Whether you’ve been a CBD Merchant for awhile or you’re new to the business, the changing laws and attitudes surrounding the sale of CBD have most likely left you with more than a few questions. Fortunately, as a company that’s been around before any of the recent legislation regarding marijuana and CBD was passed, we know how to best guide you through the confusing areas of the business. Though things are rapidly changing in the industry, there are a few basics that you can expect. First off:
Your business is considered high risk.
For the time being, there’s not much that can be done about this. What we can do is make sure you have strong relationships with processors that can help. Elavon, for instance, is an important processor that you’ll need to work with if you’re selling CBD. But because they’re worried about getting slapped with huge fines, they’re cautious when it comes to any transactions related to CBD, which is still on a list of prohibited products for most processors.
Before you set up your account, here’s what you should know.
To set up a CBD oil merchant account, you need to be selling just that and only that. If you try to sell products that have a THC content higher than .3%, you won’t be able to set up your account. You also can’t sell anything you can smoke, so vapes are out of the question. You also need to make sure that the CBD oil you’re sourcing comes from hemp rather than marijuana. This might seem like a small distinction, but it makes a huge difference. If you don’t want your business to be flagged and your account put on hold, it’s crucial that you don’t try to sell anything that isn’t hemp-based.
However, even selling hemp-based CBD oil or other hemp products can find themselves in trouble. Many businesses try to get around this by using services like PayPal which seem a bit more lenient on the surface. But make no mistake: Once PayPal finds out that yours is a CBD merchant account, they will close it.
Full disclosure is important.
It’s not enough to list your products and be transparent about what you’re selling. You also need to have the CoA, or Certificate of Analysis, close at hand. This will help confirm that your product is safe and below the maximum THC levels for legal sale. Since the FDA takes the sale of CBD and hemp seriously, you need to be able to prove that your product is clean and safe for use. One of the biggest mistakes you can make is to trust a sales representative who doesn’t know the product. In the wake of the CBD boom, a lot of reps have tried to get in on the action without knowing too much about the actual product they’re selling. This can easily end up meaning trouble for you, especially if you’re working with wrong or out-of-date information. As a high-risk merchant, you can’t afford to make even the smallest mistake. Getting your account shut down or put on hold could be disastrous for your business, so it pays to have the experts on your side. If you want to avoid dealing with misinformation about vape products, potency, volume accuracy, and ticket accuracy, S&S has you covered. You don’t have to worry about being left in the dark or being fed harmful information that could lead to the closure of your account. Starting your CBD oil merchant account shouldn’t be difficult or frustrating, as long as your armed with the right tools and the unparalleled product expertise you’ll get from S&S.