CBD merchant accounts are specifically for accepting credit card transactions as payment for CBD products. Offshore CBD merchant accounts allow business owners to expand their customer base by accepting payments internationally via different currencies. Acquiring the right offshore CBD merchant account can be challenging as it is considered a high-risk business with cross-border processing needs.
Many merchant service providers will even drop a CBD merchant account after facilitating payments for months. They may take it on but suddenly perceive the business as too high risk and drop it without warning. There are several reasons why merchants need offshore credit card processing.
- Some merchants have offices in multiple countries and need separate merchant accounts for every location.
- Due to the multinational nature of operations, there is a need for payments to be made in local currency.
- Traditional credit card processors can consider CBD merchant accounts too high risk.
Why CBD Merchant Processing is Deemed High Risk
CBD Oils, by definition, are controversial as they are derived from the hemp plant. Even though these oils barely contain trace amounts of THC (0.3 thc), most processors steer clear of these business types. Additionally, the CBD industry is not legal in all 50 states, as each state has its own specifications as per the Controlled Substances Act. Most financial institutions and acquiring banks will probably not want to support a product with legal complications.
Getting approved for a high-risk merchant account without going through the hassle of being declined is quite challenging unless you apply with the correct CBD payment processing provider. The CBD payment processor of choice must have the capacity to deal with high-risk transactions and specialize in CBD sales. Strong chargeback management and fraud protection are also essential for all CBD businesses that are accepting online payments.
Reasons for Offshore CBD Merchant Accounts
Offshore payment processing comes with several benefits, such as currency fluctuation buffers and tax advantages. Countries such as Gibraltar and Malta are reputed as low tax havens, so they would be excellent at processing offshore payments. Offshore merchant accounts also offer high-volume solutions for CBD-based businesses.
Payment service providers like SecureGlobalPay are experienced with CBD credit card processing both domestically and offshore as well. Merchants operating in the CBD industry that require generous processing volume requirements can also take advantage of international payment processing solutions. These international merchant accounts provide access to the rest of the world and also provide additional bandwidth when processing larger volumes of transactions.
These accounts also have relatively simple registration processes. Their goal is to assist e-commerce businesses to expand their marketplace while also offering secure payment processing. Registering a company in another country or jurisdiction can be difficult, but SecureGlobalPay can facilitate the movement of resources.
Another reason one would consider an offshore merchant account is to protect assets. Running a business carries inherent risks, and the CBD sector does not have a lot of oversight.
By opening an offshore merchant account, litigation is made more challenging. That reduces the risk of lawsuits, and one could keep the business running with a mixed portfolio of merchant accounts.
CBD Merchant Processing – Point of Sale Options
A CBD payment processor with point-of-sale availability allows merchants to manage both the online and offline portions of the business. Integrated reporting for all platforms helps increase CBD merchants’ profit-making abilities while also improving engagement with their customers.
Many of these systems tend to control stock inputs and outputs from distinct locations. The best way to sell CBD items from a retail space would be to attain a dedicated countertop, credit card terminal, or point-of-sale system.
One may also use a phone to process the payments. Contactless approaches are preferred, though they may not correspond with some point of sale configurations depending on hardware setups.
High-Risk Accounts – Easy Integration
It can be a hassle for customers to switch from one payment gateway to another without the proper guidance. This is where payment service providers like SecureGlobalPay come into the picture. There are many advantages that come with a company that has the best payment gateway for high-risk and allows for seamless integration with e-commerce compatibility.
Merchant accounts with porting capabilities would be the most attractive out there as they can support a thriving business without any downtime.
What to look for in a International CBD Merchant Account and Payment Gateway
The process ought to be simple. When credit card transactions are accepted either in person or at checkout, it should be seamless. Merchants should not need to have processing obligations apart from accepting payments and preventing and reducing chargebacks. Another thing to look out for is to make sure and accept all card brands.
If the payment processor cannot accept a particular card type, this could be an issue. Make sure you ask your payment processor if they accept cards like American Express or China Union Pay. Customers wishing to use these alternate card types will most likely go elsewhere if your business model is not accommodating.
What Fees Can I Expect to Pay for an Offshore CBD Merchant Account
The overall fees also need to be considered. Many payment processors may charge exorbitant rates for merchant accounts deemed high risk like CBD. They are aware customers are desperate for a solution, so it would be best to scout an account that charges reasonably.
Customers should ask themselves if they can afford to pay specific providers’ specific percentages on every transaction. Before signing up, they should also determine if it would work with their profit margins.
The manner business is done changes every day, so customers need to keep up to date with the latest trends. This includes legal ramifications and contractual requirements for processors even as they conduct transactions through them. The due diligence will protect them from being overcharged by going for the wrong option or falling victim to fraud.
However, most of these contracts are binding. That means if something goes wrong, there might be a lengthy period in which a merchant can not candle their account without an early termination fee. As a precaution, merchants ought to make sure there are contingencies set up to cancel without penalties if the service is not up to par.
No Costs until You are Processing
SecureGlobalPay is linked to several offshore financial institutions that welcome CBD merchants. They have provided offshore merchant accounts for more than two decades. The company also has a sense of the best acquiring banks for high-risk industries.
They also do not issue costs to merchants until the transactions are being processed through the website because they value customer satisfaction. Prospective CBD clients can speak directly with an account manager at any time. SecureGlobalPay, payment solutions that make sense!