How to Get a CBD Merchant Account
Cannabidiol, abbreviated as CBD, is one of at least 113 active cannabinoids identified in cannabis. CBD or cannabidiol is a compound in marijuana that offers many benefits without any high. Health experts are describing the benefits of cannabidiol as extraordinary. It’s a promising treatment for epilepsy, forms of cancer and depression, and more.
The fact that CBD is manufactured from the hemp plant makes the industry a high risk one. This means merchants in the field can’t secure payment processing for CBD businesses easily. That’s why it’s critical to turn to a reputable credit card processor like SecureGlobalPay to get approved for CBD merchant accounts without challenges.
SecureGlobalPay offers high risk merchant accounts, including medical marijuana merchant accounts, at the lowest possible rates in the industry.
When it comes to banks, they classify businesses in certain industries, as well as many online businesses, as high risk due to various reasons. One of the reasons has to do with large numbers of chargebacks. Chargebacks are the fees that businesses are required by credit card providers to pay to cover the losses caused by disputed or fraudulent transactions.
Merchants are considered high risk based on banks’ underwriting guidelines. That’s the reason why different financial institutions or processors calculate risk differently. Basically, risk is determined based on chargebacks and fraud. The more a business is associated with chargebacks, the greater the risk.
High risk classification is also based on the following factors:
- Business location
- Business size
- Credit history
- Credit card processing history
- High chargeback ratios
- Type of industry
- Whether a business exclusively operates online
As you see, applying to a true professional in the field is critical to your success. One of the reasons SecureGlobalPay is a well established high risk merchant account provider is because SGP prides itself on being there for its customers when they need our services the most. SGP has helped thousands of hard-to-approve merchants get the best for their high risk business needs, and merchants feel confident working with SGP.
Contact us today and we will get your started with a high risk merchant account!
