Great! That’s surely going to be an exciting journey. But before you execute the plans, there are some things you need to know as a head-start. This includes the logistics surrounding the CBD industry and this involves merchant accounts.
In case you’re completely new to entrepreneurship and haven’t heard of merchant accounts before, it can be tricky. So let’s break it down and simplify things for you to understand them easier.
First things first. Let’s define what a merchant account is.
Basically, a merchant account is a type of business bank account. But it specifically lets you accept and process different payment methods. With it, your business can accept payments from customers may it be in the form of debit, credit, and even ACH (automated clearing house) payments.
A merchant account acts as a gateway between you and your bank to make sure that all your transactions are done properly.
There is what we call a traditional met chant account. It is usually the first choice of entrepreneurs since it is generally reliable, offers great rates, and usually comes with a user-friendly interface. However, traditional merchant accounts don’t usually qualify high-risk businesses.
High-risk merchants are classified as such due to their high-risk nature. And since there are many legal factors to consider with a cannabis business, it is definitely considered a high-risk merchant.
The factors that make a business a high risk one includes the following:
Banks tend to lose money when customers file for disputes and refunds. So those businesses that have a high rate of chargebacks have low chances of being qualified for a merchant account.
Customers are most likely to forget purchases charged on their credit cards. This, in turn, leads to disputes. Good way to prevent this is to offer monthly reminders a week before the next billing.
This part is tricky for businesses in the CBS industry. Given its nature of business, legal matters come into play. Most merchant account providers tend to avoid getting involved in those kinds of conflicts.
This involves services that offer online dating, online gaming, Bitcoin trading, pharmaceuticals, telemarketing, e-cigarette companies, bail bonds, and last but not the least – cannabis products.
Exhibiting those factors does not mean you can never get a merchant account anymore.
PaymentsChamp is composed of digital payment solution experts with more than 20 years of experience dealing with high risk businesses. That fact alone guarantees you that we know how to handle your digital payments like a champ. PaymentsChamp will guide and guard you all throughout our partnership to make sure that your business is law-compliant so you can avoid getting yourself in trouble. And considering the financial risk of your business, PaymentsChamp will provide you with a high-risk merchant account that is fit specifically to your needs.
This is the beginning of your journey to success in your chosen path. Take the first step now by consulting with us to find out exactly what kind of digital payment solution your cannabis business needs and how we will address that!
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