Here are ten of the key issues CBD merchants commonly encounter
We have the knowledge, skill and bank connections, to address and satisfy each of these, and more...
1. Legal and Regulatory Uncertainty: The legal status of CBD varies from one jurisdiction to another, and it can change over time. This uncertainty can make it difficult for e-commerce platforms and payment processors to determine whether CBD products are allowed in specific regions.
Our specialist teams have the knowledge to navigate the legal issues and complications.
2. High-Risk Labelling: CBD is often considered a high-risk industry by financial institutions and payment processors. This categorization can result in higher fees, stricter underwriting requirements, and a greater likelihood of account closures.
Our specialist team have the connections to navigate the “Moral Hazard” and governance complications and secure the best possible terms.
3.Payment Processing Challenges: Many mainstream payment processors, such as PayPal and Stripe, have policies that restrict or prohibit CBD transactions. CBD merchants must seek out specialized high-risk payment processors that are willing to work with them, often at higher transaction fees.
Our specialist team have connections to over 390 acquiring institutions and multiple PDI Level 1 Gateways and are able to match need to appetite
4.Chargeback Risks: CBD products can be subject to a higher rate of chargebacks due to customer disputes, product quality issues, or misunderstandings about the nature of CBD. This can result in additional costs and risks for merchants.
Our specialist teams and services work with our high risk merchants to address and limit the difficulties of Chargeback exposures
5. Limited Advertising and Marketing Options: Major advertising platforms, including Google and Facebook, have restrictions on advertising CBD products. This makes it challenging for CBD merchants to market their products effectively online.
Our specialist teams experience can help merchants resolve their issues and maximise their opportunities
6. Compliance Burdens: CBD merchants must navigate a complex web of regulations, including FDA guidelines and state-specific rules, to ensure their products are compliant. Failure to do so can result in legal consequences and account closures.
Our specialist compliance experts work with our merchants to minimise regulatory risk and burden
7. Age Verification: Selling CBD products often requires strict age verification measures to ensure that only adults purchase them. Implementing and maintaining these measures can be challenging for e-commerce platforms.
Our specialist compliance and on boarding teams work with our merchants to address verification compliance
8. Banking Challenges: CBD merchants may encounter difficulties in finding banks willing to provide them with merchant accounts. Many traditional banks are hesitant to work with CBD businesses due to the industry's perceived risks.
Our specialist teams access over 390 banking partners matching our merchants needs and business to banking appetites
9. Limited Access to Payment Gateways: CBD businesses may have limited options when it comes to integrating with payment gateways and e-commerce platforms, as not all of them support CBD sales.
Our specialist teams work with multiple payment gateways to ensure support
10. Product Variability: CBD products come in various forms, including oils, edibles, topicals, and more. E-commerce platforms and payment processors may have different policies and requirements depending on the type of CBD product being sold.
Our specialist teams know the CBD market place, its needs and, its complications and will deliver the correct solution. Securing e-commerce services can be challenging for CBD merchants, it is possible with careful planning, compliance efforts, and the selection of the right service providers experienced in the CBD industry.
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