Whats Up With Online CBD Products Payment Processing?!?!
We have finally settled in on a new payment processor for our CBD products at www.cascobayhemp.shop, but a lot of folks are still in the dark. Here’s what we know
Yes, our retail CBD product site is back up and running with CC processing post Elavon, but a lot of CBD companies are still out of service. Sorry folks, we are only giving the skinny on what we did to our private label CBD clients, if ya know ya know.
With the passing of the federal farm bill, everyone thought that we would have more, or any, options for CBD credit card processing but its just not the case (This made marijuana plants and products derived from them federally legal as long as they contain less than 0.3% THC. This excited all corners of the medical marijuana world.). Elavon was the only game in town for a year or so, but when they dropped processing it left most CBD companies out in the cold. We are surprised that all of the major banks have turned their back on CBD products. This is what Elavon said back in March: “After several months supporting this merchant segment, it has become clear that the pace of an evolving federal and state regulatory framework makes it extremely difficult to validate the qualifications required to operate within this industry,”. Apparently this was brought on by one of their CBD clients being raided for selling THC products. Whoever that was, thanks a lot!!!
At least they gave us 45 days to find a new CBD processor, but that wasn’t enough for most, including us! We JUST NOW go a new processor for our retail, wholesale and private label CBD business. It really hurt our bottom line to say the least. It’s been said that 90% of online CBD merchant payment processing in the United States was done by Elavon. So, on March 14, nearly all CBD brands began scrambling for a new solution before losing their ability to accept credit card payments. We all got the calls and emails from brokers, little did we know they were all disguising the fact that they were selling the same 2 solutions. Both overseas with ridiculous minimums, rates, fees and reserves. It was reminiscent of the mortgage craze years ago.
Right now there is one domestic bank doing CBD processing, but unfortunately if you aren’t doing at least $200k a month in sales don’t bother applying. This pushes out like 99% of all CBD companies.
Offshore CBD cc processing is still an option through companies like T1 Solutions. Mastercard is requiring you have an address in the EU, which T1 will help you setup. Most CBD companies can hit their minimums and afford the fees. Visa is most likely on the way to this requirement as well. Most companies in the EU are using these accounts, obviously. Regulation on CBD is more liberal in the EU.
The good ol’ domestic E Check is available to any size CBD company in the US. This payment method doesn't rely on banks and has been largely unaffected by recent changes. There are just some small monthly and upfront fees associated with E Check, the major downfall is the hassle to the consumer. Most don’t like it.
Another CBD payment processing option, but its on-site brick and mortar only, is the swipe CC processing terminal.