is charging. All merchant account providers will work in a different manner and will charge their fees using a different structure. Ideally, you will want to clearly see what your fees are going to be and if there are any additional fees such as minimum transaction fees that you need to worry about. These fees will be charged if your business does not put through a set number of transactions within in a single month.
You should also find out which cards the merchant account from The Southern Institute, will accept transactions from. There are some high-risk merchant accounts that only complete transactions from Visa cards while others will take Visa and MasterCard. The more cards you can take, the better for your business.
While a high-risk merchant account is a good payment solution for any CBD oil business, it is not a great innovation. These accounts have been around for years and have been used by a number of different industries. However, they do offer you an easy way to accept card payments for your CBD oil products.
Cryptocurrency and CBD oil products will be a match made in heaven because there are no regulations regarding what you can buy with this currency. This does not mean that there are no problems with this payment solution and you need to be aware of this. However, it is an innovative way of receiving payments and will help your business gain more custom.
The primary benefit of using cryptocurrency in your business will be the fact that you avoid the fees of the merchant accounts. This can save your business a lot of money as the fees can pile up rather quickly. You also never have to worry that your merchant account will be closed for some reason which will place you on a blacklist for future accounts.
One of the other benefits of using cryptocurrency is the fact that it can be used in-store as well as online. There are a number of Fintech companies that have created devices which help customers and businesses handle Bitcoin transactions. By using the technology created by these companies, you will be able to sell your products in-store and accept cryptocurrency payments without any problems.
The first issue that you will face with cryptocurrency payments is the fact that your customers need to have this currency to start with. Not all of your customers will have a Bitcoin wallet or any Bitcoin on hand. This could result in your potential customer looking at your competition because it is easier for them to buy. If they want to buy from your store, they will need to purchase Bitcoin first and then buy the product from you.
Another issue that you will find with cryptocurrency is the volatility of the currency. In a single day, the value of Bitcoin could fluctuate greatly which means that the payment you get in the morning might not cover the goods at the close of the day. This means that you could make a loss depending on the value of the currency and you have no way of accurately predicting which way the market will move.
Payment solutions for CBD oil businesses are limited due to the legal murkiness of these products. While CBD oil products are legal in a number of states, they are illegal in others and the federal laws have not caught up to the state ones. This leaves CBD oil businesses with few options other than high-risk merchant accounts, cash payments and the use of cryptocurrency.