CBD Merchant Account Payment Processing Solutions | Powercash21

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CBD Merchant Account Payment Processing Solutions | Powercash21

Cannabidiol (CBD) products and their benefits have only recently gained public awareness and popularity.

CBD Merchant Account with Powercash21

CBD oil surrounded by Marijuana leaves on a white plate

Increased demand and the latest research on cannabidiol-based products have shown the potential for future industry boom. Legalised by many countries in Europe and the USA, CBD and Hemp -based products are changing the market completely. They are no longer exclusively used by a group of individuals, but rather embedded into various markets.

To be specific, cannabidiol, more commonly known as CBD, is extracted from the marijuana plant and can be a natural remedy for a wide range of various ailments. It is highly sought because it carries none of the psychoactive effects of THC, as long as THC content levels are within certain limits. CBD and Hemp oil are amongst the most popular CBD products that Powercash21 can process payments for.

Powercash21 can process payments for your CBD online store

As soon as your business is set up and organized, you’ll need a merchant account to process online payments from your customers. However, if you own a business dealing in CBD products, chances are that you’ve been turned away from payment processing at least once. This is because most payment processors and gateway service providers consider CBD a “high risk” industry, due to its association with cannabis. In the case of CBD online shops, due to the risks of fraud associated with internet retail, CBD merchant processing becomes even riskier. This is where Powercash21 can help.

Why is CBD and Hemp Oil considered High Risk?

A bottle of CBD oil on a plate sitting on a brown table

In the past, confusing regulation and lack of credible research have caused these products to be perceived as a risky proposition. The association with cannabis and its recreational uses has also contributed in reinforcing this perception, shaping a somewhat negative general opinion about CBD products. Therefore, online CBD retailers have been seen as high-risk merchants, and  banks are more reluctant to process payments relating to such products.

Additionally, in the context of ecommerce, selling CBD online comes with additional risks because online transactions always carry a higher degree of risk than those within a storefront business. This risk relates to Chargebacks and fraud activity that fraudsters engage in particularly in the non-face-to face transaction environment.

As a result of the above, most credit card processors do not facilitate the needs of CBD merchants, making the environment of payment processing for CBD products quite difficult to navigate, with many businesses being denied access to a CBD merchant account.

Choose a Payment Processor who can handle high risk

For any CBD merchant currently operating online, the choice of a Payment Service Provider or acquiring bank is very important. Most importantly the chosen payments provider must be able to process the merchant’s payments effectively and have experience in managing online payment related risks, especially within the high-risk industry context.  In this way, the payment provider can provide added value in safeguarding the merchant’s business from the costs incurred due to fraudulent payment activity.

More specifically, payment providers can control risk by using a set of different risk management tools to detect and identify fraudulent practices. These tools include 3D Secure, Geo-Conflict, Fraud Management, Velocity Checks, BIN Lookups and Pre-Authorisation.

As every merchant online surely knows, PCI compliance is also extremely important for processing credit and debit cards securely. PCI DSS stands for Payment Card Industry Data Security Standard and is a set of security standards that must be followed by companies that accept, process, store or transmit payment-related data.

Another point of consideration is the importance of payment data security. The Payment Processor must be able to ensure that all security protocols, including the aforementioned PCI DSS as well as General Data Protection Regulation (GDPR), are fulfilled. Customer data must be anonymous and stored in a cryptographic vault after processing for the purpose of preventing data theft or loss.

Ensuring a safe purchasing environment for customers, CBD merchants must be fully aware of the factors that can render a payments institutional suitable partner for a CBD online shop.

How Powercash21 can help CBD Merchants

Three bottles of CBD oil photographed from above with a marijuana leaf in the background

Where other credit card processors might reject the possibility, Powercash21 is an experienced acquirer processing payments for merchants across the risk spectrum, including CBD merchants.

Our ability to adapt and rapidly adjust to new regulations of high-risk industries is what makes us an ideal partner for your ecommerce business. In the case of CBD merchants, which are classified as high-risk, we take all the measures necessary to ensure the highest standard of payments risk management.

This is achieved by providing merchants with several tools to identify and prevent fraud. Furthermore, we ensure seamless “plug-and-play” integration with our payment gateway to enable merchants to use our payment processing services effectively and efficiently.

We also offer fully customisable checkout pages that can be integrated into your website, featuring your branding. We understand that appearance and a user-friendly payment experience are of paramount importance. Therefore, we have developed the technology and taken all the steps necessary to ensure a smooth customer journey to payment.

CBD merchant account holders with Powercash21 benefit from all the perks available to any other type of merchant, such as personalised support and dedicated account managers. In the following section, we’ll explain how we handle CBD merchant accounts and what payment solutions a CBD merchant can expect from us.

How Powercash21 handles payment processing for CBD merchants

Three different size colours of CBD oil with a spoon set in front of marijuana plants

Online payments for CBD merchants do not differ from payment processing of any other merchant as such. However, we ensure that all our merchants fulfil certain criteria in compliance with the laws of the European Union and the European Central Bank.

A CBD merchant can begin their account procedure by filling this form. A representative of ours will respond shortly thereafter in order to better determine the needs of the merchant. The procedure of opening a CBD merchant account with Powercash21 can take as little as 48 hours.

As European laws dictate, legal CBD products are the ones that include no more than 0.2% THC in their chemical structure. In order to provide a payment gateway to merchants selling CBD products online, we require a lab test certification confirming that the products abide by this legal requirement.

Following the fulfilment of all legal and regulatory requirements, our services are fully available, including our checkout pages on your website, our risk management and reporting tools, as well as a dedicated account manager for 24-7 support.

Keep reading to find out more about our online payment solutions for CBD products!

The benefits of choosing Powercash21’s Payment Solutions for CBD merchants

Two well-packaged containers of CBD Oil sitting on a light wood table

Our aim is to facilitate a seamless integration and operation of your payment processing. This implies that we’ll take every step necessary to ensure this.

Risk Management

Owning and operating a CBD online shop can carry a certain level of risk. As we have mentioned previously in this article, CBD products are considered high-risk, let alone in the online environment, where risks of fraud increase.

Our aim is to create a stress-free environment for the CBD merchant, by managing risk. As a credit and debit card processor of CBD payments, we use 3D Secure to be able to prove that the card user is the legitimate holder of the card. Other tools include velocity checks to review payment transactions for repeating patterns and geo-conflict, which tracks the geolocation of the payment to authenticate the card user.

We take care of risk so the merchants can do what they do best - grow their companies.

Gateway Services

Technology and Data Security

In order to ensure that all security protocols, such as PCI compliance and GDPR are fulfilled, we have developed our own PCI Level I certified technology to process and store data. Following processing, customer data is made anonymous and stored in a cryptographic vault through tokenization, via a secure TLS 1.2 SSL connection to our servers. Thus, data theft or loss is prevented.

PCI Compliance

As mentioned, Powercash21 is fully in compliance with PCI DSS (Payment Card Industry Data Security Standard). In the case of accepting payments online for selling CBD products, data transmission, storage and processing are securely implemented, creating a safe environment for your customers. Taking into account the increased risk that accompanies CBD products, a PCI compliant website environment would be crucial in creating consumer trust and enhancing brand equity, which will subsequently increase returning customers.

Checkout Pages

We fully understand that the customer payment journey and appearance of any online shop are of great importance to customers and their shopping experience. We are meeting the increased demands of CBD merchants with fully customizable checkout pages, which can be integrated into your online shop. In this way, your branding is present throughout the customer payment journey, reinforcing customer awareness and loyalty.

Additionally, our checkout pages are offered in multiple currencies and languages, tailored to your specific needs of payment processing and your target markets.

Reporting

Powercash21 offer anytime access to reliable data for all transactions. Owners of CBD merchant accounts can monitor transaction processing, have access to financial reporting and reconcile settlements generated in real-time. Furthermore, the merchants can check outstanding settlements and reserves following credit card processing for CBD products.
The reporting tools include both risk and financial management systems, which a CBD merchant can use to analyse the performance of their business.

Personalized Customer Relationship

We like to be close to all our customers and make sure that operations are running smoothly. Thus, we offer a dedicated account manager to each merchant, including 24/7 support for anything they might need.

Alternative Payment Methods for CBD Merchants

CBD oil lying in a bowl with red flowers surrounding the bowl set against a marble table background

Although a large percentage of the population uses Visa and Mastercard for paying for goods and services online, many other methods are being used in different regions. Powercash21 offers a wide range of alternative payment methods, as we understand that localisation is important to ensure a smooth customer payment journey.

Some of these payment methods include:

  • Bank Transfer Services
  • eWallets
  • Prepaid Vouchers

Contact us today for your CBD merchant account

As a CBD merchant, accepting and processing payments online with minimal risk is to operate under minimal stress, focusing on growing your CBD business. Contact us today to discover our available payment solutions for CBD and seamlessly accept payments online.

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